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Cannabis Is America’s New Cash Crop, More Profitable Than Cotton Or Rice

Cannabis Is America’s New Cash Crop, More Profitable Than Cotton Or Rice

by | Nov 4, 2021 | 420 News, Blog, Business, Cannabis Business, Cannabis News, Growing, Hemp, Industry News, Legalization

cannabis is now the 5th most profitable cash crop in America

Cannabis marketplace Leafly Holdings, Inc. released its inaugural Cannabis Harvest Report on Wednesday revealing that cannabis is America’s 5th most valuable crop. The report takes the first look at cannabis data, insights and projections across the 11 states where Americans can currently purchase both adult-use and medical cannabis.

To conduct the analysis, Leafly’s investigative team teamed up with Whitney Economics and ended up discovering that cannabis has become a major agricultural commodity that supports thousands of American farmers and farm communities.

Based on the report, cannabis crops in adult-use states now support 13,042 licensed farms in the aggregate. On an annual basis, those growers harvest 2,278 metric tons (5,022,990 pounds) of cannabis. To give you a better idea: that’s enough weed to roll more than two billion joints or fill 57 Olympic-size swimming pools

Cannabis Is More Valuable Than Cotton, Rice And Peanuts

That amount makes cannabis the fifth most valuable crop in the United States. With a wholesale harvest value of $6.2 billion, America’s cannabis harvest ranks above cotton and below wheat, based on US Department of Agriculture data for 2020. Only corn, soybeans, hay and wheat bring in more money to American farmers.

Based on wholesale harvest value, this is how U.S. crops rate:

  • Corn $61 billion
  • Soybeans $46 billion
  • Hay $17.3 billion
  • Wheat $9.3 billion
  • Cannabis $6.2 billion
  • Cotton $4.7 billion
  • Rice $3.1 billion
  • Peanuts $1.3 billion

“America’s adult-use wholesale cannabis crop returned a mind-boggling $6.175 billion to farmers last year, ranking it as the 5th most valuable crop in the United States,” David Downs, the report’s lead author and Leafly’s California bureau chief stated. “ Yet, due to federal prohibition, America does not treat cannabis farmers like farmers. They are subject to more state and federal taxes, regulations, and stigma than any other type of farmer. These barriers hurt small legacy farmers the most. This plant is helping generate wealth, employment, and community investment around the country, and our legislators need to recognize the opportunity cannabis presents for Americans—today.”

The report also revealed that legal cannabis is the single most valuable agricultural crop in Alaska, Colorado, Massachusetts, Nevada and Oregon, but remains completely uncounted and ignored by state agriculture officials. In Alaska alone, the state’s cannabis crop is worth more than twice as much as all other agricultural products combined.

Original Story from Benzinga

New York Will Not Issue Adult-Use Licenses Until 2023

New York Will Not Issue Adult-Use Licenses Until 2023

by | Nov 3, 2021 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization, Politics

New York recreational cannabis licenses delayed until 2023

The head of New York’s Cannabis Control Board said last week she does not anticipate the state will begin issuing industry licenses until the spring of 2023 at the earliest.

The head of New York’s Cannabis Control Board said last week that she does not anticipate the state will begin issuing industry licenses until the spring of 2023 at the earliest, WXXI News reports. Tremaine Wright’s comments came during a cannabis conference at Comedy at the Carlson in Rochester.

“What we do control is getting (dispensaries) licensing and giving them all the tools so they can work within our systems. That’s what we are saying will be achieved in 18 months. Not that they’re open, not that they’ll be full-blown operations, because we don’t know that.” — Wright via WXXI

The state’s legalization law included a launch date of April 1, 2022, at the earliest and Gov. Kathy Hochul (D) only appointed members to the Cannabis Control Board in September. Hochul was not governor when lawmakers passed the broad legalization bill last March; she would replace Gov. Andrew Cuomo in August following his resignation over sexual misconduct allegations.

During the board’s meeting in late October, Wright declared the practice of “gifting” cannabis — including it with the purchase of another, often overpriced product — illegal and that violations could be met with “severe financial penalties.”

