Harris, Trump, and the Future of Legal Weed 🗳️🇺🇸

As America votes, cannabis faces pivotal choices: from Florida hemp donors backing anti-weed stance and DEA hearings to shifting profit margins, here’s what’s at stake for the industry.

Author

Patricio Liddle
November 05, 2024

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Happy Election Day, folks! It's Pato here, ready to navigate you through this pivotal day for the cannabis industry. From the presidential face-off between Trump and Harris to crucial state ballots on legalization, there's a lot at stake. Let's dive into the latest developments that could shape the future of cannabis policy in the U.S. and beyond.

As Election Day unfolds, Abbey Higginbotham and I invite you to watch our latest episode of Cannabis Insider. We dive into the pivotal role of cannabis reform in today's presidential election. With both Donald Trump and Kamala Harris backing legalization, we explore what's at stake for the industry under each potential administration.

Featuring interviews with Saphira Galoob, executive director of the National Cannabis Roundtable, and former Senator Cory Gardner, we discuss impacts on federal legalization, banking reform, and states' rights. Tune in for insights into the future of cannabis policy in the U.S.

Hemp Funds Fuel DeSantis’s Anti-Weed Stance

It's Election Day in Florida, and the battle over cannabis legalization is heating up. While Amendment 3 aims to legalize recreational marijuana, Governor DeSantis and the Florida GOP have found unlikely allies in hemp companies. These businesses, which sell unregulated hemp-derived cannabinoids like Delta-8 THC, are fueling the opposition with over $500,000 in donations.

Ironically, by keeping cannabis illegal, they ensure a flourishing market for their products—even though some have been found to exceed legal THC limits, contain banned pesticides, and remain widely available including to minors. So, while the state fights against regulated cannabis, unregulated hemp products continue to pose public health risks. It's a twist worthy of a plotline!

Village Farms Preaching To The Choir

Last Friday I wrote to you about the DEA's invitation to 25 participants to a December 2 hearing as part of the efforts to reschedule cannabis from Schedule 1 to Schedule 3 under the Controlled Substances Act. Interestingly, Village Farms is the only cannabis operator selected to testify at this pivotal hearing. CEO Michael DeGiglio emphasized it's "one of the most important movements in health and wellness in our lifetime." 

Despite over 33,000 public comments supporting rescheduling, the participant list is heavy with anti-cannabis groups. Perhaps the DEA believes that hearing from fewer cannabis experts will make the discussion more... unbiased?

With over 200 new dispensaries opening and four states voting on cannabis legalization today, the industry faces potential margin squeezes due to increased competition and declining prices. Analysts like Pablo Zuanic note that retail flower prices have dropped significantly in states like Illinois, Massachusetts, and Arizona, compressing margins, especially for non-vertically integrated operators.

However, upcoming federal decisions on cannabis rescheduling and the SAFE Banking Act could reshape growth paths and boost investor confidence in 2025. While challenges remain, industry experts see promising opportunities ahead, particularly for well-managed companies with strong balance sheets and strategic positioning in emerging markets.

Get out there, vote, and buckle up!

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Our Writer Today

Patricio is a development economist with extensive experience in IT, finance, and banking. He writes about the economic and social opportunities obscured by over half a century of failed drug prohibition. Beyond his professional expertise, Pato is a committed advocate for social change, passionately working to promote harm reduction and reform drug policies.

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