November 24, 2025
Hemp ban threatens to destroy industry that emerged after 2018 Farm Bill, affecting 300,000 jobs nationwide
On Nov. 24, 2025, reports emerged that a recently passed federal law will ban hemp-derived THC beverages within one year. These drinks with THC from hemp are sold in dozens of states, including those that ban cannabis products.
The law tightens federal controls on hemp production and processing. The hemp-based THC beverage sector boomed after the 2018 Farm Bill legalized hemp (cannabis with less than 0.3% THC).
Manufacturers argue hemp-derived THC is legal under the Farm Bill, but new legislation closes what regulators call a loophole. The ban threatens a multi-million dollar industry that emerged in states without legal cannabis markets.
A recently passed federal law will ban hemp-derived THC beverages within one year, reported Nov. 24, 2025. These drinks contain THC extracted from hemp (cannabis with less than 0.3% THC by dry weight). The 2018 Farm Bill legalized hemp production, creating a loophole manufacturers exploited to sell THC drinks in states without legal cannabis.
Hemp THC beverages are sold in dozens of states including those that ban cannabis products. The drinks emerged as a multi-million dollar industry after the 2018 Farm Bill. Manufacturers argued hemp-derived THC is legal under the Farm Bill. Federal regulators call it a loophole the new law closes.
The law tightens federal controls on hemp processing and production. Manufacturers have one year from implementation to comply. The ban threatens to eliminate the hemp-based THC beverage sector. Companies invested millions in production facilities and distribution networks based on the 2018 Farm Bill's language.
Industry affected by ban
Law enforcement and rule-making