Minnesota’s Attorney General Calls for Federal Clarity on Hemp
Pickup truck loaded with hemp plants and THC beverage cans on a rural road at dawn, symbolizing Minnesota’s call to close the Farm Bill loophole and clarify hemp regulations.
Minnesota’s Attorney General Keith Ellison is calling on Congress to close what he describes as a “loophole” in the federal Farm Bill—one that has created confusion and instability across the hemp and cannabis industries. According to Ellison, clearer federal rules could help the hemp-THC sector “thrive responsibly” while protecting both consumers and legitimate operators.
The issue centers on hemp-derived THC products, which exist in a regulatory gray area that has left states struggling to enforce consistent safety and labeling standards. Ellison’s comments reflect a growing call from state leaders for Congress to update federal hemp laws in the upcoming Farm Bill reauthorization.If your hemp or cannabis business operates across state or federal lines, now’s the time to strengthen your compliance and risk protection. Start with our quick Cannashield intake form to make sure your business is ready for federal changes.
The Farm Bill Loophole: A Legal Gray Area
The 2018 Farm Bill legalized hemp and its derivatives, defining hemp as cannabis containing less than 0.3% Delta-9 THC by dry weight. While the law was intended to support industrial hemp and non-intoxicating CBD production, it inadvertently opened the door for the manufacture of intoxicating hemp-derived cannabinoids—like Delta-8 THC and hemp-derived Delta-9 THC.
These compounds, which can produce psychoactive effects similar to traditional cannabis, are often sold outside of regulated cannabis markets in convenience stores, gas stations, and online platforms. Because they are chemically derived from hemp, they technically remain federally legal, creating a “loophole” that state regulators argue undermines consumer safety and fair market competition.
Ellison’s position echoes what many state attorneys general and cannabis industry advocates have said for years: the federal definition of hemp is too narrow and outdated, failing to account for the modern chemistry and commerce driving today’s hemp economy.The Push for Federal Reform
In his public comments, Ellison emphasized that the goal is not to criminalize hemp or punish small farmers — but rather to establish clear rules that protect responsible businesses and consumers alike.
“We need Congress to clarify what’s legal and what’s not so that the hemp industry can operate safely, competitively, and confidently,” Ellison said.
Under the current system, many operators face overlapping or contradictory regulations. Some states treat hemp-derived THC as a controlled substance, while others allow its sale with limited oversight. The result is a fragmented marketplace that puts compliant businesses at a disadvantage against bad actors who exploit federal ambiguity.
Industry experts believe that federal clarity could bring multiple benefits:
• Consumer protection through standardized testing, labeling, and potency limits.
• Regulatory consistency that helps states enforce fair and predictable rules.
• Market stability for legitimate hemp and cannabis operators.
• Investor confidence in an industry that’s currently viewed as legally volatile.If your hemp or cannabis operation depends on federal policy stability, Complete our Cannashield questionnaire to identify compliance gaps before new laws take effect.
Minnesota’s Role in Leading Reform
Minnesota’s approach to cannabis regulation has earned national attention for its balance of consumer safety, accessibility, and economic opportunity. The state legalized adult-use cannabis in 2023 while continuing to support its hemp-derived THC industry, which had already become a major economic driver.
However, even Minnesota’s well-structured market faces challenges under current federal definitions. The lack of clear distinction between regulated cannabis and hemp-derived intoxicants makes enforcement difficult, especially when products cross state borders.
By publicly calling for reform, Ellison positions Minnesota as one of the first states to advocate for modernization at the federal level. His stance aligns with industry groups that see reform not as restriction, but as a necessary step toward legitimacy and long-term growth.Why Federal Clarity Matters for the Hemp Industry
Without reform, the hemp market risks continued fragmentation. Operators who invest heavily in compliance, insurance, and safety standards face unfair competition from those who skirt regulation under federal loopholes.
This uneven playing field doesn’t just hurt businesses — it threatens consumer trust in legal cannabis and hemp products as a whole. By redefining hemp more precisely, Congress could set the stage for responsible innovation, improve safety, and encourage fair competition across the supply chain.
For businesses, the writing is on the wall: it’s time to prepare for federal oversight that will demand better documentation, transparency, and risk management.Regulatory changes can directly affect licensing, insurance, and operations. Fill out our Cannashield intake form to ensure your business is protected and compliant as Congress revisits the Farm Bill.
Conclusion
Minnesota’s Attorney General is joining a growing chorus of state leaders urging Congress to modernize federal hemp laws. The goal isn’t to restrict growth but to create a sustainable, transparent framework that supports both innovation and accountability.
For cannabis and hemp operators, this is a critical moment to take stock of compliance, product safety, and insurance protection. When federal reforms arrive — whether through the Farm Bill or new legislation — those who are prepared will be best positioned to lead.
At Cannashield, we help hemp and cannabis businesses navigate evolving regulations with strategic risk management, compliance planning, and insurance solutions built for a changing legal landscape.Complete our full intake form here to secure your operation and prepare for the next chapter of hemp and cannabis regulation.
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