Ohio hemp farmers and retailers face closures after Senate Bill 56 and upcoming federal restrictions limit the sale of intoxicating hemp products outside licensed dispensaries.

Ohio Hemp Businesses Close as New State and Federal Laws Limit Operations

Ohio hemp farmers and business owners are facing significant challenges following recent state and federal regulatory changes that restrict hemp sales and production.

In November, a federal ban on certain hemp products will take effect, and on March 20, Ohio’s Senate Bill 56 became law, prohibiting the sale of intoxicating hemp products outside licensed dispensaries. Advocates say the law could shut down approximately 6,000 small businesses and negatively affect local farmers.

Deb Hackathorn, a Columbus lobbyist for the U.S. Hemp Roundtable, explained that the sudden restrictions disrupt retailers and consumers. “They were cut off from these products much sooner than if the federal plan had been allowed to play out,” she said.

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Hemp is a species of cannabis containing less than 0.3% THC, which generally does not cause intoxication. However, certain products, known as intoxicating hemp or “diet weed,” can be chemically altered to produce mild effects. These products, which include beverages and candies, were previously available outside regulated cannabis markets but are now banned under S.B. 56.

Supporters of the legislation cited concerns about children accessing products marketed similarly to popular snacks, while opponents argue the law unnecessarily harms Ohio businesses. Industrial hemp growth for non-intoxicating purposes remains legal, but farmers must now be licensed through the U.S. Department of Agriculture rather than state authorities.

Ohio hemp farmer Steve Kacerski expressed concern about the lack of clarity at the federal level, noting the challenges in planning seasons, securing financing, and maintaining buyers. “When Congress leaves critical questions unresolved, it becomes harder to protect the jobs we support right here at home,” he said.

Several businesses have already closed due to the law. Revolutionary Botanicals on High Street shut down on March 21, moving remaining products online, while Buddy’s Lounge in Athens announced closure, citing lost revenue, jobs, and tax contributions.

Hackathorn emphasized that the industry had advocated for age restrictions and stricter testing rather than a complete ban. “The typical consumer was someone like me—a 55-year-old woman using hemp for sleep or wellness—not someone seeking recreational marijuana,” she said.

The legislation also affects THC beverages sold by Ohio breweries. Although an initial version of S.B. 56 allowed THC drinks to remain on the market, Governor Mike DeWine vetoed that portion. Breweries are now urging lawmakers to override the veto.

As hemp businesses adjust to these regulations, industry advocates warn that further closures and economic impacts are likely across the state.

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