Hamptons Hemp Farm at risk of the Hemp Ban

The New Federal Hemp Ban: What It Means for You and the Future of the Hemp Industry

Dragon Hemp

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Time to read 19 min

On Wednesday, President Trump signed the bill that ended the longest government shutdown in American history. Buried inside was a last-minute amendment widely referred to as a hemp ban that could remove nearly all hemp-derived wellness products from the market within a year. Added quietly by Kentucky Senator Mitch McConnell during final negotiations, the provision sets an extremely low limit on total THC per product — a change that would eliminate roughly 95 percent of today’s hemp-derived market, putting a $28–30 billion industry at risk.


The amendment wasn’t introduced through public debate or hearings. It was folded into the bill that reopened the government, turning a routine funding measure into the most consequential shift in hemp policy since the 2018 Farm Bill — effectively creating a federal hemp ban that bypassed public oversight. And it raises urgent concerns for anyone who relies on hemp-based products for sleep, stress relief, pain management, or daily balance.


While this regulation claims to target only intoxicating forms of THC, it also sweeps up the trace, naturally occurring amounts found in full-spectrum CBD and other cannabinoids — the very compounds that work together in our products to deliver the therapeutic benefits you rely on and that the hemp ban now threatens.


For years, hemp-derived wellness has offered millions safer, gentler plant-based alternatives. It has eased tension, soothed discomfort, and opened new pathways for farmers, small manufacturers, and wellness brands committed to natural therapeutics. Now, that progress stands at a crossroads.


This moment calls for a clear look at how this amendment was added, what has changed in federal hemp policy, and why Kentucky’s internal politics — including pressure from the bourbon lobby — played a defining role. We’ll break down what this means for the hemp industry, and what it means for you as a consumer navigating the future of plant-based wellness.

Products at risk under the hemp ban:

How This Amendment Was Added

The amendment was introduced by Senator Mitch McConnell during negotiations over the federal funding package that ultimately reopened the government. Its inclusion is notable not only because of its impact, but because McConnell himself played a central role in the 2018 Farm Bill — the legislation that legalized hemp nationwide and defined it as cannabis containing less than 0.3 percent delta-9 THC by dry weight — and is now responsible for the most far-reaching hemp ban proposal since legalization. 


The 2018 Farm Bill opened the door for farmers to cultivate hemp, for companies to produce hemp-derived wellness products, and for a national industry to take shape. The new amendment undoes much of that progress. And the way it surfaced is just as significant as what it does. 


Instead of moving through the typical committee process — with hearings, testimony, or public comment — the hemp ban language was inserted late in negotiations and tucked directly into the larger funding bill. Its emergence in the final text caught farmers, wellness brands, and policymakers off guard, given the sweeping nature of the change and the lack of transparency in how it was advanced.


Reporting across major outlets shows that this procedural shortcut allowed the amendment to move through Congress quickly as part of the broader compromise to end the shutdown. By attaching the hemp ban to a must-pass bill, it bypassed the oversight and debate normally expected for a shift of this scale — carrying significant implications for the future of hemp without undergoing the level of scrutiny typically applied to federal policy shifts of this magnitude.

Why Kentucky’s Internal Politics & The Bourbon Lobby Played a Defining Role

To understand why this amendment with the hemp ban appeared the way it did, it helps to look toward Kentucky, where multiple forces converge.



Kentucky was central to the rise of modern hemp.



After the 2018 Farm Bill passed, farmers across the state invested heavily in cultivation. Processors built new facilities. Hemp-derived beverages and tinctures gained early traction in local markets.


For many growers, hemp offered a rare path forward after years of declining tobacco demand — something the hemp ban threatens to reverse.


As Jonathan Miller — former Kentucky state treasurer and a leading hemp advocate — noted, “Kentucky is really ground zero for the rebirth of hemp.”

"Kentucky is really ground zero for the rebirth of hemp."

Jonathan Miller, former Kentucky state treasurer

Kentucky is also the heart of the bourbon industry.



