Future uncertain for Texas hemp-based THC industry
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Hemp growers and retailers in Texas breathed a sigh of relief earlier this year when Governor Greg Abbott vetoed a state ban on hemp-based THC products but those in the industry are again concerned after Congress passed a bill banning all hemp-derived THC currently on the market.
Jonathan Miller, general counsel for the U.S. Hemp Roundtable, said the legislation is already having a negative impact on the industry.
"Farmers who grew hemp that was harvested in October are now having problems selling their products on the marketplace," Miller reported. "Prices had dropped, some places by 40 percent. Given the uncertainty farmers don’t know whether to plant seeds in the ground, this spring – they have to make decisions now."
The Texas hemp industry contributes more than $5 billion to the state’s economy and has created more than 53,000 jobs.
The national ban is scheduled to go into effect in November of next year but last week, President Donald Trump issued an executive order calling for cannabis to be rescheduled as a Schedule III substance. It also calls for regulators to work on legal exceptions for some hemp-based products.
Miller pointed out growers see the executive order as a lifeline but admitted the industry needs more regulations and will work with lawmakers over the next 11 months to make changes.
"So that farmers can make their decision and fully have enough time to develop a regulatory framework to replace the ban," Miller explained. "We’re working with members of Congress to introduce and hopefully pass bills that would crack down (on) the bad actors, would robustly regulate hemp products."
Miller stressed they support drafting new legislation to replace the total ban with regulations requiring good manufacturing practices, truth in labeling, bans on synthetic THC and strong measures to keep products out of the hands of children.
