INDIANA — The state’s hemp industry is facing the prospect of a federal ban after language added to a bill to reopen the federal government would effectively make many hemp-derived products illegal.
The owner of Indy E-Cigs, Shadi Khoury, who also sells a variety of hemp products under Dodi Hemp Products, said the change would be devastating for businesses across Indiana. Khoury said he is part of the industry because he believes the products are a viable alternative to some pharmaceutical medicines.
"It's natural, it's safe, you can't die from it,” Shadi Khoury, the Owner of Indy E-Cigs and Dodi Hemp Products, said. “It can't hurt you. And that has just been a passion of mine, and it sucks to just see it get stripped away like this."
In 2018, Congress passed a farm bill that allowed hemp in the United States, and the industry in Indiana has grown since then. A poll conducted by the hemp industry showed 72% of those polled support hemp products that are regulated and age-restricted.
Justin Swanson, who legally represents hemp producers in state and federal policy talks, criticized how the language was added to the government re-opening bill.
"The language was inserted, you know, over a weekend, is in violation of the Senate's own procedural rules and tied it to reopening the government. And you know every American should question any policy that is developed in that kind of way,” Swanson said.
Indiana has state statutes that allow the sale of hemp, but Swanson said federal action would complicate sales.
"If the language goes in to effect, our hemp market is going to be just like a marijuana market where you know we have state laws that allow for it, but it would be illegal at the federal level,” Swanson said.
Khoury warned of economic consequences for operators across the state.
"It would destroy a lot of jobs, it would destroy a lot of revenue for us and probably put us out of business, to be honest with you,” Khoury said.
The ban would take effect in about a year. Industry representatives said they remain hopeful they can negotiate with lawmakers and have long sought federal and state regulations that include uniform age restrictions, testing, labeling and packaging requirements.
According to industry insiders, Indiana’s hemp industry supports more than 15,000 jobs across farming, manufacturing, retail and distribution. The overall economic impact of Indiana’s hemp-derived cannabinoid sector was estimated at $1.78 billion in 2023.
