Will Cannabis Genetics Be Banned?
A redefinition of hemp under national law, scheduled to take place Nov. 12, spells the loss of Farm Bill protections for many hemp-derived THC items across the nation: low-dose beverages as well as THCA bud and delta-8 THC gummies, vapes and other products available at gas stops and smoke shops.
But the hemp prohibition also creates a major complication for the legal cannabis industry. Seeds from cannabis cultivars that produce flower with greater than 0.3% THC are no longer legal to transport out of state.
Although seed purchases will probably continue in authorized states, the modifications threaten to close some seed suppliers and genetics businesses, observers say, while causing supply-chain issues for cannabis cultivators and retailers.
“If this language goes through, we will require pop-up stores to offer seeds in each state where it’s permitted,” Campanella said. “Which is why we’re also providing clones and tissue cultivation, because that’s not included in the bill.”
When are cannabis genetics and clones prohibited to ship between state lines?
The updated regulations classify seeds based on the THC capacity of the parent plant. Genetic material such as seeds and clones are rendered illegal if the final product crosses the threshold.
For now, seeds are still shipping under the 2018 Farm Bill’s status quo. But the clock is ticking for businesses like Brothers Grimm and for cannabis growers who worry about supply chain disruptions if out-of-state availability to genetics is prohibited.
Most of the cannabis sector remains mostly unaware of the approaching shutdown of the interstate genetics market, said Ryan Power, cofounder of Sebastopol, California-based company Atlas Seed.
Without federal intervention in the way of a carve-out for seeds or a general moratorium, many seed suppliers will simply be shuttered come November, he added.
“We are functioning legally currently, but if that changes, it will disrupt the legal licensed industry in each state,” said Power, whose customers includes seed suppliers as well as licensed business cultivators.
“Customers are going to lose choice, and it will be a significant shutdown for many people.”
What are cannabis seed suppliers doing to stay legal after the federal hemp ban?
Sagui Silber has already recalibrated Silberhaze Genetics, his Ohio genetics business, because of state Senate Bill 56, which tightened cannabis oversight in that state while also restricting hemp-derived THC products to licensed cannabis retailers.
Formerly a seed bank, Silberhaze is currently focused on the branding, preservation and IP safeguarding of premium plant genetics.
That’s because seed businesses hoping to remain compliant in this updated environment must have airtight documentation, he said.
“You have to prove where this stuff comes from, so it’s extremely important to have documentation, even to the point where you have breeder names,” Silber said.
“Small businesses will have to work with improved records and a stronger chain of possession,” he added. “We want that documentation ourselves, because we don’t want to be working with questionable sources.”
To avoid seizures and additional legal fallout, seed entrepreneurs must “get their affairs in order” before the new regulations take effect, Silber said.
“Review all your materials immediately, and categorize what you can,” Silber said. “Take inventory, document your lineage, preserve breeder records, and organize any cannabinoid or terpene data you already have. If regulations shift, you’ll be in a far better position to understand what may be impacted and make informed decisions.”
Does government marijuana rescheduling impact cannabis genetics?
Silber believes U.S. Drug Enforcement Administration licensing may be necessary for businesses engaged in research.
But for the time being, seed companies can’t enroll with the DEA like state-licensed therapeutic cannabis businesses can. Such an option is unavailable to seed banks, nurseries or genetics businesses, said Jim Ickes, a lawyer and partner with Frantz Ward’s cannabis practice group in Cleveland.
“Seed-related activity may be occurring inside larger state-licensed therapeutic marijuana businesses, as some states permit dispensaries or registered therapeutic operators to sell seeds, clones or personal growing materials,” he said.
“But that is different from the DEA establishing a freestanding seed bank registration category.”
Some genetics operators are currently changing business practices to comply with the new law. According to Ickes, they must answer questions including:
- Which of our lines produce plants over 0.3% total THC?
- Which seeds remain as hemp after Nov. 12, 2026, and which don’t?
- What does our catalog look like once we organize it against the viable-seed exclusion?
Ickes also recognizes confusion from customers who believed federal rescheduling of medical marijuana would clarify their story with financial institutions. However, the latest regulatory language has moved those conversations past the fundamentals of classification, he said.
“Banks ask whether this particular revenue stream is lawful, whether it ties to state-licensed activity, or whether there’s interstate-commerce risk,” said Ickes.
“After November, a seed bank selling high-THC genetics can’t address the initial question with the hemp classification. It has to refer to a legal state cannabis channel instead. Seed suppliers dealing in genuine industrial-hemp seed keep the simpler story.”
What’s the future of cannabis genetics?
Campanella is part of a new coalition of fellow breeders, farmers and researchers that’s saying seeds are more appropriately defined as agricultural inputs than regulated substances. To that effect, https://nativesusa.com/, seeds should be managed by the U.S. Department of Agriculture, allowing the DEA to concentrate its enforcement work elsewhere.
“How do you regulate something based on what it could become later?” said Campanella. “Our choice is to have that wording removed, or have seeds regulated by the USDA as a hemp product.”
But in the interim, Campanella is restructuring Brothers Grimm to function outside the scope of shifting federal oversight. The business plans to keep its Colorado seed facility while positioning its Oklahoma tissue culture facility as a safeguard against federal prohibition of cannabis seeds.
As she noted: “If things evolve in a way where we can’t concentrate on interstate transport, we’ll have other resources to satisfy people’s needs without getting ourselves in trouble.”