Happy Monday.
We sent our very own Zack Huffman to Kentucky to get the pulse of what’s happening with hemp in the South. He spent a day on the farm with Cornbread Hemp’s Chief Communications officer, Jim Higdon.
Check out a snippet below and click through for the full dispatch.
-JB, JR, ZH, NM
This newsletter is 853 important words or about a 6.5-minute read.
💡 What’s the big deal?
HEMP
On the eve of Croptober, the hemp industry faces existential threats
Driving the news: October marks the start of the annual harvest season for outdoor hemp and cannabis.
Kentucky-based Cornbread Hemp is set to harvest its largest crop yet, 60 acres of hemp, while the industry faces existential threats from looming state and federal restrictions. But this year, new regulation — and a looming government shutdown — could mean the end of legal intoxicating hemp.
What they're saying: "We have to make plans for the long term, so we're betting long. We don't even know what's going to happen next year," said Jim Higdon, Cornbread's co-founder and Chief Communications Officer.
Go deeper: Hemp looked safe for another year after Sen. Rand Paul blocked an effort to undo the 2018 Farm Bill’s legalization of intoxicating hemp in a recent appropriations bill.
But with Congress racing to pass a funding measure before the October 1 government shutdown, that redefinition could resurface. Meanwhile, more states are attempting to regulate hemp with varying success.
The Texas legislature failed to outright ban hemp, with the help of veto by Gov. Greg Abbott, but Tennessee was successful with more limited restrictions. Illinois lawmakers, among other states, have also proposed reining in intoxicating hemp.
While hemp beverages will still be available in the Volunteer State, the new rules could cost Cornbread Hemp up to 11,000 direct-to-consumer customers.
And more: Cornbread will not be the only hemp company to feel the sting if new regulations come to fruition.
The US hemp industry generates approximately $28.4 billion annually and supports about 320,000 jobs, according to a September 16 letter signed by eight senators urging their fellow lawmakers to preserve the industry.
📣 Quotable
“This preliminary injunction is a critical safeguard for more than 150 compliant, tax-paying dispensaries across New York,” said Jorge Luis Vasquez Jr., the attorney representing New York cannabis businesses, including Housing Works, that would have been forced to move under the Office of Cannabis Management’s new interpretation of the school proximity rules.
A state judge ruled last week that the OCM will have to revert to the old proximity rules which measure door-to-door, rather than school property line-to-dispensary door, until February 15, 2026.
“The OCM's directives would have forced businesses that followed every rule to suddenly uproot or close their doors, jeopardizing investments, leases, and community trust. By requiring the OCM to honor its own prior guidance, the Court has ensured stability while the broader issues are litigated.”
⏩ Quick hits
Trump teases medical cannabis stance in Sunday evening post 🍞
President Trump posted an ad for The Commonwealth Project, which works to "integrate medical cannabis into mainstream health care for seniors.” The ad touts the 2018 Farm Bill, which he signed into law, as the first step in getting widespread access to CBD and other cannabis compounds. The ad calls for more research into the benefits of medical cannabis. Interesting! Note: We have not independently verified that he posted it himself, but it appears to be his Truth Social account and it’s making the rounds on social media…
Michigan’s ‘pot-for-potholes’ tax expected to raise $240 million 🚧
Michigan’s House approved a 24% wholesale marijuana tax projected to raise $420 million annually for road repairs as part of a broader budget deal to avert a government shutdown. Industry leaders warn the measure could devastate the market by driving consumers back to the illicit market and forcing shops to close. Read more in Bridge Michigan.
Majority of Americans believe cannabis is safe ✅
Fifty-three percent of Americans say that cannabis is “not at all dangerous” or “not very dangerous,” according to a recent poll by the right-leaning Rasmussen. The survey included Republicans and Democrats but only had 1300 participants.
Major California illicit cannabis bust 👮
In a joint operation last Tuesday between the Humboldt County, Trinity, and ButteCounty Sheriff’s Offices, over 6,200 cannabis plants were destroyed, and 600 pounds of processed flower was seized. The investigation also found traces of pesticides and rodenticides that are banned in California. No suspects were found.
⚖️ Lawsuits
Supreme Court to decide today on whether to hear cannabis-related case 🧑⚖️
The Supreme Court will decide today whether to hear a Humboldt County, California, case testing if Americans have a right to jury trials when state and local governments impose crippling civil fines. At issue: Whether the Seventh Amendment — long applied to the federal government but not yet incorporated to the states — protects property owners facing marijuana-related code enforcement penalties of tens of thousands of dollars per day.
📰 What we’re reading