While state leaders say growers can still produce industrial hemp, farmers say they will quit growing the plant altogether under a total THC ban.

LUBBOCK, Texas — Six years ago, Texas lawmakers opened a door to a new lifeline for farmers: growing hemp. Farmers invested time, money and land into growing the drought-resistant crop and developing the state’s budding hemp industry.

The same lawmakers are now slamming the door shut. All products containing tetrahydrocannabinol, or THC, could soon be banned in Texas. As a result, farmers are bracing for impact as they wait to go out of business.

“We wouldn’t be in the hemp business in a million years if they hadn’t passed that bill,” said Ann Gauger, co-owner of Caprock Family Farms in Lubbock. “Now we’re one of the largest hemp producers in the U.S., and their ban is going to shut that down.”

The Texas hemp industry, in its current form, has effectively been handed a death sentence with the upcoming passage of Senate Bill 3, authored by Lubbock Republican Sen. Charles Perry. On Sunday, the Legislature sent the bill, which bans consumable hemp products that contain even trace amounts of THC, to Gov. Greg Abbott’s desk. However, hemp can’t be produced without traces of THC, farmers say, regardless of the product.

The plant has been a target for lawmakers since the start of the legislative session, with the charge led by Lt. Gov. Dan Patrick. Patrick pulled out all the stops to make the ban pass, including with surprise visits to dispensaries in Austin and vows for a special session if it failed. Patrick and Perry say the hemp industry exploited a loophole in the bill that did not establish a threshold for hemp derivatives, other than delta-9 THC.

Texas Agriculture Commissioner Sid Miller has also walked back his opposition to an outright ban on THC, now aligning with Patrick’s position. He deleted a post on X where he called the THC ban a “sledgehammer” to farmers, and now Miller said the bill will not be detrimental to farmers. Miller said the hemp industry will thrive as it’s moving toward producing industrial hemp, a fiber type of hemp that does not contain THC. It could be used in construction materials, rope and more. He said they never intended to have THC available across Texas, and called it a dangerous situation.

“This just puts us back to where we started,” Miller told The Texas Tribune. “It’s going to be detrimental to a lot of businesses that have opened their business model on selling THC products. Those businesses will have to shut.”

In lawmakers’ pursuit of a ban, growers like Gauger were caught in the crosshairs. Gauger, who runs the business with her husband and two sons, felt ignored by most of the Legislaturestate leaders. Gauger says they did everything they could to get lawmakers to hear them over the last few months and testified to the House committee overseeing the bill. It did not work.

“Charles Perry says he has an open door policy. That is an absolute lie,” Gauger said. “We live in his district, and he will not see us. We’ve gone to his office in Austin, but he refuses to see us.”

Gauger said House Speaker Dustin Burrows, R-Lubbock, and his team were the only ones to speak with the family. Kyle Bingham is another frustrated hemp grower in the South Plains that took a chance on growing the crop. Bingham, who is also president of the Texas Hemp Growers Association, called the bill overreaching and unenforceable. He also said lawmakers involved in writing the bill ignored farmers during the process. Bingham is one of Perry’s constituents.

“We were left out of this conversation,” Bingham said. “Yes, you can go to public hearings, but not having a lot of say and being stonewalled out of the initial bills was frustrating.”

Throughout the session, Patrick has rallied against THC products, saying the products put children in danger. Gauger acknowledges there are bad actors in the industry, but says the bill will have a ripple effect. The industry also includes manufacturers, hemp processors, and people to run extractors.

“Throw the low lifes in jail if you want to stop the bad actors,” Gauger said. “But don’t take out the American farmers. Don’t take out the ag producers.”

Under the legislation, adults would face up to a year in jail for possessing hemp products with any amount of THC in it. This has put a stop to all of Gauger’s plans — the family farm was set to plant a large project that would produce 20 million pounds of CBD biomass. Since CBD is produced from hemp seeds, Gauger is worried she would be breaking the law. It wouldn’t be ready for harvest until October, a month after the law goes into effect.

“We would be felons if we planted that,” Gauger said. “The land’s already been prepped, herbicides already put out. Once you do that, you can’t plant anything else on that land for the season.”

Bingham is in a similar position. He uses about 5% of his 2,000-acre farm for hemp, but he saw it as a good alternative in the drought-ridden region. Now, he says he has to walk away from his investment if it’s illegal to possess any detectable amounts of THC in the field.

“At this point, they’re threatening a felony so I’m out,” Bingham said. “I’m not risking a felony over this, and I think most farmers in Texas will stop growing too.”

