Federal Court Upholds Iowa's New Hemp Restrictions, Is The Industry Doomed?

In Iowa, a federal court upheld a ban on synthetically produced intoxicating hemp compounds, ruling against two companies that sought to block the new state law.

Climbing Kites and Field Day Brewing Co. challenged the law, which took effect on July 17 but failed to prove the law violates the Constitution, at least in the eyes of U.S. District Court Judge Stephanie Rose.

The law bans synthetic psychoactive hemp products and prohibits the sale of all consumable hemp to minors, including CBD. It also outlaws the sale of dried hemp flowers meant for smoking or inhaling and bans alcoholic beverages containing THC, reported Hemp Today.

The Ruling On Hemp

Judge Rose ruled on separate lawsuits from the two companies and a group of ten Iowa hemp manufacturers and retailers. Rose found that the law's language was clear enough to prevent arbitrary enforcement.

“The issue is not whether the law can be arbitrarily enforced, but whether the language is clear enough to prevent that,” Rose wrote.

Iowa’s Department of Health and Human Services finalized rules under the law this month, addressing terms the companies said were too vague. The hemp businesses also argued that the six-week compliance window was too short to adapt to, but Rose rejected this argument and upheld the deadline.

Read Also: Shadow-Banned By Retailers, Iowa Beverage Manufacturers Sue State Regulators Over New THC Law

The main problem is the new bill limits consumable hemp products to less than 4 milligrams of THC per serving and 10 milligrams per package. At the center of the dispute is the idea that this cap on THC milligrams would outlaw most production and force the plaintiffs to drastically reduce their product portfolio.

Hemp vs Cannabis?

On February 2024, Scott Booher owner of Iowa hemp farm Four Wind Farms claimed that businesses like his would be “swept up in collateral damage” should this bill be enacted.

And the situation is occurring all over the U.S., as farmers and manufacturers are forced to reconvert or perish. Some U.S. states are tightening regulations on intoxicating hemp products, while others are banning them entirely with a minority regulating them in a permissive manner. Some are even avoiding any sort of regulation. This has given rise to a growing hemp derived-THC industry, which is gaining relevance and strength and even confronting the cannabis industry in Florida.

• Read Next: Strategy Shift In The Works? Are Cannabis Giants Getting Into The Hemp Derived-THC Market?

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