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Feds Warn Retailers That Accepting Welfare Benefits For Marijuana Or CBD Could Result In ‘Criminal Prosecution’

Published
8 hours agoon

The U.S. Department of Agriculture (USDA) is reminding all retailers that accept federal welfare benefits that they’re prohibited from selling products containing cannabis to people using Supplemental Nutrition Assistance Program (SNAP) funds—and that violating the rule could lead to penalties that include possible “criminal prosecution.”
In a letter to the more than 250,000 retailers participating in SNAP, USDA Food and Nutrition Service (FNS) Administrator James Miller said on Thursday the department is “committed to fighting waste, fraud, and abuse,” which includes “taking swift action to eliminate fraud occurring in the SNAP retailer community and rooting out fraudsters who take advantage of the taxpayer’s generosity.”
“Your participation as a SNAP authorized retailer serves an important purpose. Retailers connect American families to nutritious food each day,” Miller said. “More than 41 million low-income people redeem their SNAP benefits at stores nationwide each month. SNAP is funded by American taxpayers and must be operated with integrity and accountability. All participating retailers must follow the SNAP rules to protect taxpayer dollars.”
To that end, he wrote, the letter “serves as a reminder that it is a program violation to accept SNAP benefits for foods and drinks containing controlled substances such as cannabis/marijuana.”
“USDA FNS is actively fighting fraud and preserving taxpayer dollars,” it says. “Retailers who commit program violations will face consequences which include disqualification from the ability to accept SNAP benefits, monetary penalties, fines and/or criminal prosecution.”
It’s not clear why USDA felt the update on rules around cannabis was necessary, but it also comes amid a series of changes to the department’s FAQ page that similarly reiterates the policy. In the past week, the FAQ’s cannabis language was added and revised at least three times.
As originally updated, it said SNAP benefits can’t go to cannabis-related or CBD food and drink products. Then it was changed to list marijuana and cannabis, without mentioning CBD. Now, in the latest update posted on Wednesday, it says that “food and drinks containing controlled substances such as cannabis/marijuana and CBD” are ineligible.
In any case, the FAQ language doesn’t necessarily represent a policy change, as USDA first issued guidance in 2020 stipulating that while people can use SNAP benefits for certain foods containing “hulled hemp seed, hemp seed protein powder, and hemp seed oil,” they cannot buy “hemp plants, leaves, and shoots.”
USDA further clarified at the time that foods “containing cannabis-derived products, such as CBD, and any other controlled substances, are not eligible to be purchased with SNAP benefits,” similar to what’s articulated in the latest update to the FAQ. The same language was maintained in another update last year.
The letter and FAQ update comes at a time when many in the cannabis space are closely watching for signals about how the administration will navigate marijuana and hemp issues during President Donald Trump’s second term.
In his first term, Trump signed the 2018 Farm Bill that federally legalized hemp, creating an industry that has since experienced significant volatility amid concerns about the resulting proliferation of a largely unregulated market for intoxicating cannabinoid products.
But despite signing that legislation into law—and later endorsing marijuana rescheduling and industry banking access on the 2024 campaign trail—the president hasn’t publicly commented on cannabis policy issues since taking office in January.
Meanwhile, a pair of GOP-led congressional bills filed last month would prevent people from using federal financial assistance under the Temporary Assistance for Needy Families (TANF) program at cannabis dispensaries.
Back at USDA, the agency recently released a noticed that it is terminating a series of trade advisory committees to comply with an executive order Trump signed in February that’s meant to reduce the size of the federal government across multiple agencies. One of those committees that had been expanded to include hemp industry representatives to promote the crop internationally.
Separately, a report released by USDA in April found that, even as more states and some congressional lawmakers pursued bans on consumable hemp products, the industry saw significant growth in 2024.
The National Hemp Report, which USDA conducts annually to assess the economic health of the market, showed that hemp farmers cultivated 45,294 acres of the crop last year, up 64 percent from 2023. And the industry’s value jumped about 40 percent, increasing to $445 million.
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As the fate of the consumable hemp market remains murky amid legislative pushback, a congressional committee held a hearing on the Food and Drug Administration (FDA) last month—with a hemp industry expert explaining how the market is “begging” for federal regulations around cannabis products.
Lawmakers have consistently raised concerns about FDA’s refusal to establish rules allowing for the marketing of federally legal hemp as a food item or dietary supplement.
One potential legislative solution that U.S. Hemp Roundtable’s Jonathan Miller noted to the committee is a bipartisan bill Sen. Ron Wyden (D-OR) filed last year that would create a federal regulatory framework for hemp-derived cannabinoids.
The legislation would empower states to set their own rules for products such as CBD while also empowering FDA to ensure that certain safety standards are met in the marketplace.
In the absence of FDA rules, states from California to Florida to Texas have pushed for sweeping changes to their own laws around consumable hemp products. While much of the focus has been on intoxicating products, federally legal CBD businesses have also found themselves increasingly in the crosshairs.
On Thursday, a GOP-led House committee has approved a spending bill containing provisions that hemp stakeholders say would devastate the industry, prohibiting most consumable cannabinoid products that were federally legalized during the first Trump administration.
Meanwhile, as lawmakers prepare to once again take up large-scale agriculture legislation this session, congressional researchers in January provided an overview of the policy landscape around hemp—emphasizing the divides around various cannabis-related proposals among legislators, stakeholders and advocates.
Senate Democrats released the long-awaited draft of 2024 Farm Bill last year that contained several proposed changes to federal hemp laws—including provisions to amend how the legal limit of THC is measured and reducing regulatory barriers for farmers who grow the crop for grain or fiber. But certain stakeholders had expressed concern that part of the intent of the legislation was to “eliminate a whole range of products” that are now sold in the market.
Photo courtesy of Brian Shamblen.

