Fixing the hemp loophole

Summary

Marketplace Morning Report: “Fixing the Hemp Loophole”

Date: November 13, 2025
Host: David Brancaccio
Main Story Reporter: Nancy Marshall Genzer

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Episode Overview

This episode opens with immediate business and economic headlines before focusing on a significant policy change: new federal restrictions on hemp products, aimed at closing a loophole that previously permitted the sale of intoxicating hemp derivatives nationwide. The story details reactions from industry insiders and policy advocates, followed by economic analysis and grassroots efforts around austerity and wealth inequality. The episode is fast-paced and informative, providing context, expert voices, and direct insights on contemporary business and regulatory issues.

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Key Discussion Points & Insights

1. Federal Government Reopens – and Tighter Hemp Rules Arrive

[00:58–03:03]

• Federal Legislation: Besides restarting the government, the new farm bill also introduces tighter regulations on hemp, specifically targeting intoxicating hemp derivatives that were being sold under a legal loophole.
• The Loophole: Previously, hemp products with low THC could be sold freely—even those with psychoactive effects.
• Tighter THC Limits: The farm bill enforces stricter THC content limits, which hemp industry representatives argue are "absurdly low."
• Industry Impact:
  • Jim Higdon (Cornbread Hemp, Louisville, KY): Highlights immediate impact on CBD products for adults, which will become illegal under the new rules.

    • “So CBD products that people that adults are taking for pain, anxiety and sleep issues will become illegal.” (Jim Higdon, [01:49])

  • Higdon also voices willingness for age restrictions but criticizes the new limits as overreaching:

    • “We needed guardrails and what they gave us was a death sentence.” (Jim Higdon, [02:13])

• Policy Justification:
  • Backers claim the loophole enabled the widespread sale of intoxicating hemp products to teens, often with little to no federal age regulations.
• Advocates’ Perspective:
  • Chanel Lindsay (Parabola Center): Argues the hemp sector exploited a loophole to ignore state cannabis regulations, calling for unified national standards.

    • “It’s improper to have two separate systems where people are, you know, one group is subject to regulations, oversight, regulatory oversight, and the other is not.” (Chanel Lindsay, [02:35])

  • Lindsay suggests that hemp and cannabis sellers should unify and push for a single national policy.
• Implementation Timeline: New regulations have a grace period and will come into effect in November 2026.

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2. Market & Business Headlines

[03:03–04:09]

• Air Travel: Despite the government reopening, DOT cancels 6% of flights at 40 airports; about 1,000 cancellations, with high numbers in Chicago and Newark.
• Corporate Earnings: Disney reports better-than-expected profits from streaming and theme parks but sees stock drop in pre-market trading. Company increases shareholder dividends.
• Currency Update: The U.S. mints the last one-cent coin, as pennies get phased out due to cost concerns.
• Retail: McDonald’s and other chains train staff for rounding transactions due to the penny’s discontinuation.

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3. Economic Pulse: On Austerity, Inequality, and Grassroots Organizing

[05:57–09:37]

• Guest: Clara Matei, Economics Professor (University of Tulsa), President of Forum for Real Economic Emancipation (FREE)
• Core Topic: The realities and rhetoric of austerity in the U.S.
• Matei’s Take on Austerity:

  • “Austerity is… the fact that the poor are getting poorer because governments and state institutions are shifting resources away from working class people.” (Clara Matei, [06:29])

  • States it’s not about budgeting but about resource redistribution favoring the wealthy.
• Modern Policy Paradox:
  • While stimulus and tax cuts are advertised, Matei argues most benefits go to those living off capital rather than wages:

    • “…those who live off of dividends, rent and interest pay far less taxes than those who are actually living off of a wage.” ([07:23])

• On Government Aid:
  • Matei claims government payments (like COVID money) can actually empower workers to organize and resist exploitative work.

    • “[Stimulus] may empower people to a degree by which they might not want to participate in wage labor and exploitation.” ([07:57])

• Grassroots Economic Innovation in Tulsa:
  • FREE hosts monthly meetings exploring alternative systems, focusing next on food sovereignty—who controls the food and how to reduce market dependence.

