Kentucky hemp industry seeks state protections against federal THC restrictions

The Kentucky hemp industry is urging state lawmakers to implement new protections to safeguard a market valued at over $300 million and more than 3,000 jobs. The Kentucky Hemp Association presented recommendations to the Kentucky Legislature’s Interim Joint Committee, warning that federal THC restrictions scheduled for December 11 could eliminate much of the state’s existing hemp-derived cannabinoid market.

Industry leaders noted that products containing THC account for approximately 95% of consumer demand. The proposed state legislation aims to protect the cultivation, processing, manufacturing, and sale of these products when conducted under existing state laws. The association also suggested extending financial services protections to licensed hemp businesses, modeled after protections used for Kentucky’s medical marijuana industry.

Additional proposals include transferring oversight of hemp-derived cannabinoid processing exclusively to the Kentucky Department for Public Health. While some federal lawmakers, including Congressman Andy Barr, have proposed frameworks involving age limits and potency caps, the industry warns that current federal legislation backed by Senator Mitch McConnell threatens the legality of intoxicating hemp products.