Cannabis and Hemp in Wisconsin: A State at a Crossroads
America’s Dairyland stands as one of the few states in the Midwest without any form of legalized cannabis—neither medical nor adult-use. Over the years, Wisconsin lawmakers have attempted to pass medical cannabis legislation, but these efforts have failed to gain traction. Most recently, earlier this year, a renewed attempt to introduce medical cannabis legislation fell short.
Meanwhile, Wisconsin finds itself surrounded by neighbors with thriving cannabis programs. Minnesota, Illinois, and Michigan all offer both medical and adult-use cannabis, while Canada, just across the northern border, legalized cannabis in 2018. Despite this stark contrast, Wisconsin could become a unique outlier by embracing the burgeoning market for intoxicating hemp products, potentially following a path similar to Minnesota’s regulatory approach to THC beverages.
Hemp and the Farm Bill: A Wisconsin Tradition
Wisconsin has a longstanding history as a hemp-friendly state. The state launched its own Hemp Pilot Research Program in 2017, following the passage of the Agricultural Act of 2014, which authorized states to develop research-based hemp production programs. At its peak, Wisconsin’s program saw hundreds of participants securing licenses to cultivate and process hemp, administered by the Department of Agriculture, Trade, and Consumer Protection (DATCP).
The 2018 Agricultural Improvement Act, commonly known as the Farm Bill, further expanded opportunities for Wisconsin’s hemp industry. It allowed processors to convert industrial hemp into marketable forms, such as cannabidiol (CBD), and licensed processors were permitted to sell CBD products at retail locations statewide. By 2022, however, Wisconsin’s hemp program transitioned entirely to federal oversight under the U.S. Department of Agriculture (USDA), with Wisconsin producers now licensed directly by the USDA and governed by its Final Rule on hemp production.
The Rise of Intoxicating Hemp
The 2018 Farm Bill redefined hemp and its derivatives as legal agricultural commodities, provided the hemp contains no more than 0.3% delta-9 THC by dry weight. This opened the door to a rapidly growing market for hemp-derived intoxicating cannabinoids, including THC beverages and other products. However, while the USDA oversees hemp cultivation, there is currently no federal oversight of post-production processing or sale of intoxicating hemp products, leading to a patchwork of state regulations—or, in some cases, a complete lack thereof.
This regulatory gap has allowed an entire consumer product category to flourish, with states taking varying approaches. California, for example, has banned intoxicating hemp products intended for human consumption if they contain any detectable amount of total THC. New Jersey has integrated intoxicating hemp into its state-licensed cannabis industry, while Minnesota has embraced THC beverages, creating a framework for their regulation and sale.
Wisconsin’s Current Hemp Landscape
In Wisconsin, the regulatory framework for intoxicating hemp remains minimal. Hemp-infused food products are not considered adulterated, provided they are made and sold within the state. These products must adhere to basic truth-in-labeling requirements, but there are no specific laws governing post-production processing or the sale of intoxicating hemp products.
Retailers in Wisconsin selling intoxicating hemp products largely operate under the broad provisions of the 2018 Farm Bill, relying on industry best practices and sourcing their hemp from USDA-compliant producers. However, the lack of comprehensive oversight has raised concerns about product safety, mislabeling, no age restrictions, and marketing that may appeal to children—issues observed in other states with similarly lax regulations.
The Path Forward: Regulate or Restrict?
As Congress deliberates the next Farm Bill, the future of intoxicating hemp remains uncertain. The 2018 Farm Bill expired on September 30, 2024, but some of its provisions continue through the end of the year. Any new Farm Bill could include tighter regulations on intoxicating hemp products or close the loopholes that currently allow them. Meanwhile, states like Wisconsin are left to decide their own regulatory fate.
If Wisconsin chooses to regulate intoxicating hemp, it can draw from the regulatory frameworks of states like Minnesota or New Jersey. Conversely, if Wisconsin opts to ban these products, it now has a legal roadmap from other states that have taken this approach.
The Stakes for Wisconsin
As intoxicating hemp products gain traction nationwide, Wisconsin has an opportunity to craft policies that balance consumer safety with market potential. While the state lags behind its neighbors in cannabis reform, its embrace—or rejection—of intoxicating hemp will set the tone for its broader cannabis policy trajectory in the years ahead. Will Wisconsin take the lead on regulating this emerging market, or will it continue to resist the tide of cannabis reform sweeping the Midwest? The decision lies with state policymakers and an engaged electorate eager for clarity on the issue.
