Federal hemp ban threatens NC’s booming cannabis industry – The North State Journal
CBD, hemp and other cannabis-derived products sold across North Carolina could be outlawed nationwide in November, a move that would threaten a multibillion-dollar industry and disrupt hundreds of growers and thousands of workers in a state that ranks among the nation’s top producers.
North Carolina ranks sixth nationally in the production of hemp-derived products, according to a 2023 study, with more than 800 licensed growers and roughly 8,000 workers tied to cultivation, processing and retail sales. From CBD oils to THC-infused gummies and drinks, the products have flourished in a legal gray area that now appears to be closing.
The state’s hemp story dates back to 2017, when North Carolina joined a federal pilot program allowing limited cultivation. Momentum accelerated after the 2018 Farm Bill legalized hemp nationwide, defining it as cannabis containing no more than 0.3% THC. That threshold opened the door to a wide array of consumer products that remain legal even as recreational marijuana is banned under both federal law and North Carolina statute.
The result has been a booming market built on chemistry and careful labeling. By converting hemp-derived compounds into low-dose THC products, manufacturers created items that technically complied with the law while producing mild intoxicating effects. Gummies, beverages and tinctures quickly spread from specialty shops to convenience stores and gas stations across the state.
That loophole may soon disappear. In the most recent federal spending package passed to reopen the government in November, Senate language backed by Kentucky Republican Mitch McConnell would dramatically tighten the definition of legal hemp products. The proposal would cap THC at 0.4 milligrams per serving — far below the five to 10 milligrams typically found in popular low-dose gummies — effectively banning most products now on the market.
McConnell, the chief architect of the 2018 Farm Bill, has argued that hemp companies have exploited the law to sell intoxicating substances never intended to be legal. If adopted, the change would take effect nationwide in November, giving businesses a narrow window to adapt or shut down.
State leaders are already signaling concern. Last June, Gov. Josh Stein announced the creation of a cannabis advisory council to examine North Carolina’s largely unregulated hemp market. In a press release, Stein said, “Our state’s unregulated cannabis market is the Wild West and is crying for order.”
For North Carolina growers, processors and retailers, the stakes are high. Many have invested heavily in facilities, licenses and supply chains built around hemp-derived THC. A federal ban could force rapid pivots to nonintoxicating products, consolidation across the industry or outright closures.
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