Will Cannabis Genetics Be Restricted?
A redefinition of hemp under federal law, set to take effect Nov. 12, signals the end of Farm Bill protections for many hemp-derived THC items across the nation: mild 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 prohibition also generates a significant complication for the legitimate 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 buying will probably continue in authorized states, the modifications threaten to close some seed suppliers and genetics businesses, observers note, while causing supply-chain issues for cannabis growers and retailers.
"If this language goes forward, we will require pop-up stores to offer seeds in every state where it's permitted," 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 prohibited to ship across state lines?
The updated regulations categorize seeds based on the THC capacity of the parent plant. Genetic material such as seeds and clones are made illegal if the end product exceeds the threshold.
For now, seeds are still shipping under the 2018 Farm Bill's status quo. But the clock is ticking for enterprises like Brothers Grimm and for cannabis growers who fear supply chain disruptions if out-of-state access to genetics is prohibited.
Most of the cannabis sector remains mostly unaware of the impending shutdown of the interstate genetics market, said Ryan Power, co-founder of Sebastopol, California-based breeder Atlas Seed.
Without federal intervention in the way of an exception for seeds or a general moratorium, many seed suppliers will simply be shuttered come November, he added.
"We are operating legally now, but if that shifts, it will disrupt the legal licensed industry in every state," said Power, whose customers includes seed suppliers as well as licensed business cultivators.
"Consumers are going to lose choice, and it will be a significant shutdown for many people."
What are cannabis seed banks doing to stay legal after the federal hemp ban?
Sagui Silber has previously recalibrated Silberhaze Genetics, his Ohio genetics company, because of state Senate Bill 56, which strengthened cannabis oversight in that state while also restricting hemp-derived THC items to licensed cannabis retailers.
Previously a seed bank, Silberhaze is currently focused on the marketing, preservation and IP protection of premium plant genetics.
That's because seed companies hoping to stay compliant in this new environment must have airtight documentation, he said.
"You have to demonstrate where this stuff comes from, so it's very important to have records, even to the extent where you have cultivator names," Silber said.
"Smaller businesses will have to operate with improved records and a stronger chain of custody," he added. "We need that documentation ourselves, because we don't want to be working with questionable sources."
To prevent seizures and additional legal fallout, seed business owners must "get their ducks in a row" before the updated regulations take effect, Silber said.
"Review all your stuff immediately, and classify what you can," Silber said. "Take stock, document your lineage, preserve cultivator records, and organize any cannabinoid or terpene data you already have. If regulations change, 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 registration may be required for businesses engaged in research.
But for the time being, seed houses can't register with the DEA like state-licensed therapeutic cannabis businesses can. Such a pathway is unavailable to seed suppliers, nurseries or genetics companies, said Jim Ickes, an attorney and partner with Frantz Ward's cannabis law group in Cleveland.
"Seed-related activity may be occurring inside larger state-licensed medical marijuana businesses, as some states allow dispensaries or registered medical operators to sell seeds, clones or personal growing materials," he said.
"But that is different from the DEA establishing a freestanding seed supplier registration category."
Some genetics operators are already 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 inventory look like once we organize it against the genetics exclusion?
Ickes also understands confusion from customers who believed federal rescheduling of therapeutic marijuana would resolve their situation with financial institutions. However, the recent regulatory language has shifted those conversations past the basics of classification, he said.
"Financial institutions ask whether this specific revenue source is lawful, whether it ties to state-licensed operations, or whether there's interstate-commerce risk," said Ickes.
"After November, a seed supplier selling high-THC 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 genuine industrial-hemp seed keep the simpler story."
What's the future of cannabis genetics?
Campanella is a member of a emerging coalition of fellow breeders, https://nativesusa.com/, https://nativesusa.com, farmers and researchers that's arguing seeds are better defined as farm inputs than regulated substances. To that end, seeds should be overseen by the U.S. Department of Agriculture, leaving the DEA to focus its enforcement efforts elsewhere.
"How do you control something based on what it might become later?" said Campanella. "Our choice is to have that language removed, or get seeds regulated by the USDA as a hemp product."
But in the interim, Campanella is restructuring Brothers Grimm to operate outside the reach of changing federal oversight. The company plans to keep its Colorado seed operation while placing its Oklahoma tissue cultivation facility as a safeguard against government prohibition of cannabis seeds.
As she explained: "If things develop in a way where we can't focus on interstate transport, we'll have other resources to meet people's requirements without getting ourselves in trouble."