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North Carolina Hemp Businesses Brace For Impact Of New Federal THC Product Ban

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5 months ago

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“We have a year to figure it out or we have a year to like it, crush it and fight for the plant and we hope to change that with the legislation.”

By Brandon Kingdollar, NC Newsline

For Hannah DeLange, the most rewarding aspect of running Redhead Hemp’s Durham location has been “creating a space where people feel comfortable and safe,” creating an inviting social atmosphere much like a coffee shop or bar.

Shelves are stocked with CBD gummies, Delta-9 sangrias and THC caramels, among other drinks and treats with promises like “sleep with benefits” and “lower calories, bigger vibes.”

The interior of the store looks cozy, with plants covering the brick walls with brightly colored artwork and plush sofas and chairs for relaxing. At the store’s “Canna Cafe,” customers can sit down with hemp-infused tea and coffee.

“It’s kind of a space for everybody,” DeLang said. “It has to be a plant for all people, and it has to be accessible, and to create a space that can really personify that.”

Now, the future of that space and many others like it are in jeopardy, with the majority of hemp-based cannabinoid products set to become illegal in November 2026.

Hemp business owners in North Carolina and their counterparts across the US are grappling with the impact of the ban, with some mounting advocacy efforts to reverse the ban and others working to narrow the range of CBD products that will remain legal.

“I think there is a lot of fear”

“We found out the morning of the Senate vote that this was happening,” said Emma MacAdam, owner of Redhead Hemp. “It was pretty clear when they put it in the bill that that bill was going to pass, so it just seemed like a vicious way for them to push their agenda into a bill that was so necessary and important to so many people.”

Hemp and marijuana are varieties of the cannabis plant, which differ mainly in levels of the psychoactive compound THC, with hemp containing much less. CBD, another chemical produced by the cannabis plant, does not have an intoxicating effect by itself, but it does produce a calming effect and has been shown to help treat pain and anxiety.

The ban, which significantly lowers the acceptable level of THC in hemp products, was passed earlier this week as part of a farm credit bill along with a stopgap funding deal to end the federal government shutdown.

It bans the sale of hemp products, including CBD products, that contain more than 0.4 milligrams of THC per container, DeLange and MacAdam said, about 99.5 percent of their stock. That would eliminate “full-spectrum” hemp products, which they said make up the most typical CBD products.

“They’re basically saying we can only use the non-intoxicating parts of the plant,” DeLange said. “For a lot of people, the compound THC, even that small amount that you see across the spectrum, that’s really important for pain relief, anxiety, sleep and things like that.”

DeLange said using CBD products has also helped some clients stop using opioids or stop drinking heavily. “Beverages have been a great resource for a lot of people who want a healthier alternative to that.”

The ban comes after lobbying by the marijuana industry and state law enforcement that the hemp industry exploited a loophole to sell products with many of marijuana’s effects but without regulatory oversight. The senators say they never intended to open up a recreational hemp market and only wanted to allow the cultivation of industrial hemp.

The reason, according to Sen. Mitch McConnell (R-Ky.) and other co-sponsors of the Farm Bill, is to “keep these dangerous products out of the hands of children, keeping the hemp industry to farmers,” and to do so, it closes a loophole that allows CBD products to be sold with less than 0.3 percent THC, a threshold that the Farm Bill originally helped overcome.

“Unfortunately, companies have exploited a loophole in the 2018 law by taking legal amounts of THC from hemp and turning it into an intoxicating substance, then marketing it to children in candy-like containers and selling it in easily accessible places like gas stations and convenience stores across our country,” McConnell said.

MacAdam and DeLange pushed back that the products are aimed at younger customers. They said their store has a strict 21+ policy.

“It’s very easy to use the iconic ‘save the children’ flag for a lot of things, I think there’s a lot of fear around cannabis – that’s the history of cannabis, period,” DeLange said.

“And there’s no talk of parental responsibility in that matter, or the fact that liquor isn’t safe for kids, and a lot of the new liquor companies are pretty and colorful,” MacAdam added. “I think it’s a complete escape.”

‘Wild West’

The rapid change to the ban represents a significant change for an industry that has seen little regulation in many states, including North Carolina, for the past seven years.

North Carolina has not enacted regulations on intoxicating hemp products, even with basic age restrictions, despite the support of the state Senate, Gov. Josh Stein (D) and Attorney General Jeff Jackson (D).

In February, the state’s child welfare task force reported a 600 percent increase in emergency room visits for minors related to cannabis use since 2019. Stein launched the Cannabis Products Advisory Council in June, saying “our state’s unregulated cannabis market is a wild west and is crying out for order.”

Last month, Jackson joined attorneys general in 38 states to ask Congress to regulate the sale of CBD products, asking lawmakers to “clarify the federal definition of hemp” during the appropriations process.

“Efforts by states to outlaw hemp-derived psychoactive products to protect their citizens cannot solve this problem,” the attorney general’s letter says. “Such efforts can only lead to unique and ineffective prohibitions and regulations that differ from state to state and will not stop the flood of THC mail order products from being transmitted through interstate commerce.”

