ANN ARBOR – Michigan’s industrial hemp industry faces a potentially serious economic setback as federal restrictions threaten much of the CBD market while state legislation intended to reduce regulatory costs for hemp growers remains stalled in Lansing.
In a new MITech TV interview, MITechNews Editor Mike Brennan speaks with Blain Becktold and Dave Crabill of iHemp Michigan about the challenges facing hemp farmers, CBD manufacturers and businesses seeking to develop industrial markets for the crop.
The two industry advocates warn that federal changes could sharply reduce the availability of CBD products while Michigan growers continue to face licensing and compliance expenses that make it difficult to compete.
Federal THC Restrictions Could Eliminate Most CBD Products
One of the biggest concerns involves federal changes to how THC content is calculated in hemp-derived products.
The restrictions are intended in part to address intoxicating hemp-derived THC products sold through convenience stores, gas stations and other retailers outside regulated marijuana dispensaries.
However, Becktold and Crabill argue that the rules could also eliminate many non-intoxicating CBD products containing small amounts of naturally occurring THC.
They estimate that 80% to 95% of the existing CBD market could be affected, including popular full-spectrum CBD oils, tinctures and edibles. That estimate reflects the advocates’ assessment rather than a verified industry-wide forecast.
Some topical products, including salves, may remain available, depending on how the federal restrictions are implemented.
The interview also examines whether age restrictions could offer a more targeted approach to regulating intoxicating hemp products without eliminating access to other CBD products.
Michigan Hemp Farmers Face $2,500 In Annual Costs
Michigan House Bills 5094 and 5095 are central to the industry’s efforts to reduce the regulatory costs associated with growing industrial hemp.
During the interview, Crabill explained that Michigan hemp growers face approximately $2,500 annually in licensing and compliance costs, including an additional $500 for testing to ensure crops remain within the legal THC limit of 0.3%.
Crabill said transferring oversight of Michigan’s hemp growing program from the Michigan Department of Agriculture and Rural Development to the U.S. Department of Agriculture could substantially reduce those expenses.
Under USDA oversight, he said, growers could obtain a federal license for $100 covering three years, although other applicable compliance and testing costs would need to be considered separately.
The bills remain in the Michigan House Regulatory Reform Committee, chaired by state Rep. Joseph Aragona.
Companion legislation, Senate Bills 608 and 609, previously passed the Michigan Senate, according to iHemp Michigan.
Becktold and Crabill expressed concern that continued delays could prevent farmers from preparing for the 2027 growing season, costing Michigan additional agricultural opportunities.
Hemp Could Support Michigan Agriculture And Manufacturing
Beyond CBD, the interview explores the potential for industrial hemp to create new markets for Michigan farmers and manufacturers.
Hemp can be cultivated for fiber, grain and other materials used in products ranging from construction materials and insulation to animal bedding and biobased manufacturing.
Michigan has an established agricultural industry, automotive manufacturing expertise and research capabilities that could support the development of hemp-based products.
However, Becktold and Crabill argue that regulatory uncertainty, limited processing infrastructure and insufficient investment continue to discourage industry growth.
The discussion also touches on plans for a Lansing symposium designed to educate policymakers, farmers and businesses about the economic potential of industrial hemp.
How Michigan Residents Can Contact Lawmakers
iHemp Michigan is encouraging hemp growers, businesses and consumers to contact members of the Michigan House Regulatory Reform Committee and request action on HB 5094 and HB 5095.
The organization has published committee members’ email addresses and additional information about the proposed legislation.
Find Michigan House committee members’ email addresses and learn more about HB 5094 and HB 5095.
Watch the full MITech TV interview to hear Bechtold and Crabill discuss the federal CBD restrictions, Michigan’s hemp growing costs and the opportunities they believe could emerge if lawmakers reform the state’s industrial hemp regulations.