In Kentucky, home to one of the country’s most influential alcohol industries, bourbon is not only culturally iconic — it is economically dominant.


It shapes state policy, guides political priorities, and maintains considerable lobbying power — as evidenced by the rise of the new hemp ban.


As hemp beverages expanded into bars, liquor stores, and national retailers, some bourbon producers began viewing the category as competition — adding momentum behind Kentucky’s push for stricter controls and eventually contributing to the hemp ban that just passed.

The Split: Liquor Distributors vs. Bourbon Distillers

This is where Kentucky’s internal dynamics sharpened:


  • Liquor distributors supported hemp beverages because they already distribute them alongside spirits and saw new opportunity.

  • Bourbon interests viewed hemp beverages as a disruptive competitor, especially in bars and restaurants.

This created an unusual split, with two of Kentucky’s most influential industries on opposite sides of the hemp ban.

Mitch McConnell in a Hemp Field in 2020 before the Hemp Ban
Forbes

Kentucky Lawmakers’ Roles

Against this backdrop, Senator Mitch McConnell — the architect of the 2018 Farm Bill — introduced the restrictive language into the federal spending bill, resulting in the hemp an.


The Washington Post notes that he framed the hemp ban amendment as correcting “unintended consequences” of the earlier legislation, which allowed intoxicating hemp-derived cannabinoids to flourish without consistent oversight.


But the move didn’t go unchallenged in McConnell’s own state.



Senator Rand Paul pushed back against the hemp ban.



On Monday night, Rand Paul broke with his party and voted against the spending bill specifically because of the hemp ban provision.


He previously blocked similar measures and attempted — unsuccessfully — to remove this one as well.


Paul has described the provision as overly broad, noting that it effectively criminalizes any product containing more than 0.4 mg total THC per container — a threshold that disqualifies about 95% of hemp products, including nearly all hemp wellness products.



Other Kentucky Republicans joined him against the hemp ban.



Criticizing both the process and the consequences of the hemp ban for farmers and small businesses, representatives James Comer, Thomas Massie, and Andy Barr spoke out against the hemp ban.


Massie criticized the legislative approach, stating, “I detest the tactics that are being used to try to get the ban enacted into law.”

“I detest the tactics that are being used to try to get the ban enacted into law.”

Representative Thomas Massie

How the Hemp Ban Made It Into the Final Bill

The appearance of the hemp ban in the final text reflects months of behind-the-scenes maneuvering.


According to Jonathan Miller, Congress has circulated versions of this restriction repeatedly — in early Farm Bill drafts, earlier spending bills, and now in this funding package.


In this round, both McConnell and Congressman Andy Harris played key roles in inserting the language.

Industry Response: Regulation vs. Prohibition

While concerns about unregulated hemp products are real — including issues tied to inconsistent testing, contaminants, and underage access. Industry leaders argue that the hemp ban will not eliminate unregulated or unsafe products — it will encourage them.


Jammie Treadwell, CEO of Treadwell Farms, emphasized the need for thoughtful, science-based regulation, noting: “If sweeping restrictions move forward, it won’t be the bad actors who disappear.”


Evan Eneman, CEO of Iconic Tonics, expressed frustration with the process, saying the sudden reappearance of the ban is “destabilizing and unnecessary,” adding that policy made by surprise omnibus amendments “invites unintended harm and fuels the very unregulated, unsafe market lawmakers claim to oppose.”

Despite widespread concern from industry leaders, the bill has already passed, and the amendment is now law. The 365-day delay before the ban takes effect is the industry’s only opportunity to push for revisions and advocate for sensible regulation.


As Jonathan Miller explained, “We have a year to try to fix this,” adding that advocates are hopeful the hemp ban can be replaced with thoughtful, science-based oversight.


Cameron Clarke, CEO of Kanha, underscored the importance of public pressure, “Politicians don’t typically lead consumer preferences; they follow consumer demands.”

What The Hemp Ban Changes in Federal Policy

The amendment replaces the 2018 Farm Bill’s definition of hemp — which was based on percentage of THC by dry weight — with an absolute limit: no more than 0.4 milligrams of total THC per container.

