Forecasting 2022 Alabama Weed Laws & License Applications

Although Alabama has not yet decriminalized marijuana, changes for Alabama weed laws are on the horizon through the state’s legalization of medical marijuana and medical cannabis program.

In May 2021, Senator Tim Melson’s Compassion Act SB 46 was signed into law, permitting no more than 12 cultivation licenses, four processors, four dispensary licenses (up to three locations in different counties), and five integrated facility licenses for growing, processing, transporting, and dispensing.

This residency requirement is unusually high; most states require closer to five or seven years of residency. While this choice appears to be an effort to keep things local, it also has the potential to severely limit qualified applicants who don’t meet the residency requirement from entering the Alabama market. Your Best Asset: Business Experience While Alabama weed laws and requirements for cultivation may be limiting, keep in mind that most of the licenses granted will be for cultivation. That means your chances of winning a cultivation license will be higher than your chances of winning a different license type. However, the most profit will likely be in retail, since so few retail licenses are being awarded for the first year. Once the state assesses patient counts, more dispensary licenses may be added in the future. Regardless of the license type you aim for, expertise in business will give you a huge advantage. Even if it’s not specific to cannabis, any kind of business experience — be it running a retail shop, a farm, or anything else — will help bolster the business plan portion of your application. Your best bet to get into the Alabama market is to stay small and local, meet the residency requirements, and highlight your strong business and cannabis background. If you don’t have cannabis experience, a consulting team like Higher Yields can add the cannabis know-how to your business experience. Anticipating Challenges As you prepare your application, keep in mind that we still don’t have the full picture of Alabama weed laws or the state’s final requirements. And what we do know presents some unique challenges you’ll need to navigate: Excessive residency requirement. The state’s residency requirement will make it difficult for multistate operators and smaller businesses with only a few years of residency to apply — even those with experience and understanding of high-quality products. Potential for unethical token relationships. Both the residency and minority ownership requirements open the door for larger, out-of-state operators to create agreements with minority locals just to get their foot in the door. Limitations on cultivation. In addition to the above requirements, Alabama weed laws will not allow any raw plant material. Limited real estate availability. Due to the county disbursement requirement for dispensaries and the state’s setback requirements, real estate options may be quite limited. With all of these limitations and requirements, it will be especially important to take advantage of every resource available to give yourself the best shot at winning a license and building your Alabama cannabusiness. Get Expert Help Navigating Alabama Weed Laws Although Alabama weed laws are still in flux, the application period for cannabusiness licenses is quickly approaching. Start preparing now to ensure you meet all the requirements for your prospective license type and business facility. Get a Green Zone Assessment to ensure your property is both compliant with current Alabama weed laws and conducive to future growth.

Applications for these licenses are set to open up later this year and will likely be very competitive, so the sooner you start preparing, the better. 

Read on to learn more about Alabama weed laws and how to prepare for the upcoming license application period.

 

2022 License Applications

While Alabama weed laws and specifics for the state’s medical marijuana program are still in development, applications are expected to open on September 1, 2022. 

It’s unclear exactly how long the submission window will be, but the state is hoping to grant or deny licenses within 60 days of submission. Additionally, the program will allow applicants 60 days to remediate any deficiencies. 

Based on the number of licenses that will be available, this is likely to be a competitive application process. You’ll need to submit an extremely detailed business plan with a proposed physical location for each business and demonstrate how you will conduct activities.

Finally, there will be a non-refundable $2,500 application fee, as well as background checks for owners holding controlling interest in the applicant’s license.

 

Residency & Ownership Requirements

 

On top of the already limited number of licenses, Alabama weed laws will place even further limitations on who can obtain licenses. 

Depending on the license, one-fourth to one-fifth of the total licenses must go to businesses that are at least 51% minority owned, specifically by individuals of African American, Native American, Asian, or Hispanic descent. 

Similarly, all of the cultivation licenses and three of the integrated licenses must go to businesses with at least 51% ownership held by individuals who have been Alabama residents for at least 15 years.

