South Dakota is one of the top hemp growers in the country. Now, a proposed measure intended to clamp down on products that contain high THC content and other cannabinoids may threaten this burgeoning CBD market. Last week, the state’s Senate regressed to a restrictive version of HB 1125, which had been amended previously.
The amendments included in the measure that was approved by the House would have banned only products with synthetically processed, high-concentration compounds made from hemp. It would not have banned CBD and other extracts containing small amounts of cannabinoids that naturally occur in hemp flowers, such as delta-8 THC.
By widening the restrictions, the Senate may have put these products at risk. The Senate version of this measure targets vape pens, gummies, smokable flower and pre-rolled joints that are made from the hemp plant. These products flooded markets across the United States, including South Dakota, following the federal legalization of hemp under the 2018 Farm Bill.
Senator Ryan Maher explained that a full ban on these products could cause products to proliferate the state’s market this spring as retailers work to clear their inventory of flower-based hemp goods that may soon be illegal. This includes intoxicating cannabinoids such as THCP, HHC, THC-O and delta-10 THC.
Following HB 1125’s passage at the Senate, the proposed legislation was forwarded to a conference committee to reconcile it with the House version before it is presented to the governor for signing.
Governor.Kristy Noem has historically been in favor of tight restrictions, so it is expected that she will sign this measure.
Figures show that hemp farmers in the state dedicated no more than 35 acres to production of CBD flower in 2021, with the majority of their acreage serving fiber and grain crops. The South Dakota Industrial Hemp Association conducted an analysis which found that in 2022, the state was the second-largest grower, with harvests reaching 2,540 acres. That year, farmers also harvested all their hemp crop. Additionally, the state’s department of Agriculture and Natural Resources reported that in the same year, the number of hemp producers reached 40.
In 2023, South Dakota, Idaho and Montana were the major producers of both grain and fiber, making up almost one-half of America’s total fiber acreage. Final figures on production are yet to be released by the federal agriculture department.
With South Dakota standing out as one of the states that haven’t legalized adult-use marijuana, this clamp down on hemp products could spur activists to renew their push to end prohibition and license companies that are similar to Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) so that residents can have access to a diverse array of products designed to meet their different needs.
About HempWire
HempWire (“HW”) is a specialized communications platform with a focus on hemp-related news, information, and the latest developments in the hemp sector. HempWire is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, HW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, HW brings its clients unparalleled recognition and brand awareness. HW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from HempWire, text “HempWire” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.HempWire.com
Please see full terms of use and disclaimers on the HempWire website applicable to all content provided by HW, wherever published or re-published: https://www.HempWire.com/Disclaimer
HempWire
Denver, Colorado
www.HempWire.com
303.498.7722 Office
Editor@HempWire.com
HempWire is powered by IBN
