Business Losses
Video by Ned Newton
‘The state took away all our growth plans
Jason Amatucci, president of the Virginia Hemp Coalition, said the hemp industry had been booming. In February 2023, Whitney Economics, a pro-cannabis group, said in a report that the sale of hemp-derived cannabinoids in Virginia was $562 million.
That all changed with Republican Gov. Glenn Youngkin’s election in 2021 and the passage of the hemp law in 2023, he said.
Amatucci said shops still operating in Virginia are struggling to survive.
The authors reached out to the Virginia Cannabis Association to distribute a short survey to its network of hemp retailers. Eleven retailers responded to the survey. Of the 11, nine said that their sales had decreased, and they blamed the 2023 law. Reported losses ranged from 30% to 90% of sales.
Lane, operations manager of NOVA Hemp, said his Virginia store’s quarterly sales dropped from $125,000 last year to $55,000 in the same period in 2024.
“The state took away all our growth plans,” he said.
Lane said he shifted most of his product manufacturing to Maryland.
Biddle, owner of District Hemp, said the 2023 restrictions caused a 50% decrease in revenue at her Leesburg store, forcing her to lay off four employees.
Wall, owner of Buffalo Hemp, said he had to spend $100,000 to replace products that violated the law.
The number of hemp growers and processors, which manufacture hemp products, is also declining.
In July 2022, there were 253 registered hemp growers and 203 processors in Virginia, according to Michael Wallace, VDACS’ head of communications. As of May 5, 2024, there are 146 growers and 100 processors.
Franny’s Farmacy and NOVA Hemp are pursuing a federal lawsuit against Virginia because they say it is unfairly restricting their businesses and usurping federal power to regulate interstate commerce.
Specifically, Franny’s and NOVA Hemp argue that the 2023 law illegally prohibits Virginia growers from selling industrial hemp to anyone who plans to use it to create a product that violates the state’s “total THC” rules. They say Virginia is overreaching by telling out-of-state manufacturers what they can and cannot make with hemp.
How the 2023 law affects medical patients
Some customers use hemp products to manage pain. But Virginia’s 2023 law has caused some of them to lose access to solutions that provide relief.
Beth Biermann, a 39-year-old breast cancer survivor from Chesapeake, said she used a high-THC liquid to manage nausea and anxiety while going through the worst phase of her treatment. The product contains 1,200 milligrams of THC. It appears to violate Virginia’s 2023 hemp restrictions.
Biermann said the manufacturer stopped making the product.
She said she wouldn’t be able to purchase another bottle if the cancer came back. “It would suck big time, that’s for sure” she said.
Hemp retailers also said that customers are losing access to medicinal products.
District Hemp in northern Virginia can no longer sell some non-intoxicating hemp products because they are now legally considered marijuana under the state’s law. Products intended solely for pain relief may still contain THC.
“A lot of people lost access to what they consider medication,” said Barbara Biddle, District Hemp’s owner.
Denise Foster, who owns Hemp Haven, a wellness store in Chesapeake, said her elderly customers were in tears because they couldn’t access products they’d been using.
“I had a few older ladies come in and cry because that was their go-to for either pain relief or to help them with sleep,” she said.
Customers who use hemp products to manage pain are also part of a legal challenge to Virginia’s hemp restrictions. Rose Lane, who has arthritis, is a plaintiff in the federal lawsuit filed against Virginia shortly after the law went into effect last year. She alleges that the law made it impossible to access hemp products that she uses to relieve her pain.
In the lawsuit, she said she worries that she may face criminal penalties for possessing and using delta-8 THC products.
Pure Shenandoah in Elkton sells CBD products that its owner said help with pain and anxiety. Photo by Shauna Muckle