Hemp Industry Faces Challenges from New Legislation
The hemp industry is gearing up to advocate against recent government funding legislation that includes a clause which could severely limit the sale of hemp-derived intoxicating products. This regulation threatens to undermine a legitimate $28 billion industry, potentially putting about 300,000 jobs in jeopardy.
Specifically, the bill would prohibit hemp products like gummies, beverages, vapes, and topical pain relievers if they contain more than a specified amount of THC—the compound in cannabis that can lead to intoxication.
Hemp was legalized through the 2018 Farm Bill, and while there have been calls for the FDA to implement a regulatory framework for hemp products, they have not yet done so. This lack of oversight has allowed unregulated, potentially addictive hemp items to fill the market.
The new ban, part of the spending bill, targets products exceeding 0.4 milligrams of THC per container. It’s intended to curb the sale of intoxicating items commonly found at gas stations and convenience stores. However, the U.S. Hemp Roundtable, representing the industry, suggests that this measure could wipe out 95% of CBD products used for various health issues. This, in turn, could lead to the closure of countless small businesses and farms, costing states around $1.5 billion in lost tax revenue.
According to an industry statement, despite claims that the legislation protects non-intoxicating products, over 90% of such hemp-derived items contain THC levels that exceed the proposed limit. Consequently, many consumers—especially seniors and veterans who rely on hemp for health reasons—would find themselves violating federal law if they continue purchasing these products, which could force them to seek risky alternatives.
A July poll in Texas indicated strong voter support for the regulated sale of cannabis-derived products. This came after Texas Governor Greg Abbott vetoed a THC ban passed by the state legislature in June.
While the spending bill was under discussion in the Senate, Senator Rand Paul attempted to introduce an amendment to remove the controversial language but was unsuccessful. He cautioned that this measure could decimate the cannabis industry at a critical time for American farmers.
Supporters of the regulatory provisions contend that they are needed. For instance, Senator Mitch McConnell mentioned that companies had been taking advantage of legal loopholes to produce intoxicating substances from cannabis.
Additionally, the National Association of Attorneys General recently expressed concerns in a letter to Congress, stating that the protections of the 2018 Farm Bill were being exploited for the sale of synthetic THC products for recreational use.
Since the ban is not set to take effect for another year, the Hemp Roundtable has announced its intention to push for regulatory policies governing hemp-derived products, including establishing milligram limits, labeling guidelines, and giving the FDA clear authority over these products.
In a statement, the group expressed disappointment but emphasized their commitment: “We are disappointed, but not defeated. Our new mission begins now; we have 365 days to regulate, not ban.”
