Production, Marketing, and Regulation of Hemp Products
link to page 2 link to page 2 link to page 2 
June 22, 2021
Production, Marketing, and Regulation of Hemp Products
Changes enacted in the Agriculture Improvement Act of
from trim (parts of the plant removed when the hemp
2018 (P.L. 115-334; 2018 farm bill) removed longstanding
flower is trimmed during the manicuring process) or from
federal restrictions on the cultivation of hemp. Hemp is a
total biomass, which may include sticks and stems.
form of Cannabis sativa, the same plant as marijuana,
grown for non-psychoactive purposes. It is an agricultural
Hemp Fibers
crop regulated by the U.S. Department of Agriculture
Hemp fibers are used in fabrics and textiles, yarns and spun
(USDA). Although USDA regulates hemp production, the
fibers, paper, carpeting, home furnishings, construction and
2018 farm bill explicitly preserved the authority of the Food
insulation materials, and biocomposites (Figure 1). The
and Drug Administration (FDA) under the Federal Food,
interior of the stalk has short, woody fibers called hurds (or
Drug, and Cosmetic Act (FFDCA, 21 U.S.C. §§301 et seq.)
hemp shiv/shives); the exterior portion (bark) has long bast
over certain hemp-derived products.
fibers (Figure 2). Hurds are used in insulation, animal
bedding, material inputs, oil absorbents, and papermaking.
Leading Hemp Markets
Bast fibers are used to make rope and fabric. Hemp fibers
Hemp is grown for use in the production of a wide range of
also are used in a range of composite products, including
products, including foods and beverages, cosmetics and
use as building material and concrete blocks (made from a
personal care products, nutritional supplements, fabrics and
mix of fibers, hydrated lime, and other additives), an
textiles, yarns and fibers, paper, construction and insulation
insulating material, a fiberglass alternative (by the
materials, and other industrial and manufactured goods.
automotive and aviation sectors), and a biodiesel feedstock.
Fiber processing involves separating the core fiber from the
There are three leading markets for hemp, each based on
bark through mechanical separation (using a decorticator)
the part of the plant used: fiber, seed/grain, and flower
or separation through a process called retting or some
(Figure 1). Some suggest a separate, marketable category
combination of the two processes. Once separated, dried,
exists for the plant’s extracted compounds (not shown
and baled, hemp fibers may be further processed through
here). Extracts and concentrates may be derived from
additional mechanical separation (such as being pelletized
different parts of the plant, including the flowers/buds and
or shredded into smaller pieces).
https://crsreports.congress.gov
link to page 2 link to page 2
Production, Marketing, and Regulation of Hemp Products
Figure 1. Leading Hemp Product and Marketed Uses and Applications
Source: CRS. Photos by permission of Canadian Greenfield Technologies Corporation (straw), HempAlta (unhul ed hemp seed), and Eric
Steenstra, Vote Hemp (flower). CBD = cannabidiol; THC = tetrahydrocannabinol.
Figure 2. Selected Hemp Fiber Products
Figure 3. Selected Hemp Food and Ingredients
Source: Images show (left to right) hurds and bast fibers (photos by
Source: Images (left to right) dehul ed seed (photo by permission of
permission of Canadian Greenfield Technologies Corporation) and
Ben Droz), protein powder (photo by permission of Victory Hemp
concrete (photo by permission of GreenJams BuildTech Pvt Ltd.).
Foods), and seedcake (photo by permission of Hemp Northwest).
Seeds and Grains
Flowers and Buds
Hemp seed, powder, oilcake, and oil may be used in a range
Hemp flowers are the primary source of the plant’s
of foods and beverages, including salad and cooking oil,
available cannabinoids, which tend to be concentrated in
and as an ingredient in dietary supplements, an alternative
the flowering head (or bud) of the plant. Cannabinoids are
food and feed protein source, or a dairy alternative.
