Will Cannabis Genetics Be Banned?
A redefinition of hemp under national law, scheduled to take place Nov. 12, spells the end of Farm Bill safeguards for numerous hemp-derived THC products across the nation: low-dose beverages as well as THCA bud and delta-8 THC gummies, vapes and other products available at gas stops and smoke shops.
But the hemp prohibition also generates a major complication for the legitimate cannabis industry. Seeds from cannabis varieties that produce flower with greater than 0.3% THC are no longer legal to transport out of state.
Although seed buying will likely continue in legal states, the modifications threaten to close some seed banks and genetics companies, observers note, while creating supply-chain issues for cannabis growers and retailers.
“If this wording goes forward, we will require pop-up shops to sell seeds in each state where it’s legal,” Campanella said. “Which is why we’re also offering clones and tissue culture, because that’s not covered in the bill.”
When are cannabis genetics and clones illegal to ship across state lines?
The updated regulations categorize seeds depending on the THC capacity of the parent 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 current quo. But the time is ticking for enterprises like Brothers Grimm and for cannabis cultivators who fear supply chain interruptions if out-of-state access to genetics is banned.
Most of the cannabis sector remains largely unaware of the impending shutdown of the interstate genetics market, said Ryan Power, cofounder of Sebastopol, California-based breeder Atlas Seed.
Without government intervention in the form of a carve-out for seeds or an overall moratorium, numerous seed providers will simply be shuttered come November, he added.
“We are operating legally currently, but if that shifts, it will upend the legitimate licensed sector in every state,” said Power, whose customers includes seed banks as well as licensed business cultivators.
“Consumers are going to lose choice, and it will be a significant shutdown for most people.”
What are cannabis seed suppliers doing to stay legal after the federal hemp ban?
Sagui Silber has already recalibrated Silberhaze Genetics, his Ohio genetics company, because of state Senate Bill 56, which strengthened cannabis supervision in that state while also limiting hemp-derived THC items to licensed cannabis retailers.
Previously a seed bank, Silberhaze is now focused on the branding, preservation and IP protection of premium plant genetics.
That’s because seed companies hoping to stay compliant in this updated environment must have airtight documentation, he said.
“You have to prove where this material comes from, so it’s extremely important to have records, even to the extent where you have breeder names,” Silber said.
“Small businesses will have to work with better records and a better chain of possession,” he added. “We need that documentation ourselves, because we don’t want to be working with questionable sources.”
To avoid seizures and additional legal fallout, seed entrepreneurs must “get their affairs in order” before the new regulations take place, Silber said.
“Review all your stuff immediately, and categorize what you can,” Silber said. “Take inventory, document your lineage, preserve breeder records, and organize any cannabinoid or terpene information you already have. If regulations shift, you’ll be in a far better position to comprehend what may be impacted and make educated decisions.”
Does government marijuana rescheduling impact cannabis genetics?
Silber believes U.S. Drug Enforcement Administration registration may be necessary for businesses engaged in research.
But for now, seed houses can’t enroll with the DEA like state-licensed medical cannabis operators can. Such an option is not available to seed banks, nurseries or genetics businesses, said Jim Ickes, https://nativesusa.com/ (https://nativesusa.com/) an attorney and partner with Frantz Ward’s cannabis practice group in Cleveland.
“Seed-related activity may be happening inside broader state-licensed therapeutic marijuana operations, 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 creating a freestanding seed supplier registration category.”
Some genetics companies are already changing operational practices to conform with the new law. According to Ickes, they must answer questions including:
- Which of our varieties produce plants above 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 organize it against the genetics exclusion?
Ickes also understands confusion from clients who believed government rescheduling of therapeutic marijuana would clarify their story with financial institutions. However, the recent regulatory wording has moved those conversations past the basics of classification, he said.
“Banks ask whether this particular revenue source is lawful, whether it connects to state-licensed activity, or whether there’s cross-state risk,” said Ickes.
“After November, a seed bank selling drug-type genetics can’t address the first question with the hemp classification. It has to refer to a lawful state cannabis channel instead. Seed suppliers dealing in genuine industrial-hemp seed keep the cleaner story.”
What’s the future of cannabis genetics?
Campanella is a member of a emerging coalition of other breeders, growers and researchers that’s arguing seeds are more appropriately defined as agricultural inputs than controlled substances. To that end, seeds should be managed by the U.S. Department of Agriculture, leaving the DEA to focus its enforcement work elsewhere.
“How do you regulate something based on what it could become one day?” said Campanella. “Our preference is to have that language removed, or have seeds regulated by the USDA as a hemp product.”
But in the interim, Campanella is reorganizing Brothers Grimm to function outside the scope of shifting federal oversight. The company plans to maintain its Colorado seed facility while placing its Oklahoma tissue culture facility as a hedge against government prohibition of cannabis seeds.
As she explained: “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.”
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