A new provision in the federal spending bill, aimed at ending the US government shutdown, could have significant implications for the hemp extracts industry. The provision targets intoxicating hemp-based THC products, such as gummies and drinks, potentially leading to the demise of this rapidly growing sector.
The funding bill, recently passed by the US Senate, seeks to ban the unregulated sale of intoxicating hemp-derived products like delta-8, from various retail outlets including online platforms, gas stations, and corner stores. This move, if approved by the House of Representatives and signed into law by President Joe Biden, would close a loophole created by the 2018 Farm Bill.
The 2018 Farm Bill had previously decriminalized intoxicating hemp-based products, permitting the sale of cannabinoids like delta-8 and THCA in edibles and beverages. However, the bill also set limits, stating that hemp products must contain less than 0.3 percent delta-9 THC by dry weight, the psychoactive compound found in cannabis which is federally illegal.
The potential ban has sparked opposition, with Kentucky Senator Rand Paul voting against the spending bill due to the hemp provision. Kentucky hemp farmers, who have benefited economically from the hemp-derived cannabinoid market, are urging reconsideration of the ban to avoid what they predict as ‘immediate and catastrophic consequences’.
With hemp-derived cannabinoid sales exceeding $2.7 billion in 2023, the proposed ban could have a profound impact on the industry and its stakeholders.
Source: WIRED