by Virginia Beach, VA – Cannabis entrepreneurs across Hampton Roads say they are preparing for a challenging and uncertain year ahead as federal and state laws move in opposite directions. Business owners describe it as a moment of transition that could reshape the future of hemp, CBD, and THC products in Virginia.
Federal Ban on Hemp-Derived THC Sparks Concern
Brad Wynne, founder and CEO of Veg Out Organics, said the industry is experiencing a disruptive period. The federal government is preparing to ban the sale of hemp products containing THC beginning next November, closing a loophole in the 2018 farm bill.
The original farm bill defined hemp as plants containing less than 0.3% delta-9 THC. But manufacturers used chemical processes to convert CBD into psychoactive THC variants found in vape oils, gummies, cookies, and beverages — all technically compliant with the law but capable of causing impairment.
“There’s a lot of ‘what-ifs.’ There’s a lot of ‘If-thens.’” Wynne said, noting that businesses are unsure how steep the impact could be. He added with humor, “As I like to say, the politicians thought they were getting rope and ended up getting dope.”
U.S. Sen. Mitch McConnell, R-Ky., inserted the hemp-derived THC ban into the bill that reopened the federal government. It will take effect in about a year.
Virginia’s Crackdown Already Limiting Retailers
Virginia enacted its own restrictions in 2023, limiting hemp-derived THC products to no more than 2 milligrams per serving after delta-8 and delta-10 products flooded the market through other loopholes. The state has since conducted shop inspections and issued fines for violations.
Local business owners say the impact is already being felt.
Stephen Smith, owner of East Tide CBD in Norfolk’s Ocean View, said a federal ban would force him to remove several popular products from his shelves.
“I’ll lose some of my business,” he said.
Wynne, however, believes his company can adapt because Veg Out Organics produces everything on a yearly schedule, making it easier to reformulate products using broad-spectrum CBD.
Retailers Brace for Fallout But Hope for State-Level Opportunity
For others, the looming ban represents both risk and opportunity.
Tanner Johnson, CEO of Pure Shenandoah — a Harrisonburg-based beverage and wellness brand — said the company could still sell THC-free CBD products but would have to discontinue its THC line if the federal rule stands.
Johnson said Virginia’s political climate puts it in a unique position. After Democrats’ recent election wins, lawmakers are expected to finally establish a fully legal cannabis market, possibly launching as early as November. Although cannabis was decriminalized in 2021, retail sales remain prohibited.
Push to Include Existing Hemp Retailers in New Legal Market
Wynne and Johnson are active members of the Virginia Cannabis Association, a group working with legislators to craft the rules governing the upcoming market.
They are advocating for a provision that would allow roughly 400 licensed hemp retailers to be grandfathered into the new dispensary system.
But Johnson warned that Virginia has over 1,400 licensed hemp retailers, which means hundreds could still be shut out.
The previous version of retail cannabis legislation — expected to be amended this session — capped dispensary licenses at 350 statewide.
Lawmakers Return in January to Decide the Future
The General Assembly will take up the cannabis market legislation on January 14 when lawmakers return to Richmond. Business owners say they are hopeful but anxious, knowing that their future may depend on how lawmakers balance federal pressure, state legalization efforts, and the survival of small cannabis retailers.
