Wisconsin’s $700 million hemp sector is on the brink as a federal rule limiting THC to 0.4 mg per container threatens to shut down 99% of the industry by November 2025. The deadline forces owners to either adapt or close their doors.
More than a cash crop
The 2018 Farm Bill legalized hemp with up to 0.3% THC, sparking a boom that created a $700 million market and 3,500 jobs, according to the Wisconsin State Journal.
But the stop‑gap spending bill that ended the longest government shutdown added a clause capping THC at 0.4 mg per container, a limit industry leaders call biologically impossible.
Steve Hampton, owner of Steve’s Hemp in Eau Claire, warned that “the hemp plant struggles to meet that guideline before harvest,” and warned that up to 99% of the sector could be wiped out.
Jacob Diener, 32, founder of A Good Plug, said the sudden ban “feels weird and scary,” noting his small‑batch gummies and edibles now face an abrupt ban.
Erin Kelly of Kelly’s Greens added that even CBD products contain trace THC, making the new limit effectively nullify medicinal benefits.
The cost of prohibition
Republican lawmakers introduced “common‑sense corrective” bills to close what they call a loophole, citing health warnings about delta‑9 THC and unregulated markets, while polls show two‑thirds of voters favor cannabis legalization.
Industry advocates argue that sensible regulation — age limits, lab testing, licensed dispensaries — would address health and child‑access concerns without an outright ban, a view shared by Hampton and others.
State bills AB503 and AB606 aim to redefine hemp or place it under alcohol regulatory oversight, while Senate Democrat SB644 proposes a regulated framework with age limits; Republican Senator Patrick Testin is circulating a draft bill that could win bipartisan support.
Uneasy months ahead
Frey warns the industry has until November 2025 to adapt; if federal rules stay unchanged, hemp firms risk losing tax deductions and interstate commerce rights, threatening the sector’s survival.
Hampton said his new manufacturing plant may close mid‑2025, forcing him, his wife and five employees to find new work.
Diener vowed to keep serving customers who need the products, while Hampton declared the industry will keep fighting for legalization or a regulated hemp market.
