News Summary
Tennessee is grappling with significant regulatory changes to its hemp industry that could jeopardize local businesses. A new law, pending the Governor’s approval, restricts the sale of raw hemp flower and redefines THC limits, raising concerns among producers. Companies like FarmToMed are preparing for clearance sales as they face potential revenue drops amidst stricter regulations. Stakeholders in the hemp industry are seeking reasonable regulations rather than outright bans, emphasizing the need for compliance routes that support the community.
Tennessee is facing significant changes to its hemp industry, which could jeopardize the survival of many local businesses, including FarmToMed, owned by Chris Sumrell. The state legislature has passed new laws that will make it illegal to sell raw hemp flower, which currently accounts for approximately 86% of FarmToMed’s retail sales. The bill awaits Governor Bill Lee’s signature and is set to become law on January 1, 2026.
The newly proposed legislation redefines hemp from a delta-9 THC limit of .3% to a total THC limit of .3%. This change has raised concerns among local hemp producers, as Sumrell asserts that it will be nearly impossible to cultivate compliant hemp under this new standard. A significant aspect of the new laws involves a potential ban on THCA in hemp products, posing a threat to various local businesses such as Snapdragon Hemp.
FarmToMed, which operates out of two locations in Hixson, Tennessee, will be commencing clearance sales starting July 1 through the end of the month, aiming to liquidate its inventory before the law comes into effect. The company cites its foundational mission of aiding individuals rather than merely focusing on producing commodities such as rope. This pivot demonstrates a broader concern among hemp operators about how these regulatory changes could alter their ability to serve their communities.
The potential ban on THCA and THCp products was initiated by House Bill 1148, which the Criminal Justice Subcommittee has recommended for passage, though it remains with the House Judiciary Committee. Lawmakers are tightening controls over the hemp industry, resulting in uncertainty for many local enterprises. Joshua Manning, CEO of Snapdragon Hemp, forecasts a 60% decline in sales if the proposed ban is finalized. This anticipated revenue drop illustrates a troubling trend for businesses heavily reliant on hemp product sales.
The impending regulation and potential prohibition highlight ongoing tensions and a marked disagreement between state lawmakers and hemp industrialists, which have prompted pushback from the business community. Many local growers and sellers emphasize the need for stringent yet reasonable regulations rather than outright bans that could drive customers to unregulated sources. Such a trend could increase risks associated with product safety and quality.
The proposed amendments to the legislation could have far-reaching implications for various local businesses that thrive on the legal production, distribution, and sale of hemp products. As this evolving situation unfolds, Tennessee’s hemp industry remains uncertain about the future. The hearing for this legislation in the House Judiciary Committee is set for March 5, where stakeholders will likely continue to express their concerns about the repercussions these laws may have on the local economy and community health.
Stakeholders in Tennessee’s hemp industry are rallying to protect their livelihoods as they confront significant legislative hurdles that could reshape the landscape of hemp products and sales in the state. As effective compliance routes remain unclear, business owners like Sumrell and Manning are advocating for solutions that foster both compliance and community support.
Deeper Dive: News & Info About This Topic
- Times Free Press: Downtown Chattanooga Hemp Shop Speakeasy
- Wikipedia: Hemp
- Local 3 News: TN Lawmakers Cracking Down on Hemp Regulations
- Google Search: Tennessee hemp industry
- News Channel 9: Tennessee Hemp Industry Faces Potential Loss
- Google Scholar: Tennessee hemp regulations
- Times Free Press: Bill Would Ban Most Popular Hemp Products
- Encyclopedia Britannica: Hemp Industry
- Local 3 News: Hemp Business Owners Fearful of Potential Impact
- Google News: Tennessee hemp laws
