Indiana is an island surrounded by a sea of legal weed.
We’re one of just a handful of states that not only prohibits recreational marijuana use, but also lacks a comprehensive medical marijuana program. Meanwhile, Illinois, Michigan, and Ohio all permit recreational and medical cannabis sales to adults, and Kentucky recently launched a medical cannabis program. Researchers estimate that 44 percent of Indiana residents live within 50 miles of a licensed dispensary and 96 percent live within 100 miles, meaning legalized wacky tobacky is just a short drive away for most Hoosiers.
Yet there are farms in Indiana that grow cannabis.
Actually, they grow hemp, a strain of cannabis with very low levels of intoxicating compounds, used in textiles, building materials, and to make CBD, a natural compound used to promote relaxation and relieve pain without causing a high. The state legalized commercial hemp production in 2019, after Congress approved the 2018 Farm Bill, hoping it might become a profitable crop for Indiana farmers. But the acres planted have remained modest. Experts say the industry has long term potential but faces challenges ranging from unstable markets to changing regulations. It doesn’t help that aspiring hemp farmers must get a background check. “They wonder why farmers don’t want to invest in it,” says Justin Swanson, chair of the cannabis practice group at the law firm Bose McKinney & Evans. “Why do they need to give up their fingerprints to the government to grow a crop?”
Enter the hemp loophole.
In many Indiana shops you’ll find products containing delta-8 THC, THCA, and other intoxicating hemp-derived cannabinoids. And it’s all legal. Under the 2018 Farm Bill, Congress legalized hemp by defining it as cannabis containing no more than 0.3 percent delta-9 THC, the primary intoxicating ingredient in cannabis. Strains of the plant that produced more than this amount remained illegal under federal law. But manufacturers soon discovered they could extract or chemically convert compounds from legal hemp into intoxicating cannabinoids. Because these originate from legally defined hemp, they can be sold openly, even though they can produce the same effects as marijuana. This is known as the hemp loophole. Critics argue Congress never intended to legalize intoxicating cannabis products so broadly. An ongoing debate has been sparked in Indiana over whether these products should be regulated more strictly, banned, or left on the market.
Police are still making thousands of marijuana arrests.
Indiana’s marijuana laws remain fully enforceable. According to a 2026 RAND study commissioned by the Richard M. Fairbanks Foundation, Indiana law enforcement agencies recorded more than 13,000 cannabis-related arrests in 2024 alone. More than 90 percent involved possession, but three-quarters of those arrests also included at least one additional non-cannabis criminal charge. Under current Indiana law, possession of marijuana is generally a misdemeanor for a first offense. Repeat offenses, large quantities, and dealing can result in much stiffer penalties.
Indiana has quietly cracked down on smokable hemp.
For several years, some Indiana gas stations and convenience stores openly sold hemp flower and even pre-rolled hemp joints. Thank the aforementioned loophole for those. That market has changed dramatically. According to Swanson, the Indiana Alcohol and Tobacco Commission has stepped up enforcement of the state’s prohibition on smokable hemp, issuing citations and making arrests. The crackdown illustrates how cannabis-related policies continue to evolve, even without broader legalization.
Drinkable hemp, however, is having a moment. For now, at least.
Again, courtesy of the loophole, liquid THC is extracted from the low-grade “industrial” cannabis to become the active ingredient in the wave of canned THC cocktails. Available from brands such as Keef, Gigli, and Floral (located in Gas City), they’re sold everywhere from bars and restaurants to Total Wine & More and Fresh Thyme Market. There have been national and local moves to ban the beverages. So far, no dice.
Public opinion has moved faster than the law.
Surveys have generally found that a majority of Hoosiers support legalizing medical marijuana, with support for recreational use also growing. Researchers note that public attitudes have shifted much faster than policy.
But the conversation has changed.
For years, most Indiana elected officials dismissed legalization out of hand. But recently, Governor Mike Braun has acknowledged that the state’s position deserves another look. What’s inspired this change of heart? Perhaps money. RAND estimates that a regulated recreational marijuana market could eventually generate $180 million a year in state tax revenue. But the researchers caution that it won’t be pure profit. Building a regulatory system, licensing businesses, enforcing safety standards, and overseeing the market would carry significant costs. Braun, for his part, has pointed out that a steady stream of Hoosiers already cross state lines to purchase cannabis legally. His willingness to publicly discuss a change in policy marks a noticeable shift in tone.
Just don’t expect legalization tomorrow. Or the day after.
Recent legislative sessions featured bills to legalize medical marijuana, decriminalize possession of small amounts of grass, or study broader legislation, but none made it into law. Much of the General Assembly’s recent attention was spent on regulating hemp-derived THC products rather than legalizing marijuana itself.
Legalization isn’t necessarily forever.
Massachusetts approved recreational cannabis in 2016, but this November, voters will decide whether to repeal that law. If they do, Massachusetts would become the first state to reverse such a law, a reminder that cannabis policy remains a moving target even in states where the issue appears settled.
