Minnesota Hemp Industry Faces Uncertain Future as Government Shutdown Deal Includes Ban on Hemp-Derived Products
The Minnesota hemp industry is facing a potential crisis as a proposed deal to reopen the federal government includes a ban on hemp-derived cannabinoid products. The ban, which would cap THC levels at 0.4 milligrams per container, has left local hemp producers reeling.
Omar Ansari, president of Minneapolis-based Surly Brewing Company, said that the company has already had a client put a hold on their orders due to the congressional deal. “This is our livelihood,” he said. “The beer business is way down. A lot of breweries, this is what they do — this keeps the doors open. So this getting banned would have a catastrophic effect on a lot of companies in Minnesota that have been following state guidelines for four years and investing money and buying equipment, hiring people, getting spaces — that all of a sudden, it’s like, whoa, whoa. The rug just got pulled out from under us.”
Minnesota legalized hemp-derived THC products in 2022, with limits of 5 milligrams THC per serving and 50 milligrams per package of edibles. However, the proposed federal ban would effectively shut down the industry, according to Bob Galligan of the Minnesota Craft Brewers Association.
Galligan estimates that about 70 percent of the state’s craft brewers are in the hemp market. “We’ve been trying to advocate getting federal language that actually regulates it, not bans it,” he said. “But there has been a push back and forth from different groups as to whether or not to outright ban it.”
The proposed ban is part of a larger debate over the regulation of hemp, which was removed from the controlled-substances list in 2018 as part of the Farm Bill. However, states like Minnesota have since put guardrails on hemp to prevent the prevalence of intoxicating products on the market.
The Minnesota Office of Cannabis Management is monitoring the developments with Congress and reviewing proposed language for its impact on Minnesota. “This is a complex policy issue, and we are reviewing it with the Attorney General,” said Jim Walker, the agency’s public information officer.
The fate of the hemp industry in Minnesota remains uncertain, as Congress continues to negotiate the government shutdown deal.
