Federal THC Ban Threatens to Kill Wisconsin Hemp Industry’s Buzz

Ask just about any American what the state of Wisconsin is known for and you’re likely to get the same answer: cheese. However, Wisconsin also hosts a quiet industry built around hemp, the industrious, un-sexy cousin of the plant Snoop Dogg once encouraged his fans to smoke every day.

Hemp, like marijuana, is a member of the cannabis sativa plant family. While marijuana remains illegal on a federal level — even while many states have legalized it recreationally — loopholes in federal legislation have allowed an industry delivering consumer-grade hemp to bud in states like Wisconsin, where recreational marijuana remains illegal. 

This loophole has made room for businesses like Canni Hemp Co., a hemp retailer in Milwaukee.

Canni is one of many Wisconsin businesses now staring down the barrel of some bold political moves that could halt their momentum entirely.

According to lobbyist, hemp farmer and president of the Wisconsin Hemp Farmers and Manufacturers Association, Phillip Scott, the hemp industry is worth approximately $700 million and responsible for around 3,500 jobs in Wisconsin.

Due to more recent federal legislation aimed at closing the hemp loophole, this industry is now under threat in the Cheese State.

It’s not just federal regulation threatening the Wisconsin hemp industry; there’s also a statewide crackdown that has been introduced by various representatives, including Rep. Lindee Brill (R – Sheboygan Falls), Rep. Jim Piwowarczyk (R – Hubertus) and Rep. Bob Donovan (R – Greenfield), among others. 

In a statement released Sept. 19, several Wisconsin lawmakers cited a “sharp rise in delta-8 poisoning in young children” as well as other public health concerns as motivating their push for a bill to further restrict and regulate the manufacture, sale and consumption of hemp in the state. 

Given the economics at stake, the threat of all-out prohibition casts a massive shadow over this Wisconsin industry, including Canni Hemp Co.

Canni Hemp Co. started as a simple hemp retail space and e-commerce business in 2018 and was converted to the full-blown Canni Infusion Bar & Cafe by 2022, complete with proprietary branding and event hosting, according to founder and owner of Canni Hemp Co., 41-year-old Colin Plant. 

Now, businesses like Canni have been put on notice that some of their most sought-after products contain an ingredient that may soon put them and their customers at legal risk. 

The primary focus of this new federal legislation revolves around regulating tetrahydrocannabinol. 

For the uninitiated, tetrahydrocannabinol — which from here on will be shortened to simply THC for the sake of our readers — is the main of a number of psychoactive chemicals in cannabis known as cannabinoids.  

Under the recently repealed federal regulations, THC derived from hemp skirts by on a technicality, allowing this industry to operate — albeit, within a slim margin of the law.  

It’s in this legal gray area that companies like Canni have planted their roots. 

However, due to renewed pressure from lawmakers, the slim margin that allowed these businesses to operate has now been narrowed even further. 

In addition to offering edibles, topical ointments and other products, Canni (pronounced can-eye) includes a full bar with coffee and craft cocktails that can be “infused” with the power of botanicals — most popularly, hemp-derived THC. 

Though hemp is in the name of the cafe’s parent company, Canni also offers other plant-based infusions, such as a non-intoxicating blend of “functional mushrooms,” and even botanicals indigenous to corners of the globe far from the 414 area code, such as kava and kanna.  

Despite these other offerings, hemp-derived THC makes up about 70 percent of Canni’s revenue, according to Plant, and the pending ban has put businesses like Canni’s on full-notice to find a way to pivot, or risk facing closure.  

“I do think it would put a lot of hemp businesses out of business,” said Plant. 

Though lawmakers cite concerns for public safety and the wellbeing of Wisconsin’s children as their motivation behind prohibition, business owners like Plant aren’t convinced.  

“Government agendas typically follow revenue, not rhetoric,” said Plant. “When officials talk about ‘protecting the children,’ that’s rhetoric — the real motivation is always money or politics.” 

In a battle being fought under the noses of most Wisconsinites, government regulation contends with private business interests in a legislative melee that could land critical blows to a multi-million-dollar industry and the residents who support it. 

Separating seeds from stems

This past November, a bill signed by President Trump to end the historically long government shutdown also contained a provision to redefine the definition of “hemp” on a federal level, as well as enacted a federal ban on hemp products “containing more than 0.3 percent total tetrahydrocannabinol by dry weight.”  

