Federal hemp ban: What Twin Cities businesses stand to lose
Impact of looming federal ban on MN hemp products
Minnesota business owners are worried as a federal ban on hemp-derived THC goes into effect in months. FOX 9's Mike Manzoni has more.
MINNEAPOLIS (FOX 9) - Hemp businesses in Minnesota are bracing for major changes as a federal ban on intoxicating hemp products looms.
Minnesota hemp businesses fear federal ban will devastate industry
What we know:
A federal ban targeting hemp-derived THC products is scheduled to begin on Nov. 12. The move would make it illegal to sell or ship gummies, edibles or any hemp-related items containing intoxicating levels of THC across state lines.
"My business overnight would become a federally illegal business...." said Steven Brown, founder of Nothing But Hemp in Minneapolis.
He makes 1.3 million gummies a month at his factory and ships them nationwide, something that he estimates accounts for about half of his business.
"Gummies, edibles, smokables – anything that’s hemp-related that has THC will pretty much be illegal," he explained.
Eric Redlinger, owner of Minneleaf in Maple Grove, also ships THC drinks and gummies to customers outside Minnesota.
"We’re only in three other states, but all that business is going to go away," said Redlinger. "It most certainly threatens my business...."
If the ban takes effect, businesses would not be able to use the U.S. Postal Service, FedEx or other carriers to ship their products across state lines.
"That’s a big, big problem," said Brown.
The ban would not make THC products illegal in Minnesota, but customers would not be able to use credit cards to buy them if the federal restrictions go into effect.
The backstory:
The hemp industry’s current uncertainty began in 2018 when Congress changed how it defined hemp, aiming to give farmers a new crop. But the law’s wording allowed businesses to sell products with enough hemp-derived THC to get users high without breaking federal law, creating a new market for THC drinks and edibles.
A bill passed last year, however, will soon close that loophole and ban the products unless Congress intervenes.
Sens. Amy Klobuchar and Tina Smith are pushing to delay the ban by a month, moving the start date to December, to allow lawmakers to debate and pass an alternative legal framework. The Senate is expected to vote on the measure this week, but many in the hemp industry said it would only be a temporary solution.
The other side:
Supporters of the ban include 35 attorneys general who sent a letter to lawmakers urging them to let the ban take effect. They argue that it will protect consumers and children from potentially unsafe products.