2021 Hemp Infrastructure Proposal: NHA Seeks $1B Federal Amendment
The National Hemp Association urged Congress to allocate $1 billion for hemp grain, fiber, and processing hubs in the 2021 infrastructure bill.
In September 2021, the National Hemp Association (NHA) and its Standing Committee of Hemp Organizations (SCOHO) introduced the 2021 hemp infrastructure proposal: a $1 billion amendment to expand grain, fiber, and processing capacity across the U.S.
As the U.S. hemp industry sought stability in 2020, advocacy group Vote Hemp spearheaded a petition to Congress calling for an increase in the legal THC threshold from 0.3% to 1.0%. This campaign, widely referred to as the 2020 hemp 1% THC petition, reflected growing concerns that overly rigid regulations were undermining farmer livelihoods and discouraging investment.
Hemp’s current legal definition, set under the 2018 Farm Bill, restricts THC content to 0.3% delta-9 THC. However, hemp genetics, environmental conditions, and extraction processes often cause natural fluctuations that can push crops above that limit. When this happens, crops are deemed non-compliant and must be destroyed — a devastating loss for farmers.
Vote Hemp’s petition argued that raising the limit to 1% THC would:
- Provide genetic flexibility, making hemp more resilient across diverse climates.
- Reduce crop destruction rates, ensuring higher profitability for farmers.
- Encourage long-term investment in hemp cultivation, processing, and innovation.
At the same time, industry leaders expressed frustration with ongoing regulatory confusion. The DEA’s Interim Final Rule on hemp extracts and the FDA’s lack of clear CBD guidance left businesses uncertain about compliance. Attorneys at Holland & Knight warned that inconsistent enforcement could discourage capital and threaten industry growth.
Articles in Cannabis Business Times emphasized that farmers and processors were caught in the middle, with the legal ambiguity slowing progress in the hemp-derived CBD market. Advocates saw the 1% threshold not only as a scientific adjustment but as a policy correction to allow the hemp economy to thrive.
While Congress had not yet acted on the petition by the end of 2020, the campaign highlighted the industry’s broader call for rational, farmer-friendly regulations that balance safety with agricultural viability.
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