Just one month prior, legislation had already been introduced in Wisconsin that mirrored the new federal redefinition, as well as the conjoining regulation. 

The recently repealed definition of hemp comes from the 2018 “Farm Bill,” formally known as the Agriculture Improvement Act of 2018 — also signed into law by President Trump – which amended the Controlled Substances Act by distinguishing “hemp” from “marijuana,” and excluded any hemp containing less than 0.3 percent delta-9 THC by dry weight from the CSA. 

This is an important distinction because delta-9 is chief tetrahydrocannabinol in terms of psychoactive effects. Most laws aimed at regulating cannabis — whether in a legal or prohibited state — revolve around regulating the delta-9 variant of THC. 

These new laws hope to reverse this distinction by classifying any hemp plant containing more than 0.3 percent total THC, or more than 0.4 milligrams per container, as marijuana.

Other derivatives of THC aside from delta-9, such as delta-8 and THCA, which have also risen in popularity over the years, will be considered one-and-the-same under the new legislation. 

There is also cannabidiol, or CBD, the cannabinoid used for its effects on ailments such as pain, insomnia and anxiety, according to researchers at Harvard Medical School.

Unlike THC, CBD is non-intoxicating.

No matter, however, as CBD is rolled up with the other banned cannabinoids in the new federal restrictions.

In Wisconsin, three separate bills are contending to set the stage for further regulation or prohibition of hemp. 

First, there is the all-out prohibition bill that was sponsored and proposed by Rep. Brill. This bill would serve to return recreational hemp to its pre-2018 prohibited status. 

Next, there is a bill sponsored and proposed by Rep. Rob Swearingen (R – Rhinelander) that would introduce regulation to the hemp market similar to the 21-and-up regulation of alcohol. This bill also applies the “three-tiered” system used to regulate intoxicating alcoholic beverages, which separates manufacturers from distributors from retailers. 

Finally, there is a bill introduced by Sen. Patrick Testin (R – Stevens Point) that also aims to impose a 21-and-up age limit on the sale of THC-infused products, but takes it a step further by aiming to regulate the amount of the cannabinoid infused into the product by setting a ceiling of 10 milligrams per serving and establishing a two-serving limit on non-resealable containers, like cans. 

Though each of these bills have been introduced, none have begun the voting process to begin moving them through the state legislature in order to cement them into law. 

More than just green

From its start in 2018, Canni Hemp Co. has grown beyond the shell of its former years to a cafe and bar that still holds a retail space in-store while also offering events featuring local musicians, artists and other creatives.  

In addition to its most popular infusion, hemp-derived THC, Canni also offers several other botanical infusions, which can be added to any of the various drinks on the menu. 

These offerings include a blend of functional mushrooms that include reishi, lion’s mane and turkey tail. Though these aren’t the kind of mushrooms that give you a psychedelic trip, researchers say they may have potent health benefits, such as supporting cognitive function and digestive health. 

Canni also offers kava — derived from the ground root of a shrub native to the South Pacific — said to provide anxiety relief.  

There’s also an infusion called kanna, derived from a succulent in South Africa, that makes consumers feel “calmer and more happy,” according to clinical psychologist Vincenzo Sinisi. 

Canni also holds a class B liquor license, and has a fully licensed bartending staff, allowing them to serve alcoholic beverages in addition to their plant-based cocktails. 

“Hemp is the most popular, but we are known for innovation and plant-based and botanical infusions,” said Plant. 

 

Here for more than a good time

Though some of the offerings of Canni’s menu are designed to be intoxicating, Canni finds its purpose outside of the traditional bar or recreational cannabis space. While some in those spaces may look to consume purely for consumption’s sake, Canni’s website offers patrons an experience of “self-care” and a space where “communal bonds are nurtured.” 

It’s not just the patrons who look to Canni’s stable for some relief, even some of the staff have firsthand testimony on the impacts of hemp THC in their lives. 

“I can’t metabolize certain pharmaceuticals correctly,” said Brooke Shawver, employee of Canni and nursing student at University of Wisconsin-Milwaukee. “Opioids, for example: I break out in hives, I vomit, I get kidney stones. I have really negative reactions. But because of my chronic pain and my rheumatoid arthritis, I have to take something, so I use cannabis.”  

