$28 Billion Hemp Industry Faces Extinction Amid Government Reopening
Washington, D.C. — The $28 billion hemp industry, which has thrived under federal legalization since the 2018 Farm Bill, now finds itself in jeopardy after an amendment to the recent government funding bill threatens to shut down a lucrative market for THC-infused products, including beverages, edibles, and tinctures.
This threat to the hemp sector emerged on Wednesday night when President Donald Trump signed a new funding bill to end the longest government shutdown in U.S. history. However, tucked inside the bill was an amendment that could signal the end for a significant portion of the hemp industry—one that has flourished over the past seven years.
The 2018 Farm Bill and the Rise of the Hemp Industry
The 2018 Farm Bill legalized hemp and its derivatives, including all cannabinoids like CBD and THC, as long as the hemp plant contained no more than 0.3% of delta-9 THC. This federal legalization opened the doors to a thriving market of hemp-based products. From edibles and beverages to lotions and oils, the hemp industry quickly grew into a $28 billion business, filling gaps in states where marijuana remains illegal.
Products like THC-infused beverages—which alone generate roughly $1 billion in annual sales—found their way into mainstream retailers, including Circle K, Total Wine, and even Target. Popular brands such as Edibles.com, owned by Edible Arrangements, have also jumped on the bandwagon, introducing THC-infused products to cater to a growing consumer base.
The New Amendment and Its Impact
Now, an amendment inserted into the federal spending bill threatens to change the legal landscape for the hemp industry. This amendment seeks to close what critics have called a “loophole” in the definition of hemp, effectively banning most hemp-derived THC products from the market. The most significant change is the ban on products containing more than 0.4 milligrams of THC per package. This presents a major blow to products on the market today, where many items contain far higher THC concentrations, some up to 1,000 milligrams per package.
The amendment also seeks to outlaw the synthetic production of cannabinoids. Many of the most popular hemp-based products, including those found in stores and online, are made by converting CBD into delta-9 THC through a chemical process, a practice now considered illegal under the new rules.
Although the amendment will not take effect immediately, companies have just 365 days to adapt or face the loss of their businesses.
Industry Reactions: Alarm and Optimism
In Kentucky, Jim Higdon, cofounder of Cornbread Hemp, a manufacturer of hemp-based CBD and THC products, warned that the amendment could be “an extinction-level event” for the industry. Cornbread, which expects $40 million in revenue this year, could face a significant sales drop if the amendment goes into effect next year. Higdon is determined to fight back, committing to lobbying efforts to push for a hemp-friendly bill before the deadline.
“This will destroy our business if we can’t stop it,” Higdon said. “Every product we make now could become a Schedule I narcotic under this law.”
The author of the 2018 Farm Bill, Senate Majority Leader Mitch McConnell (R-Ky.), ironically became a key proponent of the amendment to ban intoxicating hemp products. McConnell’s push to curb the growing hemp market stems from concerns over child safety, citing a sharp increase in poison control calls related to cannabis products in Kentucky. His efforts have ignited anger among industry players, including Thomas Winstanley, EVP of Edibles.com, who described McConnell’s position as a betrayal to the very industry he helped create.
The Political Tug-of-War: McConnell’s Role
McConnell, who has championed hemp legalization in the past, has become a central figure in the debate over the future of hemp-derived THC products. In a recent op-ed, McConnell argued that hemp-based THC products, which he claims have been sold without regulation, are contributing to a rise in poisoning incidents, particularly among children.
Despite McConnell’s stance, Kentucky Senator Rand Paul, a fellow Republican, attempted to remove the hemp ban from the federal spending bill but was unsuccessful in a 76-24 vote. This defeat leaves industry leaders scrambling to protect their interests in the year leading up to the law’s potential enforcement.
Larger Cannabis Industry’s Reaction
Despite the looming threat, not all cannabis industry players are equally concerned. Curaleaf, a major Connecticut-based cannabis company, generates less than $5 million in sales from hemp-derived products. CEO Boris Jordan, while opposing the ban, believes it may serve a purpose in weeding out “bad actors” who manufacture overly potent and untested products. Many of these products are currently sold in places like gas stations and convenience stores.
“This isn’t necessarily about destroying the hemp industry—it’s about addressing the bad actors,” Jordan said. “We need regulation, not elimination.”
Pivoting to Marijuana?
As the ban looms, some businesses are already weighing their options, with many considering a pivot to the marijuana side of the cannabis market. For instance, Justin Journay, the founder of 3Chi, a major producer of hemp-derived THC products, has acknowledged that if the law goes into effect, the company would likely shift its focus to the marijuana industry, where the products would still be legally compliant.
“We are still weighing our options,” Journay said. “If hemp is fully banned, we’ll need to look at entering the marijuana markets.”
For companies like Wynk, a New York-based THC beverage manufacturer, the pressure is mounting. CEO Angus Rittenburg views the 365-day grace period as both a challenge and an opportunity. “We’re leaning in harder to build awareness during this time,” he said. “There’s still time to change the course of this law.”
The Road Ahead
With the hemp industry facing a year of uncertainty, lobbying efforts and public outcry will likely intensify as companies push to influence legislation in their favor. While the new law may bring tighter regulation, many believe the fight for hemp’s future is far from over. Some see the situation as an opportunity for smarter, more reasonable regulation that could sustain the industry without sacrificing safety or quality.
As the clock ticks toward the ban’s implementation, businesses are in full-swing to secure their futures, and industry leaders are focused on one key question: will they be able to turn back the tide of legislation that threatens to dismantle their livelihoods?
Final Thoughts
The hemp industry’s future hangs in the balance as the new federal amendment could devastate a sector that has flourished since the 2018 Farm Bill. While the timeline for implementing the ban offers a brief window of opportunity, industry leaders are already gearing up for intense lobbying efforts in a bid to prevent what they see as a catastrophic blow to their businesses. Whether lawmakers will heed their concerns remains to be seen—but for now, the hemp industry’s fate is uncertain, and the next year will be critical in determining whether it survives or fades away.
