- The congressional funding bill included a THC cap that effectively bans most hemp products, a move industry leaders say threatens the $28 billion market.
- More than 300,000 jobs are at risk, with economic impacts expected in states with large hemp sectors, including Kentucky, Texas and Utah, industry experts said.
- Executives warn the ban could fuel a surge in black-market sales if federal regulations aren’t adopted within a year, as demand for hemp-derived THC remains strong.
The hemp industry is bracing for layoffs, production reductions and billions in lost revenue after Congress passed a government funding bill late Wednesday containing a surprise provision that will ban nearly all hemp-derived consumer products.
Hemp, a derivative of the cannabis plant, was legalized in the 2018 Farm Bill for industrial uses like rope, textiles and seed. But the law’s broad definition created a loophole in federal rules on THC — the psychoactive compound responsible for a high — experts said, allowing producers to extract psychoactive cannabinoids from federally legal hemp. Companies used that opening to flood the market with gummies, drinks and vapes capable of delivering a marijuana-like high.
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