Hemp THC Industry Faces $28B Threat as Federal Ban Looms
America's $28B hemp THC industry risks shutdown as federal ban looms. Key players scramble to save jobs and revenue.
POLICY WIRE — Raleigh, North Carolina — A thriving multibillion-dollar hemp THC market is now at risk of collapse as a new federal law threatens to shut down products ranging from THC-infused seltzers to high-strength gummies.
At a commercial kitchen near Raleigh, Nicholas Hohns crafts THC gummies that have become a signature product for his business. But with the potential implementation of a federal hemp THC ban, he faces the possibility of having to close his operation after years of hard work and investment.
The ban, which limits THC in hemp products to 0.4 milligrams per container, was included in a spending bill signed by President Donald Trump, pushing its effective date to December 11. The move aims to address a loophole in the 2018 farm bill that allowed hemp products to contain enough THC to cause intoxication, despite being legally defined as low-THC.
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Industry leaders argue that the cap would cripple their businesses, with one report estimating a $28.3 billion loss in retail revenues and 225,000 job losses. Companies like Kentucky’s Cornbread Hemp, which employs 105 people and expects $65 million in sales this year, warn that the regulation could force them out of business entirely.
While some lawmakers and industry groups push for alternatives—such as age restrictions and THC limits—opponents, including marijuana advocacy groups, claim the products pose a danger. Meanwhile, legal cannabis operators support the ban, calling the hemp industry an unfair competitor.
Reporting by Policy-Wire (PW)