How Donald Trump Created An American Hemp Revolution

When President Donald Trump signed the Agriculture Improvement Act of 2018, commonly known as the 2018 Farm Bill, he did more than just legalize hemp; he initiated a profound transformation in the American cannabis landscape. Let me explain, under federal law the organism Cannabis sativa L. has two separate legal standings. Hemp is the legal form of cannabis while marijuana is the illegal form of cannabis.

With one stroke of the pen, President Trump disentangled cannabis from decades of federal prohibition and conflicting federal and state laws by establishing hemp as a legal commodity distinct from illegal marijuana. This bold move not only revitalized the U.S. agricultural sector but also laid the groundwork for a thriving hemp industry that is rapidly rendering state-regulated medical and recreational marijuana programs obsolete.

The Genesis of a Hemp Revolution

The 2018 Farm Bill legalized the cultivation, processing, and sale of hemp nationwide, removing it from the Controlled Substances Act. This pivotal decision marked the end of a long-standing prohibition and opened the doors for hemp to become a cornerstone of American agriculture as a legal agricultural commodity. By updating the definition of hemp as cannabis with a delta-9 THC concentration of no more than 0.3% on a dry weight basis, the bill provided a clear legal framework that distinguishes hemp from marijuana, where marijuana remains federally illegal.  

This legalization has had far-reaching economic implications. By 2024, the U.S. hemp market is projected to exceed $30 billion, driven by surging demand for hemp-derived products such as CBD, THCA, textiles, and sustainable materials. This booming market has led to the creation of over 250,000 jobs across various sectors, including agriculture, manufacturing, and retail.

In stark contrast, the combined revenue from state-regulated medical and recreational marijuana programs is expected to reach approximately $35 billion by 2024. While this figure is impressive, the growth rate of the hemp industry has been significantly faster than that of state-regulated marijuana. The hemp market has experienced a compound annual growth rate (CAGR) of around 32% since the passage of the Farm Bill, compared to the state-regulated marijuana market’s CAGR of approximately 14% during the same period. This difference underscores the rapid expansion of the hemp industry, which has been fueled by its ability to operate across state lines and its broader acceptance in the marketplace.

The whirlwind growth of the hemp industry can be attributed to several factors, including its federally legal standing as an agricultural commodity, which has attracted more investment and allowed for greater innovation. Additionally, the versatility of hemp as a crop—used in everything from cannabinoid-based wellness products to construction materials—has created a more diverse and resilient market compared to the more narrowly focused state-regulated marijuana programs which are only based on cannabinoid sales.

By comparing the projected revenues, job creation, and growth rates of the hemp industry with those of state-regulated marijuana programs, it becomes clear that hemp represents a more pragmatic and successful model. The ability of the hemp industry to operate freely across state lines with zero jurisdiction and oversight from the DEA gives it a distinct advantage over state-regulated systems, which are increasingly becoming obsolete in the face of hemp’s rise.

THCA: Not a Legal Loophole, but a Defined Legal Status

As mentioned before, a critical component of the 2018 Farm Bill is the explicit distinction it draws between legal hemp and illegal marijuana, particularly concerning THCA, the non-psychoactive precursor to THC. Contrary to some claims, the allowance for THCA under the Farm Bill is not a legal loophole but rather a clear and intentional aspect of the law.

The 2018 Farm Bill definition of hemp protects THCA, provided it does not convert to THC above the legal threshold during the decarboxylation process (which occurs when THCA is heated).  Additionally, the final rules issued in 2021 by the U.S. Department of Agriculture (USDA) further solidify this interpretation. Confirming that products containing THCA are protected under federal law as long as they comply with the THC threshold.

Even the DEA’s own official perspective also aligns with this interpretation. In response to inquiries and legal challenges, the DEA has affirmed that THCA, when derived from hemp and within the legal THC limits, is not considered a controlled substance under federal law. This position was upheld in various court rulings that recognized the legality of hemp-derived THCA under the 2018 Farm Bill, further dispelling any notion that its inclusion is a loophole.

Legal Distinctions and the Rise of THCA

This critical aspect of the 2018 Farm Bill and its explicit protection of THCA, created further protections by removing hemp and its derivatives from under DEA jurisdiction while placing them exclusively under the USDA, meaning that violations related to hemp typically result in civil penalties rather than criminal charges. This legal clarity provides hemp businesses and consumers with a level of security and confidence that state-regulated medical and recreational marijuana programs cannot match, as those remain federally illegal and under DEA oversight.

While the “Cole Memo” provided some protection to state-legal medical and recreational marijuana businesses by advising federal prosecutors to deprioritize enforcement, it did not change the fundamental illegality of marijuana under federal law. This leaves businesses in these states vulnerable to federal prosecution, creating an environment of uncertainty and risk that hampers growth and investment. In contrast, the hemp industry benefits from the assurance of federal legality, which has fueled investment and innovation, leading to a more competitive and dynamic market.

Economic and Social Benefits of Federally Legal Hemp

The economic benefits of federally legal hemp extend far beyond job creation. Hemp’s ability to operate across state lines without the legal and logistical barriers that constrain state-legal marijuana businesses has allowed the hemp industry to flourish. This freedom has led to legal safety, lower prices for consumers, broader product availability, and greater market access, all of which contribute to the industry’s rapid growth. 

Socially, the federal legalization of hemp has helped to destigmatize cannabis use by drawing a clear line between hemp and marijuana. This distinction has encouraged broader acceptance of cannabis-derived products, particularly those used for wellness and medical purposes. In contrast, state-regulated marijuana programs continue to grapple with stigma and the challenges of navigating a complex and fragmented legal landscape.

Trump’s Legacy: Redefining Cannabis with “One Stroke of the Pen”

In hindsight, President Trump’s signing of the 2018 Farm Bill will be remembered as a defining moment in the history of cannabis in America. With one stroke of the pen, Trump solved a seemingly complicated set of conflicting state and federal laws finally removing cannabis from its decades long federal prohibition, creating a new, legal pathway for cannabis products through hemp. This decision not only catalyzed the growth of a multi-billion-dollar industry but also provided a clear and stable legal framework that has allowed the hemp industry to outpace state-regulated marijuana programs in both economic impact and social acceptance.

As the hemp market continues to expand, generating billions in revenue and creating hundreds of thousands of jobs, it is clear that President Trump’s decision to legalize hemp has fundamentally reshaped the American cannabis landscape. The economic and legal benefits of hemp, coupled with its exemption from DEA oversight replacing it as a legal agricultural commodity under the USDA, have positioned it as a more viable and sustainable model for cannabis regulation than the current patchwork of state marijuana programs.

In conclusion, President Trump’s 2018 Farm Bill did more than just legalize a plant; it set the stage for a new era in American agriculture and cannabis regulation. This revolutionary paradigm ensured that the hemp industry would continue to thrive, offering consumers and businesses a more secure, profitable, and legally sound alternative to the uncertain world of state-regulated, but still federally illegal marijuana. This bold move has cemented President Trump’s legacy as a key figure in the mainstreaming and economic empowerment of cannabis through hemp in the United States, providing a pathway for continued growth and innovation well into the future.

This article was submitted by AJ Fabrizio.