Dr. LaKeshia N. Myers
LaKeshia N. Myers
While most Americans were focused on ending the longest government shutdown in our nation’s history, Congress slipped a provision into the funding bill that could devastate Wisconsin’s burgeoning hemp industry. The devil, as they say, is always in the details.
Buried within the legislation to reopen the federal government was language that effectively bans nearly all hemp-derived THC products by capping total THC content at just 0.4 milligrams per container. This seemingly technical adjustment represents nothing less than an existential threat to Wisconsin businesses that have invested millions of dollars and countless hours building an industry from the ground up.
The hemp industry argues this new restriction will eliminate 95% of the $28 billion national hemp market and put more than 300,000 jobs at risk. Here in Wisconsin, where approximately 400 active hemp producers currently hold USDA licenses, the impact will be severe and immediate.
Wisconsin has a proud history with hemp cultivation. More than a century ago, our state was a national leader in hemp production with nearly 7,000 acres under cultivation. During both World Wars, Wisconsin farmers grew hemp primarily for rope and fiber that supported our military efforts. After World War II, federal regulations and crop diseases caused the industry to disappear. But in 2017, when Governor Scott Walker signed Act 100, Wisconsin began its hemp renaissance. By 2019, the state saw applications for hemp licenses surge to more than 2,100, signaling strong interest from farmers seeking economic diversification.
The 2018 Farm Bill, championed by Kentucky Senator Mitch McConnell, removed hemp from the federal controlled substances list and opened the door for commercial hemp cultivation nationwide. McConnell now argues that the existing hemp definition resulted in “an unintended consequence that has allowed for intoxicating hemp-derived synthetic products to be made and sold,” and he pushed for changes to reflect “the original intent” of the 2018 Farm Bill. But his “correction” threatens to destroy the very industry he helped create.
Wisconsin businesses are scrambling to understand what this means for their operations. The new ban won’t take effect for one year, but industry leaders warn it could force legitimate businesses into the illicit market where products face no testing, no age restrictions, and no tax compliance. This is precisely the opposite outcome we should seek when regulating any consumer product.
The economic implications extend beyond individual businesses. State and local governments stand to lose millions in tax revenue that currently supports addiction services, county budgets, and public health programs. Wisconsin farmers who have already made significant investments in equipment, land preparation, and specialized knowledge now face an uncertain future.
Senator Rand Paul of Kentucky led a failed effort to remove the hemp language, calling the measure “a backdoor federal ban on hemp.” He was joined by Minnesota Democrats Amy Klobuchar and Tina Smith, but their motion failed in a 76-24 vote. The speed and way this provision was inserted into must-pass legislation raises serious questions about transparency and the legislative process.
What makes this particularly troubling is that Wisconsin has no recreational or medicinal marijuana program, making hemp-derived products one of the few legal options for residents seeking certain therapeutic benefits. The new cap replaces the 2018 Farm Bill’s definition which allowed products with less than 0.3% THC by weight, fundamentally changing how hemp products can be manufactured and sold.
Wisconsin’s hemp industry represents agricultural innovation and economic opportunity for rural communities that have struggled with declining dairy revenues and low commodity prices. Hemp offers farmers crop diversification and the potential for higher profit margins compared to traditional crops. The industry encompasses not just cultivation but processing, retail, and value-added product development—creating jobs throughout the supply chain.
The federal government has a responsibility to protect consumers, especially children, from harmful products. But this ban represents regulatory overkill that will harm legal businesses while doing nothing to address black market sales. A more measured approach would establish clear testing standards, age restrictions, and labeling requirements while allowing the legitimate industry to continue serving adult consumers.
As Wisconsin businesses await clarity on how this federal ban will be implemented and enforced, one thing is certain: another government overreach threatens to crush an emerging industry before it has a chance to fully develop. Our farmers and entrepreneurs deserve better than legislation crafted in the shadow of a government shutdown crisis.
It is important to note that of the six Democratic senators who negotiated the parameters of this bill, each of their states has a thriving hemp industry.
The hemp industry has one year to advocate for reasonable regulations that protect consumers without destroying businesses. Wisconsin’s Congressional delegation must hear from constituents about the real-world impact of this hastily written provision. The future of hundreds of Wisconsin businesses and thousands of jobs hangs in the balance.