Hemp-derived THC market faces $28 billion threat from pending federal ban

A congressional amendment set to take effect in December will restrict the amount of delta-9 THC in hemp-derived products to 0.4 milligrams per container, effectively ending the rapidly growing market for intoxicating hemp items such as gummies, sodas and vape oils. The measure, championed by Sen. Mitch McConnell, closes a loophole in the 2018 farm bill that previously allowed hemp with less than 0.3 % delta-9 THC to be infused with higher, psychoactive levels.

Analysts at Whitney Economics warn the ban could slash industry sales by $28.3 billion, eliminate roughly 225,000 jobs and reduce state tax revenue by $2.1 billion. Producers like Cornbread Hemp, which employs 105 workers and expects $65 million in sales, say the 0.4-mg cap would render their business unsustainable, while others such as Deutermann Farms are exploring alternative products. Supporters of the restriction include public-health advocates and the regulated cannabis sector, whereas alcohol retailers and some industry players argue the ban threatens livelihoods and limits consumer options.