Shutdown deal means Iowa hemp industry could go up in flames

As part of the deal to end the federal government shutdown, most hemp products with THC will become illegal again.

The end of the federal government shutdown also means the burgeoning hemp industry in Iowa—and across the nation—could soon go up in smoke.

Tucked away inside a bill to reopen the federal government, signed into law on Wednesday by President Donald Trump, is a provision that would redefine the federal definition of hemp, which was legalized in the 2018 Farm Bill.

Under the new legislation, any hemp product that contains a THC concentration above 0.3% would become illegal, as would any cannabinoid that offers a similar THC effect. THC is the main psychoactive chemical of cannabis plants, which is what gets people high.

The bill also bans synthetic cannabinoids and takes effect a year after Wednesday’s signing.

Four Winds Farm Hemp of Amana won’t go out of business because of the new legislation, but it’s certainly a blow to the family-owned business’ bottom line.

Scott and Megan Booher started growing hemp in Iowa five years ago and have manufactured hemp products since March 2021. Three out of Four Winds’ 14 hemp products on its website and its Amana storefront contain hemp-derived THC.

“We’re fortunate, but those three products are also a large part of our business,” said Scott Booher.

While the legislation will hinder his business, Booher is more concerned about the impact on other business owners and his customers. Four Winds produces most products in-house, but Partnered Process of Friendship, Wisconsin, manufactures the THC gummies and oil it sells.

“That manufacturer that makes those gummies for us, they’re probably going to get shut down,” Booher said. “And the people that use our products, I don’t even know how they are going to go about getting a product like that—I mean, it’s not like they can go out of state because it’s a federal thing.

“Now it’s just going to shut down a lot of people who are using THC medicinally,” he continued. “Whether people are using THC to get high or not … to each his own, you know? It’s just going to suck to go backwards.”

Nationally, the hemp industry employs more than 330,000 people and is valued at $28.4 billion, according to the US Hemp Roundtable, a nonprofit hemp advocacy organization. The roundtable is a coalition of dozens of companies that champion safe hemp and CBD products, and it has lobbied hard against the legislation.

“If this bill goes into effect, it would destroy 95% of the hemp industry,” Jonathan Miller, the general counsel for US Hemp Roundtable, told Starting Line a few hours before Trump signed the legislation into law.

However, Miller cautions that not all hope is lost for the industry.

“We’re working with members of Congress to introduce legislation—very soon—that would regulate hemp products, that would keep them out of the hands of children, it would use good manufacturing practices, truth in labeling, and reasonable THC limits,” he said.

“We’re hopeful that those will be introduced soon, and we’ll get them passed before this one year expires.”