Cannabis News

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

Published

7 months ago

November 17, 2025

admin

“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.

Marijuana Moment is made possible with the help of readers. If you rely on our pro-cannabis journalism to stay informed, consider a monthly Patreon pledge.

Cannabis News

cbdMD welcomes White House call for fair treatment of hemp-derived products

Published

21 hours ago

June 29, 2026

admin

cbdMD welcomes the Administration’s call for Congress to ensure fair treatment of hemp-derived products under federal law and calls for immediate action to revise hemp regulations to ensure fair treatment of hemp products under federal law.

In a letter to congressional leadership this week, the White House Office of Management and Budget identified hemp reform as a priority strongly supported by the Administration. The petition calls on Congress to ensure fair treatment of hemp-derived products by maintaining access to appropriate full-spectrum CBD products, and by maintaining Congress’ intent to reduce products that pose health risks. The administration also urged Congress to pass a responsible federal framework or at least extend the current implementation period to give lawmakers time to get policy right. The request builds on the president’s previous public statements urging lawmakers to protect access to full-spectrum CBD products that millions of Americans rely on.

“We are encouraged to see the administration so clearly championing the responsible, scientific hemp products that consumers depend on every day,” said Ronan Kennedy, CEO of cbdMD. “cbdMD has always believed that the future of this category is built on quality, transparency, and clear rules that separate them from bad actors. A federal framework that protects consumer access, promotes safety, and provides certainty to companies that provide certainty is what this industry and the people it serves deserve. We applaud the policymakers who are working to achieve this outcome.”

“We believe CbdMD is purpose-built for this next phase of the market,” added Kennedy. “Our focus remains on serving our customers with reliable and effective products, supporting responsible regulation and building long-term value for our shareholders as the category continues to evolve. Along the way, we will continue to evaluate the opportunities this evolving environment holds.”

For more information:
cbdMD
cbdmd.com/

Cannabis News

Applications For Missouri Marijuana Microbusiness Licenses Will Open Next Month

Published

21 hours ago

June 29, 2026

admin

“We have a lot of tutorials, and we also provide a step-by-step guide. Anyone could sit down and make the app. I don’t think it’s challenging.”

By Rebecca Rivas, Missouri Independent

Application window win one of Missouri’s 77 micro-business marijuana licenses through a lottery selection it will be open from July 13 to 27.

The selection lottery is scheduled for Sept. 9, and the Missouri Division of Cannabis Regulation expects to issue licenses in December, according to a press release issued Monday.

Microbusinesses are marijuana facility licenses issued to entities and individuals designed to allow marginalized or underrepresented people to legally participate in the marijuana market.

Lesley Turek, the division’s capital manager, has been traveling the state this month to educate people about the application process.

“I really feel that microenterprise graduates are, first and foremost, a community of people who help each other,” he said. “They’re the ones who are driving this program forward, so I’m looking forward to meeting new people and sharing as much as I can about the program. It’s a great program.”

Much of what is being worked on is the new rules that went into effect at the end of May…In 2024 the proposed cannabis regulators will remove a large number of licences Because of unconstitutional property deals.

The new rules, he said, allow regulators to conduct extensive scrutiny before licensing, rather than after. Furthermore, they give a more in-depth explanation of what it means to “have and operate the majority” of the License, which is a requirement in the Constitution.

Regulators are mandated to communicate directly with majority owners and require applicants to complete a compliance course before applying and after receiving a license.

The microbusiness program was passed by voters in the 2022 constitutional amendment to legalize recreational marijuana.

In Missouri, there are seven categories in which people can qualify for a micro-business license, ranging from lower income or living in an area considered poor, to past arrests or incarcerations related to marijuana offenses.

Applicants pay a $1,500 application fee if not selected. The Missouri Lottery will select 77 license applicants to open dispensaries or cultivation facilities. The goal is to fill the remaining gaps in the minimum 144 micro-business licenses mandated by the Constitution.

