OG THC Dispensaries in Tennessee like Green Treez Company have seen the legal cannabis (hemp) industry evolve over time: Starting with the legalization of hemp derived cannabinoids in the 2018 Farm Bill, to government involvement with 6% THC Tax in 2023, plus many other notable milestones and events. In 2024, we are still in a grey area with our industry generating the state of Tennessee with almost $12 million ($12,000,000) dollars in "Hemp Privilege Tax" Revenue as of June 2024. Let's breakdown the history of the market, the current state, and what the future holds.

Prelude

The cannabis industry is comprised of many subsets, just like the cannabis plant. There is marijuana and hemp, plus the various parts of each that account for commerce (finished consumable goods, seeds, equipment, textiles etc.). Please understand that at the time of this article's creation, marijuana is not legal in Tennessee, and the term "legal cannabis market" in this article primarily pertains to hemp derived, finished consumable goods intended for sale to customers in store or online.

The Golden Age

The Golden Age of the legal hemp derived THC market began some time after 2018, and is likely to end very soon. Legitimate sellers of THC and CBD started to populate exponentially, while the stores who keep the consumers' best interests in mind with safe and effective products have reaped the benefits of their efforts. This is a double edged sword because stores who do not research adequately may sell illegal, harmful, or fraudulent products that put the public at risk. In general, the industry has increased in quality over time with more players joining in to contribute to commerce in a "Wild West" environment where the customers decide who succeeds. Green Treez Company is one the few dispensaries who have consistently supplied consumers with safe and potent THCa Flower, THC Edibles, THC Vapes, CBD Oil, CBD Gummies, and CBD Topicals for years. Over time, hidden product quality "alpha" (secret value) has become mainstream, saturated, and with more regulations. This is generally a good thing as the industry and products being sold are more legitimized. The Golden Age may be ending because the access to these products is at serious risk at both the state and federal level.

Where are we today?

July 1st, 2023 is a significant milestone for the hemp derived cannabinoid retail industry because it was the date that marked the implementation of a 6% luxury tax added to the normal state and county tax. This law has generated almost $12 million dollars in 13 months. These funds are supposed to support the Department of Revenue and Department of Agriculture in Tennessee to raise the quality and standards of the hemp industry. This was one of many laws that were set to go into effect as part of House Bill 0403 and Senate Bill 0378 which were highly contested for several months before its passing. Additional parts of this bill have yet to go into effect. The most recent impact on retail consumers are the compliance standards of edibles, which must maintain less than 25mg Hemp Derived THC per serving. On the Business side, a licensing application process for all parts of the industry has been introduced. If you are a Manufacturer, Supplier, or Retailer, you are required to obtain a license by October 1st. You can summarize the current state of the market as a fork in the road where government involvement and quality standards are starting to increase. If done correctly, we will see positive effects for consumers in the way of safer products, legitimate stores, and more secure business operations. Unfortunately, the industry is currently facing threats which will cut these benefits off at the knees.

Threats to Our Future

Emergency Rules

In late 2023, The Department of Agriculture published "proposed rules" based on these bills to outline how they will be enforced. These are rules which are not yet in effect, and have been postponed due to legal process requiring their response to an overwhelming amount of public comments. Because the department is running out of time, they have posted "Emergency Rules". Emergency Rules are rules that are likely to be final, but are not yet in effect. Emergency rules are set to go into effect January 1st 2025. The Emergency Rules affect the laws on the State level. Read the TN Grower's Coalition Guide here.

The most crucial point of these Emergency Rules is that they redefine hemp at the state level. "Hemp is defined under the 2018 Farm Bill to include any cannabis plant, or derivative thereof, that contains not more than 0.3 percent delta-9 THC on a dry weight basis." The Emergency rules use a Total THC standard, not an Active Delta 9 THC standard. This has drastic effects on what would be considered allowed in legal commerce, practically wiping out 70% of what has been offering natural relief for consumers in Tennessee, plus generating the state tens of millions of dollars.

2024 Farm Bill Miller Amendment

The last Farm Bill was in 2018, and it is almost time for the next periodical update. Very recently, an amendment was added amongst a group of other blocks of rules which would also redefine hemp on the federal level:

"The amendment in the FY 25 Agriculture/FDA bill proposes to change the definition of hemp to include only components of the Cannabis sativa L. plant and all derivatives, including extracts, and seeds that include less than 0.3% total THC (including THCA) on a dry-weight basis, and to exclude other cannabinoids like Delta 8 and Delta 10 THC etc. This would make products containing intoxicating hemp-derived cannabinoids illegal, shuttering what has become a multibillion-dollar market in the U.S., and close what many perceive as a "loophole" in the 2018 Farm Bill enabling the legal sale of products containing those cannabinoids. It would also close the "THCA" loophole, through which cannabis seeds and flower—which contain low percentages of THC but higher percentages of THCA—have been sold as legal hemp across state lines. (THCA is the form of intoxicating THC that converts to THC when heated.)" This excerpt was taken from Cannabis Business Times' article which is worth a read.

Ultimately, the Hemp Industry has become so powerful that other industries like big marijuana, big alcohol, big pharma etc. have lobbied against it. They wish to eliminate the ability for people to use this plant for natural relief because they cannot profit from it.

Take Action

The TN Grower's Coalition is arguably the largest and most notable Political Action Committee for the Hemp Industry. They have helped pave the way for all aspects of this industry in legal matters. If you wish to change the outcomes of the future of this plant, you must visit their site and support them now more than ever!

For most consumers, you can expect the status quo until it changes. You will see an increase in regulations, and a nuclear sized nerf to the potency of your natural relief on January 1st 2025. Be sure to stay tuned with Green Treez Company and the TN Growers Coalition to stay updated on the state of affairs in the hemp derived cannabis market! Green Treez Company Dispensary will do legal business to the highest quality for as long as possible. Purchase THCa Flower, THCa Vapes, and potent THC Edibles while you still can!