Texas' War on Hemp

In the heart of Texas, a contentious legal and political battle is unfolding that pits the marijuana and legal hemp industries against each other.

Texas Republicans and entrenched marijuana interests are leading an aggressive push to ban all hemp-derived THC products—products that have been legal under the 2018 U.S. Farm Bill.

As the State Legislature weighs this controversial measure, the stakes are high for growers, consumers, and patients alike.

Texas has over 7,000 registered hemp dispensaries, employing more than 50,000 Texans in the hemp sector.

This includes companies, like Naturally Mignon, and thousands of other Texans who answered the call from Commissioner of Agriculture Sid Miller call to grow the hemp industry.

In 2020 Miller was calling on Texans to create a "hempire."

“Hemp offers Texas farmers a great new opportunity, but I want them to understand that with every promise of high profit comes the reality of high risk. My job was to get this program started, its now up to farmers and processors to build that Texas hempire." Miller said in 2020.

The call was answered. Now, 5 years later, Miller and the State is trying to pull the rug out from under businesses and destroy it along with 50,000 Texan's jobs.

A Brewing Storm in the Lone Star State

The proposed ban on hemp-derived THC products is not merely about public safety or consumer protection.

It is a strategic move by powerful marijuana lobby groups and conservative lawmakers to eliminate competition from hemp, a rival that has steadily gained traction in the growing cannabis marketplace.

In recent Forbes articles, industry experts have observed that the conflict goes beyond a simple regulatory disagreement.

As one Forbes piece titled "The Cannabis Civil War: Hemp vs. Marijuana" points out, hemp-derived THC products are carving out a significant niche in the market, challenging the dominance of traditional marijuana products.

This development has unsettled established marijuana businesses, who see hemp as an encroaching competitor threatening their lucrative, well-funded industry.

Texas’s Medical Marijuana Monopoly: An In-Depth Look

Unlike many states that offer a competitive licensing environment, Texas operates a near-monopoly when it comes to medical cannabis.

Under the current state law, only a three licenses exist to legally sell medical marijuana, effectively creating a state-run monopoly.

​As of December 2024, Texas has issued licenses to three organizations authorized to cultivate, process, and dispense low-THC cannabis under the state's Compassionate Use Program (CUP). These licensed entities are:

• Cansortium Texas
• Compassionate Cultivation
• Surterra Texas

These companies enjoy a near monopoly since Texas is currently not giving out any more at this time.

The Structure of the State Program

The Texas Compassionate Use Program (TCUP) was established to provide limited access to marijuana based treatments for patients with intractable conditions.

However, the stringent regulations and the absence of competitive licensing have stifled market growth and innovation.

This system, critics argue, has not only restricted patient access but has also generated a stark contrast between the slow-moving, bureaucratic medical cannabis program and the dynamic, rapidly expanding hemp industry.

According to a recent report by KXAN, the state run medical marijuana program has sold only a fraction of what many had anticipated.

Since its inception, total sales have hovered around $1.3 million, a paltry sum when compared to Texas' hemp market.

This limited distribution is symptomatic of a larger problem: the program’s monopolistic design, which has prevented any meaningful competition from emerging within the state.

The Proposed Ban on Hemp-Derived THC Products

At the center of the current legislative debate is a bill proposed by Texas state senators—an initiative that seeks to ban all THC products derived from hemp.

Proponents of the bill argue that these products pose a risk to public health and safety.

However, a closer examination reveals that the real motivation may lie in protecting a lucrative marijuana market from an encroaching competitor.

Political and Economic Motives

Texas Republicans have long been known for their conservative stance on drug policy. Yet, in this case, the politics appear to be intertwined with economic interests.

The marijuana lobby, which is well-funded and highly organized, has launched legal assaults not only in Texas but across various statehouses nationwide.

Their objective is clear: to dismantle hemp’s market share by eliminating a legal pathway for hemp-derived THC products.

A recent article in Cannabis Business Times details how a Texas senator has championed the legislation, framing it as a necessary measure to prevent “THC intoxication” among consumers.

Yet, critics argue that this rhetoric is a smokescreen.

“The campaign to ban hemp-derived THC products is less about protecting public health and more about safeguarding the interests of entrenched marijuana businesses,” noted an industry expert in a block quote featured in the article:

“We are witnessing a deliberate attempt by the marijuana lobby to snuff out a rising competitor. This is not about safety—it’s about market control.”

Debunking Safety Myths

One of the key arguments put forth by supporters of the ban is that hemp-derived THC products—often including popular variants like Delta-8 and Delta-9—are inherently unsafe.

However, a growing body of scientific evidence disputes this claim. Numerous studies have demonstrated that when produced under regulated conditions, hemp-derived THC products exhibit a safety profile comparable to that of their marijuana-derived counterparts.

