The NC Farm Act Update: New Restrictions Every North Carolina Hemp Farmer Should Know

The North Carolina Farm Act of 2025 introduces amendments and provisions that are reshaping the agricultural landscape for all farmers, including hemp cultivators.

Although the law itself has more than 20 sections, a single provision is raising significant concern among both the public and farming communities. Incredibly, it is the pesticide section that is seen as protecting major pesticide manufacturers. 

A pesticide label approved by the U.S. Environmental Protection Agency (EPA) under the Federal Insecticide, Fungicide, and Rodenticide Act can be sold without highlighting potential risks to health or the environment of the land being cultivated.

Every hemp farmer needs to understand how this new provision poses emerging threats, as well as how federal and Senate-proposed restrictions may further affect hemp cultivation in the coming years.

Pesticide Usage in Hemp Cultivation

The California Department of Pesticide Regulation (DPR), the County Agricultural Commissioners (CACs), and the California Code of Regulations (CCR) are the laws and regulations behind the safe and legitimate use of pesticides for various crop cultivation, including hemp. 

Before the 2023 amendment in the Farm Act, the basic requirements that pesticide manufacturers needed to follow for their products included:

•  A pesticide product must be registered for its use on a crop such as hemp.

• Pesticides are manufactured with such ingredients that are exempt from residue tolerance requirements that the U.S. The Environmental Protection Agency lays down.

• Pesticides come with clear labeling, including detailed instructions about usage, potential risk factors, and any warnings to safeguard human health and nature.

Senate Bill 639: New Concern for Hemp Farmers

According to the provisions covered under Senate Bill 639, pesticide manufacturers and sellers are not required to label potential risk factors of their products if:

The product already contains a label approved by the U.S. Environmental Protection Agency (EPA) under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).

The label cannot be changed without EPA approval. But, in cases of potential harm to farmers or their families, affected parties would be unable to claim compensation or seek penalties against the pesticide manufacturing company.

Many environmental supporters oppose this provision, arguing that it would make chemical manufacturers less accountable and weaken protections for public health and environmental safety.

Since pesticide manufacturers will no longer be held accountable for any losses their products may cause to the environment or farmers, farmers must take full responsibility for using only pesticides for hemp cultivation that are truly free of health risks.

Federal Restrictions and Possible Senate Ban

Along with the Farm Act amendments, the new Senate bill poses serious risks to more than 1,500 licensed hemp producers in North Carolina. These proposed restrictions and bans threaten the overall agricultural economy, as hemp has become one of North Carolina’s most profitable crops.

Remember, the 2018 Farm Bill was a key step in legalizing hemp products, encouraging hemp farmers to shift to this crop due to its higher return on investment. After 2018, hundreds of thousands of farmers obtained licenses from the relevant authorities for hemp cultivation.

What Was Missing in the 2018 Farm Bill?

The 2018 Farm Bill lacked clarification on the use of Delta-8 and Delta-10 THC, as the limitations applied only to Delta-9 THC. This loophole opened the door for cannabis product manufacturers. According to the Kentucky Poison Center, over the last five years, cases of illegal cannabis use have more than doubled. 40% of these cases involved children under the age of 12 experiencing health issues due to THC product exposure.

The attractive packaging of THC products available in stores, similar to other snacks, has been a major factor contributing to this growing trend.

Future Market Trends That Hemp Farmers Must Know

There is significant uncertainty among hemp producers regarding the sale of hemp products in 2026, including the following concerns:

• If the ban continues, full-spectrum and broad-spectrum hemp products may disappear from the market.

• Products containing CBD isolate may be the only ones to survive, impacting the majority of existing hemp products.

• This shift would eventually reduce demand for hemp cultivation, leading to a drastic decline in farmers’ income.

Proposed Terms & Conditions for Hemp Cultivators

The congressional funding bill passed in November 2025 aims to control the cultivation and sale of intoxicating hemp products and prevent their illegal use, particularly among minors.

Once it comes into effect in 2026, the bill will introduce additional restrictions for hemp producers, directly impacting how they grow and market their crops.

License and Approved Production Plan

Obtaining a license for hemp cultivation is mandatory under the USDA Hemp Program. Based on the location of the hemp-growing operation, each farmer must be licensed under an approved hemp production plan.

For this purpose, creating an account on the Hemp eManagement Platform (HeMP) and submitting a USDA Hemp Application are required for every farmer.

THC Limitation

Under the 2018 Farm Bill, hemp-derived products are legal to sell if they contain no more than 0.3% delta-9 THC by dry weight. However, the Senate funding bill expands these restrictions to include other intoxicating compounds such as delta-8, delta-10, and THCA.

The combined percentage of all intoxicating cannabinoids must remain below 0.4% by dry weight, making the rule significantly stricter. This change is intended to restrict illegal recreational use of hemp-derived products. But it will affect most hemp crops and restrict farmers from cultivating only specific ones.

Third-Party Testing

Farmers must have their crops tested by a third party before cultivation to confirm that the THC percentage remains within legal limits. Only after meeting these requirements are they authorized to cultivate and sell their crops to hemp product manufacturers.

Before harvest, every crop must undergo the required testing:

• A sampling agent arrives at least 30 days before harvest to collect test samples.

• Only reliable methods, like post-decarboxylation, are used to finalize the dry weight of the total.THC

If the cultivated Cannabis sativa L. does not meet the THC percentage criteria, it must be disposed of in a legally approved manner, resulting in the loss of all resources invested by the farmers. This provision will increase compliance costs and is likely to significantly reduce farmers’ overall revenue.

Find out more Here about how the new spending bill will affect THC drinks.

What the Future Holds for North Carolina Hemp Farmers

Emerging laws at both the state and federal levels, along with amendments to the Farm Act, are steadily narrowing the scope of cultivation for hemp farmers. A potential ban on the majority of hemp-derived products is expected to reduce market demand, raising serious concerns for growers.

Also, the removal of liability for pesticide manufacturers in the NC Farm Act Update places greater responsibility on farmers, increasing both safety and legal risks within the hemp industry. Farmers must now carefully select the safest yet effective pesticides to ensure that their hemp meets third-party testing requirements, which adds complexity, stricter farming procedures, and higher costs.