For context, a single Leisure Gummy contains 5mg of hemp-derived THC, and our Sleep Gummies+ contain 2.5mg per gummy. Both would be banned. The amendment treats all THC the same, including the trace amounts that appear naturally in full-spectrum extracts and help create the therapeutic “entourage effect” people depend on. Even our Calming Gummies — which have just 0.59mg of naturally occurring THC from full-spectrum CBD — would no longer be legal under the hemp ban. 

To clarify exactly which cannabinoids fall under the new hemp ban, the FDA now has 90 days to publish a list of natural and synthetic cannabinoids and to define what counts as a “container.”

Here’s a list of all Dragon Hemp products at risk of losing legal status under the hemp ban:


At this moment, our Sleep Gummies — made with pure CBD isolate and no THC — are the only product fully protected and not at risk under the hemp ban.

What we know for certain is this: CBD products would remain legal only if they contain less than 0.4mg THC per container — a threshold that excludes nearly all full-spectrum and broad-spectrum formulas. The new hemp ban's threshold is so restrictive that most existing formulas on the market would no longer qualify. The hemp ban effectively removes nearly all hemp-derived ingestibles, edibles, beverages, vapes, and many topicals from legal commerce once the 365-day grace period ends.

Industrial hemp fiber and grain remain unaffected by the hemp ban.

Products at risk under the hemp ban:

What The Hemp Ban Means for the Hemp Industry

Independent analysts and reporting from CNN, Forbes, and Newsweek paint a clear picture:


The hemp ban would shut down most of the hemp-derived wellness market — with an estimated 95% of products affected.


The consequences include:


A $28–30 billion sector at risk.

Retail sales across hemp-derived gummies, tinctures, beverages, vapes, and topicals represent a multibillion-dollar market. Under the hemp ban, most of these products would no longer be legal.


More than 300,000 jobs impacted.

Farmers, extractors, manufacturers, logistics networks, distribution partners, retailers, hospitality businesses, and wellness brands — including small businesses like Dragon Hemp — all stand in the path of disruption by the hemp ban.


Severe impact on state economies.

States with significant hemp infrastructure — including Kentucky, Texas, Utah, Oregon, and Colorado — could lose more than $1.5 billion in annual tax revenue under the hemp ban, according to industry estimates.


The rise of unregulated markets.

Experts across multiple outlets warn that banning regulated hemp products will not eliminate demand. Instead, the hemp ban pushes consumers toward untested products sold without age restrictions or quality standards.

As one executive told CNN: “Bad actors thrive when things disappear from the formal economy.”


A wave of small-business closures nationwide.

Forbes described the hemp ban as “an extinction-level event” for many hemp companies — especially brands without large investors, national distribution, or diversified operations. Small businesses like Dragon Hemp, which rely on regulated full-spectrum formulas and farm partnerships, would be among the most vulnerable to the hemp ban.

Sleep Tincture for stress and sleep

What The Hemp Ban Means for You as a Consumer

Nothing changes about your access — for now. Even thought the hemp ban has been signed, hemp-derived products remain available during the 365-day grace period. But without policy revisions or new legislation, many of the tools people rely on every day could disappear under the hemp ban — including full-spectrum tinctures, functional gummies, hemp-derived beverages, gentle sleep and stress formulations, and topicals made with naturally occurring cannabinoids.


And it’s not just people who use THC for relaxation or as an alcohol alternative who would be affected. This amendment also targets the trace, non-intoxicating amounts of THC that naturally occur in full-spectrum CBD and other hemp extracts — the very compounds that help these products support sleep, ease stress, calm the nervous system, and reduce discomfort. These tiny amounts aren’t what get people “high”; they’re what make full-spectrum formulas work.


For millions of people, these aren’t luxuries. They’re part of a daily routine that helps support restful nights, steady moods, and manageable pain levels without turning to harsher pharmaceuticals or intoxicating substances. The new amendment removes that access without offering a regulatory framework to protect safety, quality, or consistency, leaving a lot of uncertainty in its place.


