Hemp Industry Faces Uncertain Future Due to New Federal Ban

Sun Nov 30 2025 04:40:01 GMT+0200 (Eastern European Standard Time)

The hemp-derived THC market is at risk following a new federal ban set to go into effect in 2026, impacting breweries, businesses, and consumers.

A new federal provision banning THC-infused beverages and snacks derived from hemp has sparked concern within the $24 billion hemp industry. With the ban set to take effect in November 2026, industry insiders are scrambling to save their businesses as lawmakers propose regulations aimed at balancing public health with economic interests in the hemp sector. The controversy follows a growth period for the hemp industry, particularly among craft breweries like Indeed Brewing, which has seen significant revenue from THC products.

Minneapolis Breweries Adapt Amidst Looming Federal Ban

In Minneapolis, Indeed Brewing has transitioned from traditional beer production to filling cans with THC-infused seltzer, aiming to capture a burgeoning market as alcohol sales decline. However, a recent federal bill integrated into a government shutdown resolution threatens to ban these products, sending shockwaves through the $24 billion hemp industry.

The provision that will take effect in November 2026 prohibits THC-infused beverages and snacks, leaving businesses like Indeed scrambling to adapt. It’s a big deal, remarked Ryan Bandy, Indeed’s chief business officer, emphasizing the potential impact on both the industry and consumers.

A Timeline of Events

The boom of hemp-derived products stems from the 2018 farm bill, which legalized hemp cultivation across the United States. This law inadvertently opened loopholes, allowing high-THC products disguised as hemp to enter the market. Products such as gummy candies and THC-infused beverages proliferated, sometimes evading state regulations and drawing scrutiny due to their accessibility.

A Patchwork of State Regulations

As various states began addressing the issue, California recently banned the sale of intoxicating hemp products outside its legal marijuana framework. Texas is moving towards stricter regulations regarding sales, aiming to limit access to consumers under 21. Meanwhile, Minnesota has embraced this new market, welcoming edibles and beverages into retail channels.

Industry Leaders Respond

With the proposed bans on the horizon, industry leaders are advocating for sensible regulations that preserve the hemp market while addressing public health concerns. Many are hopeful that sufficient lobbying will prompt legislative change before the ban takes effect.

Looking Forward

Lawmakers such as Minnesota’s U.S. Senators Amy Klobuchar and Tina Smith are actively seeking solutions to mitigate the potential fallout from the federal ban on hemp-derived THC products. As the 2026 deadline draws near, farmers and businesses remain uncertain about the future, with many emphasizing the need for decisive regulation that protects both public health and the burgeoning industry.