The federal ban on intoxicating hemp products would shut down about 68.1% of U.S. hemp-related businesses, according to a Whitney Economics report outlined by The Denver Gazette. The ban, which was set to take effect in November was delayed one month in August, via an amendment to a federal funding bill.
The Whitney Economics analysis found that, in addition to the closures, 15.5% of hemp businesses would need to lay off employees, 6.9% would remain in business but would see less revenue, and 3.2% would relocate, presumably outside of the U.S.
The report also suggests that states would lose between $1.2 billion and $1.5 billion in tax revenue and between $46.6 billion and $59.6 billion in potential retail losses.
“Given the high levels of potential business failures and relocations, the economic impact of the current hemp laws, if enacted is rather profound, a reduction of total industry wide revenues by $35.1-$41.3 billion, 29,523-36,744 fewer employers and 188,961-225,861 displaced workers, earning between $7.5-$8.9 billion in wages.” — Whitney Economics, “2026 U.S. Hemp Cannabinoid Report,” via the Gazette
The U.S. Hemp Roundtable has suggested that between 90% and 95% of current hemp products sold in the U.S. would be eliminated from the market under the ban, according to the Gazette.
Whitney Economics surveyed 496 hemp businesses across 35 states to compile the report.
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