This residency requirement is unusually high; most states require closer to five or seven years of residency. While this choice appears to be an effort to keep things local, it also has the potential to severely limit qualified applicants who don’t meet the residency requirement from entering the Alabama market. Your Best Asset: Business Experience While Alabama weed laws and requirements for cultivation may be limiting, keep in mind that most of the licenses granted will be for cultivation. That means your chances of winning a cultivation license will be higher than your chances of winning a different license type. However, the most profit will likely be in retail, since so few retail licenses are being awarded for the first year. Once the state assesses patient counts, more dispensary licenses may be added in the future. Regardless of the license type you aim for, expertise in business will give you a huge advantage. Even if it’s not specific to cannabis, any kind of business experience — be it running a retail shop, a farm, or anything else — will help bolster the business plan portion of your application. Your best bet to get into the Alabama market is to stay small and local, meet the residency requirements, and highlight your strong business and cannabis background. If you don’t have cannabis experience, a consulting team like Higher Yields can add the cannabis know-how to your business experience. Anticipating Challenges As you prepare your application, keep in mind that we still don’t have the full picture of Alabama weed laws or the state’s final requirements. And what we do know presents some unique challenges you’ll need to navigate: Excessive residency requirement. The state’s residency requirement will make it difficult for multistate operators and smaller businesses with only a few years of residency to apply — even those with experience and understanding of high-quality products. Potential for unethical token relationships. Both the residency and minority ownership requirements open the door for larger, out-of-state operators to create agreements with minority locals just to get their foot in the door. Limitations on cultivation. In addition to the above requirements, Alabama weed laws will not allow any raw plant material. Limited real estate availability. Due to the county disbursement requirement for dispensaries and the state’s setback requirements, real estate options may be quite limited. With all of these limitations and requirements, it will be especially important to take advantage of every resource available to give yourself the best shot at winning a license and building your Alabama cannabusiness. Get Expert Help Navigating Alabama Weed Laws Although Alabama weed laws are still in flux, the application period for cannabusiness licenses is quickly approaching. Start preparing now to ensure you meet all the requirements for your prospective license type and business facility. Get a Green Zone Assessment to ensure your property is both compliant with current Alabama weed laws and conducive to future growth.

This residency requirement is unusually high; most states require closer to five or seven years of residency. While this choice appears to be an effort to keep things local, it also has the potential to severely limit qualified applicants who don’t meet the residency requirement from entering the Alabama market. 

 

Your Best Asset: Business Experience

While Alabama weed laws and requirements for cultivation may be limiting, keep in mind that most of the licenses granted will be for cultivation. That means your chances of winning a cultivation license will be higher than your chances of winning a different license type. 

However, the most profit will likely be in retail, since so few retail licenses are being awarded for the first year. Once the state assesses patient counts, more dispensary licenses may be added in the future.

Regardless of the license type you aim for, expertise in business will give you a huge advantage. Even if it’s not specific to cannabis, any kind of business experience — be it running a retail shop, a farm, or anything else — will help bolster the business plan portion of your application.

Your best bet to get into the Alabama market is to stay small and local, meet the residency requirements, and highlight your strong business and cannabis background. If you don’t have cannabis experience, a consulting team like Higher Yields can add the cannabis know-how to your business experience. 

 

Anticipating Challenges

As you prepare your application, keep in mind that we still don’t have the full picture of Alabama weed laws or the state’s final requirements. And what we do know presents some unique challenges you’ll need to navigate:

  • Excessive residency requirement. The state’s residency requirement will make it difficult for multistate operators and smaller businesses with only a few years of residency to apply — even those with experience and understanding of high-quality products. 
  • Potential for unethical token relationships. Both the residency and minority ownership requirements open the door for larger, out-of-state operators to create agreements with minority locals just to get their foot in the door.
  • Limitations on cultivation. In addition to the above requirements, Alabama weed laws will not allow any raw plant material.
  • Limited real estate availability. Due to the county disbursement requirement for dispensaries and the state’s setback requirements, real estate options may be quite limited.  

With all of these limitations and requirements, it will be especially important to take advantage of every resource available to give yourself the best shot at winning a license and building your Alabama cannabusiness. 

 

Get Expert Help Navigating Alabama Weed Laws

Although Alabama weed laws are still in flux, the application period for cannabusiness licenses is quickly approaching. Start preparing now to ensure you meet all the requirements for your prospective license type and business facility. 

Get a Green Zone Assessment to ensure your property is both compliant with current Alabama weed laws and conducive to future growth.

 

Government Collaborations for a More Cannabis-Friendly Community

cannabis government outreach

The government and the cannabis industry have been bitter rivals for decades. Since the days of Woodstock through to the era of CBD-everything, it seems that we’ve encountered increasing instances of opposition, legal strife, and logistical nightmares caused by the tension between these two over time. Now, like Jim and Dwight, the cannabis-friendly town of Edgewater is proving that long-time rivals can become cooperative friends. Hear from the man himself, Kris Teegardin, and pick up his tips for finding harmony in hardship.

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Cannabis Legalization and Emerging States – New York, Texas, New Jersey, and Mississippi

American cannabis consulting

Cannabis Legalization and Emerging States – New York, Texas, New Jersey, and Mississippi

Lawmakers and policy advocates have been facing tremendous obstacles related to the COVID-19 epidemic and the resulting government closures. Facing budget shortfalls in connection to these public health measures many states and municipalities are exploring their options for additional revenue sources, including establishing or expanding existing cannabis markets. This report addresses the emerging cannabis markets in Texas, Mississippi, New Jersey, and New York.

New York – An Emerging Cannabis Market

New York lawmakers were set to consider expanding access to Adult-use cannabis in the Governor’s budget bill 1617-C early on in 2020 until COVID-19 necessitated the closure of government offices and a stay at home order that effectively ended the legislative session early. However, legalization of cannabis for Adult-use in 2020 is not entirely off the table. As the state is now facing a revenue shortfall it may see lawmakers return for a special session to address budgetary shortfalls and the means to address them. As cannabis business licenses and businesses provide additional revenue for the state it is possible to see the legalization issue pop up in these discussions. 1617-C goes into great detail about the framework and requirements for establishing an Adult-use market in the state and whether it is picked up in an emergency session or in the next legislative session, the bill showcases the priorities for the framework for an adult-use market.