And there’s another reality we need to acknowledge: if the hemp ban stands, Dragon Hemp may no longer be able to operate as a company. Nearly all of our formulas would be classified as illegal under the new definition. That would mean you’d lose access not just to products you love, but to the plant-based support you count on to feel like yourself again.

What Can We Do?

This story isn’t over, and your voice matters now more than ever.


Over the coming year, you can expect to see advocacy efforts from farmers, practitioners, and wellness brands to address the hemp ban; proposed bills aimed at preserving access to non-intoxicating CBD; policy debates about regulation versus prohibition; and industry shifts as companies adapt to the new landscape under the hemp ban.


Through all of it, we will continue to share updates, clarity, and practical guidance. Our commitment remains simple: to protect access, stay transparent, and support everyone who depends on thoughtful, plant-based wellness as we navigate the hemp ban.


We are already engaging with policymakers, industry partners, and advocacy groups to defend your right to safe, legal, effective hemp — the kind that genuinely supports sleep, stress, recovery, and daily well-being. But the truth is simple: your voice carries the most weight. Lawmakers need to hear directly from the people whose lives are made better by these products and negatively affected by the hemp ban.


Historic progress was made in 2018 with the Farm Bill. We can do it again — and go even further — but only if we show up together to fight the hemp ban.


As it comes, we’ll share clear, simple ways to take action against the hemp ban: how to contact your representatives, how to share your story, and how to support sensible policy that protects access instead of eliminating it. 


Prohibition isn’t the answer. Thoughtful regulation is.


Safe hemp matters. Your wellness matters. And we’re not backing down — not now, not ever.


Stay tuned — and stand with us. Together, we can protect the future of plant-based wellness.

Products at risk under the hemp ban:

Our Story.

Dragon Hemp is the practitioner-founded apothecary that produces plant-based therapeutics formulated with a proprietary blend of next-generation botanicals and time honored herbal remedies.


For people seeking treatments that give relief & address the root cause.


Our herbal remedies are innovative and user-friendly, with wellness benefits that are effective & accessible to everyone.


So you can feel like yourself again.


Our Founder.

Kevin Menard, LAc., is the leading practitioner in Sports Medicine Acupuncture and Traditional Chinese Medicine on the East End of Long Island, with clientele ranging from business executives and fitness professionals to wellness gurus and weekend warriors.


As he cultivated his practice, Kevin began integrating CBD & other cannabinoids, native botanicals, and herbs into his treatments, addressing conditions like pain, musculoskeletal injuries, insomnia, overall wellness, and so much more. 


Following the promising results from his herbal and CBD-infused treatments, Kevin expanded his work, introducing Dragon Hemp to support patient wellness beyond his clinic's walls.

Our Apothecary.

Our Apothecary in Sag Harbor, New York was conceived as a beacon of rejuvenation and wellness in the Hamptons. Much more than a dispensary, at the core of the Dragon Hemp Apothecary is a commitment to education and understanding the benefits of time-honored herbal remedies synthesized with today’s advancements in cannabinoid research. 


Offering an array of products designed to align with the wellness needs of the Hamptons community, the store seeks to bridge the gap between ancient wisdom and modern applications, making herbal medicine more compatible with our lifestyles today. Our unique apothecary in Sag Harbor not only represents a physical space but also embodies Dragon Hemp's ethos of premium, all-natural, effective wellness solutions, drawing from the rich heritage of the Hamptons and the innovative spirit of New York.


Not your conventional dispensary, our first-of-its-kind retail location, harmoniously balances tradition and innovation with an emphasis on experience and education. We invite you to step inside and let our herbal experts guide you on an exploration of the rejuvenating power of cannabinoids and traditional herbs in a setting that feels both timeless and contemporary.


