The hemp industry is a thriving component of Wisconsin’s economy, from farmers to retailers. However, the industry is rapidly evolving in terms of legality. State and federal hemp regulations are always changing, and it’s important to have a reliable attorney on your side to ensure that your hemp or cannabis business is following all applicable regulations.
Since 1958, our firm has provided high levels of personalized attention and legal advice to businesses throughout Wisconsin. Contact our firm today to learn how we can help you ensure your business meets all state and federal hemp compliance standards.
Businesses Selling Hemp and Hemp-Derived Cannabinoid Products
Wisconsin is home to 470 federally licensed hemp growers. Additionally, many Wisconsin hemp businesses sell cannabinoid products, including CBD, delta-8, and delta-9 THC, such as:
- Coffee shops
- Family farms
- Smoking shops/head shops
- Novelty stores
- Gift shops
Wisconsin hemp growers are licensed by the U.S. Department of Agriculture. While retailers do not need a special license to sell hemp products, they do need a valid seller’s permit from the Wisconsin Department of Revenue.
Upcoming Federal Updates
An upcoming federal law, set to take effect in November 2026, could drastically change who is allowed to sell hemp and cannabinoid products in Wisconsin. Currently, stores can sell CBD and THC as long as it is hemp-derived and contains less than 0.3 percent delta-9 THC.
However, the 2026 U.S. Farm Bill reclassifies the definition of intoxicating hemp. This means that hemp products with a total THC concentration over .04 mg of THC per container will be banned. This much stricter limit will effectively ban many cannabinoid products and potentially lead to many job losses and a reduction in economic input.
While many hemp farmers and retailers are concerned about this change in regulation, it’s important to remember that these laws are constantly in flux. Future updates to the law could swing back the other way, and it’s important to be prepared for when that would happen.
Common Hemp-Related Business Questions
Q. Is cannabis legal in Wisconsin?
Answer: Recreational and medicinal marijuana remains illegal in Wisconsin. However, it is legal to buy and sell hemp-derived products that contain less than 0.3 percent delta-9 THC.
Q. When will the Wisconsin hemp law change?
Answer: The U.S. Farm Bill, which reclassifies the definition of intoxicating hemp, is set to take effect on November 12, 2026.
Q. What will happen to Wisconsin hemp businesses after the law?
Answer: Ending the Wisconsin hemp industry would lead to the loss of 3,500 jobs and reduce economic input by $700 million. But whether the industry ends, remains to be seen. While the federal ban is clear, Wisconsin state law independently decriminalizes hemp. If federal law prohibits hemp, yet hemp is not unlawful in Wisconsin, which law would apply? ConstitutionallyÂ-enacted federal laws preempt state action. However, the federal government has not enforced federal bans on cannabis in states where it has been legal for decades. It is therefore possible, if not likely, that some Wisconsin hemp companies may choose to operate in this grey area, especially if the Wisconsin legislature takes action to provide further protections and regulation.
Q. Do I need a special license to sell hemp?
Answer: You need a valid seller’s permit from the Wisconsin Department of Revenue, which is required of all Wisconsin retailers. A special license for hemp is not required.
How LawtonCates Supports Hemp Businesses
Since 1958, we’ve provided valuable legal support to business owners and stakeholders. Whether you’ve been in business for years or are looking to start your own, we can answer your questions and guide you through the complex processes of business incorporation and business litigation in the case of disputes.
In a field like hemp and cannabis, you want to ensure that you’re on the right side of the law to avoid steep fines and penalties. We understand how your hemp business fits into the complex state and federal regulations that govern cannabinoid products, including the upcoming change to the hemp law. If you are accused of violating these laws, we can help you understand your rights as you determine the best way to respond.
Contact Our Cannabis Business Law Attorneys for Help
With offices in Madison and Jefferson, we can assist hemp business owners throughout Wisconsin with a variety of complex legal matters.
If you’re considering entering the hemp industry, or you have questions about how the upcoming change in law will affect your business, contact us today. We provide free consultations to help you learn more about your rights and legal options. Contact us today to get started.