Hemp-derived THC beverages at Total Wine in Metairie.
Louisiana may rank last in economic growth, but since 2020, our hemp industry has grown by more than 6,600%.
For the second year in a row, Louisiana came in last in the U.S. News & World Report's rankings of Best States. Louisiana placed abysmally low in a slew of categories, including Economy (49th) and Opportunity (44th). Within the Economy category, the state's Economic Growth ranked 50th, dead last.
Rich in resources and vibrant in culture, Louisiana can and should be doing so much better. But businesses, the engines of economic growth, face an uphill battle here. Our state is not doing enough to attract investment, foster business growth, and create jobs.
In one area, though, Louisiana is indeed attracting investment and creating jobs: the hemp industry, now the state's fastest-growing industry.
Even so, the Louisiana legislature is currently weighing a ban on almost all hemp products, a ban that would decimate the industry and an important source of growth for our state.
The Slowest-Growing Economy in the United States
As a whole, Louisiana's economy is marked by sluggish growth and job creation. Louisiana's 2.2% growth rate trails the national average by 12%.
And weak growth has fostered a worrisome decline in population. Skilled workers are looking elsewhere for jobs.
Nationally, average net migration is 0.3%. Louisiana's is sub-zero at -0.6%. The state population has been declining for three years in a row.
Louisiana suffers lackluster job growth and is losing residents to other states. Bright spot: phenomenal growth in the hemp industry.
The Fastest-Growing Industry in Louisiana
Meanwhile, retail sales of hemp in the state have skyrocketed, jumping from $500,000 in 2020 to $33 million in 2023.
Thanks to the popularity of hemp beverages — an alternative to alcohol available in thousands of Louisiana bars, restaurants, and grocery stores — 2024 revenue is expected to be in the hundreds of millions.
Louisiana has one of the most robust frameworks for regulating hemp products in the country, governing an industry that now includes thousands of businesses and hundreds of thousands of adult consumers.
The state not only imposes stringent safety, ingredient, potency, packaging, and testing requirements. It is also one of the few that requires hemp products to be reviewed and approved by the state's health department. More than 2,500 hemp products have been registered with the Louisiana Department of Health. So far in 2024, more than 2,000 Louisiana businesses have received hemp retail, wholesale, or special event permits through the ATC. Thousands more are expected to apply by the end of the year.
The industry is also highly taxed. Tax revenue from hemp products was $4.1 million in 2023 and will be much greater in 2024. A significant part of these taxes goes to Louisiana's early childhood education program.
Does it make sense to end it all?
Despite all this success and revenue, lawmakers are debating whether to wipe it all out.
The Louisiana Senate has just passed a bill (SB 237) that would outlaw almost every hemp product currently on the market. Which would also mean ditching the robust regulatory framework that currently governs this market — packaging and testing standards, age restrictions, potency limits, and the ATC permit process.
Pulling these products from shelves won't stop people from buying them: whether online, from the thousands of out-of-state companies selling them, or from an unregulated black market here in Louisiana.
A Louisiana ban mostly hurts Louisiana businesses that play by Louisiana rules. Hemp products will still be federally legal. The very same hemp products will still be sold, legally, in the stores of neighboring states and most other states.
Online retailers will still be able to ship products to our state without having to get Louisiana permits or pay Louisiana taxes — and without having to face legitimate competition from within the state.
Fine for them. For Louisiana, though, the ban would be devastating. It would hurt thousands of small businesses, kill jobs, limit the choices of adult consumers, and eliminate millions in tax revenue for early childhood education.
We're running out of time.
After passing the Senate, SB 237 was referred to the House Administration of Criminal Justice Committee, where it advanced by a single vote. It will soon be voted on by the House of Representatives and could become law in just a few weeks.
If you'd like to support the hemp industry and the thousands of Louisiana businesses and workers who would be hurt by a ban, learn what you can do here. A few minutes could make the difference.
David Reich is a co-founder and the chief marketing officer of Crescent Canna, which makes Crescent 9 THC Seltzer.