Indiana hemp industry still fighting state and federal bans

The Hoosier hemp industry is up against a last-ditch effort from lawmakers to advance a state THC ban as an Indiana congressman's attempt to delay federal restrictions this fall faces an uncertain future.

Why it matters: A provision included in the federal spending bill that averted a government shutdown would criminalize certain hemp-derived THC products starting in November — a move industry leaders say could threaten the livelihood of thousands of Hoosiers.

Catch up quick: The 2018 Farm Bill legalized hemp and hemp-derived products containing less than 0.3% delta-9 THC by dry weight, a definition that industry groups say created a loophole for intoxicating hemp-derived THC products.

• Local business owners say the bill would shutter their operations.

By the numbers: Hemp-derived cannabinoids in Indiana have had a total economic impact of $1.78 billion, according to research released in October 2023 by Whitney Economics.

• The industry comprises hundreds of businesses statewide, employing more than 11,000 workers.

The latest: In an effort to align state law with the looming federal ban, Indiana lawmakers introduced Senate Bill 250 to enforce the ban statewide starting in July.

• SB 250 was effectively killed Monday when House lawmakers declined to call it down ahead of a second reading deadline.

Yes, but: Language from that bill is set to be revived in Senate Bill 144, which would have made it a misdemeanor to sell a product to a minor that contains THC.

Zoom out: Standing in the way of November's federal THC ban is the Hemp Planting Predictability Act, sponsored by Indiana Republican Rep. Jim Baird.

• The act would delay the restrictions to November 2028, providing additional time to develop a framework for an industry the U.S. Hemp Roundtable calls a $28.4 billion economic engine supporting more than 328,000 American jobs.
• Baird said the sudden introduction of the hemp provision disrupted planting decisions made by American hemp farms well in advance, and that "Congress should not have passed such a sweeping policy change that upends a growing industry."
• The House Agriculture Committee was initially scheduled to take up the measure this week before winter storms interrupted.

Reality check: Ag Committee chairman Glenn Thompson said the hemp ban falls outside their jurisdiction, making it unlikely that Baird's act will receive a vote.

• The measure is not listed among the stand-alone legislation incorporated into the 2026 Farm Bill, which is slated for a markup on Tuesday.
• Baird also expressed doubt about his ability to attach the legislation to the farm bill.

What's next: Justin Swanson, president of Midwest Hemp Council, told Axios those who want to see the hemp industry survive should keep making noise.

• He credits public input for SB 250's rocky path, and he encourages residents to reach out to their congressional representatives to delay the federal ban.
• "This isn't an extension for extension's sake," he said. "This is an extension to give Congress time to set up that regulatory structure that meets consumer demand and makes life easier for law enforcement."

Go deeper: Taste-testing Sun King's THC seltzers

• Ending Dry January on a high note with Floral