Bingham said he’s now considering what to do in September when the bill is slated to go into effect. Any products he still has with THC will either have to be sold by then or he will be burning it. He’s going to focus more on cotton and wheat, even though he wanted hemp to be in their rotation of crops.

Gauger is expecting a downfall for the hemp industry across Texas. Just like growers have to consider the legal consequences, the same applies for retailers and grocery stores that sell consumable hemp products. This includes hemp hearts, hemp seed oil, and even some big brands — KIND bars have a line of granola bars that contain hemp seeds.

Perry’s team did not respond to a request to comment.

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2025/05/26/texas-hemp-thc-ban-farmer/.

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Dozens of Williamson County hemp and THC retailers are facing closure amid new state regulations, while hemp users could be fined or face jail time if Senate Bill 3 is signed by Governor Greg Abbott.

Senate Bill 3 passed the Texas House of Representatives in a 95-44 vote on May 21. The bill — which, as of June 5, sits at the governor’s desk for final approval — would ban the sale of hemp-derived products containing Delta THC variants. Delta variants are the psychoactive components of the cannabis plant. It would also prohibit non-psychoactive cannabinoids such as CBN.

Products with THC — including smokable and edible products, as well as ointments — have become more popular over the last half decade. Consumers often use products for pain and stress relief, as a sleep aid or an appetite stimulant to combat the appetite loss that comes with medical conditions like cancer and HIV.

Some products also come with side effects, including impairment and mood changes. This means certain doses and products could be used as recreational drugs.

Pinnacle Essentials is a Williamson County-based herbal wellness store, with locations in Georgetown, Cedar Park and Liberty Hill. Owner Kate Cerasoli estimates that half of her customers are purchasing purely for medicinal use, while the other half use it more recreationally.

Customers in Georgetown, she said, frequently look for solutions to sleep issues and pain. She said if the law is passed, it will eliminate products that are specially formulated to help with these ailments.

“THC is the key that opens the lock so that the other cannabinoids can get in and do their work,” Ms. Cerasoli said. “The plant grows with all of it in it, for a reason.”

Proponents of Senate Bill 3, including Lt. Gov. Dan Patrick, say consumers aren’t aware of what’s in the products they’re purchasing, or the risks THC products like gummies and cereal bites could pose on children if they’re accidentally consumed. Mr. Patrick said he believes some of the products target children.

“Nothing is more important than stopping a kid from getting a hold of this junk,” Mr. Patrick said during a press conference, while displaying a selection of edible hemp products after the Bill passed the Senate.

He also said grown men “in need of a snack” may mistakenly eat the products due to the poor labeling.

“We sell cereal bites [for adults],” Pinnacle Essentials Director of Operations Steve Marengo said, pointing out that the labeled product has an ingredients list printed on it and a QR code to a state-mandated third party ingredient test. “These are the same ones that Dan Patrick was throwing around the press conference.”

Ms. Cerasoli said Pinnacle Essentials doesn’t market to kids and that they avoid packaging that may appeal to children. The store only sells to adults over the age of 21.

State and local impacts

Hemp was legalized in Texas back in 2019, and products are sold at places like convenience stores, smoke shops, wellness shops and individual venders at community markets like Market Days in Georgetown. Hemp industry in Texas is estimated to have generated about $8 billion back in 2023, with more than 50,000 employees in the industry, according to Whitney Economics, which evaluates the cannabis industry.

Mr. Marengo said 97.65 percent of Pinnacle Essentials’ hemp products would be banned if the bill goes through.

Brandi Townsend — owner of Cozy Cannabis, a boutique cannabis dispensary on the Square — said Senate Bill 3, “would [nearly] take everything off the shelves.”

She opened her first store in Hutto as a mom with five kids, who chooses to use hemp products over wine to deal with her stress. She found that she wasn’t alone.

Many of her clients in Georgetown are older and use THC for medical purposes, she said. Her sales in Georgetown, temporarily, have increased since the bill passed. “They are stocking up and are pretty scared [they’ll lose access],” Ms. Townsend said.

She said a client with Parkinson’s disease used THC products that help them walk again. Ms. Townsend said the customer tried non-THC products — which would still be legal under the bill — with no success.

“Without [the THC], she literally cannot walk.” Ms. Townsend said.

Pinnacle Essentials has seen their full spectrum CBD tincture as being “a miracle” for customers who have adult children with autism.

“Suddenly they would eat, suddenly they were calmer and easier to deal with,” Ms. Cerasoli said.

The top-selling item at Pinnacle Essentials is the Live Resin D9 Gummies, made by Modern Herb Co. Ms. Cerasoli called these sleep-inducing gummies the “Sun City special.” Some customers have come in since the bill passed to purchase an entire case. The product contains a significant amount of THC, which is part of what makes it work, Ms. Cerasoli said.

