cannabis industry Archives - Page 19 of 22 - The Real Dirt with Chip Baker

12 Cannabis Industry Predictions for 2021

by Travis C | Dec 31, 2020 | 420, 420 Culture & Travel, Blog, Business, Cannabis Law, Culture, Growing, Hemp, Hemp Law, Opinion, Science & Technology

2020 was a crazy year in more ways than one.

Beside the obvious factor that impacted everybody’s lives for the last 10 months, cannabis has also seen some huge changes. From industry trends to overall growth, 2020 was the most progressive and profitable year for the industry so far.

There were still some lows however, like the MORE Act being passed in the House but stalled indefinitely in the Senate. California has had its fair share of issues with their legal market as well due to bad regulation and local government mishandling.

But we aren’t here to look back on the bad, but to look forward to the future of the industry and everything that may bring. Here are 12 predictions for the cannabis industry in 2021.

1. Cannabis consumption increases

This is probably the most obvious to predict. As more states legalize medical and recreational cannabis or decriminalize the plant, consumption will rise as people gain more safe and legal access to quality cannabis. This includes all forms of cannabis; concentrates, edibles, topicals and others.

2. We still won’t see federal legalization

Considering that the senate currently won’t even vote on a bill that would decriminalize cannabis on the federal level, it is very unlikely that we will see full scale legalization on the federal level in 2021. There’s a chance that we see more legislation passed through the House that will give cannabis businesses better access to banking.

However this will likely also be stalled in the Senate. In short, as long as Mitch McConnell is the Majority Leader of the Senate, don’t expect any sort of federal progress when it comes to cannabis.

3. Rise in popularity of minor cannabinoids in hemp

Cannabidiol, more commonly known as CBD, has seen a massive increase in popularity and use in 2020. Through marketing and education efforts, people have learned of the benefits of CBD and how it is entirely different from THC. This has led to more curiosity about the wide variety of other cannabinoids in hemp and cannabis. CBN and CBG have already begun breaking into the forefront of cannabinoid research with more on the way in 2021.

We’ll see new mixed cannabinoid products that advertise different experiences for the consumer start to become much more popular.

4. Extraction and dosing technology increases

Cannabis extracts and concentrates continue to grow in popularity, with rosin taking over the scene in 2020 as the cleanest and tastiest dabs. 2021 will be no different as the technology for creating extracts advances even more. Solventless extracts will likely remain the most popular for health-conscious and connoisseur consumers, while vape cartridges and pens will stay popular for the average consumer.

It will also become easier to understand the dosing of concentrates, especially with cartridges and dabs. There is currently no widely known dosage for either, just general suggestions from the local budtender or industry blogger.

5. Increased presence of national cannabis industry brands

We’ve seen the rise in popular brands like Cookies and Runtz from California’s recreational market to Maryland’s medical market, and that trend is bound to continue. With the success of these brands, others will try to replicate their marketing style to also become popular nationally.

Cookies and Runtz are likely just more “flavors of the month”, and new products will likely take their place in 2021.

6. US stock market for cannabis

Investors in the US have seen that cannabis is essential and pandemic proof. With the huge boost to industry revenue in 2020, investors will be looking for more ways to invest in the United States cannabis industry. While Canada’s cannabis industry saw much less success than the US in 2020, their model for investing in cannabis stocks could be used a template to implement a similar system in the US.

With so many ancillary (non-plant touching) businesses in the industry and expansion growing every year, there may soon be an investment market for companies that work with the cannabis industry but don’t actually process or touch the plant.

7. Ancillary cannabis business transactions increase

Speaking of ancillary cannabis businesses, transactions for these companies are going to increase in 2021. Equipment supply stores, consulting and marketing firms focused in the cannabis space all will see more sales as more people get into the industry across the country driving a need for more of these businesses.

8. Oklahoma and Mississippi continue to expand

Oklahoma was one of the highest grossing states in terms of cannabis revenue despite being medical only in one of the most red states in the nation. Following their model, Mississippi will likely follow the same path as long as demand is the same.

Oklahoma will continue to hone its market and weed out cheap producers with low quality product that took advantage of an infant market with consumers lacking necessary education to choose better products. We will see a few producers rise to the top in 2021 and become available across the state.

9. Michigan explodes with huge operations

Michigan had a slow start after they legalized recreational cannabis in 2018, however sales have been rising consistently since dispensaries began opening and selling cannabis in late 2019 and through 2020. With Detroit announcing that it will be handing out licenses beginning Summer 2021, we are going to see a massive increase in grow operations and dispensaries in the area.

As the most densely populated area in the state, Detroit is going to launch Michigan into the next phase of its legal industry by the end of 2021.

10. Supply chain for hydroponic and grow industry becomes more limited

Due to shipping complications that arose in 2020 from China, 2021 is likely to be a rough year for the grow industry supply chain. While more people will be growing cannabis than ever before, the supply of the products they need to do it are going to be more limited than ever before as well.

Inevitably the low supply and high demand will lead to increased prices and decreased availability of many fertilizers, lights and media.

