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The proposed federal government ban on hemp products containing more than 0.4mg of THC or other intoxicating cannabinoids could wipe out most of Oregon’s CBD industry by the end of 2026.
Senators opposed to the ban say the proposal could devastate farmers and small businesses in states like Oregon, where safety rules for hemp products have already been adopted.
Tidings Data Snapshot
Oregon Hemp Industry Is Far Smaller Than Its 2019 Peak| Measure | 2019 | 2026* | Change |
|---|---|---|---|
| Licensed growers | 1,961 | 117 | 94% lower |
| Licensed handlers | 598 | 147 | 75% lower |
| Total hemp acres | 64,142 acres | 1,694 acres | 97% lower |
*2026 figures as of August 3.
Source: Oregon Department of AgricultureDailyTidings.com
Some observers suggest that the decision by Congress to extend the effective date of the ban for an additional month to December 11 is an election ploy.
The ban affects full-spectrum CBD products, like edibles, tinctures, and beverages, and other popular hemp products.
Tidings Data Snapshot
Floral Hemp Dominates U.S. Outdoor Hemp ValueSource: USDA National Agricultural Statistics Service, 2025 crop yearDailyTidings.com
On December 11, Congress will decide whether to regulate intoxicating hemp products under a new federal system, or to impose the ban nationwide.
Synthetic cannabinoids that are not naturally produced by the cannabis plant will continue to be prohibited.
Oregon Businesses Warn of Closures and Lost Markets
Meanwhile, the impending ban is shutting down or having an impact on small businesses in Oregon, such as the Oregon CBD Company, the Oregon Cannabis Company, and Oregon CBD Seeds, all based in Willamette Valley.
The Law Ends the Hemp Industry, Says Oregon Hemp Seed Business Owner
The law ends the hemp industry, says Oregon CBD Seeds co-owner, Seth Crawford. His business supplies 75% of hemp seed grown in the U.S. Crawford believes demand for seeds will shrink as many hemp product processors will not be able to meet the new guidelines. He now plans to focus on selling hemp seeds to home growers.
The Crawford brothers, who started the business in 2014, established a 50-acre farm and cannabis research laboratory off Oregon Highway 99W. They have invested millions of dollars in greenhouses, grow tents, solar panels, and research equipment.
According to Stateline, the new law will close a legal loophole that presently allows manufacturers to convert legal hemp plants into synthetic marijuana.
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