the unique chemical compounds produced in the cannabis
Unrefined or refined cold press filtered hemp oil is used in
plant. Cannabidiol (CBD) and tetrahydrocannabinol (THC)
body products, including soap, shampoo, lotions, bath gels,
are considered to be the most abundant cannabinoids in
and cosmetics (Figure 1). Seed processing involves
cannabis, as well as the most medically valuable and most-
dehulling and separation, removing the shell from the
researched cannabinoids due to their physiological effects.
hulled seed kernels (or the soft, edible part). The seed
Some cannabinoids are psychoactive (e.g., THC, which is
kernels are referred to as hemp hearts (nuts) or hempseed
found at low levels in hemp); others, such as CBD, are not
meal (Figure 3). Through further off-pressing, unrefined
considered to be psychoactive. CBD and other known
hemp oil may be extracted from the seed kernels, leaving
cannabinoids exist in both hemp and marijuana but in
solids processed as seed meal, oilcake (or seedcake), or
varying amounts. CBD is promoted as treatment for a range
hemp flour or powder. Equipment required for these
of medical conditions, despite limited scientific evidence to
processes may include a dehulling machine and a cold press
substantiate many of these claims.
or oil refining machine.
Extracts and derivatives of the cannabis plant marketed as
CBD and other cannabinoids generally differ from hemp
seed oil in that they are extracted from the flowering parts
and/or leaves and stems of the plant, not the seed/grain.
Cannabinoids tend to be concentrated in the plant’s
trichomes—the small resin-like hairs/glands of the plant’s
https://crsreports.congress.gov
link to page 2 Production, Marketing, and Regulation of Hemp Products
flowering heads. Trichomes produce other secondary
Considerations for Congress
substances, including terpenes, phenolic acids, and
Some Members of Congress continue to introduce
flavonoids. Cannabinoids also may cover the leaves, bracts,
legislation involving hemp. In the 117th Congress, S. 1005
and stems and may be present in other parts of the plant,
would modify the statutory definition of hemp and would
including the seeds, but in lower concentrations. CBD and
relax certain regulatory requirements governing USDA’s
other cannabinoids are extracted from the cannabis plant
oversight of hemp cultivation. Legislation introduced in the
and used—either as a distillate or isolate—as an ingredient
116th Congress would have amended the U.S. tax code to
in a range of food, beverage, cosmetics and skin products,
establish Hemp Opportunity Zones and supported
dietary supplements, pet care, and other wellness products
development in the sector (H.R. 8131); another bill would
(Figure 1).
have expanded federal research and program support for
hemp and hemp-derived products (H.R. 3652).
Extracting cannabinoids and other compounds from
cannabis can be done using a variety of methods to separate
FDA continues to restrict the marketing of food or dietary
the oils and waxes from other plant material. There is no
supplements containing added CBD—regardless of whether
single standard extraction method. Available methods
it is derived from hemp—and continues to evaluate the
include lipid or alcohol infusions, CO2 extraction, or
scientific research related to such consumer products.
extraction using chemical solvents, as well as solvent-free
Legislation has been introduced in the 117th Congress that
extractions across a range of mechanical processes. Most
would allow the use of hemp and hemp-derived CBD in
commercial applications use solvent-based extraction
dietary supplements (H.R. 841/S. 1698) or as a food and
techniques. Extraction may involve heat decarboxylation,
beverage additive (S. 1698). Meanwhile, the House
referring to the application of heat to cannabis plant
Committee on Appropriations expressed concern about the
material to activate certain compounds in the plant. The
“proliferation of foods and dietary supplements” marketed
type of extraction method used depends on a range of
in violation of FFDCA and about noncompliant products
production factors. These include the purpose for which the
that “continue to pose potential health and safety risks to
plant material is to be used (hemp or marijuana); the part of
consumers through unsubstantiated and misleading claims”
the plant being used (flower, trim, or total biomass); the
(H.Rept. 116-446). In addition, some U.S. states have
product being produced (e.g., edible/digestible product or
imposed restrictions on certain ingestible and smokable
topical application); whether an isolate or distillate is being
forms of hemp and hemp-derived consumer products.
produced; the scale of the commercial operation and any
cost constraints; and requirements of the state where the
Renée Johnson, Specialist in Agricultural Policy
business is located.