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.
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South Carolina Farmers, Once Hopeful About Hemp’s Economic Potential, Are Turning Away From The Crop

Published
58 seconds agoon
June 9, 2025
“There was an oversupply of the market, and the prices collapsed.”
By Shaun Chornobroff, South Carolina Daily Gazette
Thomas Garrison, a multi-generation farmer in Anderson County, said he believed the hype around hemp.
Garrison, who’s farmed in Pendelton since graduating from Clemson in 1980, was among the group who pushed for a 2017 law that allowed farmers in the state to grow hemp, a plant that’s the same species as marijuana but lacks the THC that gets people high.
Despite being one of the state’s hemp pioneers, he abandoned the crop after just two seasons. He didn’t even seek a permit in 2020. Garrison told the SC Daily Gazette his venture into hemp was probably the worst in his 45 years as a farmer.
It’s a risk that Garrison estimates cost him more than $100,000 in unused crops, equipment and time spent, said the 67-year-old son of the late state Sen. T. Ed Garrison, namesake of the livestock arena at Clemson. He declined to specify how much he lost.
“It was not a very good experience,” he said.
Hemp was supposed to be the next moneymaker for South Carolina farmers. And once they were able, the farmhands flocked to the opportunity.
Many suffered similar fates to Garrison.
Farmers and lawmakers described the hemp industry as an unregulated battle for survival, where supply ultimately outweighed the demand, causing many to ditch the crop altogether.
“It was like the Wild West,” Garrison recently told the SC Daily Gazette.
From 20 to 265
After the 2017 law passed, 20 farmers received a permit to grow hemp on a maximum 20 acres each in the state’s pilot program. More than 100 applicants were denied. Among the 20 were Danny Ford, Clemson’s first national championship football coach, and former state Rep. Chip Limehouse (R).
The pilot program created by the 2017 law allowed a doubling in 2019 to 40 permits farming 40 acres each.
But in the wake of the 2018 federal Farm Bill that legalized the crop nationwide, the Legislature passed another law in March 2019 that deleted the constraints and allowed the state Department of Agriculture to issue licenses to any farmer who met the legal criteria.
The agency ended up giving 161 permits for the 2019 crop. For 2020, the number rocketed to 265.
But this year, the number of farmers with permits is down to 80.
It’s unclear how many of those 80 farmers actually grow hemp. Some of the farmers go through the process to get licensed, which costs about $600 and involves a background check. But they aren’t planting hemp. They’re just keeping their options open.
Among the factors that could have affected a desire to grow the crop was the 2019 arrest of Lowcountry farmer John Trenton Pendarvis.
Law enforcement claimed his 10 acres of hemp in Harleyville were unregistered and mowed it down the same day.
Pendarvis, the first person charged with violating the state’s hemp-growing law, filed a lawsuit against the State Law Enforcement Division (SLED), including SLED Chief Mark Keel in his official capacity, Attorney General Alan Wilson and others.
The suit led to SLED being forced to pay more than $11,000 in attorney fees to Pendarvis in 2023 for its handling of the lawsuit’s discovery process. A SLED spokesperson declined the allegations at the time.
The mess could have deterred farmers who were worried about being targeted, said state Sen. Brad Hutto, Pendarvis’ lawyer.
“I think it definitely had a chilling effect,” Hutto (D-Orangeburg) told the SC Daily Gazette. “They put a farmer in jail when he was growing a legal crop.”
The case is ongoing. Hutto doesn’t expect a resolution until at least late summer.
When South Carolina first permitted farmers to grow hemp, lawmakers and farmers thought they were getting in on the next big cash crop.
Most farmers have a primary crop that they make money on. Hemp was supposed to provide a year-round option to grow for lots of different uses, including clothing, food, textiles and even paper.
Encouraging its growth was supposed to allow farmers to continue profiting at times when their main crop could not grow, said House Majority Leader Davey Hiott, who chaired the House agriculture committee when the hemp laws passed.