Bills proposed in North Carolina that have not advanced this year include bans on sales to minors and sales permit requirements and child-friendly packaging and printed warnings. A bill passed by the Senate in June, which Jackson spoke for, would ban the sale of hemp-derived drinks, gummies and other products to anyone under 21 and prohibit their use on school grounds, among other rules, like a licensing process.

That bill and many others died in the powerful House Rules Committee, now chaired by Rep. John Bell (R-Wayne), who in 2024 became chairman of the hemp company Asterra Labs. Bell did not respond to multiple requests for comment for this story.

MacAdam said the lack of regulation has been a boon in some ways, such as making the industry more accessible to those with relatively few resources, creating greater opportunities for traditional business owners.

“It’s really nice when there’s no barrier to seeing what an industry can do. There’s no license that you have to pay $100,000 for. I started this business with a little money and a big goal, and I’m so grateful for all the people we’ve met along the way,” he said.

“It’s part of our way of life”

Also stopping are farm owners of flowering or smokeable hemp, a crop grown to make CBD products. Dana Rider, co-owner of Otherside Farm in rural Buncombe County, said the industry has been “disgusted” since hemp products were legalized in 2018 thanks to potential bans.

“We’d freak out and then everything would be fine, or they’d put it off for another year,” Rider said. “Obviously, (the ban) is going to strike a chord somewhere because, you know, it’s part of our livelihood.”

He said his family started growing hemp a year after starting their farm. Other farmers he knows have switched to hemp to revive their run-down tobacco farms and dairies. They now operate an online store, Otherside Hemp, and also sell their products in stores across the state. “It’s part of our income and helps keep the farm going,” he said.

He said that for many clients, the goal is not to undergo a chemical, but to manage pain and other conditions such as insomnia and anxiety.

“Your grandmother and your aunt and your parents don’t want to feel different, they don’t want to have that altered consciousness,” Rider said. “They just want to feel better.”

MacAdam and Rider both say they have been in conversation with other business owners who are working to push back against the ban before it goes into effect.

“We carry a lot of small businesses, a lot of family-run businesses, so we’re very concerned about our friends,” MacAdam said.

Otherside Farm plans to ask its supporters to contact state and local representatives about the ban, Rider said. “We have a year to figure it out or we have a year to like it, crush it and fight for the plant and we hope to change that with the legislation.”

“We will wait,” he added. “Until they tell us we can’t sell our stuff anymore, we’re going to keep selling our stuff and growing and producing our products.”

While some farms and shops will be able to continue to legally sell products processed to remove THC, also known as “CBD isolates,” Rider said his farm does not have the equipment to produce them. Since they only sell full-spectrum products, their entire product range would be wiped out by the ban.

“For us, we can’t really pivot, can we?” said Rider. “We wouldn’t be around anymore, basically, and that’s sad to think about.”

This story was first published by NC Newsline.

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State hemp license applications end April 30

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7 hours ago

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April 19, 2026

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Those wishing to grow and process hemp this year must apply for a license from the Minnesota Department of Agriculture (MDA) by April 30. Each license is valid until December 31 of the year it is issued. Graduates must reapply annually to continue in the program. An MDA license is required for individuals and businesses.

So far, about 30 people have applied for the 2026 MDA license, compared to 84 applicants last year.

These licenses are for the cultivation and processing of industrial hemp only. The hemp license application is not for adult use or for growing or selling medical cannabis. The application is also not intended for the sale of hemp-derived cannabinoid products. Information on adult use and medical cannabis is available Office of Cannabis Management (OCM) website.

There are applications of industrial hemp MDA website. Along with the online form, first-time applicants and authorized representatives must submit fingerprints and pass a criminal background check.

There are also several updates for the 2026 season. The extraction of cannabinoids from hemp is now regulated by the OCM, meaning that anyone interested in this type of processing will need a separate licence. The rates have also changed. The base cost of a hemp license is now $400, with an additional $250 per growing or processing location. The previous $250 processor license fee has been removed, but a 5% surcharge now applies to upgrades to MDA’s technology systems.

All authorized representatives listed on an application must pass a background check before being licensed. In addition, each lot of hemp must undergo THC testing before harvest, and each official sample collected by the MDA costs $100.

Source: Minnesota Department of Agriculture










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Colorado Marijuana Officials Announce Crackdown On Sales Of Hemp Products Amid ‘Risks To Public Safety’

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7 hours ago

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April 18, 2026

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These issues “pose serious risks to public safety, market integrity, and the tax revenue framework that supports Colorado’s regulated cannabis industry.”

By Christopher Osher, ProPublica and Evan Wyloge, The Denver Gazette

This story was originally published by ProPublica.

Colorado regulators announced Monday that they plan to crack down on companies that sell cheaper, potentially dangerous, illegal hemp products as marijuana.

The state’s Division of Marijuana Enforcement said it had identified “compliance issues” that threaten to dismantle the marijuana industry in the nation’s first legal retail market.

