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US Senate Ends Historic Shutdown With Major Ag Funding and Hemp Clampdown

The Senate passed a bill to end the longest U.S. government shutdown, restoring USDA funding, extending farm programs, and introducing new restrictions on hemp-derived products.

AgroLatam U.S
AgroLatam U.S

In a critical move for American agriculture, the U.S. Senate approved a funding bill that ends the longest government shutdown in U.S. history, while delivering immediate support for the farming sector.

The package includes a one-year extension of farm bill programs, the restoration of the USDA's Commodity Credit Corporation authority, and additional funds for USDA and FDA operations. These measures aim to stabilize agricultural markets, support producers, and reopen stalled federal services crucial to the food and farm supply chain.

Notably, the bill introduces tighter restrictions on intoxicating hemp products, including Delta-8 THC, which have been widely sold online and in convenience stores without federal oversight. The new rules ban sales of these products in unregulated settings, while allowing industrial hemp and non-intoxicating CBD to remain legal.

The hemp amendment, pushed forward despite opposition from Sen. Rand Paul (R-Ky.), faced strong debate. Paul argued the ban could hurt a $28 billion rural industry, calling for clearer regulation instead of outright restrictions. His amendment to remove the hemp language failed in a 76-24 vote.

Sen. Mitch McConnell (R-Ky.) supported the hemp provision, warning of the risks these products pose, especially when marketed to children. Alcohol industry groups also lobbied against any changes that could delay the broader funding package.

The vote ends a 41-day partial shutdown that caused widespread disruption-from delayed farm subsidies and food aid to long lines at food banks and airport chaos. Several senators cited "fatigue" and rising public pressure as decisive factors in reaching an agreement.

Importantly for the ag sector, the legislation ensures continuity in federal programs that support commodity prices, livestock operations, and crop insurance, providing relief to producers who had been left without clarity.

The bill now moves to the House, where Speaker Mike Johnson has signaled a vote could come this week. Once signed into law, the federal government will resume full operations, and USDA can resume disbursing aid and running essential services.

This development marks a turning point for U.S. agriculture policy, with lasting implications for farm funding, rural economies, and the regulation of emerging ag products like hemp.

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