U.S. Hemp Roundtable Warns Senate Proposal Could “Wipe Out” 95% of the Industry
Worker shutting down a gummy and beverage production line as pallets stack up, symbolizing the U.S. Hemp Roundtable’s warning that Senate hemp restrictions could wipe out the industry.
The U.S. Hemp Roundtable, one of the nation’s leading hemp industry advocacy groups, has come out strongly against new language in a proposed U.S. Senate funding bill that it says would recriminalize hemp-derived products.
The group warns that if enacted, the measure could effectively “wipe out 95% of the hemp industry,” costing billions in tax revenue and eliminating thousands of jobs across the country. The proposed provision, tucked into the federal appropriations process, would tighten restrictions on hemp-derived THC products such as Delta-8, Delta-10, and hemp-derived Delta-9, which currently exist in a legal gray area.
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The hemp industry has thrived since the 2018 Farm Bill legalized hemp cultivation and set the 0.3% THC threshold distinguishing it from marijuana. In the years since, hemp has become a cornerstone for thousands of businesses producing wellness products, fiber, food, beverages, and alternative cannabinoids.
But the proposed Senate language, industry leaders say, would undo much of that progress. According to the U.S. Hemp Roundtable, the amendment’s language could ban nearly all hemp-derived cannabinoid products intended for human consumption—effectively reclassifying them as illegal under federal law.
That would mean:
A nationwide shutdown of hemp businesses manufacturing or selling THC-infused edibles, beverages, or wellness products.
Severe job losses across agriculture, manufacturing, logistics, and retail.
Billions in lost tax revenue for state and local governments.
The Roundtable’s leadership argues that this change doesn’t just impact intoxicating hemp derivatives—it risks sweeping up non-intoxicating CBD products, which account for a large portion of the industry’s revenue.
“This would be catastrophic for farmers, processors, and retailers who’ve built legitimate businesses under the framework of the 2018 Farm Bill,” the organization said in a statement.
The Core Debate: Regulate or Recriminalize?
At the heart of this issue is an increasingly urgent question: how should the U.S. regulate hemp-derived THC?
Lawmakers pushing for tighter restrictions say they’re motivated by public safety concerns, citing unregulated intoxicating hemp products being sold to minors or mislabeled for potency. Supporters of the Senate language argue that hemp’s original intent was to create agricultural opportunity—not to enable production of synthetic or intoxicating cannabinoids.
The hemp industry doesn’t dispute the need for oversight—but it does dispute the approach.
The U.S. Hemp Roundtable, along with other advocacy organizations, supports federal regulation, not prohibition. They’ve called for establishing clear national standards for testing, labeling, and packaging to ensure consumer safety while keeping the industry viable.
They argue that outright recriminalization would push hemp back into the shadows, repeating mistakes of the past and undermining one of America’s fastest-growing agricultural sectors.
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What’s at Stake for Operators
The U.S. hemp sector employs tens of thousands of people nationwide and generates billions in economic activity. In 2023 alone, hemp-derived cannabinoids like Delta-8 and CBD contributed an estimated $28 billion in retail sales across the United States.
If the proposed Senate provision were enacted, operators would face immediate disruptions:
Farmers would lose demand for biomass used in cannabinoid extraction.
Manufacturers could face product seizures, shutdowns, or financial collapse.
Retailers would lose inventory overnight, eroding consumer trust and long-term viability.
For operators, the message is clear: prepare now. Even if this particular provision doesn’t pass, it highlights a trend toward federal scrutiny and stricter regulation. Businesses that have relied on ambiguous laws to expand sales will need to invest in compliance, insurance, and documentation to survive in a post-loophole market.
This moment isn’t just about one bill—it’s about defining the future of the hemp industry itself.
Industry Response and the Path Forward
The U.S. Hemp Roundtable is calling on lawmakers to strike the hemp-ban language from the Senate funding bill and replace it with a framework that supports both safety and growth. They’ve mobilized hemp farmers, processors, and consumers nationwide to contact their representatives and advocate for balanced reform.
At the same time, the organization is urging policymakers to work toward a modernized Farm Bill that reflects the current realities of hemp commerce—acknowledging the legitimate role of hemp-derived cannabinoids while implementing clear rules to curb abuses.
The industry’s response highlights a growing frustration with Congress’s piecemeal approach to cannabis and hemp regulation. Without consistent federal policy, operators are left to navigate a patchwork of conflicting state laws—an unsustainable model for long-term growth.
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Conclusion
The proposed Senate language to recriminalize hemp-derived cannabinoids represents a pivotal moment for the U.S. hemp industry. What began as a legislative oversight in 2018 has evolved into a multi-billion-dollar market now at risk of collapse.
Whether this provision passes or not, it’s a wake-up call: the hemp sector must prepare for stricter oversight, tighter regulations, and greater accountability. Businesses that act now to fortify compliance, documentation, and insurance will be positioned to survive whatever version of reform comes next.
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