Hemp Ban Would Shut Down 68% Of US Industry, Report Finds
Whitney Economics released the report on Tuesday
If the impending ban on U.S. hemp products takes effect as written on Dec. 11, about 68.1% of U.S. hemp-related businesses will fold entirely, according to a new economic report on the hemp cannabinoid industry.
Whitney Economics, a research and consulting group that analyzes hemp and cannabis economics, released a report Tuesday on the current state of the national hemp industry ahead of the December ban on hemp-derived THC products. Congress wrote and approved the hemp-banning language as part of a November 2025 deal to fund the government after the 43-day shutdown. The ban was initially set to take effect on Nov. 11, but Congress recently voted to delay the ban by four weeks as the industry attempts to negotiate a reprieve.
The economic report on the industry released Tuesday indicates that 68.1% of hemp businesses would close entirely after the language goes into effect, while 15.5% of businesses would need to lay off employees, 6.9% would remain in business but with less revenue, and 3.2% would relocate. The report, which Whitney Economics compiled by surveying 496 hemp businesses across 35 states, also estimates that states would lose anywhere from $1.2 billion to $1.5 billion in state tax revenue, while there would be a $46.6 billion to $59.6 billion loss in retail potential.
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