From 400+ farmers to 46: How Minnesota's hemp industry is already collapsing before the ban hits
Pending hemp ban threatens jobs in Minnesota
The looming national hemp band is already affecting Minnesota farmers. FOX 9's Corin Hoggard has more.
HASTINGS, Minn. (FOX 9) - A sea of green covers acres outside of Hastings — but it's not the same crop that grew there last year.
Hemp farming on the decline
Jeremy Saueressig planted soybeans on his farm after realizing there might not be anyone to buy his usual hemp crop by the time harvest arrived.
"It kind of came to a standstill this year. It seemed like not so many people were interested in the cannabinoid side for buying or anything," said Jeremy Saueressig, a Sporobio farmer.
What we know:
Minnesota licensed more than 400 hemp farmers at its peak. That number dropped to about 60 even before a federal ban was included in a budget bill last year. The state Department of Agriculture says it's down to 46 this year.
The ripple effect has already hit processing facilities and manufacturers of edibles and beverages, including at Northern Diversified in Burnsville, which is now operating only four days a week.
"There are a lot of jobs at stake and there's a huge, huge economic implosion that takes place," said Kyle Marinkovich, CEO of Northern Diversified.
What they're saying:
Marinkovich watched farmers pivot to other crops or leave the business entirely, which caused his potential supply to dwindle. He's had to restructure a business that grew rapidly since 2019. If the ban goes into effect, thousands of pounds of hemp could go to waste.
"But the alternative is worse. We have the demand, and we can't supply it," said Marinkovich.
The federal ban and what it means for Minnesota
What the ban would do
The federal hemp ban would reduce the allowed amount of THC in any products to nearly zero. In Minnesota, hemp-derived drinks and gummies currently sold at liquor stores would still be legal — but only at a licensed cannabis dispensary or through direct mail.
Producers don't expect much of a market for hemp-derived THC to survive in Minnesota under those conditions, and the national market would dry up.
"If we can survive in Minnesota on Minnesota alone, we will, and we'll make a run at it, but I hope it doesn't come to that," said Marinkovich.
What we don't know:
The industry may not get clarity until December. The U.S. Senate passed a one-month bridge bill pushing the November deadline.
"I will say the recent news of the extension has given us a little more momentum," Marinkovich said. "And some of the top brands out there, they're trying to make hay while the sun's shining, and consumers are starting to realize that this looming ban is there. They may not be able to get the products that they've come to love and enjoy. And so we are seeing consumers stock up in anticipation of that, but we're at about half of where we thought we'd be when we did our planning last year."
They’re hoping it’s not just a "sucker rally" where they get a brief boost before the industry withers away.
But the House has not passed anything, leaving Minnesota's hemp farmers and processors in a state of uncertainty.