These problems “pose serious risks to public safety, market integrity and the tax revenue framework that supports Colorado’s regulated cannabis industry,” the agency said in an industry newsletter.

An investigation by the Denver Gazette and ProPublica in January reported that despite Colorado being one of the first states to ban the sale of intoxicating hemp products, the legislature and regulators. he failed adopting many of the rules that other states have used to keep hemp products off the medical marijuana shelves.

Creating evaporative and edible liquid distillate from hemp is much cheaper than using marijuana, giving companies a competitive advantage.

But regulators say they are concerned that manufacturers are relying on toxic and dangerous chemicals to convert the non-toxic CBD compound that is predominant in hemp into THC, the psychoactive compound that makes people feel high. Regulators have banned this chemical synthesis, saying they fear chemical residues could remain in the finished product, putting consumers at risk.

Colorado manufacturers have taken advantage of loopholes in the state’s testing and enforcement system to continue using hemp to make products marketed as marijuana, even though doing so is against state law, according to regulatory studies, previous agency bulletins and testimony and lab results contained in several lawsuits.

In 2024, state investigators found that a popular brand of marijuana sold at dispensaries was not only derived from hemp, but also contaminated with methylene chloride, the chemical often used to convert CBD from hemp into THC. Marijuana is banned by Colorado regulators and banned for most uses by the US Environmental Protection Agency because it can cause liver and lung cancer and damage the nervous, immune and reproductive systems.

Ware House, the company that manufactured these vaporizers, relinquished its marijuana license in response to the investigation. Ware Hause’s owner, Thanh Hau, and the company’s lawyer declined to comment.

Congress passed a law last November that bans nearly all hemp products nationwide starting this fall, but it’s unclear how the government will enforce the ban, and hemp growers are reeling.

In December, President Donald Trump issued an executive order telling his aides to work with Congress to develop rules that could allow certain hemp products.

The Colorado Division of Marijuana Enforcement made the announcement Monday newsletter agency officials stated that they “identified and investigated evidence” that marijuana companies are using illegal practices and prohibited methods to manufacture products, instead of relying on marijuana, which is supposed to be monitored for safety.

The Colorado Hemp Association and the Colorado Hemp Education Association did not immediately respond to requests for comment.

Beyond safety concerns, the bulletin also noted that some marijuana manufacturers and growers are avoiding marijuana tax obligations through “a pattern of non-compliance” in sales operations they report to the state’s “seed-to-sale” tracking system, which tracks marijuana from the initial planting to the sale of flower, vapes and other products at dispensaries.

Companies misrepresent marijuana sales at nominal prices, in some cases as low as $1 per pound for unprocessed marijuana material, the newsletter said. Those products typically fetch more than $600 per pound on the market, depending on the category of marijuana, according to industry experts.

That fraudulent reporting has stolen millions of dollars in marijuana taxes from state and local governments, industry experts say, though no official estimate is available.

The agency said it will follow emergency rules to address these issues. The bulletin emphasized that suspicious and abnormal transactions and inventories detected by the state will prompt investigations. Companies caught using hemp or other illegal material passed off as marijuana face “immediate product embargo, license suspension or revocation, significant fines and law enforcement,” regulators warned.

The Denver Gazette and ProPublica have tried to track the anomalous transactions, but the Division of Marijuana Enforcement’s sales transaction records, even those that do not identify the companies, are not public.

Marijuana industry representatives met with the division’s regulators late last month to push for a more aggressive response to the agency’s hemp replacement, even though it could affect some companies in the industry. The representatives argued that bad actors are unfairly driving down prices and shifting the tax burden to manufacturers and growers who are trying to comply with the rules. The newsletter was released a couple of weeks after that meeting.

“The division is also considering additional changes to its testing and screening protocols” to detect illegal products and prohibited methods, and may require additional laboratory tests “if needed for products throughout the supply chain,” the agency’s bulletin said.

This article was produced in partnership with ProPublica’s Local Reporting Network Denver Magazine. Sign up for Submissions to receive stories in your inbox every week.

user photo WeedPornDaily.

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Nascent medical cannabis industry aims for growth

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1 day ago

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April 18, 2026

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The medicinal cannabis sector is struggling to take root, and another specialist processing plant is set to close. But with current regulations and a new collective industry in mind, New Zealanders are promising to reduce their reliance on imported medicinals.

There was great excitement when medicinal cannabis was legalized and then regulated in 2020, with the hope of growing the domestic sector and serving patients here and abroad. However, since then, several companies have closed their doors, including Greenfern Industries, Cannasouth and, most recently, Helius Therapeutics.

The latter plans to close the East Tāmaki plant, affecting 65 workers. It is one of the few medicinal cannabis factories in the entire nation that has a specialized processing certificate called “Good Manufacturing Practice” (GMP).

Medical Cannabis Council executive director Sally King said that under current rules, most growers did not have such certification, and could only sell raw ingredients, not processed products such as more profitable cannabis capsules.

Read more at the town










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