Assuming New York keeps most of the language of the bill that deals with cannabis, New York will be establishing the Cannabis Control Board and Compliance Council.

The following cannabis license types would be available if the legislation passes:

  • Cultivation, Processor, Dispensary, Distribution (designed for existing Medical Cannabis Dispensaries)
  • Cultivator Processor
  • Small Business Adult-use Cooperative Adult-use Distributor
  • Adult-use Retail Dispensary Microbusiness
  • Delivery Nursery
  • Adult-use On-site Consumption

Priorities for Processing Privileged License Applications:

  • Is the applicant a social equity applicant?
  • Will the applicant be able to maintain effective control against illegal diversion of cannabis?
  • Will the applicant be able to comply with applicable state laws and regulations?
  • Will the applicant be ready, willing, and able to properly carry on the activities for which the license is sought (including with help from the social and economic equity and incubator program)?
  • The applicant possesses or has the right to use sufficient land, buildings, and equipment to properly carry on the activity the license is for or has a plan to do so if applying as a social or economic equity applicant
  • The applicant qualifies as a social and economic equity applicant or sets out a plan for benefitting communities and people disproportionately impacted by enforcement of cannabis laws
  • Good moral character
  • Labor peace agreement (25 or more employees)
  • Contribute to communities disproportionately harmed by enforcement of cannabis laws
  • Environmental and energy impact of the facility Follows all other regulations drafted by the Board
  • Is a registered organization with the state of New York?

An examination of the language of the proposed bill clearly outlines the importance New York is placing on social and economic equity in its cannabis market.

Texas – Growing Support to Legalize Cannabis

Texas lawmakers are seeing increasing pressure to consider cannabis legalization from groups like Texans for Responsible Marijuana Policy. Texas officials, now facing budget shortfalls, are gradually considering options for decriminalization and potential legalization. That is not to say that 2020 holds much promise for significant movement toward legalization beyond greater potential interest. Current CBD retailers still face raids from officials even with CBD being a legal product.

New Jersey – Looking to Legalize Adult-Use Cannabis in 2020

New Jersey lawmakers placed SCR 183, a ballot initiative to amend the state’s constitution to legalize adult-use cannabis. If passed it requires the state to establish a Cannabis Regulatory Commission and would mandate that the tax on retail sales of cannabis not exceed the state’s standard sales tax of 6.625% with municipalities being afforded the option of imposing a 1-2% sales tax. In a healthy economy, the state could potentially see tax revenue of $95 million per year according to projections from Bridge West CPAs, who also note that if the state were to follow in the footsteps of states that expanded access to adult-use before and imposed an additional 10 % excise tax the tax revenues in a healthy economy could potentially be as high as $143.6 million per year.

Marijuana Consultants for Conquering Cannabis License Applications
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Mississippi – 2 Deceptively Similar Medical Marijuana Initiatives On the 2020 Ballot

Policy advocates successfully collected enough signatures to get Initiative 65 onto the ballot which would legalize medical cannabis in Mississippi. State lawmakers voted to include Initiate 65A on the ballot which would also legalize cannabis for medical use for significantly fewer qualifying conditions than Initiative 65 while affording the state greater control over the potential medical cannabis industry market the Initiative would establish. Concerns have been raised that Initiative 65A has been added to the ballot to potentially split the vote and defeat both measures by confusing voters, which it has the potential to do. If Initiative 65 passes it is likely to establish a medical cannabis market similar to its predecessors with an opportunity of social equity applicants.

Conclusion – Emerging Cannabis States and Markets in 2020 and 2021

Though 2020 has been a rough year for cannabis legalization efforts it has none-the-less shown that even states that have previously been reluctant to consider legalization are now entertaining the idea. Mississippi could signal a positive shift in the legalization movement and provide opportunities for established multi-state operators to expand if Initiative 65 is successful. New York, though somewhat of a long shot at this point, does indicate with the language of 1617-C that this progressive state is making a concerted effort toward social and economic equity at a time when the call for it has never been louder.

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Stephanie Till - Green Rush Indexed Data

Stephanie Till - Green Rush Indexed Data

This article was written by Stephanie Till of Green Rush Indexed Data with data compiled and provided by Bridge West CPAs. Stephanie is a Compliance Expert as well as a Historian who is currently archiving the Green Rush of the cannabis industry. The mission of her company is help clients by providing quality research services, custom tailored cannabis compliance consulting, dynamic training materials and exceptional customer service for those in the young cannabis industry.

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Hot States With Legal Cannabis for Adult Use

Higher Yields Consulting Hot States With Legal Cannabis for Adult Use

States with legal cannabis for adult use are at the highest stage of legalization before the federal level. Upon full legalization, states can be categorized into three layers of adult use: up-and-coming, in-progress, and established.