Shawver’s journey to pain relief had several unfulfilling dead ends involving prescriptions to potent pain killers, such as oxycodone, hydrocodone and dilaudid.

“Having this option allows me to live a full life without having to sneak or go to different states,” said Shawver. “I’m a single mom, so that’s a whole other conversation.”  

Legal hemp-derived THC allows Shawver, and others like her, an opportunity to access their relief without the risk of being labelled as a criminal.  

“We provide a haven for a lot of people who are suffering from a lot of real things, and they get results,” said Shawver. “We’ve had people who have been with us now seven-and-a-half years, since we’ve been opened, and they still come to us for their medicine.” 

Shawver echoed Plant’s assertion that Canni offers a space for consumers seeking an alternative to traditional means of chemical relief, whether medicinally or recreationally. 

“Yes, it has a recreational side to it, but if people don’t want to drink alcohol, and they want an alternative, they should have that alternative,” said Shawver. “We’re very much about mindful leisure here. Everything we do here has a purpose, it’s not just about getting people super high.” 

Shawver isn’t the only sort of person living with chronic ailments who finds relief in hemp as medicine, either.  

“Seniors and veterans are the number one thing,” said Timothy Frey, spokesperson for Ignite Dispensary, a hemp retail chain in Wisconsin. “Two of my managers are veterans and cannabis has gotten them off of their opioids.” 

Frey shared a personal relationship with an individual who found help in hemp after returning home from the battlelines of the Global War on Terror. 

“I had a really good friend who lost his leg in Iraq,” said Frey, “he called me up crying, saying, ‘my wife’s gonna divorce me, I’m taking opioids and I’m drinking heavily.’ We got him over; he uses smokeable flower or a vape for his PTSD. He uses delta-8 for his phantom pain, because he lost his leg, his [chronic] pain and to sleep, and he’s a better man for it.” 

“He went from 10 pills to like one pill,” said Frey.  

“Flower” refers to hemp in its plant form. 

To purveyors like Frey, hemp is not only an underutilized resource in the field of pain relief and health care, but there’s also other potential being missed. 

“There’s industrial hemp; we need to go down that avenue for sustainable building,” said Frey, “and then there’s the cannabinoid market, where this plant can majorly help with a lot of ailments and help people get off prescription opioids and pain pills.” 

Outside of being an intoxicant, hemp has been found to have over 25,000 uses, such as textile fibers, cosmetics and even plastic. 

It’s important to note, the bills aim to prohibit or restrict the recreational usage of hemp but will still allow for industrial uses. 

However, it’s not just hemp business owners and their customers who recognize the potential medical value of hemp.

Until recently, marijuana was classified as a Schedule I controlled substance.

During the writing of this story, President Trump signed an order re-classifying marijuana from a Schedule I controlled substance to a Schedule III controlled substance.

Schedule I of controlled substance classification is the most severe scheduling a drug can receive; Schedule V is the least severe.

At Schedule I, a drug is seen to have zero benefit for medical use, a high potential for abuse and no way to use the drug safely even under proper medical supervision.

Schedule III drugs are seen as having lower potential for abuse and some medical use while still maintaining there is some risk of harm associated with the drug.

This distinction could have significant impacts on the research and study of, as well as judicial attitudes towards marijuana and hemp.

“Decades of Federal [sic] drug control policy have neglected marijuana’s medical uses,” said the White House in their released statement.  “That oversight has limited the ability of scientists and manufacturers to complete the necessary research on safety and efficacy to inform doctors and patients.”

The administration echoed the belief there is medical relief to be found in cannabis, including hemp.

“In addition to medical marijuana, hemp-derived cannabinoid products have been shown to improve patient symptoms for common ailments and are frequently used by Americans,” wrote the administration.

In speaking on who could most benefit, the president specifically mentioned the two major groups also highlighted by Frey: veterans and the elderly.

“One in 5 [sic] United States adults and nearly 15 percent of seniors reported using CBD in the past year, and chronic pain patients have reported improvements with CBD use in clinical studies,” said the release.

“20 percent of participating United States veterans reported using fewer opioids as a result of their medical marijuana use,” the release reported.

