A recent federal law change aimed at tightening regulations on consumable hemp products could significantly alter the industry in Kansas that has grown to be one of the largest in the country.
Hemp producers and advocates say the change passed in the funding bill to end the government shutdown last month could bring the budding agricultural industry to a grinding halt.
While the updated law intends to target hemp products with intoxicating effects, it may still hurt Kansas hemp farmers, even though the vast majority of their hemp is processed into nonconsumable products like fiber.
The change could also spell the end for legal consumable products that feature cannabidiol, or CBD, which does not have an intoxicating effect like THC products.
Heath Martin is the owner of Kancanna, which processes hemp for growers, and Butler Hemp Co., where he sells his own consumable products. He said both are in danger if the law goes into effect unchanged in November 2026.
“My business would cease to exist,” Martin said.
The updated law limits the amount of THC in hemp products to 0.4 milligrams per container. THC is the psychoactive compound in cannabis plants, like marijuana. It’s meant to close a loophole that allowed stores to sell hemp-derived THC products that can get users high.
Hemp has much lower levels of THC than marijuana. Yet, some hemp-derived THC products that can get users intoxicated reached store shelves in states like Kansas, where marijuana consumption has not been legalized.
Still, growing and processing hemp with just 0.4 milligrams of THC will be difficult. Kelly Rippel, co-founder of Kansans for Hemp, said it may be impossible for Kansas farmers to reach that requirement.
“Only certain producers or processors would be able to meet that,” Rippel said, “and those would include pharmaceuticals and researchers.”
Hemp products
When the federal government legalized hemp growing and processing in 2018, Kansas saw a rush of farmers jump into the action. But the number of growers fell over the years as the demand for CBD oil products dropped.
The majority of farmers who stuck with the crop focus on industrial hemp products. Now, more than 87% of the hemp planted in Kansas is used for nonconsumable goods, including fiber that can be made into rope and clothing.
Those products are different from the consumable hemp products targeted by the law change. But that part of the industry may be in jeopardy as well.
Sarah Stephens, CEO of Midwest Hemp Technologies in Augusta, Kansas, said that her ability to sell those products should not be affected by the law. But she said it still paints all hemp products in a bad light that endangers the whole industry.
“I’ve had two customers today looking for assurances that our products aren’t going to be affected by the new rules,” Stephens said in a recent email, “and one prospective customer who said they wouldn’t want to carry hemp grain products at this time in light of the current political environment.”
Only about 9% of Kansas hemp is processed into consumable CBD products, which are used for health purposes.
Martin said his storefront sells both hemp-derived CBD and THC products, like drinks. He said he follows Kansas law that limits THC in hemp products to 0.3% by weight.
But the new federal law would derail his business. The looming change has already affected it.
“Fear is almost as bad as the law changing itself,” Martin said, “because there’s never been good clarification at the state level or the federal level on exactly what products are legal and aren’t.”
Growing industry
In recent years, Kansas hemp farmers have grown into a national player in the industry.
Braden Hoch, an area supervisor for the Kansas Department of Agriculture, said during a recent Kansas hemp conference that the state’s farmers planted the fifth most hemp crops in the country this year.
That progress could be threatened by the new law. Stephens said Kansas farmers need more thoughtful policy on hemp products to help the industry thrive.
“The hemp grain and fiber industry in Kansas is gaining momentum,” Stephens said in an email, “and we’re well positioned to lead the nationwide growth of this crop on (Kansas) farms.”
Rippel said state lawmakers will need to adopt the federal law change in Kansas, which he expects them to do. But the state will also have discretion over how it’s administered, he said.
That means they can still create more nuanced laws, which he has been calling for over the last six years.
Otherwise, the federal change alone creates too much uncertainty and some Kansas farmers and processors who have heavily invested in hemp may call it quits or leave the state.
“They will kill industries here,” Rippel said.
Dylan Lysen reports on social services and criminal justice for the Kansas News Service. You can email him at dlysen (at) kcur (dot) org.
The Kansas News Service is a collaboration of KCUR, Kansas Public Radio, KMUW and High Plains Public Radio focused on health, the social determinants of health and their connection to public policy.
