The Economics of Prohibiting Help-Derived THC in Texas

Lawmakers and Texans alike face a hard question: should the state ban hemp-derived THC—or allow responsible adults to decide for themselves? This isn’t an easy subject, but the evidence points in one direction.

Hemp products are federally legal under the 2018 Farm Bill. In Texas, they already support 53,000 jobs, $10.2 billion in economic activity, and $268 million in annual sales tax revenue. Prohibition would erase these gains, expand cartel profits, and impose higher enforcement costs on taxpayers. It won’t stop demand—Texans will simply turn to unsafe black markets or out-of-state sellers.

Governor Abbott’s Executive Order GA-56 recognizes this reality by setting age limits, labeling standards, and zoning restrictions. These steps align with what nearly 80% of Texans already support: legal access to hemp with commonsense safeguards.

History shows bans fail. Regulation, if any is needed, should remain light-touch—focused on transparency and safety, not criminalizing peaceful Texans or destroying small businesses.

👉 Read the full report to see why Texas should trust its people and avoid the costly mistakes of prohibition.

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