The legislation that ended the longest government shutdown in U.S. history could upend a multi-billion-dollar industry due to a provision that would ban the vast majority of hemp products.
Hemp, a derivative of the cannabis plant that produces notably lower levels of THC, was legalized under the 2018 Farm Bill. The bill was intended to allow farmers to legally grow hemp for industrial uses such as rope, textiles, seeds and CBD wellness products. However, the law’s broad language created a loophole allowing producers to extract psychoactive cannabinoids from federally legal hemp. It wasn’t long before gummies, edibles and other products that produce a high similar to marijuana flooded the market, sold everywhere from gas stations to major retailers.
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But with the new ban, the $28 billion market could face collapse, putting approximately 300,000 jobs at risk. The provision clarifies the definition of hemp to ban most hemp-derived products containing THC, meaning most hemp products could soon become illegal. It imposes a total THC limit of 0.4 milligrams, effectively eliminating any psychoactive effect.
In Virginia, the hemp industry generates approximately $562 million annually, according to the Cannabis Small Business Association. The ban could result in lost tax revenue and potentially mass layoffs.
One Virginia business, Point 5 Bottle Shop, is worried about how the change could affect its operations. Since 2022, the business has sold THC and CBD drinks derived from hemp, NBC 29 reports.
“You have people taking them to help with sleep, to help with inflammation, to help just relax a little bit,” Jody Sidle, founder and owner of Point 5, told NBC 29.
Sidle explained that many of her customers use the drinks to combat anxiety or as an alternative to alcohol.
“There’s lot of people don’t want to go off and get different prescriptions and something else to take every day. So these are really lovely alternative,” Sidle said.
While proponents of the legislation warn that stronger hemp products marketed toward children are too potent and dangerous, Sidle argues that regulation, not prohibition, is the answer.
“Everyone understands that. We want to keep this. Want to keep this safe. We don’t want this in the hands of people under 21, so let’s work on figuring that out and regulating it,” Sidle said.
She added, “We’re all going to really feel it,” Sidle said. “I mean, you’re talking about 300,000 odd jobs that are going to be lost with this hemp ban. Farmers. I mean, it’s the national thing.”
The total ban is expected to take effect in November 2026.
The U.S. Hemp Roundtable, a coalition of companies and organizations “committed to safe hemp and CBD products,” stated that it supports efforts led by Rep. Morgan Griffith to introduce a bill that would replace a total ban with robust regulation of hemp products, including:
- Good manufacturing practices
- Transparent labeling
- Bans on synthetic THC
- Strong measures to keep products out of the hands of children
Businesses are deeply disappointed by the decisions of Congress and their openness to receiving false information so easily. The next year will be critical in determining the future of hemp. As a significant American industry, we are committed to sharing with Congress the real story about hemp. Because the truth is that good actors in the industry have created a self-regulation authority to protect consumers. But we need Congress’ help to keep the bad actors out. Hemp is here to stay – let’s do it right.
Art Massolo, U.S. Hemp Roundtable president