Designed in collaboration with renowned Alfredo Paredes Studio, the apothecary embodies a sophisticated fusion of old-world tradition and contemporary application. Known for his 33-year tenure as Ralph Lauren Executive Vice President and Chief Creative Officer, Alfredo Paredes, a master of crafting memorable retail experiences, helped transform the space into a shining gem of Sag Harbor. Reflecting the premium, natural, and therapeutic essence of Dragon Hemp, every aspect of the store, including the unique furniture pieces from Paredes' line, contributes to an ambiance of refined tranquility and wellness. The design echoes a classic herbal pharmacy blended with a modern aesthetic, mirroring our brand ethos of contemporizing ancient herbal medicine for today’s applications. Read more about our Apothecary design in Forbes.


Standing out on Main Street in Sag Harbor with the glow of our distinctive neon sign, our unique retail store has become a design destination of its own -- beyond just wellness -- in one of the Hamptons’ most popular villages. Whether you’re looking for potent natural therapeutics to tackle pain & inflammation or legal THC products to enhance mood or improve sleep, our apothecary is your safe haven at 108 Main Street.

Our Products.

Our products are formulated to serve the four crucial daily needs most often seen in Kevin’s practice—Essential Wellbeing for comprehensive health, Rest & Restoration to foster rejuvenation, Aches & Pains for relief from discomfort, and Liniments for body care that enhances both physical and emotional wellbeing.


Available in four versatile forms—swift-absorbing tinctures, targeted balms, discreet gummies, and moisturizers—we ensure a suitable choice for every lifestyle and wellness routine.

Our Ingredients.

We carefully select our organically grown ingredients, emphasizing sustainability to protect Earth's biodiversity. 


We believe in transparency in all our processes, from ingredient selection to the methods used by our CBD farmers, who lead the sustainable agriculture charge and concentrate on ecosystem restoration and carbon sequestration.


We're not just about products but about nurturing an understanding of traditional herbal practices and helping people make healthy decisions. 


With respect, we introduce newcomers to the benefits of age old herbal wisdom. 


Our aim is a future where well-being stems from nature, combining timeless knowledge with today's research.


Discover the distinctive characteristics of each herb in our Ingredient Index.

Why is hemp banned? Why did the US ban hemp? What is the problem with hemp?

Hemp is not banned entirely, but the new federal hemp ban drastically restricts how much THC can appear in any hemp product. The government cited concerns about intoxicating hemp-derived cannabinoids like delta-8 and delta-10. Critics argue the hemp ban overcorrects by eliminating products that contain only trace, non-intoxicating THC found naturally in full-spectrum CBD.

What is the new law on hemp? What are the new hemp regulations? What is the 2025 hemp ban?

The new law — commonly called the 2025 hemp ban — limits all hemp products to 0.4 mg total THC per container, a level so low that more than 95% of products would be illegal. The hemp ban treats all forms of THC equally, including naturally occurring trace amounts that provide therapeutic benefits in full-spectrum formulas.

Will the hemp ban affect dispensaries? Will the THC ban affect dispensaries? Are dispensaries selling hemp?

Yes. The hemp ban affects any dispensary that carries hemp-derived ingestibles, tinctures, gummies, vapes, or topicals with more than 0.4 mg total THC per package. Cannabis dispensaries selling regulated marijuana products are still allowed to operate, but hemp-derived items in their inventory would be impacted by the hemp ban.

What products are illegal under the hemp ban?

Under the hemp ban, nearly all full-spectrum and broad-spectrum hemp products become illegal, including:


  • tinctures containing trace THC

  • hemp-derived gummies

  • hemp beverages

  • vapes

  • most topicals

    Only products with less than 0.4 mg THC per container remain compliant — meaning almost everything currently on shelves violates the hemp ban.


Will CBD oil be banned? Can I still buy hemp?

Most CBD oils containing full-spectrum or broad-spectrum extracts would be banned under the hemp ban. You can still buy hemp for now during the 365-day grace period, but the hemp ban will outlaw most forms of CBD oil after that window unless the law is revised.

What THC is legal in the US? Is THC considered an illegal drug? Is THC federally illegal? Is THC federally banned? Was THC just banned?

Delta-9 THC below 0.3% by dry weight remains federally illegal, but the new hemp ban goes much further by restricting total THC to 0.4 mg per package in any hemp product. THC itself was not newly banned; rather, hemp-derived products containing THC were effectively removed from the market through the hemp ban.