The misinformation, many experts contend, is being systematically propagated by marijuana interests seeking to delegitimize a segment of the market that is rapidly gaining favor among consumers.

For instance, Hemp Supporter emphasizes that hemp-derived cannabinoids have been unfairly maligned by misleading reports and biased lobbying efforts.

“These products are federally legal, and when produced in compliance with rigorous standards, they are as safe as any other cannabis product on the market,” a spokesperson for Hemp Advocacy declared.

Moreover, Green Market Report warns that banning hemp in Texas could have unintended consequences.

Experts caution that a prohibition might drive consumers to unregulated black markets or force patients to seek out riskier, unverified sources for their cannabis needs.

The evidence suggests that the proposed ban is less about consumer protection and more about preserving the market share of an already dominant marijuana lobby.

The Broader Implications of the Cannabis Civil War

The conflict between hemp and marijuana interests in Texas is emblematic of a larger national debate over cannabis regulation.

As states across the country grapple with the complexities of cannabis legalization, the emerging legal battles highlight a fundamental tension: the struggle between old and new economic paradigms.

A Clash of Industries

On one side of the aisle are the established marijuana businesses, with deep pockets and powerful lobbying groups.

Their long-standing relationships with policymakers and significant campaign contributions have enabled them to maintain a tight grip on the legal cannabis market.

These companies have invested heavily in cultivating a brand of “safety” and “quality” that resonates with conservative lawmakers and skeptical voters alike.

On the other side are the hemp growers and advocates, who argue that hemp-derived products offer a viable, safe, and more accessible alternative to traditional marijuana.

Hemp’s legal status under the 2018 Farm Bill has allowed it to flourish in a regulatory gray area, fostering innovation and providing consumers with a broader array of options.

As detailed in a Forbes article, the legal tug-of-war over hemp-derived cannabinoids is intensifying, with industry leaders warning that the battle could have nationwide repercussions.

Economic Stakes and Market Dynamics

The economic stakes in this battle are enormous. Hemp-derived THC products have captured the imagination of a new generation of consumers looking for alternatives that are not only legal under federal law but also potentially more affordable and accessible.

In contrast, the state-run medical marijuana program in Texas, with its single-license monopoly, has been criticized for its inefficiency and limited reach.

The disconnect between the regulated hemp market and the stagnant state program underscores the broader challenges facing cannabis policy in Texas.

An analysis by McGlinchey provides a comprehensive overview of the current landscape, noting that the hemp industry is poised for exponential growth if given the chance.

“By restricting hemp-derived THC products, Texas is potentially stifling innovation and consumer choice, while simultaneously bolstering an outdated and inefficient monopoly,” the report concludes.

Voices from the Field

Patients and Advocates

For many patients in Texas, the struggle for access to effective, safe cannabis products is a daily reality.

Under the state’s limited medical marijuana program, patients often face significant barriers to obtaining treatment—barriers that are only compounded by the potential prohibition of hemp-derived alternatives.

Advocates argue that the ban could further alienate those who have already been marginalized by a system that favors bureaucratic control over patient care.

Maria Hernandez, a long-time patient advocate, emphasized the urgency of the situation during a recent public hearing.

“We are being forced to choose between an unresponsive state system and a dynamic, federally recognized industry,” she said.

“Banning hemp-derived products will only widen that gap, leaving many patients without the relief they desperately need.” (Maria Hernandez at a recent public forum, as reported by Austin Chronicle)

Industry Insiders

Within the cannabis industry, opinions are sharply divided. While established marijuana businesses welcome the ban as a means to secure their market share, hemp growers and legal experts caution against the long-term economic consequences.

John Miller, a veteran hemp cultivator and spokesperson for Hemp Advocacy, was unequivocal in his stance: “

This is a calculated move by marijuana interests to eliminate competition. It’s not about safety, it’s about market control. We must resist this assault on innovation and consumer freedom.”

Dissecting the Misinformation Campaign

A critical element of the current debate centers on the misinformation surrounding hemp-derived THC products.

Marijuana interests have repeatedly cast these products as a public health threat, despite a growing body of evidence to the contrary.

The narrative—that hemp-derived Delta-8 and Delta-9 products are unsafe—has been propagated through a series of well-funded media campaigns and lobbying efforts.

Scientific Evidence Versus Political Rhetoric

Numerous studies have demonstrated that hemp-derived cannabinoids, when manufactured under strict quality controls, are safe for consumption.

The confusion largely stems from a conflation of hemp with marijuana, despite the two plants having distinct chemical profiles and differing legal statuses.

