Death by a Thousand Cuts: How the Minnesota Office of Cannabis Management Is Hurting the Hemp Industry

Death by a Thousand Cuts: How the Minnesota Office of Cannabis Management Is Hurting the Hemp Industry

If there were a playbook for dismantling an industry that has brought health, innovation, and jobs to countless Minnesotans, the Minnesota Office of Cannabis Management (OCM) must have studied it cover to cover. And honestly, they’ve mastered the art. Just as we've seen in states like Colorado, Oregon, and California, the rise of cannabis regulatory agencies has often spelled doom for the once-thriving hemp industry. It’s a death by a thousand cuts, each one slow and deliberate, as the state incrementally erodes the rights and opportunities of hemp businesses. Welcome to Minnesota’s turn in this tragic, bureaucratic play.

Back in 2018, when the hemp industry was just taking root in Minnesota, we had hope. It was an exciting time. Hemp farmers and entrepreneurs were growing, processing, and selling innovative products like tinctures, flower, hemp-derived vapes, dabs, edibles, and beverages. The sky was the limit—or so we thought. Fast forward a few years, and the dream of an open and thriving hemp market has turned into a regulatory nightmare. And at the center of it all is the OCM, proving once again that no good thing goes unregulated to death.

Step 1: Promise Safety, Deliver Restrictions

The first blow came wrapped in the guise of “public safety.” It’s a classic move—scare the public, then regulate under the guise of protecting them. The state decided to limit hemp product milligrams and ban vapes. Why? Because, apparently, vapes were too “dangerous” for Minnesotans to handle. Never mind that these same vapes were a lifeline for former smokers or that they accounted for a significant portion of hemp businesses’ revenue. But we drank the Kool-Aid. We believed them. After all, safety is important, right?

One of our own, a team member from Nothing But Hemp, even helped negotiate the language of the hemp bill during their time at the now-defunct Minnesota Hemp Association. Heather Elderson, a state representative, assured him that reducing milligrams to 5mg per serving and eliminating vapes was the best path forward. As newcomers to policy, he went along with it, trusting that the state had our best interests at heart.

Big mistake.

What we didn’t realize was that this was just the beginning. The goal wasn’t safety; it was control. Slowly but surely, the state began tightening its grip, choking the life out of the hemp industry one regulation at a time.

Step 2: Rewrite the Rules—Over and Over Again

Fast forward to today, and the OCM is back at it, dropping another round of “game-changing” rules that make absolutely no sense. Let’s break it down:

 

  1. Hemp Flower Must Be Sold by Dispensaries Only Hemp flower—another foundational product for the hemp industry—is now off-limits to hemp businesses. According to the OCM, only cannabis dispensaries can sell it. Can someone explain how this makes sense? It’s hemp. It’s not psychoactive. Why should hemp businesses, which specialize in these products, be cut out of the market entirely?

  2. Importing Products? Not So Fast Under the new rules, hemp businesses in Minnesota can no longer import products directly from out-of-state suppliers. Instead, all products must go through a “Cannabis Wholesaler.” And guess what? Hemp retailers and manufacturers can’t hold a Cannabis Wholesaler license. So, if you’re a hemp business owner, you now have to buy your products from a middleman, which will inevitably drive up costs for both businesses and consumers.

Oh, and did we mention that all out-of-state products must flow through the state’s Metrc system? Yes, because what every small business needs is more red tape and higher costs.

Step 3: Funnel the Money to Big Business

Let’s not kid ourselves. These changes aren’t about public safety or better regulation. They’re about one thing: consolidating power and profits in the hands of big cannabis companies. By stripping hemp businesses of their ability to sell key products, the OCM is effectively handing over the market to large dispensaries and wholesalers. Small businesses? Sorry, you’re not invited to the party.

What makes this especially infuriating is that the hemp industry has always been a grassroots movement. It’s an industry built by small businesses, farmers, and entrepreneurs who genuinely care about their communities. And now, all that hard work is being erased in favor of a system that prioritizes big business over small, local operators.

The Consequences

The OCM’s new rules are a disaster waiting to happen. Here’s what we can expect:

  • Higher Prices for Consumers: With products now required to go through wholesalers, costs will inevitably rise. That’s bad news for consumers who rely on affordable hemp products for their health and wellness.

  • Fewer Choices: As small hemp businesses are pushed out of the market, consumers will have fewer options. Say goodbye to the innovation and variety that made the hemp industry so exciting in the first place.

  • Job Losses: Small hemp businesses are job creators. By cutting them out of the market, the state is effectively putting people out of work.

  • Stifled Innovation: The hemp industry has always been a hotbed of innovation, from new product formulations to sustainable farming practices. Under the OCM’s heavy-handed regulations, that innovation will grind to a halt.

A Call to Action

It doesn’t have to be this way. Minnesota’s hemp industry deserves better. We need policies that support small businesses, foster innovation, and provide consumers with affordable, high-quality products. Instead of suffocating the hemp industry with unnecessary regulations, the state should be working to create a fair and open market.

So, to the OCM and the Minnesota state government, we say this: Stop killing the hemp industry. Stop pretending that these rules are about safety or regulation when they’re really about consolidating power and profits. And most importantly, stop underestimating the resilience and determination of hemp businesses and their customers. Because no matter how many cuts you deliver, this industry isn’t going down without a fight.

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