This surprising move by the Republican administration has inspired a wave of bipartisan handshaking. Lawmakers in states like Pennsylvania, who have already been reaching across the aisle to pen legislation to ease marijuana restriction in their state, see Trump’s order as a step in the right direction and a signal to others in the conservative camp to follow suit.

“I think that having President Trump, in particular, sign this executive order really gives permission for a lot of Republican lawmakers who may have been reticent about actually admitting that they supported it some cover to be able to actually support it,” said Pennsylvania Democratic state representative Emily Kinkead, speaking with CBS News.

“It reflects the support that we see broadly in the nation, that overwhelmingly people support legalization of marijuana, and it is bipartisan,” Kinkead told the media outlet.

According to a survey conducted by Pew Research Center, 57 percent of American adults support the legalization of marijuana for both recreational and medical purposes, while 32 percent support the legalization of marijuana for medical purposes only.

There are still Republican representatives who would like to see marijuana stay where it currently is at Schedule I.

As reported by The Hill, a letter signed by numerous Republican senators urged the president away from rescheduling marijuana to a less severe level. They also cited concerns such as public safety and risk to the health of the consumer.

Research: putting the dope under a ‘scope 

Cannabinoids have been studied in the medical field for decades. Research has found that cannabinoids found in hemp and marijuana interact with the body’s natural endocannabinoid system, impacting pain perception, inflammation and immune function, with some research finding it to be 100 times more effective at relieving inflammation in animals than aspirin.

That same research found that cannabis can be an “opioid-sparing” drug, meaning when used in conjunction with opioids, cannabis allows lower dosages to be used over time. 

A 2020 analysis of several studies involving over 7000 participants found 64 to 75 percent reported a reduction in opioid dosage when combined with medical cannabis, according to researchers at the University of Arizona.

Research published by the National Library of Medicine highlighted “substantial evidence” on the effectiveness of cannabinoids in relieving chronic pain.

Other possible medical uses for cannabis range in helping bring relief from the symptoms of multiple sclerosis, chemotherapy-induced nausea, and sleep disorders.

However, there is also contrasting research on the possible dangers of cannabis use, especially when paired with introduction to cannabis at a young age and/or pre-existing psychological conditions. 

Research has found smoking cannabis can be damaging to the lungs and puts smokers at a higher risk for bronchitis, as well as increasing risk of a stroke or heart disease. Research conducted by psychiatrist Shweta Patel and her team also found a possible link between THC and schizophrenia, namely in the possible exacerbation of an existing schizophrenic condition within someone who also uses cannabis.  

There’s also a heightened risk of negative outcomes in individuals who began using cannabis before the age of 17, according to researchers. These studies on adolescent cannabis use have shown a disruption in the development of certain brain structures and negative impacts to areas of cognitive function such as attention and memory, even after the individual stops using cannabis. 

Many proponents of cannabis claim it to be “nonaddictive” but some research shows evidence that cannabis — like any substance which interacts with neural feedback loops — has the possibility to develop a use disorder. 

Cannabis use disorder refers to an individual who uses cannabis in a manner that disrupts or harms their life. 

Symptoms of CUD include using cannabis even when it puts you in danger, damages relationships or causes you to abandon social or professional opportunities. CUD is estimated to impact approximately 10 percent of cannabis consumers worldwide. 

The buzzkill on Capitol Hill 

Not everybody is thrilled about these alternatives forms of recreation and medicine. 

In a statement provided to Media Milwaukee by Rep. Lindee Brill’s office, Rep. Brill and Rep. Chris Kapenga (R – Delafield) cited concerns over public safety as the main driver behind this push to restrict and prohibit hemp-derived THC. 

“There is a growing body of evidence that shows the dangers of these products and substances,” read Rep. Kapenga’s contribution to the statement. “Both the CDC and FDA have issued warnings to the public about the hazards posed by these products.” 

Rep. Kapenga pointed to an incident in Stoughton, WI, in which 85 people were unknowingly intoxicated with THC after consuming food contaminated in a kitchen shared with a “fully legal vendor who produces hemp-derived edibles.” 

Lawmakers cited an increase in hospitalizations and emergency room visits due to delta-8 poisoning, especially amongst young children, as well as the risk of “long-term damaging effects” impeding cognitive function. 

The FDA cited concerns over delta-8 relating to its lack of regulation, the risks associated with accidental ingestion, as well as the possibility of manufacturers using harmful additives to increase efficacy of the cannabinoid or some aspect of the final product, like the color. 

