Connect with us

Business

Industrial Hemp Cultivation Exploded In The U.S. Last Year, Report Shows

Published

on

Industrial hemp production significantly increased in the U.S. in 2018, with farmers cultivating three times as many acres of the crop as compared to the pervious year, according to a report released on Monday.

Farmers grew more than 78,000 acres of legal hemp last year, the advocacy group VoteHemp reported. In 2017, they grew about 26,000 acres and in 2016, the total was just under 10,000 acres.

But while those are impressive gains—the product of a growing number of state-level reform policies that expanded the pool of farmers licensed to grow hemp and universities authorized to research it under a previous Farm Bill passed in 2014—expect another massive surge in 2019 thanks to hemp’s outright legalization through the new Farm Bill signed by President Trump last month.

The hemp provisions remove the crop from the Controlled Substances Act, shift regulatory responsibility to the U.S. Department of Agriculture from the Justice Department and allow hemp farmers to qualify for benefits like crop insurance.

The legislation is a game-changer in terms of production estimates, advocates say.

“Sales of hemp products have been growing at a double digit pace for several years and demand for CBD has been phenomenal,” Eric Steenstra, president of Vote Hemp, the industry group that created the report, told Marijuana Moment. “Now that hemp has been removed from the Controlled Substances Act, we expect demand for American hemp to continue to increase and project that at least 125,000 acres of hemp will be planted nationally in 2019.”

Last year, five new states established pilot hemp programs under the earlier version of the wide-ranging federal agriculture legislation. And most states that already had programs in place saw their production increase significantly from 2017 to 2018. That’s especially true of Montana, which led the nation in hemp cultivation last year with 22,000 acres grown—a 4,000 percent increase compared to 2017.

Via VoteHemp.

The former leader of hemp cultivation in the U.S. was Colorado, whose new governor said this month that investing in the hemp industry will be one of his administration’s priorities.

“With our world class universities like Colorado State and Adams State, which are at the forefront of hemp innovation with the leading hemp manufacturers and cultivators already here, we want to seize on this opportunity under the most recent national Farm Bill to help make Colorado the national leader in industrial hemp production,” Gov. Jared Polis (D) said in his State of the State address.

Steenstra also said in a press release that the end of hemp prohibition means “it’s time to invest our energy in expanding hemp cultivation and the market for hemp products across the country so that all can reap the benefits of this versatile, historic American crop.”

Hemp Will Be A Top 10 Product In 2019, Whole Foods Predicts

Photo courtesy of Brendan Cleak.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

Business

Illinois Gets More Tax Revenue From Marijuana Than Alcohol, State Says

Published

on

Illinois took in more tax dollars from marijuana than alcohol for the first time last quarter, according to the state Department of Revenue.

From January to March, Illinois generated about $86,537,000 in adult-use marijuana tax revenue, compared to $72,281,000 from liquor sales.

Those following the cannabis market in Illinois might not be entirely surprised, as the state has consistently been reporting record-breaking sales, even amid the pandemic. In March alone, adults spent $109,149,355 on recreational cannabis products—the largest single month of sales since retailers opened shop.

Via Illinois Department of Revenue.

It was in February that monthly cannabis revenues first overtook those from alcohol, a trend that continued into March.

If the trend keeps up, Illinois could see more than $1 billion in adult-use marijuana sales in 2021. Last year, the state sold about $670 million in cannabis and took in $205.4 million in tax revenue.

Officials have emphasized that the tax dollars from all of these sales are being put to good use. For example, the state announced in January that it is distributing $31.5 million in grants funded by marijuana tax dollars to communities that have been disproportionately impacted by the war on drugs.

The funds are part of the state’s Restore, Reinvest, and Renew (R3) program, which was established under Illinois’s adult-use cannabis legalization law. It requires 25 percent of marijuana tax dollars to be put in that fund and used to provide disadvantaged people with services such as legal aid, youth development, community reentry and financial support.

Awarding the new grant money is not all that Illinois is doing to promote social equity and repair the harms of cannabis criminalization. Gov. J.B. Pritzker (D) announced in December that his office had processed more than 500,000 expungements and pardons for people with low-level cannabis convictions on their records.

Relatedly, a state-funded initiative was recently established to help residents with marijuana convictions get legal aid and other services to have their records expunged.

But promoting social equity in the state’s cannabis industry hasn’t been smooth sailing. The state has faced criticism from advocates and lawsuits from marijuana business applicants who feel officials haven’t done enough to ensure diversity among business owners in the industry.

