Minnesota businesses cut back as hemp THC ban nears

(FOX 9) - Minnesota businesses are making painful changes ahead of a Dec. 11 federal ban on hemp-derived THC products.

Federal rules clash with Minnesota market

As of that date, hemp-derived THC drinks and gummies are set to become illegal at the federal level. The products will remain legal in Minnesota, but the split between state and federal rules is complicating distribution and sales.

Local perspective:

THC drinks are filling shelves and displays at Surdyk's, but the outlook is uncertain. "It's crazy how fast everything is changing," said Melissa Surdyk of Surdyk's.

Congress passed the ban in 2025 and later delayed when it would take effect. But the looming deadline is complicating business plans for farmers, manufacturers and retailers.

Why you should care:

Some of the pressure is coming from basic business services. Most banks and insurance companies cannot work with THC sales, and the point-of-sale company Square cut off transactions for businesses dealing with THC or CBD.

"You either have to go cash only, or you have to use a point-of-sale system that is set up to manage these types of products that are federally illegal," said Ryan Bandy, chief business officer at Indeed Brewing.

Minnesota companies take different paths

Businesses are not responding the same way. MinnyGrown stopped making hemp products and shifted its focus to cannabis, while Total Wine let its shelves go empty and Top Ten Liquors went all in.

What's next:

Minnesota's hemp-derived THC industry could get crushed without congressional action.

Indeed Brewing has seen sales shrink and barriers grow. "We're feeling the effects. The whole industry has already felt the effects to a large degree," said Bandy.

The company is hoping Congress undoes the ban, but Bandy said it cannot plan weeks or months ahead based on hope. "Indeed will survive, you know. There's kind of a spirit here and probably a lot of craft breweries that like you have to figure it out," said Bandy.

What we don't know:

Minnesota's hemp-derived THC market brought in $180 million in retail sales in 2025, so that gives some businesses a strong chance to survive. Exactly how much the industry will shrink after Dec. 11 is still unclear.

"We don't know what's gonna happen. And so it's hard to make a decision on what you do," said Surdyk.