New federal hemp law creates uncertainty for NY cannabis industry

December 5, 2025

Fewer choices in THC drinks? Changes in cannabis product lines at local shops? An end to sales of potent THC gummies at gas stations and convenience stores?

Last month, Congress passed legislation to ban or restrict the production and sale of certain types of cannabis edibles, drinks and vapes derived from hemp. It was included, without much advance notice, in the bill that ended the federal government shutdown.

That new hemp law, set to take effect in November 2026, is raising a lot of questions.

Leaders in Central New York’s legal cannabis industry, who have seen many changes since its debut less than a decade ago, are now trying to wrap their heads around this new wrinkle.

“There’s a lot going on here and a lot to think about,” said Allan Gandelman, who runs the Head & Heal cannabis business in Cortland County and is a founding member of the trade group known as the Cannabis Association of New York. “It’s been a bit of surprise to some people, so there’s different reactions.”

Some in the industry worry about the changes, while others applaud them. One expert predicts only minor effects in New York state.

The new law essentially overturns changes in federal agriculture law that went into effect in 2018. Those 2018 changes deregulated hemp products, and led to the proliferation of hemp cannabis that was supposed to be less potent than marijuana (less than 0.3% THC).

But critics say the 2018 change created loopholes. These led to hemp products with enough THC to mirror the potency of marijuana.

In 2021, New York became one of the states to fully legalize recreational marijuana, which is derived from a different type of cannabis plant than hemp and has a higher level of the psychoactive compound THC.

The latest change involving hemp products does not affect the more than 500 legal marijuana dispensaries now operating in New York.

And its impact on other cannabis businesses could also be limited, said Heather Trela, a fellow at the Rockefeller Institute of Government in Albany and an expert in marijuana policy.

“New York already has some of the strictest language regarding hemp in the country,” Trela said. “New York’s regulations have been tight enough that if you were legal under the old law you will probably be legal under the new law”.

And, she said, the willingness of the federal government to go after those who are breaking the law in New York could be limited.

“The juice might not be worth the squeeze for them,” she said.

Marijuana products made in CNY
The production and packaging facility for Ayrloom marijuana / cannabis products, an affiliate of Beak & Skiff Apple Orchards in LaFayette. (Courtesy Ayrloom)

But that doesn’t mean some businesses won’t have to adjust.

The owners of two Central New York businesses that sell THC-infused beverages, for example, think they may be forced to discontinue some, but not all, of their drink lines. And they may lose the ability to sell anywhere but state-licensed dispensaries.

“What they’re talking about is exactly a product I make,” said Tim Shore, referring to his line of low THC hemp-infused seltzers sold under the name Off Shore. “We may have to shift to a cannabis (marijuana) base and just sell to the licensed dispensaries.”

Shore, who is also co-founder of Buried Acorn Brewing, is using the brewhouse in the Inner Harbor to produce other products made from New York grown cannabis. Those wouldn’t be affected by the new law.

Ayrloom, a THC beverage company operated by the family that owns Beak & Skiff Apple Orchards, is facing a similar situation.

Ayrloom has “a rather large business” selling beverages containing Delta 9, one of the types of hemp-THC the new federal law would ban, said company president Eddie Brennan.

“… That would completely go away after a year if they are not able to extend or find a path to regulation,” Brennan said. “As the law stands now it will be illegal in a year.”

Ayrloom, however, also sells many products through licensed dispensaries, which would not be affected.

Allan Gandelman
Allan Gandelman stands among hemp plants at his greenhouse in Cortland. The plants are used to make CBD products for Head & Heal.Courtesy of Head & Heal

In Cortland County, Gandelman at Head & Heal sees some changes ahead for his business.

“We do a lot of online sales out of state, and I will not be allowed to do that under this law,” Gandelman said. His products include CBD gummies and oils.

He believes the “bad actors” who have been bringing out-of-state hemp THC products to be sold in gas stations and other convenience stores triggered the recent change in federal law.

“Now we will be concentrating on New York-grown and processed products to be sold in New York,” he said. “That’s our business and that’s probably OK.”

Things might be a bit more difficult for Syracuse cannabis shop operator Rodney Haymes. While he is opening a licensed recreational marijuana dispensary in DeWitt, he also recently launched a business based primarily on sales of a hemp product called THCa.

He has a state cannabinoid hemp license for that shop, The Dispensary by the BudBoyz, at 918 N. Salina St. But THCa is now affected by the new federal law.

“Yes I anticipate some turbulence for sure,” Haymes said. “If it takes effect as is here in NY or any other state it will decimate the hemp industry as we know it.”

But Joe Rossi, founder of Modern Advocacy, a Syracuse-based firm that lobbies and consults for the industry, is more optimistic about the change.

“For six years, intoxicating hemp products sold outside regulated cannabis systems have created confusion and real consumer-safety concerns,” Rossi wrote in an email to syracuse.com.

“With this new federal law, that chapter is ending. New York was one of the first states to draw a clear line between CBD wellness products and intoxicating cannabinoids, and today Washington is adopting that same principle. This is a reset moment for the industry and for the consumers who deserve safe, accurately labeled products.”

The New York Office of Cannabis Management, meanwhile, released a statement saying it is “reviewing the federal legislation and its potential impact on New York.”

“The Office of Cannabis Management has implemented strong standards to ensure that cannabinoid hemp products sold in New York are manufactured in accordance with good manufacturing practices, safeguarding public health and consumer safety.”

 

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