Hemp Definition Shift Threatens Fiber and Grain Expansion

Regulatory uncertainty could slow the growth of fiber and grain hemp unless implementation is delayed.

Small hemp plants growing in outdoor plots at Forty Acre Co-op in Willow River, Minnesota.

Forty Acre Co-op in Willow River, Minnesota

FarmHER, Inc.

NASHVILLE, Tenn. (RFD NEWS) — A pending change to the federal definition of hemp could disrupt U.S. fiber and grain hemp markets, even though those sectors are not the primary targets of the new rule. Unless delayed, the revised definition takes effect on November 12, 2026, tightening compliance standards and reshaping the broader hemp economy that supports industrial production.

The updated law shifts hemp compliance from a delta-9 THC standard to total THC, while excluding certain synthesized cannabinoids and tightening product eligibility. Although fiber and grain hemp typically test far below THC thresholds, industry leaders warn that the change could destabilize processing, financing, and infrastructure shared across hemp markets.

Fiber and grain hemp production has been rebuilding, with leading acreage in states such as South Dakota, Montana, Missouri, and parts of the Midwest. These crops support industrial uses, including animal feed, bioplastics, textiles, and construction materials, while also offering agronomic benefits such as crop rotation and soil improvement.

Concern over market disruption has prompted the introduction of the Hemp Planting Predictability Act, which would delay implementation for three years. Supporters argue the extension would protect farmers, preserve industrial investment, and allow time for clearer regulatory separation between intoxicating products and agricultural hemp.

Farm-Level Takeaway: Regulatory uncertainty could slow the growth of fiber and grain hemp unless implementation is delayed.
Tony St. James, RFD NEWS Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Rising Chinese feed output — especially for swine — signals sustained demand for protein meals and feed inputs, even when meat production growth appears modest.
Ethanol output is improving, but weak domestic demand and export headwinds temper optimism about corn demand. Renewable Fuels Association President & CEO Geoff Cooper discusses the latest developments on Federal approval of year-round E15.
Nitrogen and phosphate markets are tightening ahead of spring, keeping fertilizer costs elevated while crop prices lag.
In the U.S. and Canada, reduced planted acres—not yield losses—led to a decline in potato production, while Mexico saw modest gains due to increased yields and harvested areas.
AFBF Economist Samantha Ayoub discusses the latest data on Chapter 12 farm bankruptcy filings and what the troubling trend signals for the farm economy. At the same time, bigger loans and higher rates are squeezing working capital and increasing financial risk.
Corn demand remains supportive, but weaker soybean buying limits overall export momentum.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.