  • “Hopefully start a pilot program to say let’s see if we can actually break from market dependence and pressure… in favor of need, not of profit.” ([08:47])

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Notable Quotes

• Jim Higdon (Cornbread Hemp):
  “So CBD products that people that adults are taking for pain, anxiety and sleep issues will become illegal.” [01:49] <br> “We needed guardrails and what they gave us was a death sentence.” [02:13]

• Chanel Lindsay (Parabola Center):
  “It’s improper to have two separate systems where people are, you know, one group is subject to regulations, oversight, regulatory oversight, and the other is not.” [02:35]

• Clara Matei (University of Tulsa):
  “Austerity is… the fact that the poor are getting poorer because governments and state institutions are shifting resources away from working class people.” [06:29] <br> “…those who live off of dividends, rent and interest pay far less taxes than those who are actually living off of a wage.” [07:23] <br> “[Stimulus] may empower people to a degree by which they might not want to participate in wage labor and exploitation.” [07:57] <br> “Let’s see if we can actually break from market dependence and… switch the logic once more in favor of need, not of profit.” [08:47]

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Timeline of Important Segments

• 00:58–03:03: Hemp loophole closure explained; industry and policy advocate responses.
• 03:03–04:09: Quick business headlines (flights, Disney, pennies, retail).
• 05:57–09:37: The Marketplace Economic Pulse – in-depth interview with Clara Matei on austerity, U.S. economic policy, and grassroots movements.

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Tone & Style

Marketplace’s tone is brisk, informative, and balanced between advocacy voices and business updates. The episode features frank criticism of policy decisions, but also pragmatic calls for policy unity and grassroots action.

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Further Listening

The episode previews the next “How We Survive” podcast series on climate change and food security, emphasizing the interconnected challenges facing the U.S. economy and society.

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For anyone who missed the episode, this summary covers the critical regulatory changes in hemp law, the debate between industry and advocacy, fresh economic analysis, and thoughts on how policies shape everyday Americans’ lives.

Transcript

[A]

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[C]

The Government reopens with some surprise extras. I'm David Brancaccio in Los Angeles. More now on the federal government reopening last night. There is a lot more in that legislation than turning the government back on, for instance, how hemp is regulated. It was tucked into the new farm bill, which was also approved last night. Among hemp's derivatives, textiles and rope and mind altering substances. Marketplace's Nancy Marshall Genser has more.

[D]

The new farm bill fixes a loophole which allowed intoxicating hemp products to be sold nationwide as long as they contained a fairly limited amount of the psychoactive compound thc. Jim Higdon is co founder of Cornbread Hemp in Louisville, Kentucky. The farm bill puts even stricter THC limits on hemp products, which Higdon says are absurdly low.

[A]

So CBD products that people that adults are taking for pain, anxiety and sleep issues will become illegal.

[D]

Backers of the new farm bill say convenience stores and gas stations were selling intoxicating hemp drinks and vaping products to teens. There are no federal age limits, although some states restrict sales to adults. Higdon says he's fine with a nationwide age requirement, but we needed guardrails and.

[C]

What they gave us was a death sentence.

[D]

Higdon says if he registered as a state dispensary, he couldn't sell nationwide. That argument doesn't get much support from Chanel Lindsay. She's with the Parabola Center, a think tank of cannabis advocates. She says the hemp industry was taking advantage of a loophole that allowed it to bypass state cannabis laws. It's improper to have two separate systems where people are, you know, one group is subject to regulations, oversight, regulatory oversight, and the other is not. She says the new rules for hemp products won't go into effect until November of next year. Jim Higdon of Cornbread Hemp plans to lobby for changes, but Chanel Lindsay says hemp and cannabis sellers should just band together and push for one national policy for everyone. I'm Nancy Marshall Genser for Marketplace.