She clarified the purpose of the product is to fall asleep, not to “get high.”

Pinnacle Essentials added 125 new customers into their system last week, with customers worried access would be cut off in the future. Some said they didn’t realize THC products were available in Texas until after they learned about the bill banning them

“Since SB 3 was announced, we reset our daily record for sales twice. We had the biggest month in the history of our business by a lot,” Mr. Marengo said.

Medical exemptions

Senate Bill 3 proposes an expansion of The Texas Compassionate Use Program, or TCUPS. This program allows physicians to write patients prescriptions for low-THC cannabis oil and gummies.

TCUPS was originally formed in 2016. There are currently three dispensaries — two in Austin and one in New Braunfels — licensed as medical dispensaries. The proposed program expansion would allow 12 more cannabis dispensaries, and would also raise the amount of THC allowed in the medical products.

However, Ms. Cerasoli has heard from her customers that the TCUPS program isn’t sufficient. Even with the proposed dosage increase, she estimated it wouldn’t be enough to provide them with relief. Additionally, she said that the products are very expensive, costing hundreds of dollars a month.

Ms. Townsend said her customers have called the TCUP program “a joke” due to the lack of availability and dosage levels compared to other products available today.

Even if 12 more dispensaries opened, she said it wouldn’t be enough to service the entire state of Texas.

Regulations are needed

Texas does not currently have a statewide age restriction on who can purchase hemp products or restrictions regarding where a hemp store can be located. This is something that the Texas Hemp Business Council — an organization that advocates for the hemp industry, consumer safety and education — has been trying to change.

Cozy Cannabis and Pinnacle Essentials are both involved in the Texas Hemp Business Council, and would support increased regulations across the industry as opposed to the full ban proposed in SB 3.

“Our industry has asked for better regulations,” Mr. Marengo said. “We take our role in the hemp industry very seriously, and we actually work very hard to operate ethically.”

Cozy Cannabis and Pinnacle Essentials both make an effort to only target adults with their products. The stores voluntarily enforce age checks and only sell to customers over the age of 21.

They also support raising licensing fees to safeguard who can sell hemp products, which would improve product quality and safety overall.

Ms. Townsend said Cozy Cannabis pays only $150 per year for their license. She said she considers this low price point dangerous, because it “allows for anybody, really, to get into the market.” She also supports banning the sale of hemp products in gas stations, emphasizing that these products should be sold in stores with employees trained to educate customers.

Pinnacle Essentials also said the state has to do a better job monitoring vendors and product quality.

“We’ve also been asking for more enforcement from the Department of State Health Services, which registers the hemp program,” Mr. Marengo said. “To give you an idea, [Pinnacle Essentials has] only been visited twice in four years. When they came in, they did not even check our hemp products. They actually checked to see if we were compliant with the new whipped cream law [banning nitrousoxide].”

Lobbying to the governor

In opposition to Senate Bill 3, the Texas Hemp Business Council delivered 5,000 letters and a petition with 118,000 signatures to Governor Abbott on June 2.

Pinnacle Essential personally submitted 165 letters from customers. Cozy Cannabis sent in customer letters as well.

“We’re hoping that Governor Abbott, being the Small Business Champion that he is, will veto this bill.” Mr. Marengo said.

Cozy Cannabis surveyed their customers across their locations about what they would do if the bill passed. Customer report found 40 percent would look to purchase the products illegally, while 17 percent said they would go to another state where THC products are legal.

Ms. Townsend is currently building a team to move Cozy Cannabis to another state, if the law goes through. She is considering North Carolina or Florida.

“Both [states] have common sense laws with age restriction and testing and labeling and packaging,” Ms. Townsend said. “All the things that we want here [in Texas] and are already doing without legislation being behind us.”

Ms. Cerasoli said if the bill goes through, Pinnacle Essentials would continue with their business using their wellness center model.

“We’d have to do a serious shift, obviously, and then hope that people are still looking for CBD and CBG,” she said. “Some of the other products we may have to expand into are like the [functional] mushroom gummies.”

Governor Greg Abbott has until June 22 to sign or veto the bill. If the bill is signed into law, it would go into effect September 1.

WACO, Texas (KXXV) — A proposed statewide ban on all THC products is causing concern for Texas smoke shops like Smoke De’Pot in Waco, though employees remain hopeful they can stay open by selling alternative items.

A bill passed by the Texas House could ban all THC products statewide, threatening the business model of shops like Smoke De’Pot in Waco.

