The hemp industry faces its biggest shake-up since 2018
Effective November 13, 2025, Congress fundamentally rewrote the laws governing hemp in America. Buried within the government funding bill (starting at pg. 64) is language that will reshape the entire hemp industry, including a critical shift in how marijuana seeds are treated under federal law. See our overview from last week, here.
The genetics loophole: what just got closed
For years, the hemp industry operated under a simple rule established by the 2018 Farm Bill: if a cannabis plant contained no more than 0.3% delta-9 THC by dry weight, it was legal hemp. This created what many lawmakers now call a “loophole”—one that allowed high-THC genetics, THCA flower, and intoxicating consumable products, to flourish in the legal hemp market (they still remained illegal under the Food and Drug Cosmetic Act).
Here’s what changed: The new legislation explicitly excludes from the federal definition of “hemp” viable seeds from plants that exceed 0.3% total THC (including THCA). This means seeds from plants that can grow into high-THC cannabis, or produce high THCA flower, are no longer considered legal hemp. They’re now classified as “marijuana” under federal law.
This is a seismic shift that will affect countless operators around the country. Previously, the seeds themselves weren’t considered marijuana by DEA and others, simply based on the genetics they carried. Now, if those seeds will produce plants exceeding the total 0.3% THC threshold, they’re federally illegal. Companies like Royal Queen Seeds, will now find itself in violation of both federal and state law starting November 13, 2026 (somehow they are operating in Oregon, despite Oregon excluding marijuana seeds from its definition of hemp).
What this means for seed imports and exports
The implications for international seed trade are immediate and severe:
Current status
Under the 2018 Farm Bill framework, seeds could be imported and exported throughout the US and internationally as long as the parent plant met the 0.3% delta-9 THC threshold and the importing jurisdiction permitted the seeds.
After the grace period
The new law redefines what qualifies as hemp seed. Any viable seeds from cannabis genetics that would produce plants exceeding 0.3% total THC (including THCA) are now classified as marijuana, making their import, export, and interstate transport a federal crime.
A critical loophole may still exist: tissue cultures and clones
Interestingly, the new legislation specifically targets “viable seeds” from marijuana plants, but appears to remain silent on tissue cultures and clones that test at or below 0.3% total THC.
This potential gap in the law could be significant. While seeds carrying high-THC genetics are now explicitly excluded from the hemp definition, vegetative propagation methods like tissue culture and clones that themselves test below the threshold may still technically qualify as hemp under the statute.
What a “tissue and culture loophole” could mean
For cultivators and breeders:
- The seed industry could shift away from seeds and move towards distributing propagative alternatives.
- Tissue cultures and clones that individually test at or below 0.3% total THC might still be tradeable as hemp.
- However, the regulatory landscape remains uncertain. Enforcement agencies may interpret the law differently.
Words of caution:
- Just because the law doesn’t explicitly address tissue cultures doesn’t mean they’re clearly legal.
- Regulatory agencies like the USDA and DEA will likely issue guidance on this issue. Further, exporting and importing such propagative materials may trigger additional requirements, such as phytosanitary and other USDA requirements.
- The “spirit” of the law clearly targets high-THC genetics regardless of propagation method.
- Operating in this gray area carries legal risk until clarification is provided.
The smart approach:
Assume that any propagation method (i.e. seeds, clones, or tissue cultures) from genetics that would produce non-compliant plants could face scrutiny. Don’t bet your business on a technicality that could be closed with a simple regulatory clarification.
The one-year grace period: your window of opportunity
The legislation includes a 365-day grace period from the date of enactment for the industry to come into compliance. This grace period applies to the entire hemp industry, including seed producers, importers, and exporters.
What this means practically
If you’re involved in importing or exporting cannabis genetics:
- You have approximately one year from November 13, 2025 to reassess your seed inventory.
- Seeds from high-THC genetics (including THCA) that were previously legal to trade will become federally illegal marijuana after the grace period
- After the deadline, importing or exporting these seeds could result in federal drug trafficking charges.
The clock is ticking
Once that 365-day window closes, any seeds that don’t meet the new definition of hemp will be subject to the Controlled Substances Act.
Why this matters beyond seeds
This isn’t just about seeds—it’s about the entire genetic foundation of the modern hemp industry. Many cultivators have spent years developing and importing high-THC varieties that technically met the old delta-9 standard but will fail under total THC testing.
According to industry estimates, this change could affect:
- 95% of current hemp products on the market
- A $13-28 billion annual industry
- Thousands of small businesses and farms
- State hemp programs across the country
What you should do now
For seed producers and breeders
- Audit your genetics immediately. Identify which varieties will grow to exceed 0.3% total THC.
- Consider pivoting to certified low-THC genetics or non-cannabinoid industrial hemp.
- Document everything—compliance will require extensive record-keeping.
For import/export operations
- Consult with an attorney specializing in hemp and international trade law.
- Review all pending international seed transactions.
- Understand that after the grace period, moving non-compliant seeds across state and US borders becomes federal drug trafficking.
For farmers
- Source seeds only from reputable suppliers who can clearly document total THC compliance.
- Be wary of any “last chance” deals on high-THC genetics.
Key dates to remember
- Bill Signed: November 13, 2025
- Grace Period: 365 days from enactment
- Full Enforcement: Approximately November 2026
- FDA Guidance: The FDA now has 90 days to publish lists of naturally occurring cannabinoids and those with THC-like effects.
The bottom line
The federal government has closed the genetics loophole that allowed marijuana seeds to be traded as hemp. Anyone involved in the import or export of cannabis seeds needs to act now—you have roughly 12 months before these seeds become unambiguously illegal under federal law.
This isn’t fear-mongering; it’s the new reality of federal hemp policy. The grace period is your opportunity to pivot, comply, or exit the market. After that window closes, the legal risks become substantially greater.
The hemp industry as we knew it is changing forever. Make sure you’re on the right side of these new rules before it’s too late.
The post Hemp Companies Have One Year to Get Marijuana Genetics Into or Out of the US. . . But a Loophole May Still Exist appeared first on Harris Sliwoski LLP.
