Thursday, Nov. 12 is a hard date for hemp in two states, and the same week shows the market pulling in two directions at once. Illinois and Missouri rules land the same day, Village Farms reports record cannabis sales with exports up 75%, and Canada moves to cut cannabis excise stamps. Domestic rules are tightening while international demand is growing.
What changes in Illinois on Nov. 12?
The Illinois Hemp Act reclassifies any consumable or topical hemp product with more than 0.4 milligrams of total THC per container as cannabis. Only licensed cannabis growers may cultivate those products, and only licensed dispensaries may sell them. Illinois farmer Cole Cramm is destroying his 2026 harvest ahead of the same deadline, saying a $5,000 hemp manufacturer license would not authorize the products he makes and dispensaries are not positioned to carry them.
The industry is fighting back in court. The Illinois Healthy Alternatives Association, a trade group that says it represents 250 companies, and several hemp businesses filed for a temporary restraining order and preliminary injunction on Nov. 5. They want to stop provisions of the act from taking effect on Nov. 12, arguing the law violates the U.S. Constitution’s Commerce Clause and would shut out of state companies from Illinois markets. Whether a court rules on the restraining order before Thursday is the question to watch.
What changes in Missouri?
Missouri House Bill 2641 takes effect the same day. It caps finished hemp derived cannabinoid products at 0.4 mg of THC per container and routes intoxicating products through the licensed marijuana system. Attorney General Catherine Hanaway announced four lawsuits against retailers accused of selling marijuana as hemp, and a federal judge dismissed an industry challenge to the law, ruling it had not yet taken effect. “You’re going to see more lawsuits,” Hanaway said.
At the federal level, the broad ban on most hemp THC products was pushed from Nov. 12 to Dec. 11 by a funding bill signed in September. Synthetic cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant are still set to be banned on Nov. 12.
What is growing while the rules tighten?
Village Farms International reported third quarter cannabis sales of $55.0 million, a record for the company and up 3% from $53.5 million a year earlier. Total sales were $66.9 million, compared with $66.7 million. International exports drove the gain. Export sales rose 75% to $20.8 million from $11.9 million, while Canadian non branded sales fell to $3.3 million from $7.3 million and Canadian branded sales were $25.3 million, compared with $26.8 million. Cannabis gross margin was 48%, compared with 55%, which the company attributed mainly to a softer spot market for trim in the Canadian wholesale channel.
Net income attributable to shareholders was $10.0 million, or $0.08 per share, compared with $10.2 million. Adjusted EBITDA from continuing operations was $18.2 million, compared with $20.7 million. CEO Michael DeGiglio said the company “delivered our sixth consecutive quarter of positive net income and EPS.” Management said it believes trim volumes and pricing “reached trough levels” in the third quarter, and it is mobilizing its 30 acre Monahans, Texas, greenhouse for cannabis production as part of a U.S. entry effort.
Canada is moving the other way on paperwork. Budget 2026 proposes a common cannabis excise duty stamp for all provinces and territories that share the same duty rate, which the budget says “would reduce the number of unique cannabis excise duty stamps from 13 to 6.” The common stamp would become available to licensed producers on Jan. 1, 2028. The eight jurisdictions covered are British Columbia, Quebec, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland and Labrador, Yukon and the Northwest Territories. Alberta, Saskatchewan, Ontario and Nunavut are invited to join and have until Jan. 31, 2027 to say so. Producers could use either stamp through June 30, 2029, and the plan remains a proposal until legislation passes. Village Farms said in a Nov. 6 release that it welcomed the measure.
What else is in the roundup?
Texas’ 15th Court of Appeals canceled oral arguments set for Dec. 8 and 9 in four cases, including a challenge to state rules limiting sales of THC containing hemp products, after voters ousted all three Republican justices on the court on Nov. 3. Three Democrats take office in early January, and the cases will be reset at a later date. A report prepared for the Virginia Cannabis Control Authority estimates Virginia residents spend about $1.054 billion a year on cannabis, with adult use sales scheduled to begin July 1, 2027. Maryland passed $1 billion in 2026 cannabis sales once October is counted, the third straight year above $1 billion. The National Congress of American Indians is asking the Justice Department to rewrite the rescheduling order to cover tribally licensed medical cannabis programs, which the April order does not specifically mention. The Massachusetts Senate voted 35 to 4 to pass a bill letting veterans register as medical cannabis patients with Veterans Administration documentation, without a separate certification from a healthcare provider. A New Hampshire lawmaker is drafting a new legalization bill after Democrats won both legislative chambers. MediPharm Labs cleared an EU regulatory step for its metered dose cannabis inhaler, receiving a positive Article 117 Notified Body Opinion from BSI Group The Netherlands.
Frequently Asked Questions
What happens in Illinois on Nov. 12?
Provisions of the Illinois Hemp Act take effect, reclassifying consumable and topical hemp products with more than 0.4 milligrams of total THC per container as cannabis. Only licensed cannabis growers and dispensaries may handle them. A hemp industry lawsuit seeking to block the provisions is pending.
What is the federal hemp deadline now?
The broad federal ban on most hemp THC products was pushed from Nov. 12 to Dec. 11 by a funding bill signed in September. Synthetic cannabinoids that cannot be naturally produced by a Cannabis sativa L. plant are still set to be banned on Nov. 12.
How much did Village Farms exports grow?
Export sales rose 75% to $20.8 million in the third quarter, from $11.9 million a year earlier, driving record cannabis sales of $55.0 million.
Source: IgniteIt, FireStarter: Village Farms Exports Up 75%, Hemp Rules Hit Nov. 12, Canada Cuts Cannabis Stamps
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