Despite the potential ban, employees at Smoke De’Pot remain optimistic, saying they have other products to sell and are not worried about losing their jobs.

If the legislation becomes law, Texans could face up to a year in jail for possessing two or more ounces of marijuana, adding legal pressure to the industry.

Watch why smoke shop owners are concerned about the proposal:

Waco smoke shop prepares for possible statewide ban on THC products

BROADCAST TRANSCRIPT:

A bill passed by the Texas House on Wednesday could soon ban the sale of all THC products across the state, casting uncertainty over the future of businesses like Smoke De’Pot in Waco.

“There really is nothing we can do because we obviously have to follow whatever the store has to do,” said Caroline Clemons, a sales clerk at the local shop, which currently offers a variety of THC and hemp-based products.

Clemons and others in the industry have been watching the legislation closely. Despite the bill’s potential to dramatically impact their offerings, she remains optimistic about the store’s future.

Marc Monroy, KXXV

“So even if they do end up banning all the THC stuff, then I think we’ll still be open because we still have other products we can sell,” she said.

The hemp industry has seen substantial growth in Texas since 2019 when the state legalized the sale and production of hemp. However, lawmakers have since worked toward stricter regulations, culminating in this latest legislation aiming to ban all THC-infused products.

Clemons acknowledged that while the store’s inventory may take a hit, they still plan to keep their doors open.

Marc Monroy, KXXV

“It’s still up in the air what’s all going to be in here, but I know we still have a good amount of product we’re still going to be able to sell,” she said.

Even if the bill becomes law, Clemons said she and her coworkers aren’t worried about their jobs.

“I don’t think any of us are afraid of our jobs because we love our boss, so we’re not worried,” she added.

Marc Monroy, KXXV

The bill is expected to move forward, and if enacted, would carry legal consequences for the sale or possession of THC products. Texans caught with two or more ounces of marijuana could face up to one year in jail.

For now, shops like Smoke De’Pot are preparing for the possibility of tighter restrictions while holding onto hope that they can adapt and continue serving their customers.

Check out what Congressman Pete Sessions has to say:

Texas House passes bill to ban THC products, sparking debate over hemp industry’s future.

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SAN ANTONIO — Texas lawmakers are on the verge of banning THC products. Thursday, the Texas House passed SB 3, which would only allow hemp retailers to sell CBD or CBG.

Products like Delta 9 and Delta 10 started popping up in gas stations and at smoke shops following the 2019 Texas farm bill.

“House bill 1325 was never intended to legalize intoxicating THC products, it was intended to support farmers and promote an industrial hemp market that was designed to promote the development of non-consumable hemp products like fiber, rope and textiles,” Representative Tom Oliverson (R-Cypress) said.

The Houston-area republican drew support from both sides of aisle to amend SB 3 to ban the products Wednesday night.

“We are not banning hemp,” Oliverson said. “We are banning high.”

Lt. Governor Dan Patrick helped lead the way in move to dismantle the hemp industry. He posted a nearly 8-minute video on X Wednesday calling for the ban.

“Just in the last three years, over 8,000 plus smoke shops and vape shops have opened up in Texas. It’s now an 8-billion-dollar industry and where did the open up? Within a 1,000, 2,000 feet of schools,” Patrick said.

Patrick argued the industry is preying on children. In San Antonio, city council recently voted to prohibit new smoke shops from opening near schools.

However, the move will impact hundreds of businesses in San Antonio. Makram Hijaz is the owner of Hazel Sky Smoke Shop. He has 13 locations throughout the city and several throughout the state. Hijaz said up to 30 percent of his sales are from THC products.

“We pay taxes on these sales, and nobody has an issue with the Texas government to come in and regulating things and taxing things and enforcing things,” Hijaz said. “You know that’s exactly what we want in this industry, we’re not against that at all.”

According to a study by Whitney Economics, the hemp industry has employed more than 50,000 people and generated 7 billion in tax revenue each year.

In San Antonio, there are more than 200 smoke shops.

Hijaz said he is not concerned about shutting down his shops. However, he said he is worried about the smaller businesses.

“We’re talking about a lot of jobs and lot of people’s livelihoods that are going to be lost,” Hijaz said.

Patrick, along with Representative Oliverson, said they do not have the resources to regulate.

However, in Alabama, Governor Kay Ivey recently signed a law that would allow the Alabama Alcoholic Beverage Control board to regulate the products.

“Just like alcohol when it was prohibited, it didn’t go anywhere,” Hijaz said. “It’s the same thing, let’s just get on board like other states.”

The bill will need to be reviewed by the senate before it heads to Governor Greg Abbott’s desk.