The 2018 Farm Bill’s Role in Building Today’s CBD Regulatory Systems

The 2018 Farm Bill transformed the U.S. hemp and CBD marketplace, creating the legal framework that continues to guide registration, compliance, and consumer protections today. Before its passage, hemp-derived cannabinoids existed in a gray area where federal drug laws and agricultural regulations frequently contradicted one another. By clearly defining hemp, separating it from marijuana, and outlining rules for production and oversight, the legislation established the foundation for how CBD businesses operate and how states structure their registration programs.

At its core, the Farm Bill legalized hemp by removing it and its derivatives—such as cannabinoids, extracts, and isomers—from the Controlled Substances Act, as long as the plant meets one crucial requirement: it must contain no more than 0.3% delta-9 THC on a dry weight basis. This seemingly simple definition became the cornerstone of what qualifies as legal CBD and what must be regulated under state hemp programs. Anything above that threshold is considered marijuana under federal law, falling outside the protections of the Farm Bill.

The legislation also shifted regulatory authority for hemp from the Drug Enforcement Administration (DEA) to the U.S. Department of Agriculture (USDA). Under this system, hemp growers and processors must operate under either a USDA-approved state or tribal hemp plan or the federal plan where states decline oversight. These plans outline licensing, sampling, testing, and disposal requirements—areas that indirectly shape CBD registration today. Although federal law does not mandate a specific “CBD registration,” states built their administrative frameworks for CBD manufacturing and sales from the same regulatory logic established in the Farm Bill.

This structure has led to a patchwork of state-level CBD registration programs. Some states require CBD product manufacturers to register annually, submit product lists, or provide certificates of analysis (COAs) that confirm compliance with the Farm Bill’s THC limit. Others mandate retailer registrations, background checks, or routine inspections. While the federal government legalized hemp, it also granted states broad authority to impose additional regulations. As a result, CBD registration today often depends on where a business operates rather than a single federal standard.

Another important influence of the 2018 Farm Bill is its impact on labeling and testing standards. Because the USDA regulates hemp production—but not finished CBD products—states stepped in to fill this regulatory gap. Many state registration systems now require COAs, labeling transparency, ingredient disclosures, and THC verification. These requirements aim to protect consumers from inaccurate potency claims and unsafe manufacturing practices, especially in a market where the FDA has yet to implement comprehensive CBD rules.

Furthermore, the Farm Bill set the stage for ongoing debates about hemp-derived cannabinoids beyond CBD, including delta-8 THC, THCP, and other intoxicating compounds synthesized from hemp extracts. Many states cite the Farm Bill’s definitions and intent when deciding whether to register, restrict, or ban these products. As the hemp industry evolves, CBD registration frameworks increasingly reference federal definitions while adapting to emerging cannabinoid innovations.

Ultimately, the 2018 Farm Bill remains the backbone of modern CBD regulation. It legalized the industry, established THC compliance thresholds, and empowered states to build registration programs that prioritize safety, transparency, and oversight. While federal guidance continues to develop, CBD registration today is fundamentally rooted in the definitions and regulatory structure established by the landmark 2018 legislation.