Media Milwaukee reached out to the other representatives from the initial Sept. release regarding the bill, but they either could not be reached in time or declined to comment.  

However, while lawmakers cite concerns over public safety, in addition to stating he agrees that stricter regulations are needed to protect consumers, business owners like Plant believe more than public safety, this decision revolves around economics.  

He cited decreasing sales in alcohol and claimed lawmakers “felt the pinch” of industry leaders pushing them to prohibit this emerging alternative in intoxication. 

He, like many others, highlighted the relationship between Republican senator Mitch McConnell — who faced criticism from fellow Kentucky senator Rand Paul for spearheading the addition of the hemp ban into the government re-opening bill — and special interests in the alcohol industry, namely the bourbon industry of Sen. McConnell’s home state of Kentucky.

Though some states have found a possible link between legalization of cannabis and decreasing alcohol sales, it is still too early to draw any concrete conclusions on the exact economic relationship between the two intoxicants.  

Media Milwaukee reached out to Rep. Brill and received a statement regarding the assertion this prohibition was motivated by economic interests. 

“No ulterior economic interests motivated this bill,” said Brill. “I have worked in drug and alcohol addiction; I have seen firsthand the devastating effect of substances like this. After extensive research, I feel this is the healthiest path forward for the state of Wisconsin.” 

Regulation: putting the dope on a rope

At the heart of this contentious debate lies regulation versus prohibition.

“It’s about moving forward in a mutually beneficial, business-minded approach,” said Plant. “How can they get what they want, and how can this industry continue to operate safely, responsibly and in a compliant manner?” 

Some lawmakers favor all-out prohibition of hemp for recreational or intoxicating purposes, not only citing health concerns, but — citing a letter signed by 39 state attorney generals and submitted to the House Appropriations  Committee on Agriculture — lawmakers such as Rep. Brill pointed out the 2018 Farm Bill was never supposed to provide an avenue to the legalization of hemp for recreational purposes. 

However, regulation doesn’t seem to be the issue for business owners like Plant and Frey, who both align in their belief that not only can proper regulation keep the consumer safe, it can also be a net positive for the hemp industry. 

“The good players, we are all for common sense regulation; we desperately want it,” said Frey. “I’ve been saying for years they need to address this. That’s the problem: they didn’t address this early enough, now they’re basically backpedaling.” 

“The market is so saturated with these products, you can go to any gas station and get it,” said Frey. “The one that bugs me the most is I can go down to my local Ace hardware and they are selling delta-8 drinks and gummies right next to the power tools. That should not be the case. These products should be in licensed stores. It’s the Wild West.”

When considering the need for legislation, Plant hopes to see a mutually beneficial, business-minded approach that prioritizes “consumer safety, compliance and responsible ownership.”

“There’s a legitimate concern for public safety and consumer safety,” said Plant. “That concern has created a need for more reform in this space.” 

Plant stated it is “cause-and-effect” that sheer prohibition causes the black market to “explode.” 

This leaves less regulatory overlook and even less protection for the consumer. 

“The synthetic cannabinoid market has already been in existence for a number of years,” said Plant. “There’s no standardized testing to these products; anybody can make anything and put a label on it.” 

“In the marijuana industry there’s seed-to-sale tracking, which kind of makes it harder to force those things into consumer accessibility,” Plant continued. “There needs to be a tightening-up of the model: higher quality standards and more accountability on people who are part of that supply chain.” 

Plant even shared a sense of modesty in the sorts of experiences he caters to his customers. 

“I don’t think the market absolutely needs 200 milligram gummies,” said Frey. “It’s all about retention and sustainability and bringing people back for these experiences. There’s Everclear on the liquor shelves, but most people aren’t buying those products.” 

Plant also had opinions on conditions such as the three-tiered system in the bills proposed by lawmakers. 

“The three-tiered system is manufacturer, distributor then to retailer,” explained Plant, “that’s what they’re proposing. Businesses like ours would not be able to buy directly from manufacturers anymore, they would have to go through this three-tiered distribution, which would eliminate a lot of the retail business in the space here in Wisconsin.” 

Frey also aligns with the belief that a regulatory system modeled around the alcohol industry’s could have negative impacts on the hemp industry. 

