In 2019, Andrew Hill addressed a hopeful crowd at Texas’s first-ever agricultural hemp expo in Dallas. As a seasoned hemp farmer from California, Hill didn’t buy into the hype—he delivered a sobering reality check. While many promised profits of up to $3,000 per acre, Hill warned, “I haven’t seen over $1,000 an acre since 2015.” His words now echo louder than ever as the Texas hemp industry is at risk, facing new legislative threats that could upend everything farmers like Hill worked hard to build.
Despite Hill’s caution, Texas lawmakers moved forward and legalized hemp products containing less than 0.3% THC that same year. Entrepreneurs like Hill invested millions into the industry, betting on its long-term potential. But now, the Texas hemp industry is at risk. Proposed legislation—Senate Bill 3 (SB 3) and House Bill 28 (HB 28)—threatens to dismantle the very foundation those early efforts built.
SB 3: A Death Knell for the Industry?
SB 3 proposes a near-total ban on consumable hemp products containing any detectable amount of THC — even trace levels found naturally in the plant. According to Hill, this would outlaw not just cannabinoid products but everyday hemp goods like salad dressings and hemp seed oils.
Worse, under SB 3, violations could carry severe criminal penalties: up to one year in jail for possession and up to ten years for manufacturing or selling. These harsh penalties have placed Texas’s 450 licensed hemp producers at serious risk of losing their businesses.
Competing Visions: HB 28’s Regulatory Focus
Meanwhile, HB 28 offers a slightly different approach. While it also bans synthetic THC and popular products like vapes and gummies, the bill introduces a more structured regulatory framework, including age restrictions (21+), a daily consumption limit of 10mg THC, and oversight by the Texas Alcoholic Beverage Commission.
Rep. Ken King, HB 28’s sponsor, insists the bill maintains the federal 0.3% THC limit while plugging dangerous loopholes. Still, industry leaders argue both bills could deliver the same result: devastating the Texas hemp economy.
Farmers Left in Limbo
Kyle Bingham, a West Texas farmer with over 2,000 acres in production, entered the hemp industry with measured optimism. But reality set in quickly. What was initially priced at $3.50 per pound plummeted to just 80 cents, thanks to oversupply and lagging infrastructure.
Even so, Bingham and others stayed the course, hoping Texas would catch up. Now, with SB 3 looming, that progress could be wiped out.
“If this bill passes, I’m walking away,” Bingham said. “I’m not risking a felony for a crop I planted legally in the spring.”
Economic Impact and Legislative Uncertainty
State estimates suggest SB 3 would lead to a loss of $19.3 million in general revenue, with cities losing $2.1 million annually by 2030. But what’s missing is a clear picture of the impact on the state’s farmers and small businesses.
Cynthia Cabrera of the Texas Hemp Business Council urged lawmakers to consider the broader consequences: “Tens of thousands of small businesses, farmers, and consumers rely on the hemp industry.”
The Real Issue: Lack of Regulation, Not THC
Farmers argue that the current crisis isn’t about THC levels — it’s about the absence of regulatory guidance. Lawmakers worry about minors using THC, but Bingham says the state failed to set safety rules when hemp launched.
“They didn’t regulate it,” Bingham said. “Now they’re unhappy with what’s on the shelves.”
Instead of sweeping bans, Bingham and others propose clear regulations on age limits, dosage, and packaging — similar to what Texas implemented for vape products.
A Future Worth Fighting For
Hemp offers unmatched versatility. Farmers can use it for more than just CBD—it also serves as animal feed, biodegradable plastics, textiles, and more. Many farmers see hemp as a sustainable path forward as the Ogallala Aquifer nears depletion.
Zach Gauger of Caprock Family Farms emphasized, “The time to diversify is now. Hemp extraction and consumption give us a way out of this cycle.”
The Clock is Ticking
Hemp planting season has arrived, but uncertainty clouds the fields. Because SB 3 fails to clarify whether current crops qualify for protection, farmers risk facing criminal charges later this year.
“If House Bill 28 passes,” said manufacturer Kallan Salganik, “I’ll move my business out of Texas. That’s jobs, taxes, and economic growth gone overnight.”
As lawmakers debate the future of hemp in Texas, farmers, business owners, and advocates continue to plead: regulate, don’t eradicate.