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Uncertainty remains for Minnesota breweries as federal hemp ban looms
ROCHESTER — Despite federal legislation set to take effect in six weeks that would ban most drinks containing THC, some local producers may continue making those drinks.
That's because Minnesota's rules under the state's Office of Cannabis Management do allow for THC edibles (up to 5 milligrams) and beverages (up to 10 milligrams). Even with a federal ban, the state law will remain in place, and the state office will continue to issue licenses to hemp businesses, said Eric Taubel, OCM director.
But that doesn’t mean Minnesota businesses and breweries that found a niche market selling THC products won’t face obstacles, should the federal ban go through on Dec. 11, as scheduled. That law will close an opening created in the 2018 farm bill, which legalized hemp products to produce, sell and move throughout the U.S. (Hemp is a cannabis plant related to marijuana and contains small amounts of THC, the psychoactive chemical in cannabis plants.) The legislation to take effect in December would ban hemp products containing more than 0.4 milligrams of THC.
Little Thistle Brewing Co. in Rochester is weighing whether to continue producing and selling its line of THC-infused beverages beyond the federal deadline.
“We hope we’ll be able to continue, but things are really up in the air,” said Steve Finnie, Little Thistle co-founder and co-owner.
For businesses such as Finnie's, questions remain about how Minnesota businesses would process payments, whether selling THC products could affect federal alcohol licensing, and whether producers can continue to supply Minnesota businesses with hemp-derived THC.
For now, Finnie plans to sell their stock of THC beverages and see what happens next.
“We’re just going to a huge kind of promotion or blowout sale in November,” he said.
Bob Galligan, Minnesota Craft Brewers Guild director of government and industry relations, said the uncertainty is hitting Minnesota’s craft brewing industry amid rising shipping costs because of higher fuel prices, rising material costs due to tariffs and shifting consumer habits.
“The timing on this almost could not be worse, and that’s something we’re trying to get across to Congress,” Galligan said.
That help could come if legislation drafted in July by U.S. Rep. Angie Craig, DFL-Minn., and Kentucky Republican Andy Barr passes. Their bill would set a framework to continue to allow hemp-derived THC products. The legislation is based on Minnesota guidelines currently in place, Craig said in a statement about the proposal.
Galligan and representatives from Minnesota businesses, including Minneapolis Cider Works and Fulton Brewing, met with U.S. Rep. Kelly Morrison, DFL-Minn., on Friday, Oct. 23, to discuss the legislation. One main point he hopes Congress understands is that Minnesota laws have addressed concerns about THC content, controlling sales and more.
A November 2025 survey of Minnesota businesses estimated 2,500 jobs would be in jeopardy should Minnesota’s $200 million hemp market go away. Bigger breweries, with larger tanks to fill, might be hit harder, Galligan said.
“I don’t know if people are fully aware of the size and the scope this would have,” Galligan said.