Federal THC ban threatens Upper Midwest hemp industry

A looming federal ban on hemp-derived THC products is impacting businesses across Minnesota and Wisconsin. The regulation, which caps hemp products at 0.4 milligrams of total THC per container, stands in contrast to many current beverages that contain between 2 and 10 milligrams per can. The enforcement deadline was recently pushed from November 12 to December 11 due to a short-term funding bill.

In Wisconsin, the hemp THC industry is estimated to be worth $700 million and supports approximately 3,500 jobs. In Minnesota, low-dose THC seltzers have become a significant revenue stream for local breweries, which reported over $5 million in THC beverage revenue in 2025.

Proponents of the ban, including Senator Mitch McConnell, argue the measure closes a loophole in the 2018 Farm Bill to prevent untested products from entering retail spaces and to address rising poison-control calls involving children. Additionally, the legal marijuana industry has supported the ban, viewing hemp-derived THC as unfair competition.

Some businesses are already feeling the effects; Minneapolis breweries such as Indeed Brewing and Bauhaus Brew Labs have transitioned to cash-only sales for THC products because the payment processor Square will no longer facilitate these transactions.