LAFAYETTE, La. — Seemingly constant regulatory changes and tightening limits on THC products in Louisiana are putting some small hemp businesses under increasing pressure, leaving many struggling to adapt and stay afloat.
The state’s shifting rules surrounding hemp-derived THC have created confusion for some consumers and business owners. Blue Basin Canna, a Lafayette-based business that has operated in the industry since 2021, says the changes have become increasingly difficult to navigate.
“It just got too expensive to maintain,” owner Dwayne Dugas said.
Dugas said the company saw strong early success when Louisiana first legalized certain hemp products. But that momentum quickly slowed when lawmakers began tightening regulations.
“The state was thriving, the hemp industry was thriving in that first year, and then the legislature came and changed the rules,” he said. “We had to spend money to change packaging, art design, the product. All of that costs money.”
Under current Louisiana law, hemp-derived THC is limited to 5 milligrams per serving and 40 milligrams per package for edibles and tinctures. But new federal legislation would impose even stricter limits.
“They are changing it to the whole package— it can only be 0.4 milligrams in the entire package, not per product,” Dugas said. “It’s going to take the products completely off the market. Now the feds are coming and wanting to change it at the federal level.”
The rapid changes over the past year have already forced Blue Basin Canna to close its downtown Lafayette storefront.
“All of that said, it just costs us so much money. We do it, and the last time around it cost too much money and we couldn’t maintain a retail store,” he said.
Dugas tells KATC these changes could impact 60 % to 80% of the company’s products. As a result, he said they are considering relocating some of their operations.
“The regulations are so tight in the state, we are going to relocate our website out of state. It’s stronger products for our customers,” Dugas said. “When we have one product that’s legal for a year and then they change the rules— I have to make a new gummy with new research and development, then spend money designing the packaging with the new regulations.”
The ongoing rule changes, repeated product reformulations, and the loss of their physical storefront have significantly reduced business.
“It’s dwindled. We lost all the foot traffic we had here, our money flow has been cut in half. It’s less profitable,” he said.
In a statement provided to KATC, Jared Thieler, the company’s director of sales, said:
"Fleur De Leaf, one of the states first manufacturer and processor for hemp in Louisiana is fighting harder than ever to keep the industry moving forward. Speaking with senators and congressman in order to come together as a state, Fleur de leaf is aiming to shed light on the impact this new bill will have on our state economy. From bars, to grocery stores, to restaurants, this new regulation with have a severe impact to revenue across the entire board. It is more important than ever for our state to continue pushing this conversation forward in order to apply pressure on the harmful industries such as the liquor and pharmaceuticals companies that our fighting hard to silence a better and healthier alternative to life."
The federal restrictions are expected to take effect next year. Until then, Dugas said businesses like his plan to continue advocating for the future of Louisiana’s hemp industry.
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