While marijuana is still classified as a Schedule I substance under federal law, hemp enjoys a unique exemption granted by the 2018 Farm Bill, a fact that underscores the legislative intent to differentiate between the two.

The Austin Chronicle recently featured an op-ed that challenges the narrative pushed by marijuana lobbyists.

The piece argues that the safety profile of hemp-derived products is well-established, and that the ban is a misguided attempt to undercut an emerging market.

“Hemp-derived THC is not the Trojan horse that its detractors claim it to be,” the op-ed asserts, “but rather a viable, safe alternative that has the potential to revolutionize the cannabis industry.”

Economic Motivations Behind the Misinformation

The drive to discredit hemp-derived products is not new.

As documented in a Cannabis Business Times article, legal assaults on hemp are a coordinated effort by established marijuana businesses to maintain a stranglehold on the market.

These companies have significant financial investments at stake and are willing to leverage their political clout to suppress any emerging competition.

The ban on hemp-derived THC products is emblematic of a broader strategy to consolidate market power and stifle innovation.

The Political Chess Game

The Role of Texas Republicans

Texas Republicans have long been the champions of conservative values, and in the realm of drug policy, this often translates into support for stringent regulations.

In this instance, however, their backing of the hemp ban appears to be driven more by economic incentives than by genuine public health concerns.

Lawmakers from both sides of the aisle are weighing the potential benefits of protecting a well-entrenched market against the risks of alienating a growing constituency of hemp advocates and patients who rely on these products for relief.

A report by Cannabis Business Times details how a Texas senator has been at the forefront of this legislative push, arguing that the ban will prevent “THC intoxication” and safeguard public welfare.

However, critics contend that this rationale is a thin veneer over a deliberate campaign to eliminate competition from hemp, thus preserving the status quo in Texas’s medical marijuana market.

Lobbying Efforts and Legal Assaults

The legal battleground is not confined to Texas alone. Marijuana lobby groups, flush with resources and armed with sophisticated legal teams, are launching coordinated assaults in statehouses across the country.

Their efforts are aimed at not only defending the interests of established marijuana businesses but also at preemptively stifling the growth of hemp-derived products.

As Green Market Report notes, these legal maneuvers could have far-reaching consequences, potentially influencing cannabis policy nationwide.

This aggressive lobbying underscores the high stakes involved. The outcome of this legislative battle could set a precedent for other states grappling with similar issues.

If Texas succeeds in banning hemp-derived THC products, it may embolden other conservative states to follow suit, thereby narrowing the legal pathways available to hemp businesses and consumers.

Implications for Patients and Consumers

A Dwindling Market for Medical Marijuana

The state-run monopoly on medical marijuana in Texas has already proven problematic.

With only three licenses in operation, patient access has been severely limited, resulting in a market that has underperformed expectations.

The monopoly’s total sales, reported to be around $1.3 million since its inception—stand in stark contrast to the vast potential demand for cannabis-based treatments.

For patients with debilitating conditions, the limited availability of legal medical marijuana translates into prolonged suffering and a reliance on unregulated alternatives.

In this context, the proposed ban on hemp-derived THC products appears even more draconian. Hemp products offer a valuable supplement to the restricted medical marijuana program, providing patients with additional avenues for relief.

By eliminating these products from the legal market, Texas lawmakers risk further constricting the already narrow window of access for those in need.

Consumer Choice and Market Innovation

Beyond the immediate impact on patient care, the ban threatens to stifle consumer choice and impede market innovation.

Hemp-derived THC products have emerged as a popular alternative not only for medical patients but also for recreational users seeking legally compliant options.

These products are celebrated for their versatility and accessibility, and they represent an important segment of the broader cannabis market.

An article from Hometown Hero underscores the economic and social benefits of hemp advocacy.

Proponents argue that a thriving hemp industry supports thousands of jobs and drives innovation in agricultural and pharmaceutical sectors.

Curtailing hemp-derived THC products would not only impede economic growth but also deny consumers the benefits of a competitive, diversified market.

Legal and Economic Ramifications

A Cautionary Tale for Other States

The legislative maneuvers unfolding in Texas are likely to serve as a bellwether for cannabis policy across the United States.

Experts warn that if Texas moves forward with the ban, it could spark a domino effect, encouraging other states to adopt similar measures.

This potential ripple effect is a source of considerable concern for hemp advocates and legal experts alike.

In a detailed analysis featured in McGlinchey’s Insights, the author explains that restrictive measures targeting hemp-derived products may ultimately backfire.

“By attempting to extinguish the hemp market, lawmakers risk stifling an industry that holds enormous promise for economic growth and innovation,” the analysis warns.

Such a move could not only suppress competition but also drive consumers toward unregulated markets, with significant public health implications.