Adult-use — our preferred term for recreational — cannabis speaks to an individual’s choice to make for themself, as an adult. And while adult-use cannabis is currently legal in 17 states and the District of Columbia, President Biden’s 2022 budget continues to uphold several bans on adult-use sales.

Higher Yields Consulting Hot States With Legal Cannabis for Adult Use

Read on to find out which states with legal cannabis for adult use are hot to enter in each of the three layers of full legalization.

Up & Coming States: New Jersey & New York

Up-and-coming states with legal cannabis, like New Jersey and New York, are fully legalized but have not yet begun adult-use sales. New Jersey has a slight lead over New York, as they’ve spent a lot of time on their social equity program and have already appointed their commission. 

Adult use in New Jersey was officially legalized on February 22, 2021, when Governor Phil Murphy signed three adult-use cannabis reform bills. As a result, New Jersey will have six license types: 

  1. Grower
  2. Processor
  3. Wholesaler
  4. Distributor
  5. Retailer
  6. Delivery service

So far, grower licenses are the only ones that have been capped in the entire state, at 37. It’s unclear whether the state will leave capping the other licenses up to the discretion of each municipality or the state will do so at a later date.

New York City, on the other hand, can thank its population of nearly 8.4 million (compared, for example, to the state of Colorado’s 5.7 million) for making it a hot state! Legalizing adult-use cannabis is a game changer for the East Coast since the region’s other adult-use states (Maine and Massachusetts) are much smaller.

In-Progress States: Massachusetts & California

An in-progress state has adult-use sales, but the state itself is still finding its footing in the industry. Massachusetts, for example, is hot because it’s still viable — the market is not oversaturated, has no cap on licenses, and isn’t volatile — due to the work of regulatory agencies.

In 2018, the state rolled out METRC inventory tracking in a very hands-on approach. Typically, states with legal cannabis leave things like METRC compliance and inventory tracking to the licensees to figure out on their own, but Massachusetts helped them every step of the way, even offering additional training and resources.

Higher Yields Consulting Hot States With Legal Cannabis for Adult Use

California, on the other hand, left its licensees floundering. Local jurisdictions have the power to make their own rules, creating disparities in operations across the state. The Emerald Triangle, for example, recently decided to ban cannabis altogether, forcing both medical and adult-use licensees to shut down after years of operating.

Despite its issues and thriving black market, California is an expensive market to enter (it’ll cost you roughly $6 million to open a dispensary). That said, it’s a great opportunity for someone who already has connections in their local municipality to make a lot of money, especially on the distribution and retail sides.

If you’re having trouble entering the California cannabis market, though, you might instead consider pivoting to Massachusetts, which has no residency requirement.

Established States: Colorado

Established states with legal cannabis have well-established regulations and operations. Take Colorado, for example. While it’s a fair and common assumption that Colorado is too saturated to enter, there are still pockets of opportunity available — if you know what you’re doing.

Denver is finally opening up a social equity program, with 72 licenses until 2024, which is a big deal as its licenses had been paused for a while. If you qualify for social equity in Denver, and have the experience and knowledge to set yourself apart from other licensees, now might be your chance to get into Colorado’s hottest market.

Experienced multi-state operators who have the capital and are looking to expand are great candidates, too, as long as they maintain the integrity of local mom-and-pop shops.

Other States With Legal Cannabis to Watch

The following states aren’t quite hot states with legal cannabis, but they are in the process of becoming fully legal and have the potential to become hotspots for cannabis businesses in the future.

Illinois

Illinois is currently delayed in their legalization process. Their few operators were originally medical-only, which meant they got the first crack at early application approval for adult-use. 

Unfortunately, this process has turned into a monopoly where those few operators are making a ton of money, which in turn has skyrocketed prices, caused product shortages, and lowered quality. On top of that, litigation issues on later application rounds for adult use have brought the state’s legalization process to a standstill.

However, there is great promise for the future. With record-breaking sales in the first year, Illinois will be a state to watch once all of the litigation and licensing issues are resolved.

New Mexico

As the most recent state to legalize adult use, New Mexico is on its way to becoming a hot state for adult-use cannabis. Although we don’t know exactly what the future has in store here, New Mexico is certainly worth keeping an eye on for future developments.

Knowing what states with legal cannabis are most suitable to enter — and when — can be crucial for the success of your medical marijuana dispensary. Contact Higher Yields Cannabis Consulting to determine which state is the best fit for you and how you can get in with the strongest application.

Bermuda Prepares for Legalized Cannabis

Bermuda Prepares for Legalized Cannabis

Crystal blue waters and pink sands may be the key to Bermuda’s charm, but thanks to a new proposal from the island’s government, Bermuda looks to be moving towards legalizing cannabis. On June 3, 2020, Attorney General and Minister of Legal Affairs Kathy Lynn Simmons announced the Bermudian government’s intention to fully legalize and regulate cannabis for adult use by the end of the year.

