Hemp Plastic Related Policy and Regulations in the USA: What You Need to Know

Hemp-based plastics are no longer a curiosity. Driven by the One Big Beautiful Bill Act (OBBBA) of 2025 and the ongoing changes in the Farm Bill, hemp plastics packaging is a growing sector in the USA. 

For manufacturers, being part of this landscape means understanding:

• What is controlled at the farm gate
• What agencies matter for finished products
• Which standards to use for environmental claims

Let’s start by unpacking different aspects of the hemp plastic regulations in the USA. 

What Is the Legal Status of Hemp Plastic in the USA?

To understand the current legality of hemp plastic in the USA, you must start with the 2018 Farm Bill.

This law officially recognized industrial hemp as a legal crop. Industrial hemp contains less than 0.3% THC. It was an enormous shift, and in one stroke, hemp moved from the margins into the mainstream. Hemp was removed from the DEA’s list of controlled substances.

Currently, the USDA oversees the cultivation of industrial hemp in the USA. The cultivated hemp fiber is turned into bioplastics or composites for packaging, consumer goods, and more. 

You may ask, are there any restrictions on the hemp plastic regulations in the USA? Yes, but they are related to the THC content at the cultivation stage. 

What Federal Agencies Regulate Hemp Plastic?

There is a lot of oversight regarding hemp cultivation in the USA and processing it into hemp plastic. 

Here are the main agencies involved: 

• USDA hemp regulations govern the cultivation phase. The USDA sets the rules for THC testing, farm licensing, and fiber supply.
• FDA rules take over when that hemp fiber is destined for anything that touches food. The FDA focuses on the food safety of hemp-based packaging, polymers, and additives.