Will Cannabis Seeds Be Restricted?
The redefinition of hemp under federal law, set to take place Nov. 12, spells the loss of Farm Bill safeguards for many hemp-derived THC products across the nation: low-dose beverages as well as THCA flower and delta-8 THC gummies, vapes and other products sold at gas stops and smoke shops.
But the hemp ban also creates a major complication for the legitimate cannabis industry. Seeds from cannabis cultivars that produce flower with greater than 0.3% THC are no longer legal to ship out of state.
Although seed purchases will probably continue in authorized states, the modifications threaten to close some seed banks and genetics companies, observers note, while creating supply-chain problems for cannabis cultivators and retailers.
“If this wording goes through, we will require pop-up stores to sell seeds in each state where it’s permitted,” Campanella said. “Which is why we’re also offering clones and tissue cultivation, because that’s not covered in the bill.”
When are cannabis seeds and clones prohibited to ship across state lines?
The updated regulations classify seeds depending on the THC capacity of the parent plant. Genetic substances 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 time is ticking for enterprises like Brothers Grimm and for cannabis growers who fear supply chain interruptions if out-of-state availability to genetics is prohibited.
Most of the cannabis sector remains largely unaware of the impending shutdown of the interstate genetics marketplace, said Ryan Power, co-founder of Sebastopol, California-based company Atlas Seed.
Without federal intervention in the form of a carve-out for seeds or an overall moratorium, numerous seed providers will just be shuttered come November, he added.
“We are operating legally currently, but if that changes, it will upend the legitimate licensed industry in every state,” said Power, whose clientele includes seed suppliers as well as licensed business cultivators.
“Customers are going to lose choice, and it will be a significant shutdown for most people.”
What are cannabis seed banks doing to stay legal after the government hemp ban?
Sagui Silber has previously recalibrated Silberhaze Genetics, his Ohio genetics business, because of state Senate Bill 56, which strengthened cannabis oversight in that state while also restricting hemp-derived THC products to licensed cannabis retailers.
Formerly a seed bank, Silberhaze is now focused on the branding, preservation and IP protection of elite plant genetics.
That’s because seed businesses hoping to remain compliant in this new environment must have solid documentation, he said.
“You have to prove where this material comes from, so it’s very important to have documentation, even to the point where you have breeder names,” Silber said.
“Small businesses will have to work with better records and a stronger chain of possession,” he added. “We need that documentation too, because we don’t want to be working with questionable sources.”
To prevent seizures and additional legal fallout, seed entrepreneurs must “get their ducks in a row” before the updated regulations take effect, Silber said.
“Review all your stuff immediately, and categorize what you can,” Silber said. “Take stock, document your heritage, preserve cultivator records, and organize any cannabinoid or terpene information you currently have. If regulations shift, you’ll be in a far better position to comprehend what may be impacted and make informed decisions.”
Does government marijuana rescheduling affect cannabis genetics?
Silber believes U.S. Drug Enforcement Administration licensing may be required for businesses engaged in research.
But for now, https://nativesusa.com/ (https://nativesusa.com/) seed companies can’t register with the DEA like state-licensed medical cannabis businesses can. Such an option is unavailable to seed banks, nurseries or genetics businesses, said Jim Ickes, an attorney and partner with Frantz Ward’s cannabis law group in Cleveland.
“Seed-related activity may be happening inside broader state-licensed medical marijuana businesses, as some states allow dispensaries or registered medical operators to offer seeds, clones or home-cultivation materials,” he said.
“But that is different from the DEA establishing a freestanding seed supplier registration category.”
Some genetics operators are currently changing operational practices to conform with the updated law. According to Ickes, they must address questions including:
- Which of our varieties 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 sort it against the genetics exclusion?
Ickes also understands confusion from clients who believed government rescheduling of therapeutic marijuana would resolve their situation with financial institutions. However, the latest regulatory wording has shifted those conversations past the basics of classification, he said.
“Financial institutions ask whether this specific revenue source is legal, whether it ties to state-licensed activity, or whether there’s cross-state 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 suppliers dealing in genuine industrial-hemp seed maintain the simpler story.”
What’s the outlook of cannabis genetics?
Campanella is part of a emerging coalition of other breeders, growers and researchers that’s saying seeds are more appropriately 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 regulate something based on what it might become one day?” said Campanella. “Our choice is to have that language removed, or have seeds regulated by the USDA as a hemp product.”
But in the meantime, Campanella is reorganizing Brothers Grimm to operate outside the scope of shifting federal oversight. The company plans to keep its Colorado seed facility while placing its Oklahoma tissue culture facility as a hedge against government prohibition of cannabis seeds.
As she noted: “If things develop in a way where we can’t concentrate on interstate shipping, we’ll have additional resources to satisfy people’s needs without putting ourselves in trouble.”