Why Thousands of Minnesota Hemp Jobs Are at Risk

Transcript

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HOST: You're listening to North Star Stories: Voices from Where We Live. Today in Minnesota…

ANCHOR: …The Trump administration forces another group of African immigrants to leave the country. Then, why thousands of jobs in our state are in jeopardy. And, Terminal One at Minneapolis St. Paul International Airport has a sleek new look. I'm Chantel SinGs.

Similar to what it did with Somalia, the Trump administration is removing Temporary Protective Status or TPS for Ethiopians. The administration says conditions in Ethiopia no longer pose a threat to nationals who return. Ethiopians in the United States on TPS must leave by February 13th or face possible arrest. To encourage self-deportation, those who do leave receive a free plane ticket, and one thousand dollars. It's estimated that between 30 and 40-thousand Ethiopians live in Minnesota. It's unknown how many of those are here under TPS.

Coming up: when Congress reopened the government recently after the longest shutdown in history, the relief came with a catch. As Xan Holston explains, language folded into the deal at the last minute could put thousands of hemp-industry jobs at risk in our state.

Ryan Kopperud: In the final stretch of negotiating must-pass legislation to reopen the government, unrelated language was inserted that would reverse long-standing federal policy and effectively ban nearly every hemp-derived THC and CBD product in the country.

Xan Holston: That's Ryan Kopperud, Vice President of Growth at Duluth-based THC-beverage producer Birdie, speaking in late November at a press conference.

He was joined by U.S. and Minnesota state lawmakers, along with industry leaders, to denounce a last-minute provision folded into the shutdown agreement with no hearings and little debate.

Under the proposal, a new federal definition of hemp would take effect at the end of 2026. It would classify most hemp-derived products — including low-dose THC and CBD drinks and edibles — the same as high-potency cannabis.

THC causes the "high". CBD doesn't — it's typically used for relaxation or pain relief. The ban would sweep up products containing either one.

Ryan Kopperud: In doing so it will gut a thriving industry, erasing hundreds of thousands of jobs, wiping out tens of billions of dollars in economic activity, and eliminating a rapidly growing stream of tax revenue.

Xan Holston: A loophole in the 2018 Farm Bill legalized hemp-derived THC. Hemp and marijuana come from the same plant species, but hemp contains very low levels of THC — the psychoactive part of the plant. That THC can be extracted and used in low-dose drinks and edibles.

Minnesota embraced that law in 2022, and in just a few years became a national leader in hemp-based THC manufacturing.

Ryan Kopperud: And while this ban will devastate Minnesota's beverage industry, its impact reaches far beyond it.

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Bob Galligan: What this does is essentially make hemp cannabis.

Xan Holston: Bob Galligan, the director of government and industry relations at Minnesota's Craft Brewers Guild, said hundreds of businesses in the state now rely on hemp-THC products — from breweries and canning lines to delivery drivers and retailers. If the ban goes through, he estimates Minnesota's industry will lose 2,700 jobs.

Bob Galligan: That is 23 percent of all the jobs provided by the brewing industry in the state of Minnesota.

Xan Holston: Galligan said that redefining hemp under federal law would kill an industry that's been growing exponentially, especially as alcohol sales continue to plummet in the state and nationally.

According to the U.S. Hemp Roundtable and other industry estimates, the hemp-derived cannabis market in the U.S. supports over 300,000 jobs and is worth an estimated 28 billion dollars.

State Senator Lindsey Port, who represents Burnsville, says the federal proposal ignores how central hemp-derived THC has become to the farmers and economy, nationally and in the state.

Lindsey Port: This is a 200 million dollar industry in Minnesota that generated more than 11.5 million in sales tax revenue last year.

Xan Holston: Port says to understand what banning hemp-derived THC would do, just compare it to one of Minnesota's favorite winter pastimes: snowmobiling.

Lindsey Port: The winter sports industry in Minnesota is a 230 million dollar industry. If congress told us tomorrow that we can't snowmobile anymore, people would lose their minds. This is that same kind of economic impact.

Xan Holston: For North Star Stories, I'm Xan Holston.

ANCHOR: You are listening to North Star Stories.

Minneapolis St. Paul International Airport has completed its largest-ever interior renovation of Terminal One. The Airports Commission collaborated with Delta Airlines on the 242 million dollar project. The next time you visit Terminal One, you'll notice new gate seating with power outlets, more accessible and durable flooring, and brighter, more sustainable LED lighting. The upgrades are separate from but complement the ten-year campaign that just wrapped up, which modernized the ticketing and baggage claim areas.

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HOST: North Star Stories is produced by AMPERS, diverse radio for Minnesota's communities, with support from the McKnight Foundation and the State of Minnesota. Online at ampers dot org.