The Role of Lobbying in Shaping Policy

The legislative debate in Texas is a stark reminder of the outsized influence that well-funded lobbying groups can wield over public policy.

Marijuana lobbyists have not only mobilized resources to protect their interests but have also succeeded in framing the narrative in a way that resonates with conservative lawmakers.

Their message, often couched in terms of public safety and consumer protection, obscures the true economic motivations behind their actions.

A recent piece in Cannabis Business Times highlights how these lobbying efforts are part of a broader strategy to secure a near-monopoly on cannabis products.

“By targeting hemp-derived products, marijuana interests are attempting to create a regulatory environment that favors their own operations while marginalizing potential competitors,” the article explains.

The Road Ahead: Navigating a Divided Future

Legislative Uncertainty and Public Response

As the Texas Legislature continues to deliberate on the proposed ban, uncertainty looms large.

Lawmakers must balance competing interests—public health concerns, economic growth, patient access, and the entrenched power of the marijuana lobby.

The outcome of this legislative process is far from predetermined, and stakeholders on both sides of the debate are mobilizing to influence the final decision.

Public hearings and community forums have become battlegrounds where patients, industry representatives, and advocacy groups voice their concerns. The passion and urgency on display in these meetings underscore the high stakes involved.

“We are at a critical juncture,” stated a senior state legislator during a recent session.

“Our decision will not only shape the future of cannabis policy in Texas but will also set a precedent for how we balance innovation with regulation.” (KXAN)

Mobilizing Against the Ban

In response to the proposed legislation, hemp advocates are ramping up their efforts to mobilize public support. Grassroots campaigns, social media drives, and public demonstrations have all emerged as key strategies in the fight against the ban.

Organizations such as Hemp Advocacy are working tirelessly to educate the public on the benefits of hemp-derived THC products and to counter the misinformation propagated by marijuana interests.

John Miller, the spokesperson for Hemp Advocacy, encapsulated the sentiment of many in the industry: “This is not just a fight for market share—it is a fight for the future of cannabis in America. We must stand up for innovation, for patient rights, and for the truth about hemp.”

His words resonate with a growing number of Texans who view the proposed ban as an assault on both economic opportunity and individual liberty.

Bridging the Gap: Toward a More Inclusive Cannabis Policy

Rethinking the Monopoly Model

The controversy in Texas underscores a broader need to reexamine the state’s approach to cannabis regulation.

The current model—characterized by a state-run monopoly on medical marijuana—has proven to be a significant barrier to both patient access and market innovation. Critics argue that a more open, competitive licensing framework could drive improvements in quality, accessibility, and innovation.

Reforming the medical marijuana system could also serve as a counterbalance to the aggressive tactics employed by marijuana lobbyists.

By creating space for both marijuana and hemp-derived products in the legal marketplace, Texas could foster a more inclusive and dynamic industry.

Such a move would not only benefit consumers and patients but could also stimulate economic growth in a sector with enormous potential.

The Future of Cannabis in Texas

As lawmakers deliberate in the State Legislature, the stakes could not be higher. The outcome of this battle will reverberate well beyond Texas, potentially influencing cannabis policy nationwide.

For patients, consumers, and industry innovators, the call to action is clear: demand transparency, insist on evidence-based policymaking, and ensure that public health and economic opportunity are not sacrificed on the altar of political expediency.

In the words of one determined advocate, “This is a war on hemp—a war not against safety or quality, but against progress and innovation.

We must stand united to ensure that the voices of patients and consumers are heard.” As Texas navigates this pivotal moment, all eyes will be on the Legislature, waiting to see whether the future of cannabis in the Lone Star State will be one of inclusion and innovation, or one of restriction and monopoly.

For continued coverage of this evolving story and further insights into the legal battles shaping the cannabis industry, stay tuned to our blog and follow our partners at Forbes, Cannabis Business Times, Austin Chronicle, and KXAN.

Sources:
Forbes – The Cannabis Civil War: Hemp vs. Marijuana 
Forbes – Cannabis Civil War Continues as the US Cannabis Counsel Rejects Hemp Applicants to its Board
Austin Chronicle – With Proposed Hemp Ban in Texas, Stakeholders Warn of an Industry Going Under Overnight
Hometown Hero – Hemp Advocacy
Cannabis Business Times – Texas Senator Files Bill to Ban THC Intoxicating Hemp Products
McGlinchey – Hemp Industry 2024: State and Federal Changes
Hemp Supporter – The War on Hemp – We Need Your Help
Cannabis Business Times – A Legal Tug-of-War on Hemp-derived Cannabinoid Regulations
Green Market Report – Banning Texas Hemp Could Backfire, Experts Warn
KXAN – Report: State Lacks Access for Patients to Get Medical Marijuana