The bill would make it illegal to grow hemp for profit as an alternative crop.
Stephen Simpson is the Texas Tribune
Andrew Hill was the keynote speaker of Texas’ first agricultural hemp expo, held in Dallas, in 2019. Hill studied hemp and farmed it in California, before Texas legalized hemp. Hill warned farmers about the lack of profitability in the hemp industry despite the hype that surrounded the federal legalization.
Hemp was a big money maker for farmers. Hill explained that despite being a real farmer who was not selling seeds or clones to anyone, he couldn’t resist laughing. “Everyone looked at me and asked what was so funny, and they gave me the mic and I said, ‘Ladies and gentlemen, I’ll tell you right now—I haven’t seen over $1,000 an acre since 2015.'”
Texas legislators embraced hemp in 2019 and legalized hemp products made from cannabis plants with less than 0.3% THC (the psychoactive ingredient in marijuana). Hill’s Texas Star Hemp Farms made the necessary investments to reap the benefits of hemp. They owned almost all production means and spent millions in licenses, facilities and seeds.
Six years on from the initial boom, Texas industrial hemp agriculture is at a critical point. Senate Bill 3 which bans any consumption hemp products that contains even a trace amount of THC could wipe out what Hill has built.
Hemp hearts, hemp seeds oils, salad dressings, and other health products do not contain cannabinoids, which are known to make you feel high. [they] Hill stated that the law will continue to prohibit such conduct.
Hill is one of about 450 licensed hemp producers in the Texas Industrial Hemp Program at risk of losing a chunk of their livelihoods as Texas lawmakers have prioritized banning tetrahydrocannabinol, or THC, products. SB 3 is threatening to kill the hemp-based industry because farmers say that they are unable to produce hemp free of traces THC.
A year after hemp was made legal in the United States, the GOP-controlled Legislature approved the sale of edible hemp to promote Texas agriculture. This included hemp that contained trace amounts of delta-9THC.
The result was the proliferation of hemp-based products such as gummies and beverages. Vapes, flower buds and vape cartridges were sold in dispensaries, convenience stores and pharmacies across Texas. Charles Perry, Lubbock Republican senator who carried 2019 hemp legalization legislation, said that such products exploited a loophole in the law and placed children at risk.
SB 3 addresses this issue by punishing those who violate the law by knowingly posses THC-containing products. The punishment can range from a fine of up to $1,000 to 2-10 years imprisonment for selling or manufacturing them. This measure was passed by the Senate and also prohibits marketing or selling hemp products to minors. All legal products must be packaged in child resistant and tamper evident packaging.
House Bill 28 will ban products such as gummies or vapes, along with synthetic THC. House Bill 28 focuses on closing loopholes in the regulatory system, including allowing hemp-infused products and allocating the regulation of products to the alcohol industry.
The bill’s sponsor, state Rep. Ken King of Canadian (R), said that the new regulatory framework will maintain federal restrictions on THC at no more than 0.3% and limit the daily amount of THC a consumer can purchase to 10 milligrams.
In order for legislation to be passed, both chambers need to resolve their differences. Both hemp bills have not been put to a vote in the House.
In public hearings lawmakers heard parents who had children sickened after using products with dangerous forms of THC that were not regulated. Lt. Gov. Dan Patrick (R), said that he would force an extra session of the Legislature in the event lawmakers failed to pass a ban.
Patrick, in a Senate hearing earlier this year, said: “Kids today are being poisoned.”
Farmers are hit by a blow
Kyle Bingham considers himself to be a niche-big farmer. His more than 2000-acre farm, which spans over several decades, has focused primarily on cotton and grapes. Hemp occupies less than five percent of the farm’s acreage.
Bingham explained that the addition of hemp to their process “was a natural progression”.
Bingham explained that his first harvest of hemp brought about a realisation which dampened the enthusiasm and hype.
When we became interested in hemp biomass for sale, the price was $3.50 per pound. By the time the product was on the market, we assumed that the price would be below $2 per pound. It actually dropped to around 80 cents for a pound. Bingham stated that there was an oversupply.
Texas was too late in the game for hemp farmers to make money from its initial boom. A market oversaturated with low profits has continued.
According to the projections of the State, SB 3 would have a financial impact of $19.3 millions in general revenue funds. This is less than 1% of state revenue for the biennium. The loss for the counties will be $450,000 per year and for the transit authorities $610,000 by 2027. Closed THC stores will cause the biggest revenue drop, resulting in lower taxable sales. The cities will lose an estimated $2.1 million annually by 2030.
Cynthia Cabrera is the president of Texas Hemp Business Council, and the chief strategy officer of Hometown Hero.
A state-level analysis has not been done to determine the financial impact on Texas farmers if HB 28 or SB 3 were passed, which would force them to abandon their production if THC was banned completely as proposed by Senate Bill 3.
Hill claimed that there isn’t a single hemp fiber meeting the THC-free criterion.
Sid Miller of the Texas Department of Agriculture said in 2019 that around 1200 Texas farmers were interested in participating in Texas’ hemp program. About 450 licensed hemp growers are currently in Texas. In the past year, around 166 farmers applied for permits to cultivate hemp.
This whole mess is due to a failure of understanding organic chemistry.
After his early enthusiastic support of hemp—calling it “one of the most exciting new prospects for Texas farmers in a long time” in an introductory video — Miller now speaks with the benefit of hindsight.
Miller said, “We planted way too much. We had way too many products and no market for them.”
Miller stated that the Texas hemp industry is in a state of collapse, and that this will be the main reason for the ban proposed on THC-containing products to have little impact on Texas farmers.
“Farmers don’t care.” Miller stated that this is a simple issue.