IF11860
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permissio n of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF11860 · VERSION 1 · NEW
June 22, 2021
Production, Marketing, and Regulation of Hemp Products
Changes enacted in the Agriculture Improvement Act of
from trim (parts of the plant removed when the hemp
2018 (P.L. 115-334; 2018 farm bill) removed longstanding
flower is trimmed during the manicuring process) or from
federal restrictions on the cultivation of hemp. Hemp is a
total biomass, which may include sticks and stems.
form of Cannabis sativa, the same plant as marijuana,
grown for non-psychoactive purposes. It is an agricultural
Hemp Fibers
crop regulated by the U.S. Department of Agriculture
Hemp fibers are used in fabrics and textiles, yarns and spun
(USDA). Although USDA regulates hemp production, the
fibers, paper, carpeting, home furnishings, construction and
2018 farm bill explicitly preserved the authority of the Food
insulation materials, and biocomposites (Figure 1). The
and Drug Administration (FDA) under the Federal Food,
interior of the stalk has short, woody fibers called hurds (or
Drug, and Cosmetic Act (FFDCA, 21 U.S.C. §§301 et seq.)
hemp shiv/shives); the exterior portion (bark) has long bast
over certain hemp-derived products.
fibers (Figure 2). Hurds are used in insulation, animal
bedding, material inputs, oil absorbents, and papermaking.
Leading Hemp Markets
Bast fibers are used to make rope and fabric. Hemp fibers
Hemp is grown for use in the production of a wide range of
also are used in a range of composite products, including
products, including foods and beverages, cosmetics and
use as building material and concrete blocks (made from a
personal care products, nutritional supplements, fabrics and
mix of fibers, hydrated lime, and other additives), an
textiles, yarns and fibers, paper, construction and insulation
insulating material, a fiberglass alternative (by the
materials, and other industrial and manufactured goods.
automotive and aviation sectors), and a biodiesel feedstock.
Fiber processing involves separating the core fiber from the
There are three leading markets for hemp, each based on
bark through mechanical separation (using a decorticator)
the part of the plant used: fiber, seed/grain, and flower
or separation through a process called retting or some
(Figure 1). Some suggest a separate, marketable category
combination of the two processes. Once separated, dried,
exists for the plant’s extracted compounds (not shown
and baled, hemp fibers may be further processed through
here). Extracts and concentrates may be derived from
additional mechanical separation (such as being pelletized
different parts of the plant, including the flowers/buds and
or shredded into smaller pieces).
https://crsreports.congress.gov
link to page 2 link to page 2
Production, Marketing, and Regulation of Hemp Products
Figure 1. Leading Hemp Product and Marketed Uses and Applications
Source: CRS. Photos by permission of Canadian Greenfield Technologies Corporation (straw), HempAlta (unhul ed hemp seed), and Eric
Steenstra, Vote Hemp (flower). CBD = cannabidiol; THC = tetrahydrocannabinol.
Figure 2. Selected Hemp Fiber Products
Figure 3. Selected Hemp Food and Ingredients
Source: Images show (left to right) hurds and bast fibers (photos by
Source: Images (left to right) dehul ed seed (photo by permission of
permission of Canadian Greenfield Technologies Corporation) and
Ben Droz), protein powder (photo by permission of Victory Hemp
concrete (photo by permission of GreenJams BuildTech Pvt Ltd.).
Foods), and seedcake (photo by permission of Hemp Northwest).
Seeds and Grains
Flowers and Buds
Hemp seed, powder, oilcake, and oil may be used in a range
Hemp flowers are the primary source of the plant’s
of foods and beverages, including salad and cooking oil,
available cannabinoids, which tend to be concentrated in
and as an ingredient in dietary supplements, an alternative
the flowering head (or bud) of the plant. Cannabinoids are
food and feed protein source, or a dairy alternative.
the unique chemical compounds produced in the cannabis
Unrefined or refined cold press filtered hemp oil is used in
plant. Cannabidiol (CBD) and tetrahydrocannabinol (THC)
body products, including soap, shampoo, lotions, bath gels,
are considered to be the most abundant cannabinoids in
and cosmetics (Figure 1). Seed processing involves
cannabis, as well as the most medically valuable and most-
dehulling and separation, removing the shell from the
researched cannabinoids due to their physiological effects.