Higher Yields Consulting: From Pink Sands to a Green Rush: Bermuda Prepares for Legalized Cannabis

Simmons has released a draft of the Cannabis (Licensing and Regulation) Act 2020 for public comment. For anyone paying attention, this comes as no surprise. Change has come incrementally to Bermuda, first with a decriminalization bill in 2017, and then with a move to legalize hemp in 2019.

With full adult-use legalization on the horizon, a new world of opportunity is emerging in Bermuda. Here’s what you need to know.

Bermuda & Cannabis: How We Got Here

Though Bermuda’s government has taken swift and decisive steps to legalize cannabis in 2020, regulation is hardly a new topic of discussion. In 2018, the possibility of expanding patient access to cannabis-based treatment was being explored. However, when the proposal was brought forward for public consultation, it was met with unexpected criticism — and not in the way one would assume. The overwhelming consensus was that the government’s aspirations, impressively proactive though they were, didn’t go far enough.

Full legalization was demanded. Bermudians wanted a simplified framework that would allow all citizens to participate, no matter their economic standing. They also wanted help to bring a semblance of social equity, which was especially important because of the stark economic disparities that have long been a part of island life.

Bermuda’s population is basically made up of rich and poor with no prevalent middle class to speak of. As an island nation, Bermuda relies on imports for many everyday staples, which pushes up the cost of living and further widens the divide between the haves and the have-nots.

The COVID-19 pandemic has further exacerbated these circumstances. With international travel ground nearly to a halt, Bermuda’s tourism-based economy has taken a catastrophic hit, leaving an overwhelming number of Bermudians with no way to make ends meet.

It’s no coincidence that the Bermudian government has now decided to accelerate the cannabis legalization process. In fact, the pandemic’s economic impact has been directly cited in documents for public consultation on the topic. As of July 3, 2020, the window for submission of public comments officially closed, setting the stage for the bill’s final adjustments ahead of becoming law.

Setting Up the System

Public documents released thus far have cited the regulatory frameworks of Canada and neighboring Caribbean nations as Bermuda’s inspiration. However, U.S. industry operatives will also find similarities to the framework of Colorado.

Higher Yields Consulting: From Pink Sands to a Green Rush: Bermuda Prepares for Legalized Cannabis

Regulations will be overseen by a five-member board — the Cannabis Advisory Authority — selected from the “disciplines of health, scientific research, business, planning, and agriculture.” The Authority will be responsible for advising on policy matters, the distribution of educational materials, the execution of training programs, and the receipt and submission of licensing applications. The Authority will also give recommendations on approvals and refusals. Let’s take a quick look at the broad strokes of the proposal:

  • Adults age 21 years and older will be permitted to carry up to seven grams on their person.
  • Personal cultivation will be allowed but will require an annual license of $750.
  • Individuals with prior cannabis convictions will NOT be automatically barred from participating in the new industry.
  • Retail cannabis outlets will be required to submit to an inspection by the Commissioner of Police a minimum of once every six months.
  • Retail cannabis outlets will be permitted to allow consumption on their premises with the proper licensing.
  • Licensing will be required for every level of the vertical, including cultivation, importing, exporting, manufacturing, retail, transportation, and research.

The Bermudian government is implementing rigorous protocols to ensure that the system can’t be scammed. Still, excessive regulations are being adamantly avoided so as not to unduly burden aspiring participants.

Pushback

Despite the overwhelming popularity of legalization among Bermudians, not everyone is happy with all of the details of the proposal. According to an article in the Royal Gazette, Social Justice Bermuda — an activist organization — has taken issue with the $750 licensing fee for home cultivation. The group argues it will disproportionately exclude Black citizens from taking part in the legal growing scheme. Moreover, Social Justice Bermuda argues that such an exclusion would only further encourage illegal activity.

While there has been no direct response to this objection as of yet, the statements that have been released do bode considerably well for Social Justice Bermuda’s agenda. In her update on the public consultation,  Attorney General Simmons stated emphatically that all comments submitted by the public were being considered. The update also noted that license fees were being re-evaluated in hopes of finding a balance between the costs of all available licenses and “to achieve the best participation for under-represented or marginalized groups.”

The Island Way

Throughout all of this—the language of the bill, the process by which they created it, and the consultations by which they refined it, one thing is abundantly clear: This piece of legislation is for the people.

bermuda cannabis consulting

There’s no buying or selling of licenses allowed, meaning it won’t become a game of Monopoly for the rich. Bermudian citizenship is also required for participation. Most importantly, the Bermudian government has made it clear that their goal is to tip the scales in favor of the underclass. They’ve doubled down on that assertion through a rare attentiveness to the populace and a dynamic response to their concerns.

Still, even the most reasonable of regulations can prove to be an arduous regimen for the average entrepreneur to tackle. Having a green thumb or a silver tongue doesn’t typically correlate with a propensity for bureaucratic details. Those are the Devil’s domain, according to the old cliché.

As the Bermudian government takes the final few steps to make the dream of legalization a reality, an entirely new territory of opportunity will be opening. If you’re a Bermudian approaching this new opportunity with a plan and a passion, make sure you’re equipped to stake your claim.

