With over $1.1 billion in hemp product sales in 2022 and projections of exponential growth, the potential ban could jeopardize the livelihoods of 56,000 farmers and disrupt the market's trajectory. 

In a recent announcement, the Drug Enforcement Administration (DEA) has clarified that Tetrahydrocannabinolic acid (THCA) does not meet the federal definition of hemp under the 2018 Farm Bill. 

This revelation comes as a result of a letter from Terrence Boos, chief of DEA’s drug and chemical evaluation section, stating that THCA, which converts into delta-9 THC when heated, must be considered when measuring a product’s delta-9 THC level. 

The DEA's position on THCA has significant implications for the hemp industry, as it could potentially disrupt hemp farmers' compliance with federal THC limits.

DEA's position on THCA comes as federal lawmakers reconsider how to address hemp and cannabinoids under a revised version of the Farm Bill, with a key House committee having recently adopted an amendment that would generally ban hemp-derived cannabinoids such as delta-8 THC. 

DEA is essentially saying in the letter that because THCA so readily converts into delta-9 THC, it can’t be ignored when measuring a product’s delta-9 THC level.

Impact on Hemp Industry

“This interpretation would destroy the hemp industry,” Jonathan Miller, general counsel for the U.S. Hemp Roundtable, told Marijuana Moment. 

Asked if he thought hemp farmers would object to the idea that a product that tests at 0.2 percent delta-9 THC but also 4.6 percent THCA, Miller replied: “I would imagine nearly every hemp farmer and company would find this interpretation objectionable.”

Shawn Hauser, who co-chairs cannabis-focused law firm Vicente LLP’s hemp and cannabinoids practice, said the Farm Bill “requires biomass to be tested pre-harvest for total THC, which considers the percentage of THCA in pre-harvest material.” 

Hemp products are required to have a pre-harvest certificate of analysis showing the products are compliant, she said.

DEA’s Recent Interpretations

Boos, DEA’s drug and chemical evaluation section chief, has been responsible for a number of recent agency opinions on cannabis and other drugs. 

Notably in 2022, for example, he penned the DEA letter clarifying that marijuana seeds are considered legal hemp as long as they fall below federal THC limits. 

Boos also issued another relevant administrative interpretation last year when he asserted that DEA considers the intoxicating cannabinoid delta-8 THC an illicit Schedule I drug if it’s synthesized from federally legal CBD.

Congressional Response and Industry Concerns

American farmers around the country have invested their time and resources over the last six years to develop a domestic supply chain of hemp and hemp products. 

Hemp provides a great opportunity for family farms to diversify their farm income by using him as a rotational crop. 

Some industry stakeholders have said the change could even federally criminalize CBD products because the measure would apply to all ingestible hemp products with any level of THC.

The hemp market started to rebound in 2023 after suffering significant losses the prior year, the latest annual industry report from the U.S. Department of Agriculture (USDA) found. 

Bipartisan lawmakers and industry stakeholders have sharply criticized FDA for declining to enact regulations for hemp-derived CBD, which they say is largely responsible for the economic stagnation.