[C]

Even with the government formally reopened, a lot of flights are still being canceled, with the Transportation Department ordering 6% flights to be canceled at 40 airports again today. There are just under a thousand cancellations so far this morning in U.S. airspace, 3% at Chicago, 5% at Newark. The Walt Disney Company just said it made more profit than expected last quarter, especially from streaming and theme parks. It's increasing its payments back to shareholders dividends. Disney Stock is down 2 and a quarter percent in pre market trading. S&P futures are down 2. 10% and the pennies you have are still good, but the last $0.01 coin ever was stamped and embossed yesterday in Philadelphia. Pen too expensive, the Trump administration found. McDonald's is among chains giving workers refreshers on how to round cash purchases and expect more exact change signs in your life.

[E]

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[F]

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[C]

Time to take the marketplace Economic Pulse Views from a range of perspectives we talked to Wall street economists, but today an economist working at the grassroots to address inequality. Clara Matei is a professor of economics at the University of Tulsa. She's also president of a new grassroots organization in Oklahoma called the Forum for Real Economic Emancipation or free, which tries to reimagine economic and social institutions. Her book from 2022 is about austerity and authoritarianism. In her view, it is austerity.

[G]

Now, austerity is a word that is not used a lot, but it really cuts to the bone of what is happening in our economic system, which is the fact that the poor are getting poorer because governments and state institutions are shifting resources away from working class people. And it's not about balancing the budget. It's not about act acting virtuously to live within our means. It's really about the fact that working people constantly lose because all of their services are taken away from them while the few benefit.

[C]

But at a superficial level, I mean, it seems odd to be talking austerity at a time that we're supposed to soon see the stimulus effects of the big budget bill that provided the tax cut coming out of the summer. Are those austere times when this is going to end up in the pockets of some Americans?

[G]

I think the issue here is that our current administration is very good at publicizing what seems to be actually in favor of people, while deep down what is happening is that those who live off of dividends, rent and interest pay far less taxes than those who are actually living off of a wage.

[C]

I mean, President Trump the other day was talking about sending $2,000 tariff dividends out to people, and there seems to be a sense in the administration of getting some money out to people. That doesn't sound all that austere.

[G]

This is a conversation Trump has to put out there to avoid losing completely its base, a base that is clearly struggling economically like never before. You know, 77% of American workers are in trouble if their paycheck is delayed by one week, if people did get a lot in their paychecks, like the COVID money we know were enough to get people kind of empowered a little. They resigned. They were unionizing. So social resources may empower people to a degree by which they might not want to participate in wage labor and exploitation.

[C]

Give us a sense of this newish grassroots organization that you're part of, the Forum for Real Economic Emancipation. It's early days. Are you, like, listening to the grassroots now, or are you emerging with a kind of plan of action yet?

[G]

You know, I'm here in Tulsa, Oklahoma. People in this city that really represent the hardship, right, Feel the thirst for knowledge that is actually critical. So what the free does is provide a space for dialogue through council meetings and also public events. And we're doing one a month. Our next one is going to be on food sovereignty. So who controls the food, I think is more than ever a timely question and hopefully start a pilot program to say let's see if we can actually break from market dependence and pressure, potentially also the local institutions to switch the logic once more in favor of need, not of profit.

[C]

Carla Matei is president of this grassroots organization called the Forum for Real Economic Emancipation. She's also a professor of economics at the University of Tulsa. Thank you very much.

[G]

It was wonderful talking to you, David, as always. Thank you.

[C]

Taking the Marketplace Economic Pulse views on the economy from a wide range of perspectives. In Los Angeles, I'm David Brancaccio with the Marketplace Morning report from apm American Public Media.

[H]

Imagine a future where chocolate and coffee are rare and expensive, where cheap nutritional staples like corn and wheat are threatened. Sounds unpleasant, doesn't it? Well, we could be heading there if we don't recognize that the climate crisis is also a food crisis.

[C]

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[H]

I'm Amy Scott. This season on How We Survive. We investigate how the climate crisis is threatening our most vital food systems and how scientists are racing to develop alternatives that will shape the future of food. Listen to this season of How We Survive on your favorite podcast. Apparently.