Wyoming Hemp Vendors Face Challenges After Delta-8 Court Loss and Federal Ban

The hemp industry in Wyoming faces significant challenges following a recent federal ban on THC products derived from hemp. This new regulation stems from a bill passed by Republican senators to prevent the marketing of intoxicating THC substances. Furthermore, the 10th Circuit Court of Appeals upheld a Wyoming-specific restriction on particular THC derivatives, including Delta-8, just weeks earlier. The combination of these developments has left many Wyoming hemp vendors reevaluating their business strategies.

Federal Ban’s Impact on Hemp Vendors

Effective a year from now, the federal ban will prohibit any hemp product containing more than 0.4 milligrams of THC. This law indicates that the total THC concentration in items like beverages and edibles must stay below this threshold. Previously, hemp vendors in Wyoming capitalized on a loophole that allowed for higher concentrations of THC in final products, typically exceeding legal limits.

Legal Framework for Hemp in Wyoming

Under Wyoming law, hemp plants are legal as long as their THC concentration remains under 0.3%. Despite this, some establishments sold products with higher THC levels through interpretations of existing regulations. This has led to confusion and a mismatch between state and federal laws, ultimately jeopardizing local businesses.

The Rise and Fall of Delta-8 Products

• Delta-8 products gained immense popularity in Wyoming’s smoke shops after their legalization in 2019.
• These products reportedly accounted for approximately 70% of sales for many local vendors.
• However, after several adverse health incidents involving Delta-8, state lawmakers enacted a ban on these intoxicating derivatives.

Shop owners, like Alicia Watt of Platte Hemp Company, stated that prior to the ban, a majority of their revenue was generated through Delta-8 sales. Justin Arnold, who operated Cin D’s CBD shop, reported monthly sales of around $20,000, which he anticipated would double.

Industry Response and Future Outlook

The U.S. Hemp Roundtable cautions that if the federal ban remains in place, it could significantly diminish an estimated $28 billion hemp industry by 98%. Advocates for the industry are pushing for legislation that focuses on regulating production practices instead of outright bans. This includes efforts to eliminate harmful chemicals and sales practices aimed at minors.

Legislative Concerns

Senate Majority Leader Mitch McConnell, a supporter of the 2018 farm bill that legalized hemp, has since raised concerns about the unintended consequences of the legislation. McConnell’s recent statements reflect worries over unregulated and potentially harmful substances entering the market.

In the wake of these legal battles, some businesses, like Casper’s first hemp dispensary known as the Green Room, are closing their doors due to the regulatory uncertainties. As the local hemp industry adapts to evolving laws, many advocates call for better education and understanding of hemp and cannabis, emphasizing their potential medical and industrial benefits.

Wyoming’s hemp vendors now face a future of uncertainty, with the possibility of legislative advocacy and potential regulatory changes on the horizon. The challenges posed by federal restrictions could reshape the landscape for hemp businesses throughout the state.