Texas hemp farmers face a potential THC ban that could erase billions of dollars of investment and jeopardize livelihoods across the state.
Legislative Push
Senate Bill 3 proposes a complete prohibition on any consumable hemp product containing even trace THC, exposing growers to misdemeanor charges for possession and felony penalties for unlicensed cultivation.
House Bill 28 targets synthetic THC and high‑THC products while tightening age limits, advertising rules and placing sales under the alcohol regulatory framework, but it has yet to receive a floor vote.
Farmers on the Edge
Andrew Hill, founder of Texas Star Hemp Farms, warned that hemp cannot be produced without detectable THC, making a total ban impossible for his operation.
Kyle Bingham, who farms 2,000 acres of cotton, grapes and a modest hemp plot, said his first hemp harvest yielded just 80 cents per pound, far below the $2‑$3 per pound he expected, highlighting market oversaturation.
Industry veteran Zach Gauger, director of sales for Caprock Family Farms, argued that the sector now ranks among Texas’ top commodities and that eliminating hemp would strip growers of a critical diversification tool.
Economic Impact
The Texas Legislative Budget Board projects a $19.3 million loss in general revenue‑related funds, with counties and transit authorities collectively losing $1.06 million annually by 2027.
Cities could see $2.1 million in yearly revenue declines by 2030 as THC‑linked businesses close and taxable sales drop.
Industry Response
Commissioner Sid Miller acknowledged the market crashed after farmers planted too much without adequate processing capacity, saying the proposed ban will have little effect because most producers have already abandoned hemp.
Kallan Salganik, a hemp manufacturer, told lawmakers he would move his business out of Texas if HB 28 passes, costing the state jobs and tax revenue.
Advocates such as Cynthia Cabrera of the Texas Hemp Business Council urged the House to consider the broader economic consequences before advancing the bans.
Regulation vs Ban
Farmers argue that THC cannot be removed from hemp seeds or fibers, so a blanket prohibition would outlaw products like hemp oil, hearts and fiber that have been on the market for years.
Bingham called for sensible regulation—age limits, child‑proof packaging and licensing—rather than an outright ban that threatens the entire agricultural chain.
Texas officials contend the ban protects children, but critics say it punishes legitimate growers while doing little to stop illicit THC products.
