US: Kentucky Farmed co-founder slams proposed hemp regulations

Michael Adair, Co-Founder of Kentucky Farmed, a licensed hemp grower in the state of Kentucky, and a dedicated board member of the Kentucky Hemp Association, has publicly expressed his strong opposition to Senate Bill 202 (SB202), calling it a dangerous and counterproductive measure for the hemp industry in Kentucky.

Adair emphasized that SB202's regulatory approach does not align with the needs and realities of Kentucky's hemp farmers. The hemp industry, still in its early stages of recovery, is facing significant challenges, and SB202 is poised to exacerbate these challenges by imposing restrictive and unbalanced regulations without first reaching a clear, fair deal between hemp farmers and the state.

"I oppose SB202 because it represents a step backward for the Kentucky hemp industry, which has not yet reached a fair and effective agreement with state regulators," said Michael Adair. "This bill fails to provide the clarity and stability our farmers need to thrive, and instead, it introduces unnecessary obstacles that could severely damage the industry and harm our farmers' livelihoods."

Adair also expressed concern about the bill's potential to disrupt the distribution system. SB202 introduces a three-tier distribution model, which could cause serious problems for Kentucky's hemp farmers by reducing access to customers. By restricting sales to only wet counties, the bill would shrink the customer base and limit the number of retail outlets where hemp products can be sold. This would ultimately hurt the hemp farmers, who rely on broad distribution channels to maintain sales volume.

"The three-tier distribution system might work for alcohol, but it is ill-suited for hemp products. Removing hemp sales from non-wet counties will create artificial barriers that limit consumer access, ultimately shrinking the hemp market," Adair continued. "If this model is adopted, other states will likely follow suit, causing the sales of hemp products to shrink across the country. The more limited the distribution, the fewer outlets will exist to sell the products, which in turn impacts the livelihoods of Kentucky's hemp farmers."

Adair also reminded lawmakers that Kentucky's hemp industry has already faced significant setbacks in recent years. In 2019 and 2020, the market became oversaturated, leading to financial difficulties for many hemp farmers. As a result, numerous farmers had to exit the market, and the industry was left struggling to regain its footing. Additionally, Kentucky's hemp farmers were overlooked during the Kentucky Medical Cannabis Program, further reducing their market opportunities. Now, with the hemp industry slowly beginning to recover, SB202 threatens to deliver yet another blow to the state's hemp farmers.

"Kentucky's hemp farmers have been through enough. They endured an oversaturated market, were overlooked during the medical cannabis rollout, and now face this latest threat from SB202," Adair said. "We are just starting to see signs of recovery, and the last thing we need is more restrictive legislation that stifles growth and limits opportunities for Kentucky farmers."

Adair stressed that what Kentucky's hemp industry needs is collaborative, forward-thinking regulation that supports both growth and innovation. Rather than implementing policies that limit access and increase barriers to entry, Adair believes the state should be fostering an environment where hemp farmers can thrive.

"I will continue to fight for Kentucky's hemp farmers, and I urge lawmakers to reconsider SB202 before it does irreversible harm to an industry that holds so much promise for our state," Adair concluded.