Horton: Hemp ban hurts consumers and farmers
In a recent development that has raised eyebrows across the agricultural and business sectors, a provision included in a broader funding package to reopen the federal government proposes a wholesale ban on hemp-derived products. This move is particularly concerning given that the hemp industry, which has flourished since the 2018 bipartisan Farm Bill legalized hemp and certain hemp-derived products, now boasts a staggering market value of nearly $30 billion. The proposed ban threatens to undermine the livelihoods of farmers, small businesses, and consumers, pushing them toward unregulated markets that lack the safety and transparency of regulated commerce.
The surge in popularity of hemp-derived beverages, such as seltzers and mocktails infused with cannabinoids like CBD and THC, reflects changing consumer preferences, particularly among younger generations. A recent survey revealed that in 2024, 53% of Gen Zers planned to reduce their alcohol consumption, with nearly 19% abstaining from alcohol altogether. This shift has contributed to the rapid growth of the U.S. hemp beverage market, which is projected to exceed $1 billion by 2028, up from an estimated $71.7 million in 2023. Companies like DoorDash have responded to this trend by introducing hemp-derived products, allowing thousands of merchants to reach new customers and generate revenue, while also supporting local economies and employment.
While concerns about the safety of certain hemp products, particularly chemically altered THC variants, are valid, it is crucial that lawmakers do not conflate these issues with the entire hemp industry. A recent call from 39 state attorneys general for Congress to clarify the definition of hemp has highlighted the need for a balanced approach. Instead of imposing blanket bans that could devastate the industry, a collaborative effort involving farmers, retailers, public health experts, and regulatory authorities is essential. By establishing clear guidelines on age restrictions, testing, labeling, and enforcement, lawmakers can effectively protect consumers without stifling legitimate businesses. The focus should be on creating a federal framework that safeguards public health while ensuring the continued growth and stability of a vital economic sector.
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
