Minnesota's hemp-derived THC industry is already absorbing the shock of a federal crackdown that hasn't even taken effect yet. State rules currently let edibles and drinks carry up to 10 milligrams of THC, but an enacted federal measure whose restrictions have not yet taken effect would cut covered products down to a tiny fraction of that amount, and producers across the state say the uncertainty alone has already cost them money, hiring plans, and crops.
A Massive Market Facing a Steep Cut
Minnesota sold roughly $180 million in hemp THC drinks last year, according to state revenue and cannabis sales data cited by CBS News Minnesota, reporting that also noted half of Minneapolis-based Trail Magic's business is out-of-state, with the brand shipping to 25 states nationwide. CBS News Minnesota's Jason Rantala has been reporting on why Minnesota businesses are feeling the effects of the forthcoming federal restrictions well ahead of their implementation. State rules currently allow up to 5 milligrams of hemp-THC per serving and 50 milligrams per package, with beverages capped at two servings, or a maximum of 10 milligrams per can or bottle, according to CSP Daily News, which also reported that Minnesota had 5,345 retailers licensed to sell hemp-derived edibles and beverages as of August, per state Office of Cannabis Management data.
The federal law at the center of the storm would limit THC in covered products to 0.4 milligrams per container. FOX 9 described the limit as 0.4 milligrams per container, while an excerpt from the Congressional Research Service refers to final hemp-derived cannabinoid products containing greater than 0.4 milligrams combined total per container.
Businesses Already Pulling Back
The threat of the ban has already reshaped how Minnesota hemp businesses operate, even before any federal limit takes hold. Axios Twin Cities reported that uncertainty has prompted producers and distributors across the state to scale back on production and orders, with Indeed Brewing pausing hiring for a planned job as part of contingency planning that could shrink inventory and cut the number of brands on store shelves.
Some of the financial damage is already substantial. Earl Giles Drink Emporium co-owner Nick Kosevich told Axios Twin Cities he estimates he's lost $1 million in sales so far as demand for his THC concentrate dried up amid the uncertainty. Further upstream, Minnesota farmer Jeremy Saueressig didn't plant hemp at all this year for the first time since 2019, choosing soybeans instead, according to NPR. The same NPR report described a Minnesota hemp processor whose sales have flattened this year as retailers and distributors order less, warning that the ban could shutter his business entirely if it takes effect.
Contingency Plans Taking Shape
Facing the possibility of losing their core product line, some Minnesota hemp-THC makers are already sketching out backup plans. CBS News Minnesota reported that Trail Magic is considering producing a 2.9% alcohol-by-volume drink without THC if the ban remains in place, while Voltage THC owner Nathan Schneider is weighing his own plan B: drinks built around adaptogens instead of hemp-derived cannabinoids.
Not every corner of the market is pulling back, though. Shanken News Daily reported that THC beverage sales at Top Ten Liquors were up about 12% year-to-date through August compared with the same period the prior year, with the retailer selling roughly 650 distinct THC beverage items so far that year versus about 450 over the same stretch the year before. At Minneapolis's Surdyk's Liquor & Cheese Shop, the outlet reported THC drink SKUs climbing to about 230 from roughly 215 the previous year, with top sellers including Surdyk's-branded Happy Gummies Strawberry at 10 milligrams of THC.
A Shifting Timeline and a Neighboring State's Defiance
Exactly when the federal limit kicks in remains murky, with reporting pointing in different directions. FOX 9 reported that a House-passed short-term government funding measure would delay the hemp ban until Dec. 11, after clearing the Senate on its way to the president's desk, while Heavy Table reported separately that the law's effective date had been extended by 30 days to Dec. 12, 2026. The Congressional Research Service excerpt, by contrast, references Sept. 28, 2026 in connection with the same 0.4-milligram threshold, an inconsistency that underscores how unsettled the law's rollout still appears.
Across the border, some businesses aren't waiting to find out how the dust settles. The Milwaukee Journal Sentinel reported that some Wisconsin companies plan to keep selling low-THC hemp products despite the federal ban, believing the products remain legal under Wisconsin law — a bet that Minnesota producers, farmers, and retailers are watching closely as they weigh their own next moves.
