The US hemp industry has a much greater impact on the economy, creating $28 billion in annual revenue, employing nearly 300,000 workers. Today it’s up against an unexpected wall—an upcoming ban on most hemp products. No one expected Senate Majority Leader Mitch McConnell to drop this legislative bombshell inside a must-pass spending bill. It completely bans all products that contain more than 0.4 milligrams of THC per package. With the new law scheduled to take effect 12 months after its passage, industry leaders are expressing concern about the implications for their businesses.
The ban is a notable reversal. It shifts the goalpost from the current federal standard, which allows hemp-derived products to be produced from hemp plants containing no more than 0.3% delta-9 THC. Jonathan Miller, the US Hemp Roundtable’s general counsel, noted an impressive pushback from the industry. They fought to oppose the last-minute addition of this provision.
“There’s been real backlash. People have finally woken up that this is going to take away products they love, and are contacting their members of Congress,” – Jonathan Miller.
Industry stakeholders worry that this legislation could stifle growth and innovation in a sector that has shown potential for expansion. Among those speaking out is Jasmine Johnson, founder and CEO of GŪD Essence, a Florida-based company that produces CBD-infused beauty, wellness, and self-care products. This sudden and arbitrary ban has understandably shocked and outraged the community. For most companies, they had invested all their energy to establish their catalog of products.
Aside from transparency issues with the judicial process, Josh Kesselman, the founder of RAW Rolling Papers, raised alarm in regard to the legislative process. In particular, he seized on the timing of the ban’s introduction—which he believes is downright shady. These industry players blasted Salazar’s decision to tack such a critical measure onto a massive spending bill. They were concerned about the lack of conversation, or input from people most impacted.
The Heritage Foundation’s recent position paper on cannabis further complicates matters by advocating for the continued federal prohibition of cannabis, suggesting that efforts to legalize or regulate hemp could face significant opposition from influential policy organizations.
With the ban’s effective date quickly approaching, businesses such as the bubble tea-focused BRĒZ — founded by entrepreneur Aaron Nosbisch — are preparing for stormy days. Nosbisch shared his optimism that the controversial ban would indeed strengthen the foundation for the coming industry.
“As challenging as this might seem, I really think in reality, it is the opportunity in disguise that the whole category has been waiting for, in order to create a more firm foundation for rapid industry growth,” – Aaron Nosbisch.
Industry advocates are urging state lawmakers to understand the potential value of hemp products. They’re convinced these products have a critical role to play in the market. Our hope is that comments from all the stakeholders will indicate a rising tide of opinion that consumers deserve access to a wide range of cannabis products.
“People should be allowed to have a THC seltzer if they want to,” – Tina Smith.