Hemp vs. Marijuana: Why North Carolina is Leading the Cannabis Conversation

The legal landscape for cannabis in the United States is a patchwork of mixed regulations, creating unique opportunities and challenges for businesses, consumers, and lawmakers. North Carolina finds itself in an intriguing position: Hemp vs. Marijuana: Why North Carolina is Leading the Cannabis Conversationhile marijuana remains illegal, the state has embraced the thriving hemp industry, thanks to the federal definition of hemp established in the 2018 Farm Bill. This definition, allowing hemp products with less than 0.3% Delta-9 THC by dry weight, has provided a legal framework for hemp-derived products, including THCA flower and compliant Delta-9 gummies, to flourish.

This duality positions North Carolina as offering "the best of both worlds." Unlike states with legalized marijuana industries—often burdened by monopolistic tendencies, heavy taxation, and prohibitive entry costs—North Carolina’s relatively open market fosters small businesses like PhenomWell CBD Store. For example, starting a dispensary in many "legal" states requires significant financial resources, while medical marijuana programs often impose stringent requirements for both businesses and consumers. In contrast, North Carolina’s approach has enabled the hemp industry to thrive, benefiting farmers, manufacturers, retailers, and consumers alike.

The Current Legal Landscape

The hemp industry’s growth stems from the federal Farm Bill, which recently received a one-year extension. This temporary measure underscores the uncertainty surrounding the industry’s future. Competing definitions of hemp exist within the U.S. House, the Senate, and state legislatures, creating confusion and potential risks for businesses. Senator Rand Paul introduced a bill that would raise the THC threshold for hemp from 0.3% to 1%, a change that could provide much-needed flexibility for farmers and manufacturers. Meanwhile, a proposed amendment by Representative Mary Miller sought to dismantle the $27 billion hemp industry altogether, but it faced opposition from fellow Republican voices like Representative Nancy Mace, who argued for states’ rights in regulating hemp.
North Carolina’s own Representative John Bell, R-Wayne, has emerged as a strong advocate for the hemp industry. As CEO of Asterra Labs, a manufacturer and distributor of hemp-based products, Bell champions a safe, high-quality, and thriving hemp industry in the state. His work highlights the importance of protecting and growing this sector, which provides substantial economic benefits to North Carolina’s agricultural communities.
One promising reform involves raising the THC threshold for hemp to 1%, as it would provide farmers and manufacturers with more flexibility while maintaining consumer safety. Additionally, implementing regulations around age restrictions, packaging, and documentation could standardize the industry without stifling its growth.

Regional Disparities in THC Restrictions

The legal treatment of THC-derived products varies widely across the United States, often reflecting regional political and cultural divides. Southern states like Texas, Arkansas, Mississippi, and Louisiana maintain strict prohibitions, with recent bans on THCA flower further tightening access. On the other hand, states like South Carolina are more permissive, while Virginia’s restrictions indicate that the divide is not strictly along geographic lines. North Carolina occupies a unique position in this spectrum, balancing lenient hemp regulations with the absence of a legalized marijuana market. This middle ground allows the state to foster a thriving hemp industry while avoiding some of the monopolistic and high-tax issues faced by states with recreational marijuana programs.

The Benefits of North Carolina’s Approach

North Carolina’s hemp-friendly policies have allowed businesses to innovate in ways that states with legal marijuana often cannot. For instance, hemp products can be sold online and shipped nationwide—an advantage that marijuana dispensaries in legal states lack due to federal prohibitions. This creates its own kind of regulation: credit card companies enforce strict documentation standards for hemp transactions, requiring businesses to remain vigilant.
Consumers also benefit from North Carolina’s hemp market. Products like THCA flower and Delta-9 gummies provide similar effects to marijuana but remain technically legal under federal law. This accessibility ensures that individuals can take responsibility for their own health and well-being without navigating the complexities of medical marijuana licensing or risking criminalization.

The Risks of Backward Progress

While North Carolina’s hemp industry thrives, other states are moving in the opposite direction. Georgia, for instance, recently prohibited the sale of THCA flower, and Tennessee is embroiled in legal battles over similar restrictions. Such measures deprive states of economic growth, tax revenue, and job opportunities while criminalizing responsible consumers. Moreover, they undermine the potential of hemp as a cash crop, particularly in agricultural states like North Carolina.
According to recent estimates, the national hemp market generates billions in revenue annually, and North Carolina’s share continues to grow as the state supports local farmers and processors. With over 900 registered hemp processors, North Carolina is cementing its role as a leader in the industry, driving innovation and economic growth.

A Delayed but Promising Future

The delay in federal cannabis reform may be frustrating, but it also provides time for the hemp industry to mature. As public opinion increasingly favors legalization and normalization, lawmakers may become more familiar with hemp products—perhaps even trying a gummy or two themselves. This gradual shift in perception could pave the way for balanced regulations that prioritize public safety without stifling innovation.

The Case for Hemp

Hemp’s evolution mirrors the broader trajectory of cannabis legalization: from medical marijuana to recreational use, and now to federally legal hemp-derived products. What began as a loophole has grown into a robust industry, demonstrating the potential for hemp to lead the way in cannabis reform. By embracing reasonable regulations and resisting abolitionist movements, North Carolina can continue to position itself as a leader in this space.
At PhenomWell CBD Store, we’re proud to be part of this journey. We believe in responsible business practices, such as age-appropriate packaging and clear labeling. Many of our customers use these products as a way to manage their health and well-being responsibly, often as an alternative to prescription or over-the-counter medications. While we are not medical professionals and cannot offer medical advice, we hear from customers who find these natural products effective and free from the side effects associated with traditional pharmaceuticals. Essentially, they are receiving the same benefits they might from medical marijuana where it is legal—an important point that underscores the value of this industry for those seeking natural health solutions. As the legal landscape evolves, we remain optimistic that North Carolina’s agricultural heritage and forward-thinking policies will keep the hemp industry thriving.
For now, we encourage everyone to stay informed, support local businesses, and continue advocating for common-sense cannabis reform. After all, the more time lawmakers spend considering the issue, the more likely they are to see the value in hemp—for farmers, businesses, and consumers alike.