US Hemp Industry Faces Federal Ban Under New THC Limits

• The US government has enacted stricter limits on THC in hemp products, which will take effect in November 2026, classifying many as illegal narcotics overnight.
• The hemp industry supports 300,000 jobs and generates $28.4 billion in revenue annually.
• Businesses like Joe Salome's Georgia Hemp Company could face ruinous consequences if forced to shut down due to the new rules.
• A bipartisan group of lawmakers is exploring ways to delay or repeal the enacted ban, but a measure like this is far from certain.

The reality has turned out to be far more complex. Producers soon discovered they could create hemp products that mimicked the effects of intoxicating marijuana — for example, by concentrating low-THC hemp into a product.

In 2018, the US government inadvertently created an opportunity for a new kind of cannabis business when lawmakers passed the Farm Bill. The bill updated agricultural policy and helped guide hemp production across the country. Hemp-derived THC beverages were widely promoted in Georgia as an alternative to alcohol, creating a thriving industry that brought in $150 million in state tax revenue annually. However, a provision enacted into law in November 2025, as part of an appropriations bill, is set to upend this progress. The new rules, set to take effect in November 2026, will dramatically narrow the definition of lawful hemp, classifying many products as illegal narcotics overnight.

The 2018 Farm Bill legalized the growing of hemp, but it also created a complex situation where producers could create products that mimicked the effects of intoxicating marijuana. The line between states with legal recreational marijuana and those without it grew increasingly blurred. Senator Mitch McConnell, who helped lead the push to legalize hemp in 2018, had previously stressed the difference 'between hemp and its illicit cousin.' However, the reality has turned out to be far more complex. The new rules, which will take effect in November 2026, impose stricter limits on THC, capping total legal limits not just for the plant but in any products produced from it.

The potential disruption to the hemp industry could have ruinous effects on businesses like Joe Salome's Georgia Hemp Company. With four stores and 10 employees, the company relies heavily on the sale of hemp-derived THC beverages. If forced to shut down, Salome fears he would lose his family's home and struggle to find another source of income. The industry as a whole supports 300,000 jobs and generates $28.4 billion in revenue annually. A bipartisan group of lawmakers is exploring ways to delay or repeal the ban, but without such a measure, the strict new rules will go into effect in November 2026.

Lawyers advising hemp businesses should be prepared for potential disruption to their operations and advise clients on the implications of the new THC limits, including potential product recalls or business shutdowns.

Source: Original reporting via Courthouse News