COLDWATER, MI (WTVB) – The hemp industry is bracing for change after Congress passed legislation Wednesday with a surprise provision to ban nearly all hemp-derived consumer products.
Hemp is a derivative of the cannabis plant that was legalized in the 2018 Farm Bill for industrial uses like rope, textiles and seed. However, the law’s broad definition created a loophole in federal rules on THC.
The new ban will outlaw products containing more than zero-point-four-milligrams of total THC per container which industry executives say will wipe out 95-percent of the $28-billion hemp retail market when it takes effect in a year.
More than 300,000 jobs are reportedly at risk as executives also warn the ban could fuel a surge in black-market sales.
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 groups.
They lobbied hard for limits or bans on hemp-based THC.
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