Turek believes the application is relatively simple and something people can complete on their own, unlike the much more complicated application for comprehensive licenses.

“We have a lot of tutorials, and we also offer a step-by-step guide,” he said. “Anyone can sit down and do the app. I don’t think it’s a challenge.”

The part that most people often don’t understand is everything that comes with owning a marijuana facility.

“It’s very expensive, it’s very regulated, and so it’s challenging,” he said. “I want to make sure people have a clear understanding beforehand so they can make a good decision whether they want to apply for this program.”

A big part of his presentation was that the majority of the licenses should be owned by and eligible people. They must have more than 50 percent of the authority to direct the decisions made with the license.

“It’s more than a percentage of ownership,” he said. “It’s really about being able to have that control over it.”

It also talks about the designated contact, and why in the new rule the regulators will require that the designated contact be the applicant or the eligible person with the majority of ownership.

The designated liaison role was conceived as a way to ensure clear communication between the state and licensees.

Instead, state regulators discovered it many named contacts have kept real applicants in the dark about business and licensing. Applicants are locked into agreements that limit their voting power and profits in the business.

That’s why the state now requires pre-application training, a three-video online course to ensure applicants understand “potentially predatory practices,” regulators said in response to public comments during the rulemaking process.

The press release It says those who need help with eligibility requirements or application forms can contact the facility’s application services (email protected).

Educational dissemination events for micro-enterprises

Personal forums:
June 22 – 6:00 pm to 8:00 pm – Kansas City

Webinars:
June 24 – from 11:00 a.m. to 1:00 p.m
June 29 – from 18:00 to 20:00

Registration is required for in-person and virtual sessions. Interested participants can register at Microenterprise education. Additional information on the microenterprise program is available here cannabis.mo.gov.

Those requiring assistance with eligibility requirements or application forms may contact Facilities Application Services at (email protected).

This story was first published by the Missouri Independent.

Marijuana Moment is made possible with the help of readers. If you rely on our pro-cannabis journalism to stay informed, consider a monthly Patreon pledge.

Cannabis News

RAND estimates Indiana adult-use cannabis could yield $180M in annual revenue

Published

2 days ago

June 28, 2026

admin

Two new RAND reports commissioned by the Richard M. Fairbanks Foundation outline the policy options and financial commitments facing Indiana as the state debates whether to change its cannabis laws amid restrictions across the country.

Reports show that 44% of Indiana residents live within 50 miles of a licensed dispensary in a neighboring state, and 96% live within 100 miles, as three of Indiana’s four states have legalized adult-use cannabis. At the same time, intoxicating hemp products containing the same psychoactive compound as marijuana are available at gas stations, convenience stores and grocery stores throughout Indiana with limited oversight.

Cannabis use in Indiana has doubled in the past decade, with a significant increase among adults 26 and older. RAND estimates that 1.3 million Hoosiers used cannabis in 2024 and spent $1.8 billion on marijuana products that year. Indiana recorded more than 13,000 cannabis-related arrests in 2024, with more than 90% for possession and more than 75% for non-cannabis related charges. The state spends $10 million to $20 million annually on cannabis law enforcement.

Rather than recommending a specific policy, the RAND reports outline four broad options: maintaining prohibition, reducing criminal penalties for possession, legalizing medical cannabis, or legalizing the adult recreational use market. Legalizing adult-use cannabis would generate about $180 million in annual state revenue, roughly 1 percent of the state’s general fund, well below some previous projections and less than half of the $385 million in combined cigarette and alcohol tax revenue Indiana will collect in 2025, according to the Indiana Department of Revenue.

Legalization would also entail significant upfront costs, and ongoing regulatory costs could reach the low tens of millions of dollars annually, outweighing the savings from reduced criminal justice spending. RAND identifies 14 policy considerations important to establishing legal markets, each with its own public health and state economic implications.