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North Carolina News You Can Use

Opinion: The shutdown deal is devastating to NC hemp industry

By USA Today Network via Reuters Connect

November 24, 2025

The deal to end the government shutdown includes a ban on many hemp products. It would hit hard in the NC hemp industry.

Though it started out on the federal list of banned control substances, hemp has been legal for seven years. The 2018 Farm Bill allows for the cultivation and distribution of hemp-derived products.

While hemp products are federally regulated, states are still given room to regulate themselves. However, the bill, signed by President Trump to reopen the government is said to adversely affect the hemp industry.

According to www.whitehouse.gov, the government was shut down for 43 days, the longest in United States history. H.R. 5371 was signed by the president on Nov. 12. The bill, named the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veteran Affairs, and Extensions Act, was designed to end the government shutdown by providing funding for government agencies.

While government officials and staff are rejoicing, hemp industry insiders are worried that this bill could ultimately end the $30 billion dollar industry. A provision with H.R. 5371 outlaws a number of hemp-derived products. Furthermore, this provision amends the Agricultural Marketing Act of 1946.

North Carolina, where there are more than 1,500 licensed hemp producers, will feel the impact. One CBD and hemp store owner in Raleigh told WRAL the new restrictions would wipe out 99% of the products he sells.

Kentucky lawmakers spar over added hemp provision

In Section 781 under Title VII (Division B) of H.R. 5371, the federal government redefines the definition of legal hemp. However, the bill places a ban on hemp-derived products of cannabinoids that are “not capable of being naturally produced by a Cannabis Sativa L. plant.”

The bill goes further to ban cannabinoids that are synthesized outside the plant.” Furthermore, it bans products with more than 0.3% total tetrahydrocannabinols, THC. Republican Sen. Mitch McConnell initially supported the 2018 Farm Bill, but noticed that there were companies exploiting loopholes in the bill and supported the provision.

Another fellow Kentucky Republican, Rep. Thomas Massie, opposed the provision saying “this section redefines legal ‘hemp’ to impose dramatically tighter limits on THC content in hemp-derived consumer products, extinguishing a $28 billion dollar industry and the many rural communities who depend on it.” Sen. Rand Paul, also a Kentucky Republican, acknowledged those that exploited the loopholes while contesting the bill, likening the action to prohibition.

Hemp farmers and retailers fear the industry will be crippled with the new restrictions.

The provisions do not take effect until next year, however, the bill requires the Food and Drug Administration to publish all cannabinoids known to be naturally produced by Cannabis Sativa L and all THC class cannabinoids. Critics of the bill argue this bill will affect nonintoxicating products intended for medical use. For more information or to read the full bill, log on to www.congress.gov and search for H.R. 5371. Salute to every activist getting active. Peace.

Rakeem “Keem” Jones is a community advocate, father of four and the owner of Keem Jones Content Collection. He can be reached at [email protected].

Reporting by Rakeem “Keem” Jones, Fayetteville Observer / The Fayetteville Observer

NC hemp industry

Rakeem “Keem” Jones is a community advocate, father of four and the owner of Keem Jones Content Collection.

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CATEGORIES: NATIONAL ECONOMY
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