Vermont Legislature Passes Agriculture Bill With Hemp Oversight Changes, Sends It to Governor
- The Vermont Legislature approved Senate Bill 323, an omnibus agriculture bill addressing hemp oversight, farm regulations, food processing, and agricultural tax policy, now awaiting the governor's approval.
- The bill transfers hemp and hemp-derived cannabinoid oversight to the Cannabis Control Board, repealing the previous hemp chapter and unifying regulation under Title 7 to reflect evolving legal standards for hemp products.
- Hemp remains classified as an agricultural commodity in Vermont, defined as Cannabis sativa L. and its parts with THC levels within federal limits, and excludes certain regulated cannabis products not lawful in interstate commerce.
- Additional provisions prohibit municipalities from regulating farming covered by state rules, create a new category for farm kitchen operations, expand the Farm-to-School program's contracting abilities, update pesticide exam rules, and repeal an inactive pest control compact; the bill takes effect July 1, 2026 if signed.
The Vermont Legislature has given final approval to a wide-ranging agriculture bill that includes changes to hemp oversight, farm regulations, food processing rules and agricultural tax policy, sending the measure to Governor Phil Scott.
Senate Bill 323 was passed by the Senate and House after the Senate concurred with changes made by the House. The bill is an omnibus agriculture measure sponsored by the Senate Agriculture Committee.
A key portion of the bill would move oversight of hemp and hemp-derived cannabinoids under the Cannabis Control Board, repealing the existing hemp chapter under Title 6 and creating a new hemp subchapter under Title 7. The bill states that the change is meant to “unify oversight of cannabis and hemp-derived cannabinoids” under the board while addressing the evolving legality of hemp products in interstate commerce.
Under the legislation, hemp would remain classified as an agricultural commodity and could be grown, possessed, marketed and commercially traded in Vermont in accordance with state law and Cannabis Control Board rules. The bill defines hemp as Cannabis sativa L. and any part of the plant, including extracts, cannabinoids and derivatives, as long as it meets the federally defined THC limit.
The measure also clarifies that hemp products and hemp-infused products do not include products prohibited or treated as regulated cannabis products by Cannabis Control Board rule, or products that are not lawful in interstate commerce. Products excluded from the hemp definition would be considered cannabis products, though licensed or registered operators could possess them under state rules.
Outside the hemp provisions, SB 323 includes several agriculture-related changes. It would clarify that municipalities may not regulate farming or farm structures covered by Vermont’s Required Agricultural Practices Rule, create a new “farm kitchen operation” category for certain on-farm food processing, allow the Farm-to-School program to use contracts in addition to grants, update pesticide applicator exam rules and repeal the inactive Interstate Pest Control Compact.
The bill would take effect July 1, 2026, if signed into law.