Minnesota’s pioneering hemp-derived THC industry could collapse if a provision included in the deal to end the federal government shutdown becomes law.
The bill that passed the U.S. Senate on Monday and now is before the House includes language that would effectively ban hemp products containing more than 0.4 milligrams of THC, the psychoactive ingredient in cannabis. That limit would outlaw intoxicating hemp-based products in Minnesota, which allows edibles containing up to 5 milligrams of THC per serving and beverages containing up to 10 milligrams.
The federal ban, if passed, would take effect one year after enactment.
“This is an industry-killing change,” said Carol Moss, a Minnesota attorney who represents several hemp businesses. “Unless something happens in that one year, we will not have a hemp industry in Minnesota. The beverages, the edibles, the full spectrum of CBD. This is a killer.”
Minnesota was a national leader in creating a legal hemp-derived THC market before legalizing recreational marijuana. THC products have been legal and regulated in the state since the Legislature authorized the sale and possession of lower-potency THC edibles and beverages for adults 21 and older in 2022.
THC seltzers have outsold beer at some breweries and created a new social scene for the growing number of people drinking less alcohol.
Bob Galligan of the Minnesota Craft Brewers Association said the ban could be devastating for breweries, which have benefited from the THC seltzer boom as beer sales have declined. He said there would be little incentive for brewers to keep making seltzers that contain only trace amounts of THC.