Good morning.
We’ve got a great story from Chris in today’s newsletter. It’s a well-reported look at how hemp farmers across the country are reacting to the looming November ban. The move has dried up demand for the crop as many farmers Chris spoke with are now considering winding down their businesses. It’s an important look at the human cost of policy — read it below.
Let’s get to it.
-JB, JR
Today’s newsletter is 668 words or about a 5.5-minute read.
💡 What’s the big deal?
HEMP
'I've invested my life savings': Hemp farmers scramble before November ban
Hemp farmers across the country like Jammie Treadwell are facing a serious dilemma this grow season as a looming federal ban on most hemp-derived consumer products takes effect November 12.
This is typically the time of year when her Central Florida farm sees sales of clones, or starters for other farmers, pick up.
“They're not buying them or they're buying significantly less than they have in previous years,” she told Cultivated in an interview.
Hemp is the main crop now at Treadwell Farms in Eustis, Fla., where generations of her family have grown row vegetables, peaches, and blueberries over decades. In response to citrus greening infestations decimating the state’s citrus groves, the company converted its citrus processing plant in nearby Umatilla to a hemp processing facility.
“We wanted to become a hub for developing an alternative crop that would allow our friends and neighbors, whether a small farm or a large farm, to have another option.” Treadwell said.
⏩ Quick hits
DEA blocked its own anti-cannabis scientist from rescheduling hearing ⚖️
DEA told Smart Approaches to Marijuana it won't put its own pharmacologist, who previously submitted a report linking cannabis to psychosis and cognitive harm, on the witness list for the June 29 hearing, forcing SAM to pursue a subpoena. The DEA is technically the proponent of rescheduling here, so blocking its own harm-focused scientist is either a signal the agency intends to actually defend Schedule III, or a procedural chess move with no ideological content whatsoever.
Trump White House pushes Congress to delay hemp recriminalization ⚖️
OMB Director Russell Vought sent a letter to House Speaker Mike Johnson Wednesday asking Congress to either fix federal hemp rules or extend the existing regulatory framework before the looming ban takes effect November 12. The catch: the House amendment the White House is pointing to as a model was already blocked from a floor vote by the Rules Committee.
Missouri dispensary faces class action over cashless ATM scheme ⚖️
A proposed class action alleges Kansas City Cannabis Company ran modified point-of-sale terminals as "cashless ATMs" to recode cannabis purchases as ATM withdrawals, hitting customers with rounding charges, surcharge fees, and out-of-network bank fees they never agreed to. Visa flagged this exact scheme in 2021 and Mastercard followed in 2023.
⚖️ Lawsuits
SEC dismisses $GRUSF case
The SEC dismissed a trading-revocation case against Oregon-based cannabis cultivator Grown Rogue International after finding the company had caught up on years of late filings, allowing it to keep its public listing. The dismissal is a procedural win, not an exoneration on the merits, but it signals that cannabis companies facing SEC compliance actions may have a path to resolution by getting their disclosures in order. $GRUSF ( ▼ 2.09% )
🤝 Deals, launches, partnerships
Massachusetts-based Ahh Moments launched Ahhlixr, a line of 20mg full-spectrum THC wellness shots, in partnership with cannabis beverage brand LEVIA, available in dispensaries across the state.
🧳 People moves
Shelby Poole, a trade marketing lead for New York brand ayrloom, announced on LinkedIn that she was leaving ayrloom. Poole is also the founder of Betty Bloom, a “social club uniting cannabis and non-cannabis brands through events and activations.” Worth a follow »
📰 What we’re reading