“Senate Bill 606,” said Frey, “there’s a lot of good things in that bill. The problem with that one is they wanna take our entire industry we’ve built over the years and hand it over to the large distributors. Not just the beverages but flowers, tinctures [and] hemp.” 

“It’s silly,” said Frey, “how can they allow a brewery to sell their own THC beverage but not allow a farmer who grows his own hemp to sell his own tincture? It would kill all vertical integration.” 

Here, both Frey and Plant touch on some of the economics at the heart of this whole debate. 

Economics: weighing up the green

More than just public safety, this debate also involves some real dollars and cents. 

As stated earlier, hemp is believed to be a $700 million industry in the state of Wisconsin, while being a $28 billion industry in the US as a whole, according to analysts. 

Exact numbers on the revenue and labor force of the hemp industry in Wisconsin are not readily available. Media Milwaukee attempted to reach Phillip Scott for further clarification on ‘$700 million’ estimate, but the phone number listed for him was disconnected and the email address returned as non-deliverable.

At any rate, it’s no moral judgement to acknowledge when a product is permitted in one area and prohibited in another, it is likely seekers of that product will flock to the areas where they are able to get it.  

In the case of hemp it’s likely consumers will head to nearby states where they can purchase the flower without risk of criminalization, according to Frey; in turn, siphoning revenues that could go back to the state, for things like roadway maintenance or law enforcement, according to the business owner. 

Hemp prohibition would have resounding impacts on those who rely on the industry as their livelihood; Canni employs nine people and Ignite has eight stores across the state of Wisconsin. 

Hemp in Wisconsin’s history

Many residents of Wisconsin may be surprised to learn the state’s history in connection with this fibrous green plant. 

Hemp farmers such as Abbie Testaberg state Wisconsin has a climate that is conducive to certain types of hemp. 

According to historians, hemp was first grown in Wisconsin experimentally. Over time, the crop became more popular to grow in Wisconsin and a railway hub in the center of the state helped in transporting the industrial crop across mills. By 1920, Wisconsin was one of the major producers of hemp fibers in the country, hosting more hemp mills than all of the other states combined.  

During the first World War, Wisconsin was a major producer of hemp for military supplies such as rope and textiles – producing up to 70 percent of the hemp in the US — and by the second World War, Wisconsin was one of the leading producers of hemp worldwide.  

According to Hemp Acres USA, the last commercial hemp crop was grown in 1957, and, being maligned along with the prohibition of cannabis under the Controlled Substances Act in 1970, hemp production saw a massive decline in Wisconsin until the passing of the 2018 Farm Bill caused the crop’s popularity to grow again. 

The debate smolders on…

For now, lawmakers and lobbyists are engaging in an open-air negotiation regarding hemp regulation in the state.  

The date for the enactment of this prohibition looms, Nov. 12, 2026. This still gives some time to create legislation that keeps hemp alive in the state. This could also include an extension of another 365 days to allow more time for businesses to comply or a mutual resolution to be reached.

Many in the state believe hemp-prohibition would not withstand a veto from Gov. Tony Evers, who has vetoed bills in the past aiming to increase penalties for marijuana. Evers has also expressed support for the legalization of marijuana in the past.

Business owners like Frey believe outright prohibition is “dead in the water” considering other bills favoring stricter regulation over outright prohibition.  

He also hopes to see more collaboration between lawmakers and those who work in the industry.

“I really wish Wisconsin lawmakers would bring industry heads together and create a cannabis committee or an advisory board,” said Frey. “I know this plant thoroughly. But I also know how business works, and I know how they work together.”

“I wish lawmakers would reach out to industry professionals to try to gauge our experience in this world and help craft common sense regulations for the state of Wisconsin,” concluded Frey. “We are 100 percent for common sense regulation in this industry, but please do not take away our choice for a more natural alternative.”

Plant believes there is far too much money at stake in the hemp industry for the doors to be shut permanently, rather until the government can “get its hands on it.” 

Plant said concerned citizens could reach out to their state senators or get connected with the US Hemp Roundtable.

It will also be important to watch what new developments arise from President Trump’s rescheduling of cannabis as a Schedule III controlled substance with potential for medical research.

Regardless of the outcome, this decision is poised to impact thousands of Wisconsin residents and could even impact hundreds of millions of dollars; money that may otherwise be spent on cheese.