On November 12, 2026, a new federal definition of legal hemp will change to a much stricter standard. Under the new rules, hemp products must adhere to a 0.3% (0.4 milligrams per container) THC cap—an amount many in the industry say is too low to preserve hemp’s intended benefits, and would essentially be a ban on hemp products. Some states, including Tennessee and Ohio, have already adopted similar rules.
The new definition has caused significant alarm within the $28 billion hemp industry, with fears that it will destroy thousands of businesses and jobs, basically crushing a relatively new industry before it really had a chance to take off.
In Custer County, local hemp farmer Meagan Agnew and her husband own and operate Big Nugget Farms in Westcliffe. Agnew says the ban would effectively end the hemp industry as she knows it
“It's just a shame because it's really gonna take away a very good thing from a lot of people if it is allowed to go through,” Agnew shared. “There are just so many factors that I don't think anybody thought about here.”
She warns that the ripple effects would extend far beyond farmers, pushing many consumers back toward addictive pharmaceuticals and cutting off access to products that help manage pain, anxiety, and other conditions. Agnew says the loss of hemp would harm families, local economies, and states that rely on hemp-generated revenue, calling the potential impact “terrifying.” While she fears losing a third or more of her family’s income, she says she’s still hoping lawmakers will reconsider and find a compromise that protects both public safety and the future of the industry.
“I just have to hope that there are enough people who can come to a compromise where we can at least have something that makes sense. Because this makes absolutely no sense. I don't know how we're gonna do that at this point,” Agnew added.
Each year, hemp farmers pay for licensing, insurance, and mandatory independent testing to prove THC levels meet federal limits. Every strain must be sampled and sent to a lab. Growers pay for testing fees, sampler time, and sometimes mileage. For small operators, these costs are already extremely high. Agnew says that if their ability to sell their main products—like ingested oils—is limited, it would be so cost-prohibitive that their business would no longer be viable.
Customers would also be impacted by these changes. This includes people who say they have found relief from these products, reducing their pharmaceutical intake by supplementing with CBD oil for pain management, anxiety, inflammation, and insomnia, and sometimes seizures.
“If we take this away, this would drive so many people back to pharmaceuticals, back to things that are not only intoxicating but also addictive. We're trying to get people into a cleaner lifestyle. We're trying to teach people how to take better care of themselves as a whole. The CBD is just one part of that,” explained Agnew.
Nationally, the hemp sector is a $28 billion industry, supporting hundreds of thousands of jobs; many of these are tied to cannabinoid production. Colorado’s hemp sector supports hundreds of jobs and significant sales, and the state receives tax revenue from hemp products and businesses—all of which could be impacted. Colorado companies that supply other states may also see major revenue drops and inventory losses.
Christopher Lackner, president of the Hemp Beverage Alliance in Salida, says the federal changes will have a domino effect.
“This ban on hemp will affect everybody who is using a hemp product. Now, whether it's a tincture, whether it's CBD, whether it's a topical, whether you're using it for recreation or therapeutic,” Lackner explained.
He stressed that people using hemp products for their own health and well-being, or that of their kids, as well as those suffering specific conditions or ailments, will be impacted
“I don't think that folks in (Washington) D.C. realize the repercussions of their actions. Hastily redefining the definition of hemp is just gonna throw the entire category, the entire crop, and the entire ecosystem into disarray,” Lackner said.
Lackner warns that the effective ban could reach far beyond consumable products. Innovations like hemp concrete and other hemp-fiber applications—seen by many as the future of sustainable construction and manufacturing—may be stalled or abandoned altogether, as the new federal definition is so restrictive that it becomes nearly impossible to comply with.
He emphasizes that this industry is driven by small craft brewers and co-packing facilities that have invested heavily in anticipation of growth, putting significant revenue at risk. Lackner believes hemp beverages could potentially follow the same explosive trajectory as hard seltzer.
There are some policymakers and industry groups in Colorado exploring state laws to adjust how intoxicating hemp beverages and similar products are regulated—potentially aligning more with marijuana rules.
Governor Jared Polis and local leaders have criticized the federal changes for stifling growth and innovation, given Colorado’s established hemp sector.
Governor Jared Polis said it will limit job growth.
"From including it in the 2014 Farm Bill to flying a hemp flag over the United States Capitol on the 4th of July, all the way to the State’s groundbreaking Colorado Hemp Advancement & Management Plan, Colorado has been defining progress in the hemp industry and taking steps to regulate hemp responsibly. For a party that claims to support business and job growth, they have a funny way of showing it with their continued attempts to stifle growth and innovation,” said Governor Jared Polis in a statement on November 14, 2025.
Some senators have introduced alternative legislation, including the "Cannabinoid Safety and Regulation Act," which would introduce age limits on certain products and specific dosage caps.
Bipartisan legislation has also been introduced, such as the "Hemp Planting Predictability Act" and "American Hemp Protection Act," aiming to delay the new definition of hemp until 2028 or repeal it entirely.
Lawmakers and Gov. Polis highlighted the state’s pioneering regulated recreational marijuana market as proof that smart cannabis policies can generate billions in taxes, safeguard the public, and keep the farmers and manufacturers in business.
For farmers like Meagan Agnew, the debate in Washington isn’t abstract—it’s personal. It’s about whether a family farm can survive, whether customers will lose access to products that help them manage pain or seizures, and whether a young industry will be regulated responsibly or wiped out entirely.
As Congress considers its next move, hemp producers across Colorado are left waiting—hoping lawmakers choose compromise over collapse, and regulation over prohibition.
Copyright 2026 Rocky Mountain Community Radio. This story was shared via Rocky Mountain Community Radio, a network of public media stations in Colorado, Wyoming, Utah, and New Mexico, including Aspen Public Radio.