The Rise of the Cannabis Industry 🚀

Legal cannabis continues to expand as states adopt regulated adult-use or medical frameworks. Some of the benefits that have emerged from this growth include:

✔ Economic Opportunity

Legal markets generate billions in sales each year and support a broad ecosystem: cultivation, retail, manufacturing, labs, security, marketing, and ancillary services. Local economies benefit through job creation and business investment.

✔ Tax Revenue for Communities

Cities and states now utilize cannabis tax dollars to fund public health programs, schools, infrastructure upgrades, and community services.

✔ Reduced Enforcement Burden

Shifting cannabis out of the criminal system frees up law enforcement resources and reduces unnecessary arrests.

However, the cannabis industry isn’t without its challenges.

✘ High Taxes & Strict Regulations

Excessive tax rates and regulatory costs make it hard for small or minority-owned businesses to compete. In some markets, legal operators struggle to match illicit market prices.

✘ Market Volatility

Oversupply, price crashes, and inconsistent state policies create an unpredictable business environment.

✘ Slow Licensing & Bureaucratic Delays

In many states, businesses wait months or even years for approvals, causing financial strain long before their doors ever open.

Why the Hemp/Cannabis Industry Has Taken a Hit

Hemp was once celebrated as the “green gold rush,” promising eco-friendly materials, CBD wellness products, and new agricultural opportunities. However, the reality has proven to be far more complicated.

Here’s why the hemp sector has struggled recently:

1. Oversupply & Crashing Prices

Between 2018 and 2020, farmers planted tens of thousands of acres, anticipating explosive CBD demand. Unfortunately, that demand never matched the amount of hemp grown, leading to a collapse in wholesale prices. Many farmers lost money or exited the industry entirely.

2. Regulatory Gray Areas

While hemp is federally legal, policies surrounding CBD, hemp extracts, and intoxicating cannabinoids (like delta-8 THC) remain inconsistent. States have enacted a patchwork of regulations, creating confusion for both businesses and consumers.

3. The Rise of Intoxicating Hemp Products

Although hemp was intended to be non-intoxicating, chemical conversions now produce delta-8, delta-10, THCA, and other high-potency compounds derived from hemp. These products:

• Often lack lab testing

• Are sold outside licensed cannabis stores

• Compete with regulated THC markets

• Create tension between the hemp and cannabis industries

  
  

Many states have begun restricting or banning these products, cutting into hemp businesses' revenue.

4. Lack of Infrastructure

Hemp fiber and grain — used for textiles, bioplastics, paper, food, and more — have strong long-term potential. However, the U.S. lacks processing facilities, consistent standards, and investment. Without processing infrastructure, farmers cannot profitably grow fiber or grain crops.

The Good News: A More Balanced Future Is Possible 🤝

Despite setbacks, both cannabis and hemp hold enormous potential — but only if policymakers, businesses, and communities work together.

What Positive Change Looks Like:

🌱 Clear, Science-Based Regulations

States can create sensible regulations that distinguish intoxicating hemp compounds from traditional hemp products, while still allowing safe, lab-tested cannabinoid sales.

📉 Lowering Barriers for Small Businesses

More equitable licensing structures and reasonable tax policies can help local entrepreneurs — not just large corporations — thrive.

🏭 Investing in Hemp Processing

Developing facilities for fiber, grain, and industrial hemp would diversify the market and reduce reliance on CBD.

🤝 Collaboration Over Competition

Instead of viewing hemp and cannabis as rivals, policymakers can build frameworks where both industries coexist, regulated by potency, intended use, and product safety.

When local communities engage in the policy process — attending council meetings, talking to representatives, and supporting sensible reforms — cities and states can develop stable, fair markets that benefit everyone.

A Call to Action

If you want your city or state to benefit from responsibly regulated cannabis and a revitalized hemp industry:

• Support policies that promote transparency, safety, and fair taxation

• Encourage investments in hemp infrastructure

• Advocate for regulations that differentiate intoxicating from non-intoxicating hemp

• Participate in local hearings and share your perspective

  
  

Your voice genuinely matters in shaping the future of these industries.

💬 Quick Reader Poll

What change do you think would help the cannabis/hemp industries the most in your state?

1. Lower taxes and fees for cannabis businesses

2. Clearer rules around hemp and intoxicating cannabinoids

3. More investment in hemp fiber and grain infrastructure

4. Stronger consumer safety and testing standards across both industries

   
   

Conclusion: The Path Forward

The cannabis and hemp industries are at a crossroads. With the right policies and community engagement, a balanced future is possible. Together, we can create an environment where both sectors thrive, benefiting everyone involved.

By working collaboratively, we can ensure that the potential of these industries is fully realized, paving the way for economic growth and innovation.

The future is bright, but it requires action today. Let's advocate for change and support a thriving cannabis and hemp economy.