“It was supposed to help them make a little bit of money,” said the Pickens Republican.
A decade ago, Hiott was eager to see farmers capitalize on the industrial use of hemp, such as clothing. In 2017, Pickens County was home to 740 farms, according to the U.S. Department of Agriculture,
“It started that way. It didn’t end that way,” Hiott said.
David Dewitt, an agronomist at Clemson University said, “what people really want to do is alter their state of mind.”
CBD problems
In 2014, the Legislature passed a law legalizing the sale of CBD, or cannabidiol, a hemp-derived, non-psychoactive oil used for various ailments. But that state law was very limited, authorizing it only for patients diagnosed with severe epilepsy.
After the 2018 federal law broadened what was legal, farmers saw an opportunity. And the large majority of hemp growers in the state wanted in.
And that’s when problems started, farmers told the Gazette.
James Fairey, a 50-year-old from Williamston, started growing hemp in 2020, the state’s peak for permits.
Even after others bowed out of the industry, he continued to grow. After four years of losing money, he finally turned a profit on the crop in 2024. He credits a gradually growing customer base and a willingness to learn along the way for reversing his fortunes.
The biggest difference between him and most growers, he said, is he started growing hemp because he believes in the ailment-relieving health benefits of CBD. The money was secondary.
“The only currencies that matter are health and kindness, and that’s what I provide,” Fairey said.
When hemp growers first started growing, the biomass material used for CBD could be sold for up to $60 a pound, DeWitt said. A couple of years later, farmers were offered as little as $5 per pound.
“Nobody wants to grow something they can’t sell,” DeWitt said.
If the market changes, licensed farmers who are sitting on the sidelines may jump back in.
“Some of them have planted very little, but there’s no penalty for not planting it,” Dewitt said.
Other early hemp growers included Cannalina Hemp Company, formerly known as Charleston Hemp Company.
The company started in 2018 and grew its own hemp, while operating a storefront.
In 2020, the decision was made to stop growing the crop.
“There was an oversupply of the market, and the prices collapsed,” said Lina Wu, the company’s owner.
However, there was still money to be made in selling the CBD gummies, oils, vapes, lotions and other edibles.
The Cannalina Hemp Company’s Goose Creek retail location is open and operating. It has a loyal customer base, buys from numerous South Carolina hemp growers and prides itself on carrying quality products at an affordable price, according to its Facebook profile.
However, there are “a lot cheaper products out there, especially in gas stations,” Wu said.
When asked if the business would ever return to growing its own hemp, Wu said now is not the time.
“There’s too many growers on the market,” she said.
Kurt Brower, the co-owner of Carolina Botanicals, echoed a similar sentiment after losing about $200,000 in his venture. Though the company maintains a hemp license, it doesn’t make economic sense to grow hemp right now, he said.
Brower now focuses on processing biomass for farmers into products they can sell, as well as selling their own products.
The 27-year-old said he previously bought hemp exclusively from South Carolina farmers, but as the number of producers has dropped, he’s had to start buying from farmers in neighboring Georgia and North Carolina.
“There’s no outlet of sale on the hemp side” for farmers, he said. “It put a chokehold” on growers.
What’s next
Hiott, the House majority leader, said hemp is no longer on his radar.
Eva Moore, a spokesperson with the state Department of Agriculture, said recruitment isn’t a problem, farmers are often intrigued by growing hemp. But a shift from CBD to growing hemp for fiber or grain would open up new economic opportunities.
Moore said she’s heard reports that processors are still sitting on hemp they bought in 2022.
“The market has not been great for farmers,” Moore said. “Whether you’re growing cotton, peaches or hemp, you have to be able to make a living doing it.”
This story was first published by South Carolina Daily Gazette.
Photo courtesy of Chris Wallis // Side Pocket Images.

