Hemp industry plans next move after Trump signs THC ban

The hemp industry is regrouping and gearing up for a significant lobbying blitz following passage of the government funding package that contained a provision they say would outlaw nearly all hemp products.

The legislation clarifies the definition of hemp to ban all hemp-derived products containing THC, which were legalized by the 2018 farm bill.

Legal hemp products are limited to a total of 0.4 milligrams per container of total THC, or any other cannabinoids with similar effects. Cannabinoids that are synthesized or manufactured outside the plant, like delta-8 THC, are banned.

The Food and Drug Administration now has 90 days to publish a list of natural and synthetic cannabinoids and provide a definition for “container.”

According to the U.S. Hemp Roundtable, the vast majority of hemp products on the marketplace surpass the 0.4 milligram threshold, even the nonintoxicating ones.

In a memo released Thursday, the trade group said the hemp industry took a serious blow, but they’re confident in finding a path forward because the language in the funding bill gives a one-year period before the ban takes effect.

“We’re disappointed, but not defeated,” the group said. “Our new mission, friends: 365 days to regulate, NOT ban.”

The group pointed to a draft bill circulated over the summer from Rep. Morgan Griffith (R-Va.) that would establish a detailed regulatory scheme for hemp-derived products, including milligram thresholds, labeling requirements, and a new chapter in the Food, Drug, and Cosmetic Act explicitly giving FDA authority over cannabinoid hemp products.

The 2018 farm bill removed hemp from the controlled substances list in a bid to boost farmers’ income and expand production of the plant, which can also be used in textiles and cosmetics. But stakeholders said lawmakers didn’t anticipate the industry’s rapid growth.

Those products, including gummies and drinks, have exploded in popularity and are now sold outside of dispensaries in gas stations, convenience stores, and even major retailers such as Target.

Michelle Bodian, general counsel and head of regulatory affairs for the THC beverage brand Nowadays, said there are more than 40 states that regulate hemp-derived THC in a way that can be scaled to the federal level.

“Our goal is to help federal policymakers create a clear, enforceable framework that brings this fast-growing category into the mainstream while eliminating room for bad actors,” Bodian said in a statement.

The farm bill required the FDA to establish a regulatory framework for hemp products, but it never did, allowing intoxicating hemp products to be introduced in the marketplace without oversight or standardization.

Griffith, the chair of the Energy and Commerce health subcommittee, has not yet formally introduced a bill, though he’s authored other hemp and CBD legislation in the past.

“This is not one year to a ban. This is one year to regulate. And the industry will do exactly that — united, determined, and unwilling to let Washington destroy what farmers built and consumers want,” said Thomas Winstanley, executive vice president and general manager of Edibles.com, a new online hemp marketplace from the parent company of Edible Arrangements.

A varied array of groups rallied in support of the legislation, including alcohol groups, cannabis and cannabis-adjacent companies, as well as major marijuana prohibition group.

They lobbied hard for limits or bans on hemp-based THC and aren’t eager for Congress to change it.

The American Trade Association for Cannabis and Hemp (ATACH) in a statement said the funding bill provision made an important distinction between intoxicating and nonintoxicating products and synthetic and natural products.

“The intoxicating hemp marketplace is rife with bad actors peddling synthetic drugs and cannabis under the guise of hemp, often without sufficient age gating,” Chris Lindsey, vice president of policy and state advocacy at ATACH, said in a statement.

“Contrary to the rhetoric in some corners, intoxicating hemp products would continue to be available for sale through state cannabis and hemp programs,” Lindsey added.

Anthony Coniglio, CEO of NewLake Capital Partners, a cannabis real estate company, said closing the hemp loophole “is progress” but Congress needs to take the next step and “turn to comprehensive federal cannabis reform” for legalization and regulation.

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