Tennessee’s hemp industry has experienced rapid growth, contributing hundreds of millions of dollars annually to the state's economy. However, recent regulatory changes are threatening the future of hemp-derived products, including a ban on THCa flower, one of the most popular hemp products.
The Tennessee Department of Agriculture (TDA) has introduced new laws targeting hemp-derived THC products, leading to industry pushback, legal battles, and widespread concerns among farmers, business owners, and consumers.
I’ll provide a detailed, in-depth look at Tennessee's hemp laws, including:
The legal status of hemp and marijuana in Tennessee
New 2024 hemp regulations and their impact
The economic significance of the hemp industry
The legal battle challenging these regulations
Comparisons to other states and what the future might hold for Tennessee’s hemp market
For decades, Tennessee, like much of the U.S., treated hemp and marijuana as the same plant, making both illegal to cultivate or sell. This changed with the 2014 U.S. Farm Bill, which allowed states to establish pilot programs for hemp farming. Tennessee took advantage of this opportunity and began issuing hemp-growing licenses to farmers.
The 2018 U.S. Farm Bill was a game-changer, legalizing hemp federally as long as it contained less than 0.3% delta-9 THC. Tennessee quickly embraced this change, and the hemp industry flourished, leading to:
An economic boom, as farmers, retailers, and manufacturers began producing and selling hemp-derived products.
A growing consumer base, as hemp products, including CBD, delta-8, and THCa, became widely available.
Increased state tax revenue, with Tennessee implementing a special tax on hemp-derived THC products.
Tennessee law clearly distinguishes hemp from marijuana based on THC content.
Hemp is defined as cannabis containing less than 0.3% delta-9 THC by dry weight.
Marijuana is any cannabis plant containing more than 0.3% delta-9 THC, making it illegal under state law.
Want to explore the differences between Hemp versus Cannabis-derived Cannabinoids.
Tennessee has some of the strictest marijuana laws in the country, with no legal recreational use and very limited medical access.
Possession of up to half an ounce can result in a $250 fine and up to one year in jail, even for first-time offenders.
Selling marijuana is a felony, with harsher penalties for larger quantities.
Even as many states have moved toward legalization, Tennessee continues to enforce strict penalties on cannabis, making hemp-derived products the only legal alternative for residents.
In September 2024, the Tennessee Department of Agriculture (TDA) finalized new hemp regulations, originally set to take effect on December 26, 2024. These rules will:
Ban the sale of THCa flower, one of the most in-demand hemp products.
Require new, stricter testing standards for hemp-derived products, focusing on delta-9 THC levels.
Increase compliance measures for hemp businesses selling hemp-derived cannabinoids.
THCa (tetrahydrocannabinolic acid) is a naturally occurring cannabinoid in hemp. It is non-psychoactive in its raw form, but when heated (e.g., smoked or vaped), it converts into delta-9 THC—the primary compound that gets users high.
Lawmakers argue that THCa flower is indistinguishable from marijuana, and its sale is a legal loophole that allows consumers to access psychoactive cannabis products, despite Tennessee’s strict marijuana laws.
Many farmers, business owners, and hemp advocates strongly oppose the ban, arguing that:
Since hemp was legalized nearly six years ago, Tennessee’s hemp market has flourished, generating between $280 million and $560 million annually.
Unlike many states, Tennessee taxes hemp-derived THC products, bringing in significant revenue.
Many industry leaders warn that if THCa flower is banned, the state could lose millions of dollars in tax revenue as consumers turn to black-market alternatives or travel to other states to purchase products.
In response to the TDA’s new regulations, two major industry organizations—the Tennessee Growers Coalition and the Tennessee Healthy Alternatives Association—filed a lawsuit against the state, arguing that:
The TDA lacks the authority to ban THCa products.
The new rules unfairly target the legal hemp industry while allowing other intoxicating substances (like alcohol) to remain available.
The ban will lead to financial devastation for farmers and retailers who rely on hemp sales.
A judge temporarily blocked the implementation of the new regulations, meaning hemp-derived products will remain legal until at least June 2025, when the lawsuit goes to trial.
While this delays the ban, the future of hemp in Tennessee remains uncertain.
While Tennessee moves toward stricter hemp regulations, other states have taken different approaches:
✔ Some states, like Colorado and Oregon, have fully legalized marijuana, eliminating the need for strict hemp THC regulations.
✔ Other states, like Texas and Florida, continue to allow hemp-derived THC products, recognizing their economic benefits.
✔ A few states, like New York, have imposed bans on certain hemp-derived THC products, similar to Tennessee’s THCa flower ban.
If Tennessee continues to restrict hemp, businesses may relocate to more industry-friendly states.
December 26, 2024 – Originally the date the new regulations were set to take effect, but enforcement has been delayed.
February 18, 2025 – A judge will decide whether THCa flower remains legal while the lawsuit is ongoing.
June 2025 – The final trial will determine whether Tennessee’s hemp laws change permanently or remain as they are.
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Flourish Software offers a fully integrated platform with hemp compliance software to manage the increasing complexities of production, compliance, and customer engagement in the growing cannabis and hemp industries. This platform is designed to support the entire cannabis and hemp supply chain.
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