Proposed Federal Bill Could Upend Oregon’s Hemp Industry
Hemp farmers warn a new federal definition of hemp could devastate local agriculture and small businesses
JACKSONVILLE, Ore. — A new federal spending bill aimed at reopening the government could carry unintended consequences for Oregon’s hemp industry, potentially banning many popular hemp-derived products and threatening a key sector of the state’s rural economy, states a report by KOBI-TV NBC5
The proposed policy change—tucked inside a congressional appropriations package—would amend the legal definition of hemp established under the 2018 Farm Bill. The new language would restrict “total THC” content, rather than the current limit of 0.3% delta-9 THC on a dry weight basis, effectively outlawing hemp-derived cannabinoid products such as full-spectrum CBD and delta-8 THC.
Industry advocates warn that the shift could dismantle the legal market for hemp consumables nationwide.
“This legislation completely misunderstands the plant’s chemistry and the mission-driven nature of our business,” said Paul Murdoch, co-founder of Horn Creek Hemp in Jacksonville. “CBD, by itself, is the primary reason people use hemp products. This is not just a money-making enterprise; it’s kind of a mission for us.”
Murdoch said that while the proposal aims to close what lawmakers see as a “loophole” around synthetic intoxicating compounds like delta-8 THC, its broad language could unintentionally criminalize naturally derived, non-intoxicating CBD products.
Southern Oregon’s Hemp Legacy at Risk
The 2018 Farm Bill sparked a boom in hemp farming across Southern Oregon, transforming parts of Jackson County into one of the nation’s largest CBD-producing regions. Many local farms—previously focused on pears, grapes, or other traditional crops—transitioned to hemp as demand for CBD grew.
Now, with the potential redefinition of legal hemp, that progress could be undone.
In a statement, Southern Oregon Family Farms, a cooperative representing 14 regional farms, said:
“Not only will this bill put hundreds of thousands of Americans out of work, it is likely to promote illegal activity within states currently operating within the legal boundaries of cannabis-related products. It would be a huge step back for our industry. We support added regulations for product safety, but rather than redefining the potency threshold we feel it would be more responsible to focus on testing for pesticides and added restrictions at the store level such as age requirements to guarantee safe products for the consumer.”
The group warns that redefining hemp could drive legitimate businesses underground while erasing years of progress toward transparency and consumer safety.
An Uncertain Future
Murdoch said he remains hopeful that lawmakers will amend or remove the controversial language before the bill becomes law.
“Typically, the arc of these things is they either don’t get enacted in their final form, or they get tweaked to where it’s workable,” he said.
If passed as written, the change would force many hemp producers to either pivot toward industrial hemp products—such as fiber and grain—or shut down entirely.
The full report and interview video are available from KOBI-TV NBC5.
Cover image: stock photo