Federal THC Ban Threatens Future of Hemp Industry

Federal THC Ban Threatens Future of Hemp Industry

A new federal provision banning hemp-based THC products is raising alarms across the U.S. hemp industry, with farmers warning that it could dismantle their livelihoods. The measure was included in a federal spending bill recently passed to avert a government shutdown. If enforced, the ban would recriminalize a wide array of popular hemp-derived products, such as gummies and beverages, which currently fuel much of the industry.

Jonathan Miller, general counsel for the U.S. Hemp Roundtable, criticized the sweeping ban, calling it a significant overreach that could devastate legitimate businesses. "This would throw the baby out with the bath water", said Miller. "It would not only ban bad actor products, but 95% of the industry, and that’s why we have been pushing for almost a decade for robust regulation of hemp products."

Industry Advocates Push for Regulation Over Prohibition

Hemp farmers and industry advocates argue that more nuanced regulations are needed to address safety concerns without eradicating the entire market. They are backing federal legislation designed to replace the looming ban with tailored regulations. Proposals include truth-in-labeling requirements, restrictions on synthetic THC, and safeguards to ensure these products are kept out of the hands of children.

Miller emphasized the importance of taking a regulatory approach rather than resorting to what he described as "misguided prohibition."

Executive Order Offers Temporary Relief

President Donald Trump recently provided what many in the hemp industry see as a critical lifeline. His executive order reclassifies marijuana as a less dangerous substance and encourages lawmakers to preserve public access to hemp-derived products. Hemp farmers view this executive action as an opportunity to extend the ban’s moratorium and target unsafe products without penalizing the broader industry.

With this temporary reprieve, advocates see a chance to educate lawmakers and influence future legislation before the ban takes effect. Miller underscored the urgency of this effort, as the industry now has just one year to work with Congress on establishing reasonable regulations for hemp products.

The Road Ahead for Hemp Farmers

As farmers navigate this uncertain landscape, many are concerned about what the future holds for an industry they say is already facing significant challenges. The battle to replace the federal ban with balanced regulation is now at the forefront of their efforts. Whether Congress will heed their calls remains to be seen, but the stakes are high for a sector that has been a cornerstone of agricultural innovation in recent years.

Hemp industry advocates remain committed to finding a solution that protects both consumers and the businesses that have built their livelihoods around hemp-based products. The next year will be pivotal as they continue to push for meaningful regulatory reform.

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