If you’re not sure where to start, we here at Higher Yields Consulting can help. Since 2008, we’ve been putting our diverse skillset to work for the cannabis industry — both in the U.S. and abroad — and have consistently garnered stunning results for our clients.

Reach out to us today to schedule a consultation.

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Higher Yields Cannabis Consulting

Higher Yields Cannabis Consulting

Higher Yields Consulting is a Marijuana Consulting Group comprised of industry experts with decades of combined experience in the legal industry. Whether you are looking to get into the business or already have a license we can help your business succeed. Call (844) HI-YIELD to schedule an initial consultation.

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The Future of Cannabis in the U.S. & Emerging Markets in the Industry

ammerican cannabis consulting

As the saying goes, you don’t need a weatherman to know which way the wind blows. However, when it comes to the future of cannabis in the U.S., an experienced prognosticator can help predict the next state likely to launch a legal cannabis market or provide insight to help you win an industry license. However, passing a law is just part of the story. We’re here to help you find the facts and identify opportunities.

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Minorities in Cannabis: Social Equity During a Racial Pandemic

cannabis social equity

In any industry, life is more difficult for people of color, women, and other minorities. The cannabis industry is no different. In fact, there’s been an obvious lack of representation of communities of color since the inception of legal cannabis. Here’s everything you need to know about minorities in cannabis fighting for social equity.

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Ohio Marijuana: Your Best Option for Cannabis in the Midwest

Higher Yields Consulting Ohio Marijuana: Your Best Option for Cannabis in the Midwest

Marijuana programs in the Midwest aren’t much of an improvement on those in the South. While Illinois and Michigan have both legalized adult use — and the Ohio marijuana program seems poised to follow suit — other Midwestern states remain restrictive. 

Higher Yields Consulting Ohio Marijuana: Your Best Option for Cannabis in the Midwest

The Midwest is split pretty evenly between the restrictive states and the front-runners, but even many of the latter have fallen into disorder recently. With much of the region currently inaccessible, the greatest potential for cannabis success in the Midwest lies in Ohio. 

Here’s what you need to know about the state of cannabis regulations in the Midwest states and why the Ohio marijuana program might be your best option in this region. 

Restrictive States

The Wisconsin, Iowa, and Minnesota marijuana programs are not very promising at this time. However, they are worth keeping in mind should things change in the future. 

Wisconsin & Iowa 

Both Wisconsin’s and Iowa’s medical marijuana programs are extremely restrictive. For instance, Iowa’s program isn’t even fully medical; rather, they call it a medical cannabidiol program, and it only allows a patient 4.5 grams of THC every 90 days. 

Unfortunately, these programs, especially in Iowa, are also very racially disproportionate. According to the American Civil Liberties Union, Black individuals are 3.73 times more likely to be arrested for cannabis-related crimes than white individuals. 

Minnesota 

Minnesota has been a medical-only state since its first medical marijuana sale in 2015. Since then, there had been little to no movement on adult use until May of this year, when the Minnesota House of Representatives voted to legalize cannabis. 

However, the regular session was adjourned only two days later, stalling the senate bill in a committee. It’s unlikely that legislation will pick the bill back up until at least the second half of 2022, but Minnesota is taking steps to improve its restrictive medical marijuana program by increasing its nine qualifying conditions to 17. 

If you want to get into Minnesota’s market, the best thing you can do is to join local advocacy groups in their efforts to lobby for more reform. In the meantime, it may be well worth considering the less-restrictive Illinois, Michigan, and Ohio marijuana markets.

Front-Runner States 

The Illinois, Michigan, and Ohio marijuana programs were front-runners for legalization in the Midwest. While some problems and delays have since cropped up, opportunity remains — especially in Ohio. 

Illinois

In Illinois, adult use sales began in January of 2020, shortly after legalizing adult use. But what seemed a promising start turned into an absolute nightmare with delays, lawsuits, and scandals. 

Higher Yields Consulting Ohio Marijuana: Your Best Option for Cannabis in the Midwest

We’d advise staying out of Illinois until the state can get itself sorted out and instead focusing on the Michigan and Ohio marijuana markets.

Michigan 

Michigan is legalized for both medical and adult use. While overall, the state itself is not terribly competitive, that can depend on the region. Detroit, for example, took years to get their adult-use program off the ground but is now a highly competitive market. 

Michigan is a generally accessible state but leaves much of the regulating and restricting up to the municipalities. While the state has set certain limits on the total allotted number of cultivations or dispensaries, local levels set their own limits within their municipalities. 

If you’re looking to get started in Michigan, first ensure you meet the municipality requirements, as those will be harder to meet than state requirements. It’s best to start with a list of areas you don’t want to operate in, and then see which of the remaining counties have municipality requirements you can viably meet. 

Your facility must be ready for inspection within 60 days of submitting your second application, so you’ll need to be strategic in figuring out real estate and municipality limits ahead of time. Also, be open to considering areas in Michigan that might not seem ideal, because they may have more licenses available to you. 