New Mexico Governor Signs Marijuana Legalization Bill, Making State Third To Enact Reform Within Days

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
Continue Reading

Business

Colorado Marijuana Sales Reached $167 Million In February

Published

on

Colorado’s overall cannabis sales for the first two months of 2021 are $78 million higher than those for January and February of 2020.

By Robert Davis, The Center Square

Total marijuana sales in Colorado reached $167 million in February, the state’s revenue department announced on Friday.

The total represents a $20 million decline in sales from the previous month. However, Colorado’s overall sales for the first two months of 2021 remain $78 million above the pace set between January and February of 2020.

Marijuana sales are calculated by adding the total sales for both medical and recreational marijuana sales in Colorado’s 64 counties.

Denver County led all others in total recreational sales with over $38 million. Arapahoe and Adams counties followed suit with $13 million and $11 million in recreational sales, respectively.

Denver also led the way in medical marijuana sales, bringing in a total of $14 million. El Paso County was a close second, reaping over $10 million in medical sales.

Sales are not automatically accounted for in the state’s accounting system. This means the Department of Revenue (CDOR) relies on each county to report their sales before reporting the total. In effect, marijuana sales are reported one month behind tax and fee revenue totals.

Meanwhile, Colorado collected over $33 million in tax revenue in March. This total represents both taxes levied from medical and recreational marijuana sales, as well as license and application fees.

Between February and March, state tax revenue from marijuana sales declined 4 percent, according to CDOR data.

Tax revenue comes from a 2.9 percent state sales tax on marijuana sold in stores, a 15 percent state retail marijuana sales tax, and a 15 percent state retail marijuana excise tax on wholesale sales or transfers of retail marijuana.

This piece was first published by The Center Square.

Colorado Is Auctioning Marijuana-Themed License Plates To Raise Money For People With Disabilities

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
Continue Reading

Business

Uber Will ‘Absolutely’ Explore Marijuana Deliveries When Federal Prohibition Ends, CEO Says

Published

on

The CEO of Uber said on Monday that the ride share company will “absolutely” explore adding marijuana deliveries to its services when federal prohibition ends.

Dara Khosrowshahi was asked about the prospect of expanding his business to include cannabis deliveries during an interview with CNBC. He said while the company remains focused on grocery and alcohol deliveries, in addition to its core ridesharing service, that’s certainly in the cards if marijuana is federally legalized.

Uber is interested in “the types of deliveries that a high percentage of consumers are going to want delivered fast into their home and are quite frequent,” he said. “We think, obviously, food, grocery, pharmacy and alcohol are part of that category,” but cannabis also holds potential.

“When the road is clear for cannabis when federal laws come into play, we’re absolutely going to take a look at it,” Khosrowshahi said. “But right now with grocery, with food, with alcohol, et cetera, we see so much opportunity out there and we’re going to focus on the opportunity at hand.”

The tech executive was specially asked about the possible expansion into the cannabis market in light of legalization recently being enacted in New York. And if polling from that state is any indication, Uber would see the demand for deliveries that it’s looking for, as 53 percent of New Yorkers said in a survey that they would favor having that option available to consumers.

But for now, the CEO said the business is keeping its eyes on current expansions, which includes its recent acquisition of the alcohol delivery service Drizly. That company did launch an ancillary cannabis delivery service called Lantern—but following the Uber deal, it announced that the two entities would be separated, with Lantern operating independently as a private company.

Of course, as a national corporation, Uber is also making a risk assessment given the ongoing ban on cannabis at the federal level. But a policy change to that end could come sooner than later.

Senate Majority Leader Chuck Schumer (D-NY) has said that a bill to legalize marijuana that he’s been working on with Senate Finance Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) will be released “shortly.”

On the House side, Judiciary Chairman Jerrold Nadler (D-NY) has similarly signaled that his cannabis descheduling bill—the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act—will be reintroduced this session. That proposal passed the House last year but did not advance in the Senate.

With Democrats in control of both chambers and the White House this session, there’s renewed hope among advocates that the days of prohibition are soon to be over. Still, questions remain about President Joe Biden’s role in the reform, as he opposes adult-use legalization and his press secretary said last month that his position “has not changed” to that end.

In any case, Uber’s apparent interest in participating in the market once those federal barriers are lifted is another sign of the industry’s potential. That said, many advocates have expressed that small businesses—particularly those operated by people most impacted by cannabis criminalization—should be prioritized in any legalization legislation over large companies.

Four More States Could Still Legalize Marijuana This Year After New Mexico, New York And Virginia

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
Continue Reading
Advertisement

Marijuana News In Your Inbox

Support Marijuana Moment

Marijuana News In Your Inbox

Marijuana Moment