The legislation passed by Congress earlier this month to reopen the federal government includes new restrictions on hemp that could affect Vermont producers.
The funding bill clarifies the definition of hemp to ban all hemp-derived products containing THC. Those were previously legal under the 2018 Farm Bill.
In Vermont, state law classifies all hemp products exceeding state quantitative limits or that are marketed for intoxicating effects as cannabis products. Any product containing more than 0.3% THC on a dry weight basis is considered cannabis, and thus can only be sold in state-licensed cannabis dispensaries.
But some Vermont hemp businesses, like Upstate Elevator Co., sell these products, such as low-THC drinks or gummies, in other states with different laws. That’s why CEO Dylan Raap said the federal change will hurt the state’s hemp industry.
“The loss, for us, would be tremendous,” he said. “It would be effectively taking away most of our business.”
Upstate Elevator Co. sells products nationwide through its online storefront. According to Raap, 90% of the products they sell would be outlawed.
Others around the U.S. are pleased to see Congress clarify the definition of hemp, including Vermont Attorney General Charity Clark.
In October, Clark joined a bipartisan coalition of 39 state and territory attorneys general to send a formal letter to congressional leaders urging them to clarify the definition and close the 2018 Farm Bill’s loophole.
The National Association of Attorneys General claimed the loophole has been exploited by so-called “bad actors” who sell recreational synthetic THC products across the country at places outside dispensaries, such as gas stations or convenience stores, sometimes targeting children.
“That is not what lawmakers intended,” Clark said. “There was not consistent age restrictions or labeling standards or safety requirements that we have grown accustomed to seeing when there is a legal cannabis market.”
The new federal legislation gives one year before the ban takes effect. Raap said he plans to spend that time working with Vermont’s congressional delegation and hemp trade groups to overturn it.
“We are committed to finding a sensible path forward that will protect access to natural hemp-derived products like full-spectrum CBD, while regulating low-dose hemp-derived THC on equal footing with alcohol,” he said.
