Will Cannabis Genetics Be Banned?
The redefinition of hemp under national law, scheduled to take place Nov. 12, signals the end of Farm Bill protections for many hemp-derived THC products across the country: low-dose beverages as well as THCA bud and delta-8 THC gummies, vapes and additional products available at gas stations and smoke shops.
But the hemp ban also creates a significant complication for the legal cannabis sector. Seeds from cannabis varieties that generate flower with more than 0.3% THC are no longer legal to ship out of state.
Although seed buying will probably continue in authorized states, the changes threaten to shutter some seed banks and genetics companies, observers say, while causing supply-chain problems for cannabis growers and retailers.
“If this language goes forward, we will need pop-up stores to sell seeds in every state where it’s legal,” Campanella said. “Which is why we’re also offering clones and tissue culture, because that’s not included in the bill.”
When are cannabis genetics and clones illegal to ship between state lines?
The updated regulations categorize seeds depending on the THC potential of the mother plant. Genetic material such as seeds and clones are made illegal if the final product crosses the threshold.
For the moment, seeds are currently 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 industry remains mostly unaware of the impending shutdown of the interstate genetics marketplace, said Ryan Power, co-founder of Sebastopol, California-based company Atlas Seed.
Without federal intervention in the way of an exception for seeds or a general moratorium, numerous seed suppliers will simply be shuttered by November, he added.
“We are functioning legally currently, but if that changes, it will disrupt the legal licensed sector in every state,” said Power, whose clientele includes seed banks as well as licensed commercial cultivators.
“Consumers are going to lose choice, and it will be a significant shutdown for many people.”
What are cannabis seed banks doing to remain legal after the federal hemp ban?
Sagui Silber has previously 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 items to licensed cannabis retailers.
Previously a seed supplier, Silberhaze is currently focused on the marketing, preservation and IP protection of premium plant genetics.
That’s because seed companies hoping to remain compliant in this updated environment must have solid documentation, he said.
“You have to prove where this material comes from, so it’s extremely important to have records, even to the point where you have cultivator names,” Silber said.
“Smaller businesses will have to operate with better records and a stronger chain of custody,” he added. “We need that documentation too, because we don’t want to be dealing with shady sources.”
To avoid seizures and additional legal fallout, seed business owners must “get their ducks in a row” before the updated regulations take effect, https://nativesusa.com/) Silber said.
“Audit all your materials immediately, and classify what you can,” Silber said. “Take stock, document your heritage, preserve cultivator records, and arrange any cannabinoid or terpene information you already have. If regulations shift, you’ll be in a far better position to understand what may be affected and make educated decisions.”
Does government marijuana rescheduling affect cannabis genetics?
Silber believes U.S. Drug Enforcement Administration registration may be required for companies engaged in research.
But for the time being, seed companies can’t register with the DEA like state-licensed medical cannabis operators can. Such an option is not available to seed suppliers, nurseries or genetics companies, said Jim Ickes, an attorney and partner with Frantz Ward’s cannabis practice group in Cleveland.
“Genetics activity may be occurring inside broader state-licensed medical marijuana businesses, as some states permit dispensaries or registered therapeutic operators to offer seeds, clones or personal growing materials,” he said.
“But that is distinct from the DEA creating a freestanding seed supplier registration category.”
Some genetics operators are currently changing business practices to comply with the updated law. According to Ickes, they must address questions including:
- Which of our lines produce plants over 0.3% total THC?
- Which seeds survive as hemp after Nov. 12, 2026, and which don’t?
- What does our catalog look like once we sort it against the genetics exclusion?
Ickes also understands confusion from customers who believed federal rescheduling of medical marijuana would resolve their story with financial institutions. However, the latest regulatory wording has moved those conversations past the fundamentals of classification, he said.
“Banks ask whether this specific revenue stream is lawful, whether it ties to state-licensed operations, or whether there’s interstate-commerce risk,” said Ickes.
“After November, a seed supplier selling drug-type genetics can’t answer the initial question with the hemp definition. It has to refer to a lawful state cannabis pathway instead. Seed banks dealing in authentic industrial-hemp seed keep the simpler story.”
What’s the future of cannabis genetics?
Campanella is part of a new coalition of fellow breeders, growers and researchers that’s saying seeds are better defined as farm inputs than regulated substances. To that effect, seeds should be managed by the U.S. Department of Agriculture, leaving the DEA to focus its enforcement efforts 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 meantime, Campanella is reorganizing Brothers Grimm to function outside the reach of changing federal oversight. The business plans to maintain its Colorado seed facility while placing its Oklahoma tissue culture facility as a safeguard against federal prohibition of cannabis seeds.
As she noted: “If things develop in a way where we can’t concentrate on interstate shipping, we’ll have other resources to meet people’s needs without getting ourselves in trouble.”