Nebraska’s pioneering hemp processor Sweetwater Hemp Company teeters on the brink as state lawmakers push sweeping regulations that could shut its doors. The family‑owned operation, founded by fourth‑ and fifth‑generation farmers from Pleasanton, runs one of the nation’s largest ice‑water extraction facilities and sells hemp‑derived THC tinctures and gummies.
Earlier this year Nebraska legislators introduced a bill that would ban most hemp‑derived THC products, eliminating tinctures, topicals and single‑serve items. Chief marketing and extraction officer Brett Mayo warned the proposal would cripple revenue and force the company to close.
The bill failed, but it underscores a broader wave of state actions targeting intoxicating hemp products, a multi‑billion‑dollar market that expanded after the 2018 Farm Bill legalized hemp with under 0.3% delta‑9 THC. Texas, Kentucky, Tennessee, Alabama and several other states have enacted or proposed similar restrictions.
Federal Proposal to Close Hemp Loophole
The House Agriculture Committee’s draft farm bill seeks to redefine hemp, capping total THC at 0.3% for any cannabinoid and excluding synthetically derived compounds, effectively banning most novel cannabinoids. Rice University drug‑policy fellow Katharine Harris said the change would hit retailers, farmers and the entire supply chain.
Patchwork State Regulations Complicate Business
At least 32 states have enacted regulations, with caps ranging from 1.75 mg in Colorado to 5 mg in Minnesota, and others limiting total cannabinoid THC to 0.3% by weight. U.S. Rep. Andy Harris of Maryland, chair of the House Appropriations Committee, said the proposal would stop products sold online and in gas stations from masquerading as USDA‑approved.
Texas Ban Looms
If signed, Texas’ ban would prohibit any hemp product containing cannabinoids other than CBD or CBG, a move that could shutter nearly all licensed shops, according to a fiscal note estimating “nearly all” closures. Governor Greg Abbott has kept his decision secret, with a June 22 deadline; observers say his veto probability is rising.
Nebraska Bill May Return
Attorney General Mike Hilgers has sued dozens of dispensaries and issued cease‑and‑desist letters to over 100 retailers, threatening litigation if the proposed cap at 0.3% total THC and 10 mg per package becomes law. The legislation failed this session but is likely to reappear in the 2026 legislative session.
Industry Responds with Education Push
Sweetwater Hemp Company has invited four Nebraska senators to tour its ice‑water extraction facility, hoping hands‑on exposure will guide smarter legislation. CEO Brett Mayo said lawmakers often draft bills without understanding the industry’s realities.
