Will Cannabis Genetics

Will Cannabis Genetics Be Banned?
The redefinition of hemp under federal law, set to take place Nov. 12, spells the loss of Farm Bill safeguards for many hemp-derived THC products across the country: mild beverages as well as THCA flower and delta-8 THC gummies, vapes and additional products available at gas stations and smoke shops.

But the hemp ban also generates a significant complication for the legal cannabis industry. Seeds from cannabis varieties that produce flower with greater than 0.3% THC are no longer legal to ship out of state.

Although seed buying will probably continue in authorized states, the changes threaten to shutter some seed suppliers and genetics companies, observers say, while causing supply-chain issues for cannabis cultivators and retailers.

"If this language goes forward, we will require pop-up shops to offer seeds in each state where it's legal," Campanella said. "Which is why we're also offering clones and tissue cultivation, because that's not covered in the bill."
When are cannabis seeds and clones illegal to ship across state lines?
The updated regulations classify seeds based on the THC potential of the parent plant. Genetic substances such as seeds and clones are rendered illegal if the final product crosses the threshold.

For the moment, seeds are currently shipping under the 2018 Farm Bill's current quo. But the time is ticking for businesses like Brothers Grimm and for cannabis cultivators who worry about supply chain disruptions if out-of-state access to genetics is prohibited.

Most of the cannabis sector remains mostly unaware of the impending shutdown of the interstate genetics market, said Ryan Power, co-founder of Sebastopol, California-based breeder Atlas Seed.

Without federal intervention in the way of a carve-out for seeds or a general moratorium, numerous seed providers will just be shuttered by November, he added.

"We are operating legally currently, but if that changes, it will upend the legitimate licensed industry in every state," said Power, whose customers includes seed banks as well as licensed commercial cultivators.

"Customers are going to forfeit choice, and it will be a significant shutdown for most people."
What are cannabis seed suppliers doing to remain legal after the government hemp ban?
Sagui Silber has previously recalibrated Silberhaze Genetics, his Ohio genetics company, because of state Senate Bill 56, which tightened cannabis supervision in that state while also restricting hemp-derived THC products to licensed cannabis retailers.

Formerly a seed bank, Silberhaze is now focused on the marketing, preservation and IP protection of elite plant genetics.

That's because seed businesses hoping to remain compliant in this updated environment must have airtight documentation, he said.

"You have to prove where this material comes from, so it's extremely important to have records, even to the point where you have cultivator names," Silber said.

"Small businesses will have to work with improved records and a better chain of custody," he added. "We want that documentation too, because we don't want to be dealing with questionable sources."

To prevent seizures and additional legal consequences, seed entrepreneurs must "get their ducks in a row" before the new regulations take place, Silber said.

"Review all your materials immediately, and categorize what you can," Silber said. "Take stock, document your lineage, preserve breeder records, and organize any cannabinoid or terpene information you currently have. If regulations change, you'll be in a much better position to comprehend what may be affected and make educated decisions."
Does government marijuana rescheduling affect cannabis genetics?
Silber believes U.S. Drug Enforcement Administration registration may be required for companies engaged in research.

But for the time being, seed companies can't enroll with the DEA like state-licensed therapeutic cannabis operators can. Such an option is not available to seed suppliers, nurseries or genetics businesses, said Jim Ickes, an attorney and partner with Frantz Ward's cannabis law group in Cleveland.

"Genetics activity may be occurring inside larger state-licensed medical marijuana businesses, as some states permit dispensaries or registered therapeutic operators to offer seeds, clones or personal growing materials," he said.

"But that is different from the DEA establishing a freestanding seed bank registration category."

Some genetics operators are already changing business practices to conform with the new law. According to Ickes, they must answer questions including:
Which of our lines produce plants above 0.3% total THC?Which seeds remain as hemp after Nov. 12, 2026, and which don't?What does our catalog look like once we organize it against the genetics exclusion?
Ickes also understands confusion from clients who believed government rescheduling of medical marijuana would clarify their situation with financial institutions. However, the latest regulatory wording has shifted those conversations beyond the fundamentals of classification, he said.

"Financial institutions ask whether this specific revenue stream is legal, whether it ties to state-licensed activity, or whether there's cross-state risk," said Ickes.

"After November, a seed bank selling drug-type genetics can't answer the initial question with the hemp classification. It has to point to a legal state cannabis pathway instead. Seed suppliers dealing in genuine industrial-hemp seed keep the simpler story."
What's the future of cannabis genetics?
Campanella is a member of a emerging coalition of fellow breeders, growers and researchers that's arguing seeds are more appropriately defined as agricultural inputs than controlled substances. To that effect, seeds should be managed by the U.S. Department of Agriculture, https://nativesusa.com/ (nativesusa.com) leaving the DEA to concentrate its enforcement efforts elsewhere.

"How do you regulate something based on what it could become later?" said Campanella. "Our choice is to have that language removed, or get seeds regulated by the USDA as a hemp product."

But in the interim, Campanella is reorganizing Brothers Grimm to operate outside the reach of changing federal oversight. The business plans to maintain its Colorado seed operation while positioning its Oklahoma tissue culture facility as a safeguard against government prohibition of cannabis seeds.

As she noted: "If things evolve in a way where we can't focus on interstate shipping, we'll have additional resources to satisfy people's needs without getting ourselves in trouble."