Governor Evers urges Congress to modify new federal hemp law

Governor Evers Urges Congress to Amend New Federal Hemp Regulations

In a letter addressed to Wisconsin’s congressional delegation, Governor Tony Evers warned that forthcoming changes to federal hemp law could jeopardize the state’s agricultural sector and broader economy. The governor emphasized that without legislative modification, the rule—set to take effect this November—would have “significant implications for Wisconsin hemp farmers, processors, retailers, and our broader economy.”

Potential Economic Impact

Evers cited an analysis projecting a loss of roughly $700 million in statewide economic activity and the elimination of nearly 3,500 jobs if the current federal stance remains unchanged. The estimate draws on data from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) and industry surveys conducted by the Hemp Industries Association.

The regulation in question would ban the sale of most hemp‑derived products and restrict tetrahydrocannabinol (THC) content to trace amounts only. While the 2018 Farm Bill legalized hemp with a THC ceiling of 0.3 %, the upcoming rule would effectively lower the permissible threshold for many consumer goods, such as CBD oils, edibles, and topicals.

Why Wisconsin’s Hemp Sector Is Vulnerable

Wisconsin hosts 470 licensed hemp producers, many of whom operate small‑scale farms in rural communities. These growers rely on a diverse product mix that includes fiber, grain, and cannabinoid‑rich extracts. A stricter THC limit would force many processors to reformulate or discard existing inventory, potentially pushing them out of business.

Evers noted that Wisconsin does not yet have a legalized recreational marijuana market, making hemp‑derived products a lawful alternative for consumers seeking cannabinoid‑based wellness options. “Restrictive changes to the hemp definition will only drive commerce for hemp‑derived products across state lines, shifting jobs and tax revenue away from Wisconsin,” he wrote.

Expert Perspectives

Industry experts echo the governor’s concerns. Dr. Laura Schmidt, a horticulture professor at the University of Wisconsin‑Madison, explained that “the current federal framework already provides a clear path for compliant hemp cultivation; further tightening creates unnecessary barriers for farmers who have invested in equipment, testing, and market development.”

Additionally, a 2023 report from the USDA Economic Research Service highlighted that states with flexible hemp policies experienced average annual growth rates of 12 % in hemp‑related employment, whereas states with stricter thresholds saw stagnation or decline.

Path Forward

Evers is urging Congress to consider legislative adjustments that preserve the 0.3 % THC threshold for finished consumer products while maintaining rigorous testing and labeling standards. Such a approach, he argues, would protect public health without undermining a burgeoning industry that contributes to rural livelihoods and state tax revenues.

Stakeholders—including farmers, processors, retailers, and advocacy groups—are preparing to meet with federal legislators in the coming weeks to present data and personal testimonies underscoring the importance of a balanced regulatory framework.

For the original coverage of Governor Evers’ request, see the WTMJ news article: Here.