Minnesota small businesses cautiously optimistic over delay of federal hemp-derived THC ban
You've probably seen THC drinks at Minnesota bars and liquor stores, but those made-in-Minnesota drinks could disappear this winter if new federal rules take effect.
At CBD RS wellness store in south Minneapolis, a buzz of optimism after Congress decided to delay a federal hemp ban.
"The uncertainty still exists, no question, but this is a good step in the right direction," said Paul Loeffler, owner of CBD RS. "It was a sigh of relief more than anything else."
A short-term government funding bill includes a provision to press pause until Dec. 11. But the uncertainty over the past year has caused a big headache for Loeffler.
"We became truly concerned that we're going to have to modify the business model we have, and have an entirely different product set or move out of the market entirely," he said.
Several breweries have shifted towards THC beverages, and many ship them across the country. Nathan Schneider, president of the Minnesota Craft Brewers Guild, says the new ban would block that.
"I'm concerned for everybody's business, their status, their jobs, their people," Schneider said. "It's difficult for the average consumer to understand how this could even be happening. The concept of a federal hemp ban, how could this be happening? We have a safe, regulated market in Minnesota."
Right now in Minnesota, you can buy hemp-derived edibles and drinks up to 10mg, but the new regulations would limit products to 0.4mg
"We will see breweries close for sure if this doesn't change," Schneider said
While the delay only buys one more month to make a deal, Loeffler says the vibes are positive.
"The extension that happened yesterday is a really significant positive signal for where this industry could go," Loeffler said.
In a statement, Minnesota DFL Sen. Amy Klobuchar says she hopes the pause gives Congress more time to put together a long-term fix.
The funding bill keeps the government open and the pause in place until after the midterm elections.
