COLUMBUS – Ohio’s aggressive move to shut down intoxicating hemp products is now facing a mounting legal challenge—but the ripple effects are already reaching Michigan, where a shrinking hemp industry is weighing its future.
Ohio Attorney General Dave Yost has asked a court to intervene in defense of the state’s newly enacted hemp restrictions, escalating a legal battle that could reshape how THC products are regulated across the Midwest.
At the center of the dispute is a new Ohio law that effectively bans the sale of intoxicating hemp products—such as delta-8 THC gummies, vapes, and THC-infused beverages—outside of licensed marijuana dispensaries. The law, which took effect in March, forces those products into the state’s tightly controlled cannabis system.
Supporters say the move is about consumer safety. Opponents call it a shutdown of a legal industry.
For Michigan, it’s something else entirely: a warning.
The Legal Fight: Who Controls Hemp-Derived THC?
Multiple lawsuits have already been filed by hemp businesses and retailers seeking to block Ohio’s law.
Their argument centers on federal policy. Under the 2018 Farm Bill, hemp containing less than 0.3% delta-9 THC was legalized nationwide. That definition created a loophole allowing other psychoactive compounds—like delta-8 THC—to be sold legally, often outside the regulated cannabis system.
That loophole fueled a booming national market, with hemp-derived THC products appearing in gas stations, smoke shops, and convenience stores.
Ohio’s law aims to close that door by requiring those products to be sold only through licensed dispensaries, where they are subject to testing, age restrictions, and strict oversight.
By moving to intervene, Yost is signaling the state intends to defend that approach aggressively, arguing it has the authority to regulate intoxicating substances regardless of their source.
Michigan’s Cannabis Boom vs. Hemp Decline
While Ohio is tightening control, Michigan already operates one of the largest regulated cannabis markets in the country.
Legal cannabis sales in Michigan exceeded $3 billion in 2025, making it one of the most mature and competitive markets in the United States.
But the hemp industry tells a very different story.
Michigan once had more than 600 licensed hemp growers in 2020. Today, that number has dropped to just a few dozen.
That collapse reflects a combination of factors:
- Falling prices
- Market oversupply
- Regulatory uncertainty
- Competition from the state’s legal cannabis industry
The result is a stark contrast:
Cannabis is thriving. Hemp is struggling to survive.
Important Distinction: Hemp Remains Legal
Despite the legal battles and market disruption, it’s critical to understand:
Non-intoxicating hemp products remain legal.
That includes:
- Industrial hemp used for fiber and textiles
- Hemp grain and seed production
- CBD products that meet federal THC limits
Those uses are protected under federal law and continue to be permitted in Michigan.
But legality does not guarantee viability.
The Real Risk: Farmers Walking Away
Industry leaders warn the biggest threat isn’t whether hemp is legal—it’s whether it still makes economic sense to grow.
Blain Becktold, president of the Industrial Hemp Association of Michigan, has consistently emphasized that hemp is a legitimate agricultural commodity in the state, but one facing mounting pressure.
With intoxicating hemp products facing tighter restrictions and prices remaining volatile, farmers are being forced to reassess.
Even before Ohio’s action, many had already exited the market.
Now, the concern is that additional regulatory pressure—combined with weak margins—could accelerate that trend.
In simple terms:
Farmers don’t need hemp to be illegal to stop growing it. They just need it to stop making money.
iHemp Pushes for Federal Oversight
At the same time, Michigan’s hemp industry is exploring a major structural change.
The Industrial Hemp Association of Michigan is advocating for Michigan to move hemp oversight under the U.S. Department of Agriculture rather than maintaining full state control.
The reasoning is largely economic.
Industry leaders argue that federal oversight could:
- Reduce compliance costs
- Simplify regulations
- Provide consistency across state lines
For farmers already operating on thin margins, those differences could determine whether hemp remains a viable crop.
Becktold and others in the industry see the current system as overly complex and expensive—especially as market opportunities shrink.
A Midwest Policy Clash Is Emerging
Ohio’s crackdown and Michigan’s regulatory debate highlight a growing divide in how states approach hemp.
On one side:
- States like Ohio are moving to restrict intoxicating hemp products and fold them into cannabis systems
On the other:
- Industry groups in Michigan are pushing for lighter-touch, federally aligned regulation to keep costs down
That tension is likely to intensify.
If Ohio’s law is upheld:
- More states may adopt similar restrictions
- Hemp-derived THC markets could shrink significantly
- Dispensaries could gain greater control over THC sales
If the law is struck down:
- The hemp-derived THC market could expand again
- Retail competition could increase
- Regulatory uncertainty could persist
The Bigger Picture: Federal Action Looms
Ultimately, the biggest decision may not come from Ohio or Michigan—but from Washington.
Federal lawmakers and regulators are under increasing pressure to address the hemp loophole and clarify how intoxicating hemp products should be treated.
Any federal changes could override state-level strategies and force a new regulatory framework nationwide.
For Michigan farmers and businesses, the takeaway is clear:
- Hemp remains legal
- But the market is shrinking
- And regulatory uncertainty is growing
As Ohio’s legal battle unfolds and Michigan’s industry pushes for federal oversight, the future of hemp in the state may hinge on a simple question:
Is it still worth growing?
If current trends continue, many farmers may decide the answer is no.