While state regulators have been slow to get the cannabis licensing process underway, adult-use cannabis sales have already commenced under the jurisdiction of several New York tribes, including the St. Regis Mohawks.

A bill has also been introduced that would allow licensed cannabis cultivators to start growing their crops prior to the launch of the formal program, creating provisional licenses that would allow businesses to operate if the Office of Cannabis Management doesn’t propagate program rules by January 1. That bill remains in the Senate Rules Committee.

Read Original Story on Ganjapreneur

Connecticut Asks Massachusetts Cannabis Companies to Remove Billboards

Connecticut Asks Massachusetts Cannabis Companies to Remove Billboards

by | Oct 29, 2021 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization, Politics

Connecticut is asking Massachusetts to stop displaying cannabis billboards on the state border

Connecticut Attorney General William Tong has sent a letter to seven Massachusetts cannabis companies asking them to remove their billboards from along Connecticut highways.

Connecticut Attorney General William Tong has sent a letter to seven Massachusetts cannabis companies asking them to remove their billboards from along Connecticut highways, saying that the ads are illegal in the state under its adult-use cannabis law passed earlier this year, Western Mass News reports. Under Connecticut’s legalization law, cannabis advertising is prohibited unless 90% of the audience is 21-or-older.

The Attorney General’s Office clarified to Western Mass News that the letter is a request not a demand.

Erik Williams, chief operating officer of Canna Provisions, which is based in Massachusetts and uses billboard advertising on the highway, said that the company has no intention of removing the ads, despite the letter from Tong.

“If we capitulated to every prohibitionist’s whim or request, I would say that we would not have adult use cannabis in Massachusetts and certainly it wouldn’t be coming in Connecticut. … I believe that this is too far reaching of an insinuation that they have made against our company and other advertisers, against marketing firms, and against the other folks who have also gotten those letters.” – Williams to Western Mass News

In the letter, Tong said the billboards encourage customers to cross state lines with cannabis products, which is a federal crime, but Williams said that was not the case.

“We are continuing to talk to them and I told him that this is an important thing for us to look for,” Williams said in the report, “and we also want to really see that the Connecticut market actually thrives as well.”

Canna Provisions has no intention to take the billboard down, Williams said.

The report does not indicate whether the other six Massachusetts companies with billboards in Connecticut plan to honor the attorney general’s request.

Read Original Story on Ganjapreneur

USPS Bans Mailing Hemp, CBD and Vape Cartridges

USPS Bans Mailing Hemp, CBD and Vape Cartridges

by | Oct 27, 2021 | 420 News, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Hemp, Hemp Law, Industry News, Legalization

USPS bans mailing hemp, CBD and vape cartridges

The U.S. Postal Service (USPS) on Wednesday released its final rule on the mailability of vapes, asserting that even devices designed for federally legal hemp derivatives like CBD generally cannot be shipped through the U.S. mail.

The agency has been developing the regulations to comply with a bill passed by Congress last year that is mostly aimed at stopping nicotine vaping devices from being mailed—though it has broader implications. Despite significant public comment on an earlier proposed version of the rules that urged USPS not to interpret the law in a way that restricts hemp businesses, the agency ultimately said that cannabis vapes fit the definition of what lawmakers moved to ban.

There are some exceptions, but stakeholders are disappointed by the final rule.

During public comment, some argued that the bill was specifically meant to restrict mailing of nicotine-based vapes. But while the legislation refers to limitations on “electronic nicotine delivery systems,” or ENDS, it defines that term as “any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device.”

USPS explained in the rule, which is set to be published in the Federal Register on Thursday, that by the letter of the law, that includes hemp and marijuana vapes.

“It goes without saying that marijuana, hemp, and their derivatives are substances,” the agency said. “Hence, to the extent that they may be delivered to an inhaling user through an aerosolized solution, they and the related delivery systems, parts, components, liquids, and accessories clearly fall within the [Preventing Online Sales of E-Cigarettes to Children Act’s] scope.”