Ohio

The Ohio marijuana program is currently medical only, but they did recently open up another round for dispensaries and will be awarding 130 licenses based on a lottery system. Licenses will be extremely difficult to win, and if you don’t already have everything prepared, you won’t likely have enough time to get into this round. 

However, it’s possible Ohio may legalize adult use in 2022. Legislators have been pushing for it, and they’ve been cleared to collect signatures and potentially get a bill passed. 

Two major fears keeping people from joining Ohio’s medical marijuana program may help push adult-use legalization through because these concerns would then become irrelevant:

  • Taking medical marijuana — even for legitimate reasons — could cause some people to forfeit access to their other medications.
  • In Ohio, it’s illegal to own both a gun and a medical marijuana card. 

If you’re interested in getting into the Ohio marijuana market, be sure to follow updates on the signature collection and get involved by helping collect signatures yourself.

Ohio Marijuana Programs: The Midwest’s Point of Access

Despite some promising starts, the Midwest as a whole is pretty inaccessible, with potential Ohio marijuana programs as the only glimmer of hope. But if the other states can get their acts together, the Midwest could be a huge market for cannabusinesses. 

If you’re interested in breaking into the Ohio marijuana market or other Midwest states, contact HYC for a feasibility study to explore your best options.

What to Expect From the Louisiana Marijuana Program & Other Southern States

Higher Yields Consulting What to Expect From the Louisiana Marijuana Program & Other Southern States

The Bible Belt certainly isn’t known for being particularly friendly to cannabis, but opportunities are slowly starting to open up in certain areas. The Louisiana marijuana program is one example of a small but promising start, and a few other Southern states show limited potential, as well. 

While as a whole, the Southern states are often slow to accept cannabis as anything other than a drug, there have been significant shifts. Florida, for instance, was the first to legalize medical marijuana and open up a cannabis program (albeit an extremely limited one). 

Higher Yields Consulting What to Expect From the Louisiana Marijuana Program & Other Southern States

Here’s what you need to know about the state of cannabis in this hold-out region of the U.S., from the bare-minimum Texas CBD allowances to the small-but-promising Louisiana marijuana program. 

Southern States With Little to No Movement

The Florida, Texas, and Mississippi marijuana programs may have had decent starts but have since stalled for the foreseeable future — or at least the next few years. We’re keeping an eye on them for future developments, but we don’t expect much movement at this time.

Florida 

True to the common conception of Florida as a separate entity from the rest of the South, Florida’s marijuana program is very different from what we see in other states.

Initially, Florida’s program issued only five licenses, though it later opened up a few more. However, Florida’s program is not an open application route, so no one is currently able to compete for licenses in the state. 

Although Florida’s legalization measures helped trigger a domino effect to get the other Southern states moving, it’s likely to be a few years before Florida’s own program picks up any further momentum.

Texas 

Texas does have a medical marijuana program, but the state allows only 1% THC in their medical marijuana products. At such a low THC rate, it’s essentially a CBD program. And it’s very minimal — just over 3,000 patients are registered, and there isn’t much movement happening in the state, overall. 

If you want to get into the Texas market, be prepared to work exclusively with CBD and CBD-adjacent products for a while. Cultivation is another option to consider, but the market is saturated. While we don’t recommend starting out in Texas at this time, if you’re so inclined, manufacturing will be your best bet. 

Mississippi 

In early 2021, Mississippi looked like it would follow in Oklahoma’s footsteps in terms of plentiful and accessible license availability. Unfortunately, however, government and legislative issues have put the program on hold for the next two or three years. 

If you want to build a cannabusiness in one of the Southern states, we’d suggest exploring opportunities in the Arkansas, Alabama, and Louisiana marijuana markets instead.

Southern States With Some Opportunities

The Arkansas, Alabama, and Louisiana marijuana programs offer a few more opportunities, especially if you establish the right connections prior to entering the market there. 

Arkansas 

Arkansas is currently legalized for medical cannabis, and the application window is open. However, the state also has a high barrier of entry. You’ll need expensive surety bonds and to meet strict zoning limits. Once a zone fills its allotted number of dispensaries, no more dispensaries will be allowed to open in that zone. 

Higher Yields Consulting What to Expect From the Louisiana Marijuana Program & Other Southern States

While you can certainly apply for a license in the Arkansas medical marijuana program, know that it will be an expensive endeavor and that you may have better luck with the Alabama or Louisiana marijuana markets. 

Alabama 

Alabama’s Compassion Act will likely resemble Florida’s cannabis program. Although there probably won’t be a low THC cap, it does appear as though operators will only be allowed to sell manufactured products — no raw plant, smoking or vaporization products, or baked goods.

The Act also has a large residency requirement — 51% of all license holders must be Alabama residents — as well as huge capital requirements, making the barrier of entry extremely high. 

If you’re looking at entering the Alabama marijuana market, you’ll want to get started as soon as possible finding real estate and establishing yourself as a local team. MSOs are already moving in, but they’re required to work with local teams, and it will take time to build up those connections. 

Louisiana 

The Louisiana marijuana program kicked off in 2018 with a total of nine licenses. But despite being a small program, it was set up well and there are many lobbying efforts to expand cannabis retail.