11. The exotics hype trend continues

The community of connoisseur cannabis consumers has driven a niche market of exotic and exclusive cannabis strains driven by media marketing campaigns and hype. This trend will continue in 2021 with brands we’ve already mentioned like Cookies and Runtz leading the way.

In states where cannabis is recreational or medical but Cookies and Runtz don’t operate, new breeders will rise with exclusive strains that you can only get from them at a specific dispensary on a specific drop date, increasing hype and demand. These strains will remain the most expensive option on the shelf in terms of flower.

12. More states will legalize cannabis

Following the trend of the last few years, more states are going to legalize cannabis recreationally or medically in 2021. New York is a state a lot are looking toward to make a move in the new year since their neighbor New Jersey approved a legalization ballot in November. With no competing industry, New York is bound to lose a lot of tax dollars to New Jersey’s legal cannabis over the border.

Other states like Pennsylvania and Virginia have had their governors voice support for a recreational cannabis industry more than once in 2020. While these states may have a legalization vote in 2021 it’s unlikely that either will pass in the near future. Other states to follow in 2021 are Connecticut and New Mexico.

How state marijuana legalization became a boon for corruption

by The Real Dirt | Dec 29, 2020 | 420 News, Blog, Business, Cannabis Law, Culture

By making local officials the gatekeepers for million-dollar businesses, states created a breeding ground for bribery and favoritism.

Jasiel Correia’s star was rising.

The son of Cape Verdean immigrants in the working-class Massachusetts port city of Fall River — famed as the home of Lizzie Borden — Correia was a home-grown prodigy. At 23, he was elected mayor, fielding congratulatory calls from Sen. Elizabeth Warren and Rep. Joe Kennedy.

That was in 2015. Four years later, just a week before his reelection race, federal agents ignominiously led him away from his home in handcuffs and charged him with attempting to extort cannabis companies of $600,000 in exchange for granting them lucrative licenses to sell weed in his impoverished city.

“Mayor Correia has engaged in an outrageous brazen campaign of corruption, which turned his job into a personal ATM,” declared U.S. Attorney Andrew Lelling during a press conference announcing the charges.

The downfall of Fall River’s young mayor wasn’t just a tragedy for the thousands of people who invested their hopes in him: It was emblematic of a rash of cannabis-related corruption across the nation, from Massachusetts to California to Arkansas and beyond.

In the past decade, marijuana legalization for adults over 21 has been passed in 15 states, and another 17 have legalized medical marijuana. But in their rush to limit the numbers of licensed vendors and give local municipalities control of where to locate dispensaries, they created something else: A market for local corruption.

Almost all the states that legalized pot either require the approval of local officials — as in Massachusetts — or impose a statewide limit on the number of licenses, chosen by a politically appointed oversight board, or both. These practices effectively put million-dollar decisions in the hands of relatively small-time political figures — the mayors and councilors of small towns and cities, along with the friends and supporters of politicians who appoint them to boards. And these strictures have given rise to the exact type of corruption that got Correia in trouble with federal prosecutors. They have also created a culture in which would-be cannabis entrepreneurs feel obliged to make large campaign contributions or hire politically connected lobbyists.

For some entrepreneurs, the payments can seem worth the ticket to cannabis riches.

For some politicians, the lure of a bribe or favor can be irresistible.

Correia’s indictment alleges that he extorted hundreds of thousands of dollars from marijuana companies in exchange for granting them the local approval letters that are necessary prerequisites for obtaining Massachusetts licenses. Correia and his co-conspirators — staffers and friends — accepted a variety of bribes including cash, more than a dozen pounds of marijuana and a “Batman” Rolex watch worth up to $12,000, the indictment charges.

Read the full story on Politico

Mexico puts legalization of marijuana on hold

by The Real Dirt | Dec 19, 2020 | 420 Culture & Travel, 420 News, Blog, Cannabis Law, Cannabis Law and Compliance

Mexico cannabis legalization gets delayed until 2021

Mexican president says delay is matter of “form, not substance” and expects approval in early 2021

The Chamber of Deputies last week put the brakes on the legalization of marijuana in Mexico. However, that country’s president on Tuesday said he expects approval in early 2021 of legislation decriminalizing possession and consumption of small amounts of marijuana.

“They asked the (Mexican) Supreme Court for an extension because the two chambers could not come to an agreement and they were running out of time to make revisions. But it’s an issue of form, not substance. I believe this will be resolved” in the next session, President Andres Manuel Lopez Obrador said in his daily news conference.

The Mexican Senate last month approved a landmark bill decriminalizing the possession of up to 28 grams (1 ounce) of the drug, allowing individuals to grow up to six plants and licensing production and sales. It also created a commission within the Health Department to regulate the cannabis law.

The Chamber of Deputies was under a Dec. 15 Mexican Supreme Court deadline to approve the law, but deputies asked for and got an extension through the end of April. The deputies are expected to pick up the discussion in early February.