Other commenters argued that USPS shouldn’t impose the restriction on cannabis products because the ban could conflict with state or local marijuana laws—or because Congress has approved spending legislation that prohibits the use of Justice Department funds for interfering in state-legal medical cannabis programs.

USPS said those arguments are not valid because, 1) it’s part of the federal government and is, therefore, unaffected by state or local marijuana policies and 2) it’s not part of the Justice Department, which is the only branch of the government restricted by the state protection rider in appropriations legislation.

The agency further clarified that hemp containing up to 0.3 percent THC is federally legal and is generally mailable, but only “to the extent that they are not incorporated into an ENDS product or function as a component of one.” As such, while business can generally mail out legal hemp-derived products, that’s only the case if they are not vaping products covered under the new law.

“The POSECCA and the Agriculture Improvement Act overlap, but they do not conflict. The Agriculture Improvement Act merely excludes certain products from the CSA. It does not affirmatively declare hemp and hemp derivatives to be mailable in any and all circumstances, superseding all other relevant laws (such as the POSECCA). For its part, the POSECCA restricts the mailability of only certain hemp-based and related products; hemp-based non-ENDS products are unaffected, as are ENDS products falling within one of the PACT Act’s exceptions. That Congress has rendered some subset of a class of goods to be nonmailable while leaving the remainder mailable is not some sort of legal conflict, but, rather, how mailability regulation typically works.”

Read Full Story on Marijuana Moment

Colombia medical cannabis industry to see new opportunities

Colombia medical cannabis industry to see new opportunities

by | Oct 25, 2021 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis News, Culture, Growing, Industry News, Legalization, Medical Marijuana

Colombia medical cannabis production has begun thanks to new laws passed in July

Although marijuana cultivation has been legal since late 2016, for the past five years Colombian companies could only export active pharmaceutical ingredients (APIs) and therefore were banned from the most lucrative parts of the business.

In July, Colombian president Ivan Duque loosened regulations to allow the export of dry cannabis flowers, which accounts for more than 50% of the demand in markets like the US.

Thanks to that policy change, Colombian companies are now confident they can compete in the pharmaceutical markets in Europe and North America.

Favorable conditions

The Andean nation enjoys perfect conditions for the cultivation of marijuana: 12 hours of sunlight give way to 12 hours of darkness virtually every day of the year, with minimal seasonal change.

High altitude — Clever Leaves’ farm, in Boyacá, sits at 9,377 feet above sea level — means fewer pesticides are required to stem bacteria and disease than at lower altitudes, making it easier to grow organic products.

“If you think about it, greenhouses in other countries are trying to emulate the natural conditions we get here for free,” Clever Leaves’ president Andres Fajardo told CNN. “Your factor costs in terms of labor are significantly cheaper.”

Investment in Colombian medical marijuana has picked up, with the government reporting more than $250 million in foreign funding in the sector. The majority of those dollars come from international cannabis companies, mostly Canadian, that are partnering with Colombian producers to farm there.

Flora Growth, a Toronto-based firm listed on NASDAQ, has purchased 100 hectares of land — about 247 acres — in central Colombia. “I hope that over the next three-to-five years we are going to run out of land,” said Luis Merchán, a Colombian businessman who quit his job as a VP at Macy’s to become Flora’s CEO last year.

Flora estimates its production costs to be around $.06 per gram of dry cannabis flower, a fraction of the go-to price that ranges from $.50 cents and $2 in the US.

“Licenses here are also much cheaper than abroad, we are talking of $15,000 to $20,000 per license,” said Juliana Salazar, a private consultant involved in the Bogota cannabis industry. “And an initial investment of roughly $100,000 to start producing here, which is a lot of money in Colombia, but a smaller investment than if you look at Germany, Spain or the United States.”

Read Full Story on MSN

Washington DC Marijuana Laws Could Be Changing

Washington DC Marijuana Laws Could Be Changing

by | Oct 20, 2021 | 420 News, Blog, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization, Politics

If the current Washington DC marijuana laws confuse you, you aren’t alone.

