A battle is brewing in Kentucky’s hemp industry as U.S. Senator Mitch McConnell pushes for stricter regulation of intoxicating hemp-derived products, which could have unintended consequences for CBD businesses statewide.
At the heart of the issue is a loophole created by the 2018 Farm Bill, which legalized hemp cultivation nationwide. McConnell, a key proponent of the bill, aimed to revitalize Kentucky’s agricultural sector. However, the legislation inadvertently opened the door for the production and sale of intoxicating compounds like Delta-8 THC—a substance that mimics the effects of cannabis but is derived from legal hemp.
Now, McConnell is backing new legislation, recently advanced by the Senate Appropriations Committee, that would require the FDA to establish strict limits on the amount of THC allowed in final CBD products. The goal is to prevent the unregulated sale of products that are psychoactive in nature and are often marketed to minors using misleading packaging.
While the intent is to rein in intoxicating products, hemp business owners like Alice Peterson of Kentucky Heritage Hemp warn that the proposed restrictions could devastate legitimate CBD businesses.
“This business was built on the foundation of the 2018 Farm Bill,” Peterson said, giving a tour of her family-run hemp operation in Nelson County. Her facility handles every stage of production—from growing hemp on the family farm to extracting CBD oil and producing thousands of therapeutic gummies used for anxiety, pain, and insomnia.
Currently, federal law allows hemp products to contain no more than 0.3% THC. Peterson says any lower threshold would make producing effective CBD products nearly impossible. “If this cap is lowered, it would kill our business,” she explained.
Peterson agrees that Delta-8 and similar products need regulation, especially those with unclear labeling and child-targeted marketing. However, she argues that there must be a balance—one that distinguishes between intoxicating products and the non-intoxicating, therapeutic uses of CBD.
As the bill continues its path through Congress, Kentucky’s hemp industry is holding its breath. The future of hundreds of small businesses and farms across the state may hinge on whether lawmakers can craft regulation that targets harmful substances without dismantling an entire industry.
The hemp debate now moves to both chambers of Congress, where its final form—and its impact on Kentucky—remains to be seen.
