Horton: Hemp ban hurts consumers and farmers
In a recent development, a troubling provision aimed at criminalizing hemp has surfaced as part of a broader funding package to reopen the federal government. This move poses a significant threat to the burgeoning hemp industry, which has flourished since the passage of the 2018 Farm Bill, a bipartisan effort that legalized hemp and certain hemp-derived products. Currently valued at nearly $30 billion, the hemp industry supports over 320,000 jobs and contributes approximately $28.4 billion to the economy, generating $1.5 billion in state tax revenue annually. A wholesale ban on hemp-derived products would not only jeopardize the livelihoods of farmers and small businesses but also push consumers toward unregulated markets, undermining the safety and transparency that regulated commerce offers.
The growing popularity of hemp-derived beverages, particularly among younger consumers, underscores the importance of this industry. As health-conscious choices gain traction, many individuals are opting for alternatives to traditional alcoholic beverages. A recent survey revealed that in 2024, 53% of Gen Zers (born between 1997 and 2002) planned to reduce their alcohol consumption, with nearly 19% abstaining from alcohol entirely. The hemp beverage market, which includes infused seltzers and mocktails, is projected to grow from $71.7 million in 2023 to over $1 billion by 2028. Companies like DoorDash have recognized this trend, launching hemp-derived product offerings that quickly attracted thousands of merchants, thereby generating new revenue streams and supporting local economies.
While concerns regarding the safety of hemp-derived products, particularly those involving chemically altered THC, are valid, a blanket ban is not the solution. A group of 39 state attorneys general recently mischaracterized all hemp-derived THC products as potentially dangerous, prompting a call for Congress to clarify the definition of hemp. Instead of imposing an outright ban, lawmakers should engage with all stakeholders—including farmers, retailers, and public health experts—to create a robust federal framework that addresses safety concerns through clear guidelines on age restrictions, testing, labeling, and enforcement. This collaborative approach could effectively protect consumers while preserving the integrity of a legitimate industry that plays a vital role in the economy.
Included in the broader funding package to reopen the federal government is a misguided provision criminalizing hemp, a nearly $30 billion industry that has been legal since 2018. A wholesale ban on hemp-derived products is the wrong move. It would harm farmers and small businesses, and push consumers toward unregulated channels and away from the safety and transparency that regulated commerce provides.
Fueled by changing consumer health preferences and evolving federal regulations, the popularity of hemp-derived beverages has exploded in recent years. Infused with low and legal levels of cannabinoids like CBD and THC that derive from the hemp plant, seltzers, sodas and mocktails have provided sober-curious Americans choices from alcohol.
In 2024, the percentage of Gen Zers (those born between 1997 and 2002) who planned to drink less alcohol increased 53% from the year before, according to one survey. Nearly one in five (19%) members of Gen Z don’t consume alcohol at all.
Interest in THC and CBD-infused drinks is a significant part of this movement. Estimated at $71.7 million in 2023, the U.S. hemp beverage market is expected to eclipse $1 billion by 2028.
In 2018, the bipartisan Farm Bill removed hemp and certain hemp-derived products from the federal Controlled Substances Act.
Market forces are speaking loudly. On DoorDash, we started offering hemp-derived products to customers over 21 this year. Almost immediately, several thousand merchants began selling hemp-derived items on our platform, reaching new customers, generating revenue and keeping local employees on the payroll.
From the farmers who grow hemp to the manufacturers and retailers who sell it, legal hemp products have become a crucial pillar of the modern economy. The industry supports more than 320,000 jobs, contributes $28.4 billion to the market, and generates $1.5 billion in state tax revenue annually. A blanket ban will shutter businesses, disrupt livelihoods and destabilize local economies.
To be sure, concerns about hemp safety are not without merit, especially those involving chemically altered THC products, which are not sold through DoorDash. Recently, a group of 39 state attorneys general mistakenly conflated all hemp THC products with potentially dangerous synthetic ones when they urged Congress to clarify the definition of hemp. In addition to banning these synthetic products, Congress should provide clear guidelines to those seeking to play by the rules.
To more broadly address safety concerns, lawmakers would be wise to convene all stakeholders in the debate — farmers, retailers, public health experts and regulatory experts — to create a federal framework. Setting clear rules on age requirements, testing, labeling and enforcement mechanisms could build consensus. The goal should be protecting consumers from harm without eliminating legitimate businesses, punishing farmers and outlawing an entire industry.
John Horton is the head of North America Public Policy at DoorDash/InsideSources