“There is no opposition to what the Senate authorized regarding the medicinal and limited use of marijuana. It’s just a matter of errors, lack of precision about the amounts and other contradictions in the law itself, and that’s what will be resolved,” Lopez Obrador said.

If that happens, Mexico would be the second country in Latin America – after Uruguay – to decriminalize recreational use of small amounts of marijuana.

The premise might seem odd in a nation plagued by drug cartel violence and with rising rates of addiction in northern border cities. But experts say it reflects a change of attitude in Mexican collective thought and won’t necessarily fuel more violence or addictions.

Read the full story on 22 News WWLP

Mississippi Medical Marijuana Association launches

by The Real Dirt | Dec 18, 2020 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance

The Mississippi medical marijuana association launched this week

The Mississippi Medical Marijuana Association (3MA) is now accepting membership applications from business owners in the medical marijuana industry.

“We are so excited to officially launch this association,” said Ken Newburger, Executive Director for the Mississippi Medical Marijuana Association. “We already have over 50 members, and our goal is to make sure we give these businesses access to tools and information to give Mississippi a top-tier medical marijuana program. Our team worked so hard alongside Mississippi voters to pass Initiative 65 at the polls, and now we want to do all we can to assure the program operates in the best way possible for patients in Mississippi.”

The primary focus of the Mississippi Medical Marijuana Association is to monitor legislative and regulatory activity, to advocate for its members, and to be a single and coherent political voice representing the interests of the industry. Membership provides access to educational and informational resources, networking opportunities, and governmental affairs representation.

The association is holding its first event for members, the Mississippi Medical Marijuana Convention, on February 19, 2021.

“We worked tirelessly for two years educating voters to help get Initiative 65 passed,” said Newburger, “and now our team is moving forward to make sure patients who qualify to be treated with medical marijuana can get it in the safest and most secure way possible through prepared, reliable businesses. We have assembled a team of experienced professionals in the legal and communication industries, who also worked closely with the Initiative 65 campaign, to help assure that medical marijuana businesses in Mississippi are set up for success right from the beginning.”

Read the full story on WJTV

How Oklahoma Became the Nation’s Hottest Weed Market

by The Real Dirt | Dec 8, 2020 | 420, 420 Culture & Travel, 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Culture, Politico

How oklahoma became the largest cannabis market in the country

Oklahoma entered the world of legal cannabis late, but its hands-off approach launched a boom and a new nickname: ‘Toke-lahoma.’

WELLSTON, Oklahoma—One day in the early fall of 2018, while scrutinizing the finances of his thriving Colorado garden supply business, Chip Baker noticed a curious development: transportation costs had spiked fivefold. The surge, he quickly determined, was due to huge shipments of cultivation supplies—potting soil, grow lights, dehumidifiers, fertilizer, water filters—to Oklahoma.

Baker, who has been growing weed since he was 13 in Georgia, has cultivated crops in some of the world’s most notorious marijuana hotspots, from the forests of Northern California’s Emerald Triangle to the lake region of Switzerland to the mountains of Colorado. Oklahoma was not exactly on his radar. So one weekend in October, Baker and his wife Jessica decided to take a drive to see where all their products were ending up.

Voters in the staunchly conservative state had just four months earlier authorized a medical marijuana program and sales were just beginning. The Bakers immediately saw the potential for the fledgling market. With no limits on marijuana business licenses, scant restrictions on who can obtain a medical card, and cheap land, energy and building materials, they believed Oklahoma could become a free-market weed utopia and they wanted in.

Within two weeks, they found a house to rent in Broken Bow and by February had secured a lease on an empty Oklahoma City strip mall. Eventually they purchased a 110-acre plot of land down a red dirt road about 40 miles northeast of Oklahoma City that had previously been a breeding ground for fighting cocks and started growing high-grade strains of cannabis with names like Purple Punch, Cookies and Cream and Miracle Alien.“This is exactly like Humboldt County was in the late 90s,” Baker says, as a trio of workers chop down marijuana plants that survived a recent ice storm. “The effect this is going to have on the cannabis nation is going to be incredible.”Oklahoma is now the biggest medical marijuana market in the country on a per capita basis. More than 360,000 Oklahomans—nearly 10 percent of the state’s population—have acquired medical marijuana cards over the last two years. By comparison, New Mexico has the country’s second most popular program, with about 5 percent of state residents obtaining medical cards. Last month, sales since 2018 surpassed $1 billion.

To meet that demand, Oklahoma has more than 9,000 licensed marijuana businesses, including nearly 2,000 dispensaries and almost 6,000 grow operations. In comparison, Colorado—the country’s oldest recreational marijuana market, with a population almost 50 percent larger than Oklahoma—has barely half as many licensed dispensaries and less than 20 percent as many grow operations. In Ardmore, a town of 25,000 in the oil patch near the Texas border, there are 36 licensed dispensaries—roughly one for every 700 residents. In neighboring Wilson (pop. 1,695), state officials have issued 32 cultivation licenses, meaning about one out of 50 residents can legally grow weed.