If you went to Washington DC today in search of cannabis, you might struggle to find it. Despite Washington DC marijuana laws allowing the possession, cultivation and consumption of cannabis for recreational use, there isn’t a single retail recreational cannabis store where you can legally purchase cannabis.

Cannabis is still attainable in DC just like most places in the country without legal access to cannabis, but the methods can vary with different levels of success.

Washington DC Marijuana Laws

Washington DC legalized cannabis nearly seven years ago in February 2015. While the legislature legalized everything necessary to begin the process of opening up a retail cannabis industry, there was one major roadblock.

Rep. Andy Harris, a Republican, included a rider in the bill that including language preventing DC from implementing any sort of recreational cannabis industry, by not permitting district funds to be used for the process. In other words, Washington DC is unable to have a recreational cannabis industry because they are currently not allowed to fund a regulatory commission, establish licensing processes and design a regulated industry framework.

So while Washington DC marijuana laws resemble that of every other state that has legalized cannabis, there is still no legal industry. With all that said, finding weed in DC is relatively easy these days thanks to a thriving grey market.

The law in DC permits any one person to give any cannabis they have or have grown to any other person as long as they do not charge for it, as selling cannabis is currently illegal under the rider. This has led to the creation of a gift/donation system that has helped bloom a massive underground industry in DC.

This can work in various ways; from “donating” $40 for a T-shirt in a hydroponic store and being “gifted” a few grams of cannabis, to full-blown delivery services where you donate for a single sticker (that happens to cost about $200) in exchange for a gift box with cannabis flower, edibles and cartridges. Unfortunately for the consumer, this market is still completely unregulated since it is being done through a loophole in the bill’s language.

Consumers constantly run the risk of over paying for low quality cannabis from a shady shop or service, and there are so many different delivery services, finding one that doesn’t rip you off can be a real challenge. But that could be changing thanks to a new adjustment to the Senate budget proposal for 2022.

Washington DC could have legal cannabis for sale soon

Washington DC marijuana laws are particularly complicated due to the nature of Washington DC itself. It is considered the Capitol of the country, but it is not actually a state or a city, and its Mayor is also the Governor, among other peculiarities. Due to the nature of how DC works, it creates complications when the district has differing opinions on legislation compared to the federal government that is housed there.

When Joe Biden released his 2022 budget proposal it still included the Harris Rider, leaving many advocates disappointed. The Democrat president has expressed consistent opposition to cannabis legalization on the federal level. However the House voted to remove the rider back in June, and now the Senate Appropriations Committee seems to be moving that sentiment forward.

In a new text of legislation released by Committee Chairman Patrick Leahy, a budget proposal to fund the federal government for Fiscal Year 2022 is presented, which among other measures, purposely fails to include the Harris Rider.

The legislation also contains several other cannabis provisions, including to continue an existing protection for state medical marijuana laws, call on the federal government to reconsider policies that fire employees for cannabis, criticize the restrictive drug classification system that impedes scientific research and encourage the development of technologies to detect THC-impaired driving.

It is very common for legislators to attempt and slide in additional changes to legislation in most cases, but also regarding cannabis. Some advocates blame this practice for why a lot of cannabis legislation does not pass, saying that if legislators focused on one issue at a time that has more broad support, they would see more success.

A long fight may be ending

It is too soon to say if the final Budget Proposal will be approved, and more changes could occur before it is. The fight to change Washington DC marijuana laws has been long and fraught with disappointment.

The latest proposal appears to be a large step in the right direction, with House and Senate support for removing the rider. The 2022 Budget Proposal has a deadline of December 3rd, with Democrats eager to get everything finalized before then. However it is still unclear whether the spending panel or full Senate will take up the new revised proposal before then.

Yet again, the further progress of cannabis legalization depends on the slow moving legislature, notorious for “extending” deadlines as an excuse for just missing them. Only time will tell the future of cannabis legalization in Washington DC now.