The federal ban on intoxicating hemp products would shut down about 68.1% of U.S. hemp-related businesses, according to a Whitney Economics report outlined by The Denver Gazette. The ban, which was set to take effect in November was delayed one month in August, via an amendment to a federal funding bill.
The Whitney Economics analysis found that, in addition to the closures, 15.5% of hemp businesses would need to lay off employees, 6.9% would remain in business but would see less revenue, and 3.2% would relocate, presumably outside of the U.S.
The report also suggests that states would lose between $1.2 billion and $1.5 billion in tax revenue and between $46.6 billion and $59.6 billion in potential retail losses.
“Given the high levels of potential business failures and relocations, the economic impact of the current hemp laws, if enacted is rather profound, a reduction of total industry wide revenues by $35.1-$41.3 billion, 29,523-36,744 fewer employers and 188,961-225,861 displaced workers, earning between $7.5-$8.9 billion in wages.” — Whitney Economics, “2026 U.S. Hemp Cannabinoid Report,” via the Gazette
The U.S. Hemp Roundtable has suggested that between 90% and 95% of current hemp products sold in the U.S. would be eliminated from the market under the ban, according to the Gazette.
Whitney Economics surveyed 496 hemp businesses across 35 states