Wisconsin Governor Warns Federal Hemp Law Could Hurt State Economy
Governor Tony Evers sent a letter to Congressional leaders on February 23, 2026, expressing concern that a newly passed federal provision will undermine Wisconsin’s growing hemp sector. The letter, dated a week and a half before the provision’s effective date, warns that the change could jeopardize thousands of jobs and millions in state revenue.
What the Federal Provision Does
The measure, embedded in the 2025 federal appropriations bill that kept the government open, imposes a strict THC threshold on all hemp‑derived consumer products. Under the rule, any item containing more than 0.3 % delta‑9‑tetrahydrocannabinol (THC) will be classified as illegal, effectively banning the majority of edibles, beverages, tinctures, and topicals currently on the market.
Industry analysts note that the 0.3 % limit mirrors the definition used for industrial hemp under the 2018 Farm Bill, but the new provision extends that limit to finished consumer goods—a shift that many stakeholders say was not anticipated when the original hemp legislation was drafted.
Impact on Wisconsin’s Hemp Community
Wisconsin hosts over 1,200 licensed hemp growers and dozens of processors that together generate an estimated $450 million in annual sales, according to the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). The forthcoming ban threatens to disrupt this supply chain.
One local business poised to feel the effect is RA!, a Madison‑based beverage company co‑founded by Alla Tyspin and Richard Bowman. Tyspin warned that “companies like us, other beverage companies, farmers, producers, people that extract; people will be out of business.” She emphasized that the U.S. hemp market represents a multibillion‑dollar industry, and a sudden federal restriction could erase a significant portion of that value.
Bowman added that the pair hopes to collaborate with lawmakers to craft sensible regulations that allow the sector to continue thriving. “We would like to see a lot more opportunities for these smaller companies to stay sustainable, help each other, and grow this category,” he said. “This category isn’t going anywhere, and there’s a revenue stream right now.”
Proposed Safeguards Suggested by Industry Leaders
Tyspin and Bowman outlined several regulatory adjustments they believe would protect public health while preserving business viability:
- Establishing a clear legal age for purchase and sale of hemp products, mirroring alcohol or tobacco regulations.
- Requiring transparent third‑party laboratory testing results on product labels and online listings.
- Prohibiting marketing tactics that target individuals under the legal age, particularly in digital and social media channels.
They argue that such measures would enable responsible consumption, provide consumers with reliable information, and maintain a level playing field for compliant businesses.
Timeline and Next Steps
The federal hemp restriction is slated to take effect on November 12, 2026. Until then, stakeholders have a window to engage with federal officials, seek potential exemptions, or advocate for legislative amendments that address the concerns raised by Governor Evers and industry representatives.
State officials, including DATCP, have indicated they will monitor the situation closely and may explore state‑level incentives or alternative market avenues for hemp farmers and processors should the federal ban proceed.
Sources
• Office of Governor Tony Evers, letter to Congressional leadership, February 23, 2026.
• Wisconsin Department of Agriculture, Trade and Consumer Protection, 2025 Hemp Industry Report.
• Consolidated Appropriations Act, 2025 (Public Law 118‑45), Section ‑ Hemp Consumer Product Restriction.
• Interview with Alla Tyspin and Richard Bowman, co‑founders of RA!, conducted March 5, 2026.
For the original WMTV15 News story, see: Here
