Congressional leaders agreed to a one-year farm bill extension that maintains current hemp regulations while putting off any anticipated changes to the industry until 2025, according to new reports this week.

The extension, part of a 1,547-page government funding package released on Monday, maintains the status quo on hemp despite separate House and Senate proposals that could alter the plant’s definition and THC limits in ways that could “functionally end” most hemp farming, even for noncannabinoid fiber and grain markets, Jonathan Miller, general counsel at the U.S. Hemp Roundtable, told Cannabis Business Times.

Other recent hemp bills include Sen. Rand Paul’s plan to increase the THC limit to 1% and Sen. Ron Wyden’s proposal for FDA oversight of hemp products.

“There’s also some discussion of synthetics and a lot of the products in the industry, the delta-8 products, for example, you take the CBD, and you synthesize that into delta-8. The bill is talking about now not using some of these extracts for synthetic preparations,” Jonathan Havens, partner and co-chair of the Cannabis Law Practice at Saul Ewing LLP, told Cannabis Business Times.

However, Havens noted that regardless of potential hemp definition changes, the farm bill strictly deals with agriculture, not finished products.

House Agriculture Committee Chairman Glenn “GT” Thompson, R-Pa., said he hopes “to move quickly to enact a five-year farm bill” in the next Congress, working alongside incoming Senate Agriculture committee chairman under a unified GOP Congress.

Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., expressed mixed feelings about the deal.

“I am so pleased that we were able to secure much needed economic and natural disaster assistance for farmers across the country and that we did it without pitting one part of the Farm Bill against another,” Stabenow said in a Tuesday statement. However, she called it “political malpractice” that Republicans rejected incorporating Inflation Reduction Act conservation funding into the farm bill baseline.

The current spending measure requires congressional approval by Dec. 20 to avoid a partial government shutdown. The farm bill extension would run through March 14.

The news may finally wrap up a hectic year for hemp, as a slew of states across the country wrestle with oversight of intoxicating hemp products, while similar court battles took place, including a federal appeals court ruling in June that all products made from compliant hemp are legal, to the Drug Enforcement Administration’s chagrin.

The delay also comes after Whitney Economics slashed its 2030 hemp acreage forecast by 82%, citing regulatory uncertainty that could cost farmers $3.1 billion in lost revenue.

At the same time, major cannabis companies are increasingly positioning themselves in the growing, more inclusive market. Organigram Holdings (Nasdaq: OGI) just closed a C$90 million deal to become the biggest Canadian cannabis company by market share, with plans to leverage Motif Labs’ operations for hemp-derived products in the U.S. market.

Other established players, including Tilray Brands (Nasdaq: TLRY) (TSX: TLRY), Curaleaf (OTCQX: CURLF) , Wana Brands and Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF), have launched similar hemp-derived product lines, particularly in the beverage sector where sales jumped 143% in 2023, according to recent Brightfield Group data. The segment is projected to reach $500 million by 2026 from $180 million in 2021.

Missouri lawmakers are still figuring out exactly how to best regulate the state’s nascent intoxicating hemp market, as new competing bills show a deepening rift between industry players over distribution systems and product restrictions.

Three prefiled bills propose different regulatory frameworks for hemp-derived products, which can currently be sold in bars and coffee shops statewide without formal oversight, according to the Missouri Independent.

“We don’t have any mechanism to regulate them right now, and so they’re in no man’s land,” Steven Busch, owner of Krey Distributing, told the outlet. “And that’s our biggest problem right now – that there are no rules.”

Two competing bills backed by alcohol industry veterans would implement a three-tier distribution system similar to alcohol regulation. A third proposal, supported by the Missouri Hemp Trade Association, is expected to be filed soon, the Independent reported.

The bills differ significantly on THC content limits. Legislation backed by Busch would cap edibles at 5 milligrams THC per serving and beverages at 10 milligrams, while the trade association’s proposal allows up to 100 milligrams per serving for medical users.

“If they were taking something that’s been federally legal for the last six years, in August they’re going back to being a criminal again,” South Point Hemp manufacturer Brian Riegel told the Independent, referring to medical users.

The hemp trade association strongly opposes the three-tier distribution system, with spokesman Craig Katz telling the outlet that it “creates a monopoly on behalf of the distributors.”

A fourth bill, backed by the Missouri Cannabis Trade Association, would restrict intoxicating hemp sales to licensed marijuana dispensaries. The association’s executive director Andrew Mullins questioned whether the state should establish a “dual, parallel, expensive system of regulation” for similar products.

The legislative push follows months of regulatory uncertainty. In August, Missouri Gov. Mike Parson tried to ban intoxicating hemp products through executive order, citing public health concerns, Green Market Report previously reported. The order faced implementation challenges after Secretary of State Jay Ashcroft refused to sign off on the plan.

Parson’s administration also requested $877,000 to fund additional food inspectors and $160,000 for legal staff to handle potential enforcement challenges tied to his earlier executive order, the Independent reported.

Agrify Corp. (Nasdaq: AGFY) announced Monday it has closed its acquisition of hemp-derived THC drink maker Señorita in an all-stock transaction valued at approximately $4.9 million.

The deal involves acquiring certain U.S. and Canadian hemp assets from Double or Nothing LLC, with Agrify issuing 530,000 shares for the transaction, according to a company statement.

“This is great news for Agrify shareholders,” said Ben Kovler, Agrify’s chairman and interim CEO. “We believe Señorita is the best tasting drink in the fastest growing, most exciting beverage category in the country.”

Señorita, created by winemakers Charles Bieler and Joel Gott, offers THC-infused alternatives to classic cocktails. The brand took home top honors at The High Times Cannabis Cup just one year after its launch. Its lineup includes Lime Jalapeño Margarita and Mango Margarita flavors, with plans to launch a Paloma variety in January and Ranch Water in 2025.

The brand’s products are currently sold in nine U.S. states and Canada through major retailers including Total Wine and ABC Fine Wine & Spirits, according to the company.

“When Joel and I created this unique brand, we always anticipated rapid growth, exciting new products and expanded distribution, and now those goals are coming to fruition even faster than we imagined,” Bieler noted in the statement.

The acquisition comes as Agrify, traditionally focused on vertical farming units and extraction equipment for cannabis producers, reported just $263,000 in cash at the end of September and posted an $18.7 million third-quarter loss. The company has accumulated $265 million in losses through December 2023.

Chicago-based Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF), one of the largest U.S. cannabis operators, took control of Agrify last month through a $20 million convertible note deal that installed Kovler as interim CEO. Kovler recently purchased 10,000 shares at $38.76 to meet Nasdaq listing requirements.

The company’s board “continues to explore a variety of alternatives for the extraction and cultivation businesses while focusing on optimizing shareholder value creation,” Kovler said. Following Monday’s transaction, Agrify has approximately 2 million common shares outstanding and 7.6 million warrants.