Their Hemp Business Was Built in Good Faith but Washington Is About To Crush It

As the Senate approached a vote on the federal funding bill earlier this month, Senator Rand Paul (RKy.) cautioned that the measure could "regulate the hemp industry to death." Hidden within the continuing resolution was a clause capable of reversing nearly seven years of industry progress, potentially jeopardizing small hemp businesses.

After the 2018 Farm Bill removed hemp from the Controlled Substances Act, cousins Jim Higdon and Eric Zipperle launched Cornbread Hemp in 2019. The Kentucky-based company produces and sells hemp products directly to consumers nationwide, distinguishing itself through its high-quality organic hemp. Cornbread Hemp adopted a flower-only extraction method, focusing solely on cannabis flowers to deliver premium products, and enforces strict cultivation standards.

"We're cultivating land that hasn't been treated with pesticides for three yearsverified. We use non-GMO seeds, no pesticides, and no synthetic fertilizers," said Higdon. "The only fertilizer we use is chicken litter from a certified organic farm."

This commitment to quality has built a devoted customer base, with 60% of buyers over the age of 66 using the products to manage chronic pain. Licensed hemp growers surged from roughly 3,500 in 2018 to more than 21,000 by 2020. Following a market correction, numbers fell to around 9,700 by 2021, but the economic impact remained significant. Estimates suggest the hemp sector supports around 325,000 jobs across farming, processing, manufacturing, distribution, and retail.

According to USDA data, U.S. industrial hemp production was valued at $824 million in 2021 and $445 million in 2024. Despite this growth, new state regulations have already challenged small companies like Cornbread. In 2025, Tennessee placed the hemp industry under the states Alcoholic Beverage Commission, extending its three-tier liquor distribution system to hemp products. Beginning in 2026, out-of-state hemp companies must sell through a Tennessee-licensed wholesaler before products reach retail storesa process that is impractical and costly for businesses like Cornbread.

Beyond operational hurdles, the Tennessee law infringes on companies rights to earn a living and violates the U.S. Constitution's Commerce Clause by favoring in-state businesses. Cornbread Hemp is partnering with the Pacific Legal Foundation to challenge this legislation.

Meanwhile, a federal provision threatens further disruption. The new rule would limit total THC in any consumable hemp product to 0.4 milligrams per container, not per serving or gram. Senator Paul warns that this restriction could devastate the hemp industry, potentially eliminating 95% of all hemp-derived cannabinoid products in the U.S.

Small businesses, squeezed by state regulations and now federal restrictions, face an uncertain future just years after hemp was federally legalized. Companies like Cornbread Hemp may be caught in the crossfire of regulatory pressures from both Washington and state governments.

Author: Sophia Brooks