Horton: Hemp ban hurts consumers and farmers
In a recent funding package aimed at reopening the federal government, a controversial provision has emerged that threatens to criminalize hemp, a burgeoning industry valued at nearly $30 billion that has been legal since the passage of the 2018 Farm Bill. This proposed wholesale ban on hemp-derived products is drawing criticism for its potential to harm farmers and small businesses, as well as for pushing consumers toward unregulated markets. The hemp industry has flourished in recent years, particularly with the rise of hemp-derived beverages infused with cannabinoids like CBD and THC, which cater to a growing demographic of sober-curious consumers. With a 53% increase in Gen Zers planning to drink less alcohol in 2024 compared to the previous year, the demand for these alternatives has surged, positioning the U.S. hemp beverage market to grow from an estimated $71.7 million in 2023 to over $1 billion by 2028.
The legal hemp industry not only supports over 320,000 jobs but also contributes an impressive $28.4 billion to the economy and generates $1.5 billion in state tax revenue each year. A blanket ban on hemp products would disrupt this economic stability, shuttering businesses and jeopardizing livelihoods across the nation. Despite valid concerns regarding the safety of certain hemp-derived products, particularly chemically altered THC variants, a group of 39 state attorneys general mistakenly conflated all hemp THC products with potentially dangerous synthetics. Instead of a sweeping ban, experts argue that Congress should focus on establishing a clear regulatory framework that includes input from all stakeholders—farmers, retailers, public health experts, and regulatory bodies—to ensure consumer safety while allowing legitimate businesses to thrive.
To address safety concerns effectively, lawmakers should prioritize creating comprehensive guidelines on age restrictions, product testing, labeling, and enforcement mechanisms. Such a collaborative approach would not only protect consumers from harm but also foster a thriving, regulated hemp market that benefits farmers, businesses, and consumers alike. As the hemp industry continues to grow and evolve, it is crucial for policymakers to strike a balance between regulation and support, ensuring that the economic contributions of this sector are recognized and protected.
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
