Nebraska Hemp Businesses Push Back Against Proposed THC Food Rule

Nebraska hemp retailers and business owners are formally opposing a proposed state regulation that would effectively ban food products containing any amount of THC or its derivatives. The rule, which targets items like gummies, beverages, and tinctures, stems from a gubernatorial executive order aimed at aligning state law with upcoming federal standards. This development is critical for the regional hemp sector as it threatens to remove a significant portion of current inventory from retail shelves and drastically reduce state tax contributions.

During a recent public hearing, stakeholders argued that the Nebraska Department of Agriculture's proposal creates a "zero-THC" requirement that is significantly more restrictive than the federal standard set to take effect in November 2026. While federal rules plan to cap total THC at 0.4 milligrams per container and prohibit synthetic variants, Andrew Bish of Bish Enterprises noted that Nebraska’s rule does not merely defer to these federal guidelines but establishes an entirely different, stricter standard. The public response has been overwhelmingly negative, with over 490 written comments submitted in opposition compared to only three in support of the changes.

Industry experts and academics, including Doane University chemistry professor Dr. Andrea Holmes, are calling for a balanced, science-based approach to regulation rather than a total ban. Holmes emphasized the need for enforcement and standards that hold bad actors accountable while maintaining access for Nebraskans who find these products beneficial. Many of the 15 testifiers at the hearing urged the state to focus on regulating the existing CBD and hemp market through oversight and safety standards instead of implementing rules that would force businesses to clear their shelves of popular products like oral tinctures and edibles.

The financial implications for the Nebraska hemp market are substantial, with business owners warning of significant revenue losses and a subsequent drop in state tax collections. For example, a representative from The Cannabis Factory reported that their company contributed over $1 million in sales tax in 2025 and is projected to exceed $1.3 million in 2026, noting that the industry is open to regulation and taxation but not elimination. The proposal does include an exception for products within the state’s medical cannabis program. The Department of Agriculture will now review the testimony before the regulations move to the Attorney General and Governor Jim Pillen for final approval.