However, growth within the Louisiana marijuana program is still slow. Louisiana legislation only authorized the Louisiana State University and Southern University agriculture centers to grow medical cannabis, so you’ll have to contact the Board of Pharmacy regarding licensing to dispense any medical cannabis.

As is true of any Southern State, entering the Louisiana marijuana market is all about who you know and how you advocate locally for cannabis. You can’t just show up and submit an application; you have to play an active role in educating the community and helping write ordinances that simply don’t exist yet.

That’s where HYC comes in. We can help you make important local connections and develop the necessary knowledge base to educate your community. There will always be local political challenges, but with the right knowledge and connections — and an early start — you have the opportunity to impact change. 

Get Your Foot in the Door With Louisiana Marijuana

The Louisiana marijuana program offers a fairly typical example of what to expect in Southern states — slow movement, small programs, and the importance of making the right connections. But if you can get your foot in the door early and weather both political and local delays, opportunity is there. 

Working with an experienced cannabis consultant can give you the credibility, connections, and partners you need to be successful. Don’t miss your chance to get into the Louisiana marijuana market early! Get in touch today to schedule a consultation.

Cannabis Regulations in Latin America: New Developments

Higher Yields Consulting Cannabis Regulations in Latin America: New Developments

Latin America is seeing a lot of movement in cannabis regulations and legislation. Brazil — which is sort of the Oklahoma of the international cannabis scene — is a fairly progressive area with the largest market and over 1,100 new import authorizations. But the challenge is getting the product out and into other areas.

Higher Yields Consulting Cannabis Regulations in Latin America: New Developments

Despite an estimated $9.75 billion market value for cannabis, there’s no clear leadership. New cannabis lounges and on-site consumption facilities are emerging, but no one particular group appears to be spearheading cannabis regulations and movement in the region. It’s an ever-changing environment with a lot of potential. 

 

If you’re considering getting into Latin America’s cannabis market, there are four hot places to watch: Colombia, Buenos Aires, Uruguay, and Mexico. Read on to learn about cannabis regulations in these four parts of Latin American, and how you can best prepare to enter the market.

Colombia

Colombia’s cannabis regulations are laser-focused on cultivation licenses. There are no provisions for extractions or other segments; rather, they focus on this one area because of their strong agricultural background.

 

Both personal cultivation and consumption have been decriminalized in Colombia. But within the commercial cannabis industry, it’s permitted strictly for medicinal use and strictly from an agricultural standpoint. 

 

There are, however, whispers of change. With Colombia and Panama in such close proximity, there’s a lot of tension and positioning to watch. 

Buenos Aires

Argentina as a whole has great IT resources but poor economic solutions. There’s an interesting element of technology and the cannabis industry meeting, as certain groups are developing apps to connect the community of personal growers. 

 

Right now, cannabis regulations surrounding growing for medical use in Buenos Aires are limited to individuals and certain networks. But with all this technological innovation and creativity, we expect the growing model to increase and expand.

 

Anytime a market or an industry grabs a foothold in a particular area and applies technology to it, you can anticipate those sectors growing at a pretty rapid rate. Keep an eye on Buenos Aires for new developments of technology and creativity in dealing with cannabis regulations. 

Uruguay

Uruguay got their foothold in the cannabis industry through hemp, which they were able to sell all over the world. Then, in 2012, Uruguay became the first country in the world to legalize commercially produced adult-use cannabis. Even tourists are allowed to purchase marijuana.

Higher Yields Consulting Cannabis Regulations in Latin America: New Developments

Because of this, Uruguay seems to be decreasing emphasis on hemp and increasing their focus on cannabis. These two industries have great potential to work together and improve the country’s economy overall, but that doesn’t appear to be their intention right now. 

Mexico

Currently, Mexico is a difficult place to get started in the cannabis industry. We at HYC had the opportunity to help write the cannabis regulations in Mexico a few years ago, and those regulations were recently put in place. However, it’s nearly impossible for anyone to enter the program. 

According to current cannabis regulations in Mexico, it’s legal to sell cannabis — but not to obtain it. You can’t grow, acquire, or import it. The country is basically hamstringing themselves for cannabis sales.

We are seeing an increase of interest in the Mexican market, however, and receiving a lot of inquiries. Be sure to keep an eye on future developments for the cannabis industry in Mexico to finally get off the ground. 

The Future of Cannabis Regulations in Latin America

There’s a lot of potential for cannabusinesses in Latin America. Low operational costs and prime growing conditions make for a lucrative opportunity. However, there are also plenty of barriers, so it’s important to find the right country to operate in and the right partners to work with. 

The cannabis industry is seeing plenty of movement in Latin America. Even though it’s a slow movement, it’s still important to get started sooner rather than later so you can prepare for the specific level of competition, politics, and cannabis regulations of the environment you’ll be entering.

Start making connections as early as you can so you’ll be fully aware of government requirements and limitations in the country you choose. HYC can help. Schedule a consultation for help entering the Latin American cannabis market and understanding its cannabis regulations.