St. Louis Hemp Industry Faces Uncertainty After Federal Ban
While federal workers in St. Louis return to their posts after the government shutdown, a new federal budget bill has quietly introduced a significant challenge for the local hemp industry. A provision within the massive bill is set to ban the sale of intoxicating hemp products, impacting businesses across our region that have relied on these sales since 2018.
Understanding Intoxicating Hemp Products
For years, the intoxicating hemp industry has operated in a unique legal space. Unlike recreational marijuana, which is heavily regulated, products derived from the hemp plant have been manipulated to concentrate THC, offering intoxicating effects while remaining federally legal. These items, such as Lure, a non-alcoholic low-dose THC drink sold by Jeff Koenigs, have become common in St. Louis smoke shops, gas stations, and even grocery stores.
Koenigs notes that these products are often marketed as providing a “different” feeling rather than a “high,” appealing to a broad demographic, including suburban parents and Gen Z young adults who prefer the ease of purchasing from a regular store over visiting a dispensary.
The Looming Federal Prohibition
Congress’s budget bill, which ended the government shutdown, includes language that effectively prohibits the sale of these intoxicating hemp products. Industry leaders like Koenigs describe this as a “giant sledgehammer” that threatens to eliminate the extraction of intoxicating compounds from the hemp plant. The ban, however, won’t take effect for another year, offering a crucial window for the industry to try and change the law.
One of the primary reasons cited for Congress’s action is concern over products that may appeal to children, alongside issues with “bad actors” in the less-regulated market.
Local Business Impact in St. Louis
The ban is poised to hit local businesses hard. Jay Trudeau, owner of Smoke Emporium in St. Louis, revealed that THC products constitute approximately 25% of his business’s bottom line. “When you take away a stream of income of what we have, it’s hard to replace that with something else,” Trudeau explained, highlighting the potential financial strain on his establishment and others like it.
Trudeau has been advocating for local leaders to implement regulations for years, hoping that a compromise can be reached to properly regulate these products rather than imposing an outright ban. This sentiment echoes a desire within the industry for a more structured framework that addresses safety concerns without completely dismantling a thriving market.
Hemp vs. Recreational Marijuana: A Quick Comparison
The distinction between intoxicating hemp products and recreational marijuana has been central to this debate. Here’s a brief look at how they differ:
| Feature | Intoxicating Hemp Products | Recreational Marijuana |
|---|---|---|
| Source | Manipulated hemp plant (low THC by nature) | Marijuana plant (high THC by nature) |
| Federal Legality (pre-ban) | Federally legal (under 0.3% Delta-9 THC) | Federally illegal (state-legal in MO) |
| Regulation | Minimal; widely available in retail | Highly regulated; sold in licensed dispensaries |
| Accessibility | Smoke shops, gas stations, grocery stores | Specialized dispensaries only |
| Price Point | Often more affordable | Typically higher |
Frequently Asked Questions
- What are intoxicating hemp products?
These are products derived from the hemp plant, often manipulated to contain concentrated forms of THC (like Delta-8 or Delta-9 in low doses), which can produce intoxicating effects but were previously federally legal due to their source. - Why is Congress banning these products?
Concerns about the products’ appeal to children and the presence of “bad actors” in the unregulated market were cited as reasons for the congressional action. - When will the ban take effect?
The ban is set to take effect one year from the date the budget bill was passed, giving the industry a grace period. - How will this affect St. Louis businesses?
Businesses like smoke shops and convenience stores that sell these products could lose a significant portion of their revenue, potentially forcing them to adapt their business models or close. - Can the law still be changed?
Industry leaders express optimism that they can work to change the law during the one-year delay, possibly by advocating for more structured regulation instead of a complete ban.
As St. Louis businesses and consumers navigate this complex situation, staying informed and understanding the nuances of the evolving legal landscape for hemp products will be crucial over the coming year.
St Louis Hemp Industry Faces Federal Ban