Is THCA banned now? Will THCA be banned federally? Is THCA going to be banned?

Yes — THCA falls under “total THC” in the hemp ban. Because THCA converts into delta-9 THC when heated, the hemp ban counts it toward the 0.4 mg limit. This means nearly all THCA products would be illegal once the hemp ban takes effect.

Is hemp harmful to humans?

No. Hemp is not harmful to humans, and decades of research show hemp-derived cannabinoids are generally well tolerated. The hemp ban is not based on toxicity or safety concerns, but rather on attempts to regulate intoxicating hemp derivatives — though the hemp ban unintentionally eliminates non-intoxicating and therapeutic products as well.

What did the 2018 farm bill do? What is the loophole in the 2018 farm bill?

The 2018 Farm Bill legalized hemp nationwide and defined it as cannabis with less than 0.3% delta-9 THC. A perceived “loophole” allowed companies to extract and concentrate other hemp-derived cannabinoids, which eventually led lawmakers to push for the hemp ban.

Was the 2025 Farm Bill passed? Is the 2018 farm bill still valid?

The 2025 Farm Bill has not been passed. Instead, the hemp ban was inserted into the government funding bill that ended the shutdown. The 2018 Farm Bill technically remains in place, but the hemp ban overrides its THC framework.

When does the hemp ban go into effect? Did the THC ban pass?

Yes, the hemp ban passed. It includes a 365-day grace period from the moment the President signed it. Once the grace period ends, the hemp ban becomes fully enforceable nationwide unless Congress amends or replaces it.

Is hemp still illegal in the US?

No, hemp itself is not illegal — but the hemp ban will make nearly all hemp-derived wellness products illegal due to the extreme 0.4 mg THC limit.

Why are states banning hemp?

States are banning hemp because the new federal hemp ban has created confusion, pressure, and urgency around how states regulate hemp-derived products. Many state lawmakers see the federal hemp ban as a signal to tighten their own rules, especially around intoxicating cannabinoids like delta-8 and delta-10.


Some states are preemptively adopting their own versions of a state-level hemp ban to align with the federal direction, avoid legal gray areas, and reduce what they view as regulatory loopholes. Others are reacting to the economic fallout the hemp ban is expected to create, trying to get ahead of product shortages or retailer uncertainty.


In short, the hemp ban at the federal level is driving a wave of state restrictions, even though most hemp products targeted by these state bans contain only trace, non-intoxicating cannabinoids.

Why did the government ban hemp?

The government did not ban hemp entirely, but the new hemp ban dramatically restricts almost every hemp-derived product. The government pushed this hemp ban forward due to concerns about unregulated intoxicating cannabinoids — but the language of the hemp ban goes much further than that.


Instead of targeting only psychoactive compounds, the hemp ban also captures the tiny, naturally occurring amounts of THC found in full-spectrum CBD and other wellness products. This happened largely because the hemp ban was inserted into a must-pass funding bill without hearings, scientific review, or industry input.


Critics argue the hemp ban reflects political pressure — particularly from competing industries — rather than evidence-based regulation. As a result, the hemp ban has become one of the most sweeping and controversial policy decisions in the history of U.S. hemp.

What are the new hemp regulations?

The new hemp regulations created by the 2025 hemp ban establish a single nationwide rule: no hemp product may contain more than 0.4 mg total THC per container. This is the core of the hemp ban, and it means that nearly every full-spectrum or broad-spectrum product now violates federal law.


Under these new regulations, the hemp ban treats all forms of THC the same — delta-9, delta-8, delta-10, THCA — even though many of these compounds are non-intoxicating in trace amounts. The goal was to create uniformity, but the result is that the hemp ban effectively eliminates gummies, tinctures, beverages, vapes, capsules, and most topicals made from full-spectrum extracts.


The hemp ban also directs the FDA to publish a list of cannabinoids subject to the new restrictions, meaning these hemp ban regulations could expand even further once that list is released.