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Minnesota’s Hemp-Derived THC Product Market Faces Uncertain Future Amid Proposed Farm Bill Amendment

A proposed amendment to the 2024 Farm Bill could significantly impact the hemp-derived THC product market in Minnesota. The amendment, which was approved by a key House committee, aims to restrict the production and sale of products containing THC, a psychoactive compound found in both hemp and marijuana.

The proposed change would redefine hemp to exclude products containing more than 0.3% THC, the current threshold for hemp. This would effectively ban products containing higher levels of THC, which are currently legal in Minnesota. The state has its own regulations in place for hemp-derived products, including requirements for packaging, labeling, and testing.

Leili Fatehi, a partner at cannabis consulting firm Blunt Strategies, believes that the proposed change would have little impact on the legal hemp market in Minnesota, as the state’s regulations already differentiate between hemp and marijuana products. However, she expressed concerns about the legal status of THC-A flower, which could be affected by the proposed change.

The amendment has raised concerns among some in the industry, particularly in the brewing sector, where hemp-derived THC drinks have become popular. Bob Galligan, director of government and industry relations for the Minnesota Craft Brewers Guild, noted that while some members were initially concerned about the impact of the proposed change, he believes that the Minnesota delegation in Congress will be receptive to their concerns.

The amendment is part of a broader effort to regulate the hemp-derived product market, which has grown rapidly since the 2018 Farm Bill legalized hemp production. The proposed change is intended to close a loophole that has allowed drug-infused THC products to be sold to teenagers in packaging that looks like candy.

The amendment still needs to pass the full House and Senate before it can become law. If approved, it could have significant implications for the hemp-derived THC product market in Minnesota and beyond.