hulled seed kernels (or the soft, edible part). The seed
Some cannabinoids are psychoactive (e.g., THC, which is
kernels are referred to as hemp hearts (nuts) or hempseed
found at low levels in hemp); others, such as CBD, are not
meal (Figure 3). Through further off-pressing, unrefined
considered to be psychoactive. CBD and other known
hemp oil may be extracted from the seed kernels, leaving
cannabinoids exist in both hemp and marijuana but in
solids processed as seed meal, oilcake (or seedcake), or
varying amounts. CBD is promoted as treatment for a range
hemp flour or powder. Equipment required for these
of medical conditions, despite limited scientific evidence to
processes may include a dehulling machine and a cold press
substantiate many of these claims.
or oil refining machine.
Extracts and derivatives of the cannabis plant marketed as
CBD and other cannabinoids generally differ from hemp
seed oil in that they are extracted from the flowering parts
and/or leaves and stems of the plant, not the seed/grain.
Cannabinoids tend to be concentrated in the plant’s
trichomes—the small resin-like hairs/glands of the plant’s
https://crsreports.congress.gov
link to page 2 Production, Marketing, and Regulation of Hemp Products
flowering heads. Trichomes produce other secondary
Considerations for Congress
substances, including terpenes, phenolic acids, and
Some Members of Congress continue to introduce
flavonoids. Cannabinoids also may cover the leaves, bracts,
legislation involving hemp. In the 117th Congress, S. 1005
and stems and may be present in other parts of the plant,
would modify the statutory definition of hemp and would
including the seeds, but in lower concentrations. CBD and
relax certain regulatory requirements governing USDA’s
other cannabinoids are extracted from the cannabis plant
oversight of hemp cultivation. Legislation introduced in the
and used—either as a distillate or isolate—as an ingredient
116th Congress would have amended the U.S. tax code to
in a range of food, beverage, cosmetics and skin products,
establish Hemp Opportunity Zones and supported
dietary supplements, pet care, and other wellness products
development in the sector (H.R. 8131); another bill would
(Figure 1).
have expanded federal research and program support for
hemp and hemp-derived products (H.R. 3652).
Extracting cannabinoids and other compounds from
cannabis can be done using a variety of methods to separate
FDA continues to restrict the marketing of food or dietary
the oils and waxes from other plant material. There is no
supplements containing added CBD—regardless of whether
single standard extraction method. Available methods
it is derived from hemp—and continues to evaluate the
include lipid or alcohol infusions, CO2 extraction, or
scientific research related to such consumer products.
extraction using chemical solvents, as well as solvent-free
Legislation has been introduced in the 117th Congress that
extractions across a range of mechanical processes. Most
would allow the use of hemp and hemp-derived CBD in
commercial applications use solvent-based extraction
dietary supplements (H.R. 841/S. 1698) or as a food and
techniques. Extraction may involve heat decarboxylation,
beverage additive (S. 1698). Meanwhile, the House
referring to the application of heat to cannabis plant
Committee on Appropriations expressed concern about the
material to activate certain compounds in the plant. The
“proliferation of foods and dietary supplements” marketed
type of extraction method used depends on a range of
in violation of FFDCA and about noncompliant products
production factors. These include the purpose for which the
that “continue to pose potential health and safety risks to
plant material is to be used (hemp or marijuana); the part of
consumers through unsubstantiated and misleading claims”
the plant being used (flower, trim, or total biomass); the
(H.Rept. 116-446). In addition, some U.S. states have
product being produced (e.g., edible/digestible product or
imposed restrictions on certain ingestible and smokable
topical application); whether an isolate or distillate is being
forms of hemp and hemp-derived consumer products.
produced; the scale of the commercial operation and any
cost constraints; and requirements of the state where the
Renée Johnson, Specialist in Agricultural Policy
business is located.
IF11860
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permissio n of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF11860 · VERSION 1 · NEW