“Fit for Purpose” Policy Proposal for 2025 Farm Bill

NIHC Advances Groundbreaking “Fit for Purpose” Policy Proposal for 2025 Farm Bill: Invites Industry Feedback

WASHINGTON, May 16, 2025 – NIHC today released a comprehensive framework designed to shape the future of Industrial hemp regulation in the United States. This groundbreaking “Fit for Purpose” (FFP) policy proposal, developed over the past four years by the NIHC Policy Committee, seeks to address the diverse and evolving needs of the industrial hemp industry as Congress works on the next Farm Bill.

“The release of the Fit for Purpose proposal marks an exciting step forward for the hemp industry,” said NIHC President &CEO Patrick Atagi. “Fit for Purpose provides a clear action plan for hemp based on what is grown and its purpose and is a testament to the vision and dedication of our Policy Committee and the broader hemp community. It is important that we speak with one voice as we continue to work with policymakers to shape a future where the hemp industry can truly thrive.”

Unlike previous Farm Bill legislation that focused primarily on a one-size-fits-all regulatory approach centered on cannabinoid production, the FFP framework recognizes the full scope of the hemp industry’s growth and diversification. Hemp is no longer just a crop for CBD production; hemp now spans multiple industries, including fiber & textiles, grain, construction materials, food products and innovative applications like bioplastics and battery components.

“We are at a pivotal moment in hemp industry history, and the Fit for Purpose framework is a crucial step in ensuring the industry continues to thrive and expand,” said Tim McCarthy, NIHC senior advisor and Policy Committee Chair. “This proposal provides tailored solutions that support the diverse needs of hemp farmers and manufacturers, while fostering clear, fair and effective regulations at both the state and federal levels.”

Key Highlights of the FFP Framework

• Post-Harvest Testing: Allows farmers additional time to harvest and prepare crops before testing, increasing accuracy and reducing compliance risks.
• Performance-Based Sampling: Introduces statistical sampling methods to ensure regulatory integrity and flexibility in testing.
• Specialized Licensing Categories: Nine distinct license types to address the various uses of hemp, including fiber, grain, biomass, and flower production.
• Certification System: Establishes clear documentation for hemp grown according to specific license requirements, without burdening farmers with final product regulation.

“These elements are vital to today’s industrial hemp industry,” said McCarthy. “Hemp is grown for diverse purposes—such as woven and nonwoven textiles, building materials, plastics, protein, Omega 3 rich seed oil—and none of these involve cannabinoids. But one single testing standard for all end uses could result in unintended consequences, such as the destruction of entire fields and devastate a farmer’s crop meant for textiles, insulation panels, bioplastics or healthy food sources. This is why post-harvest testing based on the intended license and market is so important.”

The proposal also includes critical policy improvements aimed at addressing gaps in current hemp regulation:

• Increased THC Threshold: Adopting the National Association of State Departments of Agriculture (NASDA)-recommended 1% THC threshold for harvest compliance, providing clarity for farmers.
• Expanded Testing Capacity: Adding USDA and EPA-certified labs to eligible testing facilities, reducing costs and bottlenecks.
• Reduced Barriers to Entry: Eliminating background checks that have disproportionately excluded minorities and underserved communities from hemp cultivation.
• Food and Supplement Classification: Proposes classifying hemp products under FDA frameworks to stabilize the market.
• Pet Feed Authorization: Expands the use of hemp seed and byproducts as ingredients in pet and animal feeds.

This policy proposal is the result of extensive collaboration within the hemp industry, including contributions from policy experts, farmers, breeders, and manufacturers. The NIHC Policy Committee extends a special thank you to Rick Fox, Chris Fontes, Josh Schneider, Hunter Buffington, and Marty Clemons for their dedication and expertise in developing this groundbreaking package.

Call for Industry Feedback

As part of its commitment to inclusivity and collaboration, NIHC is seeking reactions and comments from the hemp industry on the Fit for Purpose proposal. This is a critical opportunity for industry stakeholders to provide input and ensure the regulatory framework reflects the diverse needs of all sectors within the hemp industry.

“We believe the Fit for Purpose approach will help us navigate the future of industrial hemp, but we need to hear from you,” said McCarthy. “Your feedback will be essential in refining this proposal to ensure it supports the continued growth and success of the U.S. hemp industry.”

How to Get Involved

The NIHC invites all industry members, including farmers, producers, investors and stakeholders, to provide feedback by June 30 directly to FitForPurpose@hempindustrial.com.

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About NIHC

The National Industrial Hemp Council (NIHC) is the leading advocacy organization for the industrial hemp industry, dedicated to promoting the growth and development of hemp as a sustainable agricultural resource. NIHC works to advance the interests of hemp stakeholders at the federal, state and international levels through advocacy, education and collaboration.

Contact: info@hempindustrial.com