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.
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Marijuana Users Are Nearly 5 Times As Likely To Regularly Exercise Than Eat Fast Food, Stereotype-Busting Survey Shows

Published
1 hour agoon
June 9, 2025
Marijuana consumers are more than three times more likely to regularly exercise than drink alcohol—and they’re nearly five times more likely to routinely work out than eat fast food—according to another stereotype-defying survey.
The poll from the cannabis telehealth platform NuggMD looked at the habits of cannabis users, who were asked about the frequency they engage in seven different activities—from alcohol consumption to movie theater attendance.
One of the takeaways was that marijuana consumers reported regularly engaging in exercise (27.4 percent daily and 34.9 percent multiple times per week) significantly more often than using alcohol (6.1 percent daily and 11.3 percent multiple times per week).
Another finding from the survey was that cannabis consumers are 4.8 times more likely to regularly exercise than to eat fast food (1.5 percent daily and 11.5 percent multiple times per week).
“This finding is yet more evidence that today’s cannabis consumers defy the prohibitionist stereotype of layabouts munching Doritos and then crossfading with booze to get their fix,” Andrew Graham, head of communications at NuggMD, told Marijuana Moment.
“The data shows that cannabis consumers self-report several healthy lifestyle habits. When compared with federal data on exercise and fast food consumption, our poll shows that cannabis consumers are in fact more likely to exercise and less likely to eat fast food than the average U.S. adult,” he said. “Previous polling we’ve done shows cannabis has a distinct replacement effect on alcohol use, and this poll charts a similar direction.”
“For millions of wellness-focused Americans, cannabis is simply part of the routine. It’s kind of mind-blowing how wrong the prohibitionist crowd is about everything,” Graham said.
Several other studies have similarly found that cannabis users exercise at average or above-average levels compared to non-users, bucking the long-held stigma that marijuana makes people lazy. This is one of the latest data points to show the same.
Notably, the new poll also found that relatively few marijuana consumers frequently use food delivery services, with just 3.3 percent reporting that they order delivery daily and 8.3 percent saying they use such services multiple times a week.

Via NuggMD.
In contrast, 69.5 percent of respondents said they drink coffee regularly. Only 4.5 percent said they often visit movie theaters. And 64.8 percent said they routinely take nutritional supplements.
The survey from NuggMD involved interviews with 603 cannabis consumers, with a +/- 4 percentage point margin of error.
Meanwhile, last year a study found that marijuana consumption prior to exercise can lead to greater enjoyment and an enhanced “runner’s high.”
Another study published in 2023 surveyed 49 runners and found that participants experienced “less negative affect, greater feelings of positive affect, tranquility, enjoyment, and dissociation, and more runner’s high symptoms during their cannabis (vs. non-cannabis) runs.” Participants did run 31 seconds slower per mile when using marijuana, but researchers said that was not statistically significant.
The positive effects of cannabis that the runners reported is consistent with the findings of a 2019 study, which found that people who use marijuana to elevate their workout tend to get a healthier amount of exercise.
Older people who consume cannabis are also more likely to engage in physical activity, according to another study that was published in 2020.
Similarly, in another stereotype-busting study that was published in 2021, researchers found that frequent marijuana consumers are actually more likely to be physically active compared to their non-using counterparts.
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Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.

Their is a new wave of behavior around drinking in public which could have a major impact on the alcohol and cannabis industry.
In bars across the country, a subtle shift is underway: younger patrons, especially Gen Z and Zillennials, are increasingly saying no thanks to opening a tab. It’s not about being antisocial—it’s about financial control, digital habits, and a shifting relationship with nightlife. The younger generation is increasingly turning away from alcohol. A portion are favoring marijuana for relaxation and socializing. Health consciousness, mental wellness, and shifting cultural norms drive this trend.
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Unlike older generations who were more comfortable running a tab and settling up at the end of the night, Gen Z and Zillennials are hyper-aware of where their money is going in real-time. Growing up in the aftermath of the 2008 financial crisis and amid rising costs of living, this generation approaches spending with caution. Mobile banking, budgeting apps, and real-time transaction alerts have made them more vigilant. Opening a bar tab? That’s an invitation to overspend.
There’s also the trust factor. Horror stories of mystery charges, lost credit cards, or bars adding gratuities without consent have circulated widely on TikTok and Reddit. Many in this demographic prefer to pay per drink or use digital wallets like Apple Pay or Venmo, minimizing risk and maximizing transparency.
Technology plays a role too. While bar tabs require handing over a physical credit card—something that feels outdated to a smartphone-native generation—Gen Z prefers the immediacy and security of tapping a phone or using a QR code. Bars that still rely on old-school POS systems may seem out of step.
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Culturally, going out doesn’t necessarily mean bingeing at a bar anymore. Many younger adults are opting for sober-curious lifestyles or limiting alcohol consumption, and when they do drink, they prefer to keep things low-key and affordable. Also, they see xannabis is seen as a safer, more mindful alternative, aligning with their preference for personalized, low-risk experiences over traditional, high-impact substances like alcohol.
For bar owners, this trend is a wake-up call. Offering easy, transparent, and tech-forward payment options—like mobile ordering and contactless checkout—can help retain Gen Z patrons. Those who resist these shifts risk alienating a generation that values financial autonomy over tradition.
The bottom line? For Gen Z and Zillennials, closing out a tab one drink at a time isn’t just practical—it’s personal.

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.

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