Why a new federal definition of hemp has a Vermont industry holding its breath

August 9, 2026 - 17:43

A looming change to the federal definition of hemp has Vermont's CBD and wellness industry bracing for impact. The new rule, set to take effect soon, would tighten the legal threshold for hemp based on its total THC content rather than just the delta-9 form. For many small farmers and product makers in the state, that shift could make crops and extracts suddenly illegal, even if they were grown and sold under current law.

"The clock is running out," said one CBD vendor in Burlington. "It's so hard to plan and make any kind of business decisions with all this uncertainty." The vendor, who asked not to be named, said she has already paused new product development and is holding off on signing contracts with growers for next season.

Under the current federal standard, hemp is legal if it contains no more than 0.3 percent delta-9 THC on a dry weight basis. The proposed rule would count all forms of THC, including THCa, which is abundant in many hemp strains. Since THCa converts to psychoactive THC when heated, regulators argue the new measure better captures the plant's actual intoxicating potential. But Vermont producers say it would wipe out a large share of their crop, especially high-CBD strains that naturally carry elevated THCa levels.

State officials are watching closely. Vermont's Agency of Agriculture has not yet issued formal guidance, but local farmers are already worried about the cost of retesting and the risk of losing entire harvests. Some are considering switching to grain or fiber hemp, which have lower THC profiles, but that market is far less profitable.

Industry advocates are pushing for a delay or a state-level exemption, but time is short. For now, many businesses are simply waiting, unable to invest or expand. As one farmer put it, "We built this whole sector on the old rule. Changing it now feels like moving the goalposts after the game already started."