MINNEAPOLIS (AP) — The production lines at Indeed Brewing moved quickly, the cans filling not with beer, but with THC-infused seltzer. The product, which features the compound that gets cannabis users high, has been a lifeline at Indeed and other craft breweries as alcohol sales have fallen in recent years.
That boom, however, looks set to come to a halt.
Buried in the bill that ended the federal government shutdown last month was a provision to ban those drinks, along with other impairing beverages and snacks made from hemp, which have proliferated across the country in recent years.
Now the $24 billion hemp industry is scrambling to save itself before the provision takes effect in November 2026.
“It’s a big deal,” said Ryan Bandy, Indeed’s chief business officer. “It would be a mess for our breweries, for our industry, and obviously for a lot of people who like these things.”
The federal ban could jeopardize more than 300,000 jobs while costing states $1.5 billion in lost tax money, the group says.
Drew Hurst, president and chief operating officer at Bauhaus Brew Labs, has no doubt his company would be among the casualties.
“If this goes through as written currently, I don’t see a way at all that Bauhaus could stay in business,” Hurst said.
A number of lawmakers say they will push for regulation of the hemp THC industry.
Kentucky Sen. Rand Paul, introduced an amendment to strip fellow Kentucky Sen. Mitch McConnell McConnell’s hemp language from the crucial government-funding bill, but it failed on a lopsided 76-24 vote.
Minnesota’s Democratic U.S. senators, Amy Klobuchar and Tina Smith, are among those strategizing to save the industry.
The ban, however, doesn’t take effect for a year. That has given the industry hope that there is still time to pass regulations that will improve the hemp THC industry — such as by banning synthetically derived THC, requiring age restrictions on sales, and prohibiting marketing to children — rather than eradicate it.
“We are very hopeful that cooler heads will prevail,” said Jonathan Miller, general counsel of the industry group U.S. Hemp Roundtable. “If they really thought there was a health emergency, there would be no year-long period.”
Marijuana and hemp are the same species. Marijuana is cultivated for high levels of THC in its flowers. Low-THC hemp is grown for its sturdy fibers, food or wellness products. “Rope, not dope” was long the motto of farmers who supported legalizing hemp.
After states began legalizing marijuana for adult use more than a decade ago, hemp advocates saw an opening at the federal level.
As part of the 2018 farm bill, Congress legalized the cultivation of industrial hemp to give farmers, including in Sen. Mitch McConnell’s home state of Kentucky, a new cash crop.
The way that law defined hemp — as having less than 0.3 percent of a specific type of THC, called delta-9 — opened a huge loophole.
Beverages or bags of snacks could meet that threshold and still contain more than enough THC to get people high.
Businesses could further exploit the law by extracting a non-impairing compound, called CBD, and chemically changing it into other types of impairing THC, such as delta-8 or delta-10.
The result was vape oil, gummy candies, chips, cookies, sodas and other unregulated, untested products laden with hemp-derived THC spread around the country.
In many places, they have been available at gas stations or convenience stores, even to teens.
In legal marijuana states, they undercut heavily taxed and regulated products. In others, they evaded the prohibition on recreational use of weed.
Dozens of states have since taken steps to regulate or ban impairing hemp products.
