New Hemp Law Sparks Job Loss Concerns: What It Means for SC & NC Businesses?

The hemp industry will soon undergo significant changes with the alteration of prevailing federal laws. On 12 November 2025, President Trump approved the federal spending bill, which includes new restrictions on hemp products:

• Only hemp-based products that contain a maximum of 0.3% THC and have a non-intoxicating effect are eligible for sale.
  
  

• Products made from chemically altered cannabinoids, as well as those not sourced from hemp, are banned.

• Testing of marketed hemp products will be conducted, and those containing more than 0.4 milligrams of total THC will be banned.

As the legal landscape evolves, several factors have contributed to the new legislation. These changes will affect the hemp industry and create new opportunities for employers and businesses. This uncertainty is creating confusion and fear among hemp product manufacturers, CBD producers, and every single enterprise involved in the hemp industry.

Is the new bill staking the $28 billion industry? Are farmers or CBD companies afraid of the new restrictions? Let’s look at some facts and the possible consequences.

Surge in Hemp production in U.S. States

Some states with the right to legalize hemp production include Kentucky, Montana, Nevada, New York, Tennessee, etc. However, North Carolina and South Carolina are major players in industrial hemp production in the United States. After legalization in 2018, hemp cultivation increased significantly, supported by thousands of licensed industrial hemp growers, licensed acres, and greenhouse production. The majority of hemp products were grown with the intention of extracting CBD for manufacturing CBD oil. This is the primary product driving the growing demand for hemp-based products.

With its pain-relief and stress-relieving properties, CBD has now become a complementary treatment option across the United States and in other global regions. However, the legal standards surrounding hemp products vary from one country to another. Despite various restrictions and federal laws, hemp remains one of the most profitable crops due to the high profit margin in South Carolina and North Carolina.

According to an estimate, hemp cultivation comes with a gross profit of around $15,000 to $35,000 per acre.

After the 2017 law was passed, farmers who obtained permits from the state Departments of Agriculture began cultivating hemp. Starting with about 40 acres each, many growers have turned hemp cultivation into a source of sustainable livelihood. Since then, many individuals and businesses have entered the cultivation and extraction sectors, helping to expand the nationwide distribution of hemp products.

Possible Hemp Job Losses in North Carolina and South Carolina

According to the U.S. Hemp Roundtable, the leading hemp business advocacy organization, the new bill will significantly affect the future of hemp cultivation in various states, particularly in South Carolina and North Carolina. The hemp industry, valued at $28.4 billion, is at stake, and more than 300,000 Americans could potentially lose their jobs.

Key Factors Behind the New Law Enforcement

Multiple companies were found selling illegal products, such as cannabis products that contain THC extracted from hemp. They often advertise these as healthy beverages or gummies, but in reality, they produce intoxicating effects.

• Some companies were misusing the legalized hemp production system with the goal of extracting THC, the psychoactive compound that can lead to addiction and serious health issues.

• Cannabinoid products containing delta-8 THC were marketed as therapeutic products for different medical conditions, leading to adverse effects and causing users to feel high.

• Many cannabinoid products were also being sold in brightly colored, attractive packaging designed to capture the attention of children.

What People are Saying about the New Hemp Regulation Bill?

The majority of farmers and other industry stakeholders oppose the new bill, as they believe that these restrictions, by eliminating most hemp-based products from the market, will cause significant losses for everyone involved in cultivation, extraction, or marketing of hemp products.

However, a small percentage is in favor of the new law, stating that it will reduce the abusive use of hemp or THC and clearly differentiate between safe and unsafe products in terms of their intoxicating effects.

CBD producers who argue that 95 percent of products will disappear are often the ones making false claims or labeling their products with inaccurate cannabinoid concentration measurements. These are typically the producers who are not using proper extraction, isolation, or dilution methods during manufacturing, as these methods are essential for keeping the final products free from psychoactive effects.

New Bill - Actually a Threat or An Opportunity? 

Despite the majority of negative reactions to the new bill, it is not a threat but an opportunity for responsible producers to prove their value against scammers who have been violating regulations or misusing the legalized THC limits in hemp products.

Yes, the new bill will ban hundreds of hemp products that claim to have non-intoxicating effects but actually contain THC and can cause adverse health effects.

The purpose of this new bill is primarily to safeguard CBD and hemp users from intoxicating cannabinoids that may provide temporary relief or pleasure but can deteriorate health in the long run.

Safe CBD products containing less than 0.4 milligrams of total THC will remain available, and users who are consuming CBD oil for pain, stress, insomnia, or other medical conditions can still access the non-intoxicating products.

Responsible farmers of South and North Carolina who are cultivating hemp fields according to the stated rules and regulations can still pursue this profession. The demand for safe CBD products will remain and is expected to increase with more scientific evidence.