Stakeholders in Missouri's hemp industry are concerned about new legislation from the state that could outlaw intoxicating hemp products.
House Bill 2641 passed in the Missouri House Thursday 109-34. It matches new federal regulation that states any hemp products with no more than 0.3% THC can only be sold through licensed marijuana dispensaries.
Under the rule, many small businesses such as CBD stores, health and wellness retailers and boutiques would not be allowed to sell hemp.
Craig Katz, the secretary of the board for the MO Hemp Trade Association, said 95% of the hemp industry in Missouri will be hurt by the legislation. This includes those who manufacture, distribute or farm hemp derived products.
The legislation could especially harm farmers, according to Katz, as they now have to gamble whether to plant.
“Because of the uncertainty both at the state and the federal level, many farmers are having to make a decision now as to whether they're going to plant for next season or not,” Katz said. “If they do plant, they're taking a risk that come November, their products or their harvest will be illegal. And if they don't plant, then they will effectively keep any product from being available for manufacture.”
Grandpas Family Farms is a small farm based in the Osage County town of Chamois that has been growing hemp for 6 years. Scott Mertz, the farm’s shop manager, said they will have to shut down operations because of the uncertainty the legislation causes.
“As of right now, we do not have a plan to grow for this coming year because everything is up in the air,” Mertz said. “So, we don’t want to spend all this money on seeds and organic soil if we don’t know in November if we’re gonna be able to sell it or not.”
The farm employs 30 to 40 part-time workers each year and has already had to let go three full-time employees, according to Mertz.
“It’s going to directly affect our community as well,” Mertz said. “Taking those people that are losing their jobs, they got to go find something else.”
Mertz said he is all for clear regulation of hemp, but believes the legislation puts the industry into a prohibition.
Katz said consumers would also be affected by the ban. Without mutltiple businesses selling hemp products as making the market competitive, the dispensaries could increase prices.
“By putting these products into marijuana dispensaries, you're eliminating competition for those dispensaries, which results in prices going up,” Katz said.
Some consumers who use hemp to treat PTSD, chronic pain and anxiety may not want to buy from a dispensary. Katz added this especially affects veterans.
“For instance, to veterans, if you're purchasing from an illegal marijuana dispensary, then that would negate your ability to purchase a firearm under the Second Amendment,” Katz said.
Although it is legal to purchase from a dispensary in Missouri, marijuana is federally illegal, which prohibits firearm owners from buying from a state-regulated dispensary.
There are two proposed bills in the Missouri Senate related to hemp regulation. Senate Bill 904 would allow only state-regulated dispensaries to sell intoxicating hemp products, similar to House Bill 2641, but would go into effect immediately.
Another proposed bill, Senate Bill 993 would exclude beverages from the regulation.
“We are hoping that we can amend one or both of those bills to create the regulatory framework that we believe is necessary for the industry to survive and for the protection of consumers,” Katz said.
The new federal regulation will go into effect in November.
There has been action to reverse or amend the regulation. However, Katz said that even with a change in federal law, if House Bill 2641 goes through, hemp derived products would become illegal in Missouri.
