Federal Hemp Ban Impacts Florida’s Billion-Dollar Market

The federal government has enacted a sweeping ban on hemp products following the signing of a spending bill by President Donald Trump on March 15, 2024. This legislation prohibits the sale of hemp products containing more than trace levels of THC, a significant change that could reshape the landscape of Florida’s burgeoning hemp market.

Lawmakers approved the ban as part of efforts to end the government shutdown, with proponents arguing it closes a loophole from the 2018 Farm Bill. This earlier legislation legalized hemp but left room for products that mimic marijuana effects without facing the same regulatory scrutiny. While supporters believe this ban will protect consumers, many in Florida’s hemp industry warn that such restrictions could decimate a market valued at over $10 billion and threaten thousands of jobs.

The true impact of the law may not be felt immediately, as its implementation is not expected until next year. Opponents of the ban, including various Florida hemp businesses, have vowed to advocate for changes in Congress. Legal experts indicate that while the federal ban makes certain hemp products illegal, it does not automatically eliminate the state marketplace. For instance, marijuana remains illegal federally yet is sold legally in various states for medical and recreational use.

According to Jonathan Miller, general counsel for the U.S. Hemp Roundtable, the legislation essentially hampers interstate commerce in hemp. He noted that Florida-grown and processed hemp products that violate federal law could still be sold within the state. However, Miller emphasized that this situation would impose a significant burden on local businesses, making compliance increasingly complex.

The new law limits THC content in products to no more than 0.4 milligrams, alongside similar restrictions on other cannabinoids that may produce intoxicating effects. The Secretary of the U.S. Department of Health and Human Services will determine which cannabinoids are deemed similar to THC. This broad classification has raised concerns among hemp producers who argue that their products, intended for wellness and not intoxication, will be adversely affected.

Among those voicing their concerns is Jammie Treadwell, owner of Treadwell Farms in Central Florida. Treadwell’s business specializes in CBD wellness products, and she fears these new rules could force her to alter the quality of her products by removing naturally occurring compounds to meet the stringent THC levels.

Treadwell criticized the timing of the legislation, suggesting that the ongoing government shutdown provided a convenient backdrop for such sweeping changes. “All of us want the government shutdown to end, so it was an easy time to slide something in,” she remarked.

The dynamics of Florida’s hemp marketplace have been complex. In 2024, the Florida Legislature attempted to impose stricter regulations, including a ban on delta-8 THC, a cannabinoid derived from hemp. However, Governor Ron DeSantis vetoed the bill, citing concerns that it would impose burdensome regulations on small businesses. A report from a hemp trade group indicated that Florida’s hemp market employed over 100,000 people and generated more than $10 billion in sales in 2022.

While the state has seen significant growth in the hemp sector, recent legislative measures have targeted consumer protection. In 2023, Florida lawmakers passed a bill restricting the marketing of hemp products that might appeal to children, ensuring that items resembling candy or popular brands could not be sold.

Despite these efforts, a recent analysis revealed that many stores across Florida were still offering products with THC levels akin to those found in marijuana, raising safety concerns. Current laws require that any hemp product sold in Florida must be certified by an independent testing lab to ensure it is free from contaminants and unauthorized THC levels.

As Florida’s hemp industry grapples with the implications of the federal ban, stakeholders remain divided. While some support the changes for the sake of regulation and safety, many others worry about the potential destruction of a thriving market that has only recently begun to flourish. The coming months will be critical as businesses adapt to the new legal framework and as advocates seek to influence potential changes at the federal level.