Zach Gauger is the director of sales at Caprock Family Farms. One of the biggest hemp producers in California, Caprock Family Farms told legislators last week that the industry has grown to be worth billions of dollars, making it one of the top commodities in the State due to those who stayed.
“The hemp industry is sitting just behind the cattle industry…and this bill will make it impossible to grow hemp as an alternative crop to be profitable,” Gauger said. Gauger said, “I’ve seen many farmers around my area express interest in this plant but are afraid of failing the test or having to deal with it. They also worry that they won’t have the infrastructure to process it.”
Gauger stated that research shows after 20-25 years the Ogallala aquifer on which Great Plains of Texas rely will run dry, farmers may choose to invest in hemp as it is a way of surviving.
Gauger stated that the time for diversification is now. The consumption of hemp and the extraction from it is what will help us break out of this vicious cycle.
When fully unrestrained, hemp can be one of the most useful crops to grow. The hemp plant can produce industrial fibers, CBD (which does not cause a high similar to THC), and other products. CBD has also been tested for potential therapeutic effects. It can be used as animal feed, to produce hemp seed oil, clothes, biodegradable materials, and other products.
Hemp farmers who are successful, mostly small organic farms that produce hemp to make CBD, can earn $500-$800 per acre. This could translate into thousands of dollars in revenue each month if the harvest is done quickly and sold to processors. Hill and other farmers, who are in charge of both the sales and production side of hemp-based products, could make up to $10,000 per month.
It can, however, take many years to reinvest small profits in the equipment required for cleaning and processing. Texas is only now beginning to experience some stability in the hemp industry due to all these efforts. However, now that state has threatened this.
If House Bill 28 is passed, I will no longer be allowed to do business in Texas. My business model and every product I sell will be made illegal overnight, but I won’t shut down—but move my operations to a state where this industry is treated with the regulatory respect it deserves,” Kallan Salganik, a hemp manufacturer for Salganik Services Inc. told lawmakers in a House hearing earlier this month. The move would cost Texas jobs, revenue, and economic impact. [lost] “Local business activity”
Texas legislators maintain that the THC prohibition will harm the hemp-based retail market. Farmers say that the hemp plant contains THC naturally and that it cannot be easily removed. This law may lead to products containing hemp oil or seeds that have been available for many years being taken off the market.
Hill explained that the whole disaster was due to an inability to understand organic chemistry.
Industrial hemp is the primary crop for Texas farmers. Texas does not have the processing equipment to process fiber hemp or grain crops. The rules in place also limit the uses of the crop, beyond CBD.
This hemp grain could be used as animal feed. This grain is very nutritious for cows and chickens. Bingham stated that Texas has no laws governing animal feed. “We can’t even touch it,” he said. We were able recently to make some progress with those rules, but we’re still spinning our wheels until then.
Alternatives for banning THC
The hemp planting season has arrived, but many farmers hesitate to get started because SB 3 is unclear about whether or not the hemp they have already planted will still be protected should this bill pass. Farmers may face criminal charges for planting a hemp crop in the spring that is now illegal.
“We are looking at an area that we believe is on the rise and will be able to provide value for both economic growth and creating new jobs in our state. While we would like to see the hard work of our employees pay off, I am not willing to risk a criminal charge. Bingham added, “I won’t risk a crime before walking away.”
SB 3 allows a person to commit a misdemeanor if they purchase or own a hemp consumable product which is not registered in the state of Texas. If a grower does not pay $500 for a permit and is approved to cultivate hemp, they could be charged with a third degree felony.
Bingham stated that the bill would not deal with what legislators say is the main issue, which is stopping cannabis from reaching children. He said that bad actors “will continue to be able find loopholes in order to do what they are doing, and will keep on going.” This won’t make a difference.
Bingham said the THC-ban will instead halt the growth of the marijuana industry.
It will destroy everything. The grain industry, supplements, oils will all be killed under this bill because people do not understand—including the politicians who wrote this bill—don’t understand the chemistry of hemp.”
Perry has not responded to emails or phone calls asking for an interview about hemp farming and the proposed bill.
Last week, multiple mothers informed lawmakers that THC vape pens are harmful to young people. These pens can also contain dangerous chemicals and hemp-derived products.
Chandel Strickland’s son had been diagnosed as having cannabis-induced psychosis.
He was a student majoring in engineering and he had a full scholarship. Strickland stated that he looks completely different today. He is now 22 years old and struggling with THC addiction. He was forced to withdraw medically from school due to his lack of cognitive abilities.
Farmers believe the best way to guarantee the safety and quality of hemp products would be to create hemp CBD regulations, similar to the ones that existed for vapes only a couple years ago. Texas requires that e-cigarettes and vape devices are purchased by individuals who have reached the age of 21. In 2023, legislators will ban vape packaging with fruit, juice, or cartoon characters.
Bingham says THC shares the same situation.
The lawmakers did not regulate the product, so now they are unhappy about how it is on store shelves. The rules weren’t very strict. There were no age restrictions. Bingham stated that there were no rules regarding childproofing and child resistant packaging. A large portion of the industry asked for it and is not receiving it.
Bingham said that Texas should continue to regulate hemp retail sales, rather than banning THC, and eliminating all agricultural products.
Do we really want to abandon everything that we’ve built with hemp? He said, “I do not think this is an answer.”
Texans in need of help can reach the free Helpline for Substance Abuse and Mental Health Services Administration by dialing 800-662-4357. The Texas Health and Human Services site offers information on services available in the region.
This article originally appeared in The Texas Tribune at https://www.texastribune.org/2025/04/18/Texas-hemp-farmers-oppose-THC-ban/.
The Texas Tribune’s nonpartisan, member-supported media outlet informs Texans and encourages them to engage in state politics. Visit texastribune.org to learn more.
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