As part of an agreement reached to reopen the federal government this month, federal Republicans snuck a provision into legislation that will have a significant impact on the hemp industry.
The spending bill passed by nearly all federal Republicans bans a number of hemp-derived THC-infused products, reversing steps to legalize such products in a farm bill passed in 2018, Axios reported.
That means countless products derived from hemp, some with low-grade THC content, will be made illegal after seven years of legality. Some products have achieved significant sales and positive support, such as THC-infused seltzer water, lotions and even food products.
Earlier this summer, a similar proposal was removed from legislation moving through the federal government after lawmakers disputed it, and this new provision was little-known nearly until the legislation passed Congress.
The effects of the change are expected to have hugely negative impacts on the hemp industry nationally and in Connecticut. One Connecticut farmer, Michael Goodenough, told WTNH that the new measure will make it impossible for him to sell his products, as it reduces the legally allowed percentage of THC in a product well below current standards from 0.3% of a product to 0.4 milligrams per product.
As many as 95% of products with hemp-derived THC are expected to become illegal under the change, including products with no intoxicating effects used for pain relief. In states without legal cannabis, many consumers seeking pain relief may resort to black market purchases or go without products they’re accustomed to.
The U.S. Hemp Roundtable said the legislation could shrink the hemp industry, currently valued at $28.4 billion, by 95% as well, according to Stateline.
That news source also noted the law will create a checkerboard pattern across the United States, as some states ban THC-derived hemp, while 24 others permit their sales.
According to CNBC, as many as 300,000 jobs could be threatened by the shift nationally, with the shift harming farmers, extractors, manufacturers and retailers.
The move is also concerning some states and regions, as experts told CNBC that customers in states where cannabis is not legal may turn back to the black market or illegal sales, while some states and municipalities may lose significant tax revenue under the shift as well.
By Joe O’Leary