Hemp biz sounds the alarm
THE BIG IDEA
Hi all,
Happy Friday! Hemp is once again on the ropes, this time in Washington DC.
Onward,
Alex
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HEMP BIZ SOUNDS THE ALARM
Kentucky Senator Mitch McConnell (R) fast-tracked industrial hemp legalization in the 2018 Farm Bill. While industrial applications for the plant, like fabric and insulation, have struggled to gain traction, the law gave rise to a now $25B intoxicating hemp industry. Until recently, McConnell, who opposes REC legalization, had been silent on the development. But he’s now trying to close the “loophole.”
It’s now possible that a federal spending bill, which needs to pass by Tuesday to avoid a government shutdown, could effectively wipe out the hemp industry. In a letter to McConnell, a group of 58 Kentucky hemp farmers wrote, “If Congress moves to eliminate the end markets that make our crop viable, we will suffer immediate and catastrophic consequences…Any legislative change that pulls the rug out from under this market — especially mid-season — is a direct blow to our farms, families, and rural communities.”
- Trade group U.S. Hemp Roundtable is also rallying the troops.
Related: Cannabis Musings discussed the lack of solid hemp data.
QUICK HITS
Federal:
- A former Justice Department official wrote about cannabis use by Christians after the feds “inevitably” reschedule. And a new veteran led group Balanced Veterans Network wants to convince Republicans to endorse reform.
Marijuana Moment
Business:
- A new lawsuit accuses Weedmaps of knowingly accepting ads from unlicensed operators. When the tech platform was sued for the same reason in 2022 California regulators said an investigation was open. This time they have no comment.
WeedWeek - Dawne Morris, CEO of tech platform Proteus420 slammed the “cannabis compliance cartel.”
Cannabis & Tech Today - California-based lender Pelorus said it launched a $1B fund to capitalize on industry consolidation.
Cannabis Equipment News - Edibles brand 1906 has been temporarily banned from the Colorado market and agreed to pay a $400,000 fine after some customers said its purported sleep aid Midnight Drops product caused them liver problems. The company reportedly continued to sell the products, which contained corydalis extract, before reformulating it with stephania another plant extract known to be toxic to the liver.
Denver Post - Ongoing strikes in Pennsylvania (Green Thumb Industries) and Michigan (Exclusive) are the longest strikes in industry history.
MJBiz - A new partnership between Cheech & Chong’s Cannabis Co. and Headset, gives retailers who carry the brand’s products access to Headset data.
MJBiz - Logistics company Lucid Green raised an undisclosed amount of capital.
- Recruiting firm FlowerHire shared its guide to executive pay.
State and local:
- Lawyers with Dykema say Gov. Gretchen Whitmer’s (D) new proposed tax hike could be ruinous to the Michigan market.
- Illinois businesses are betting on hemp and weed.
Crain’s Chicago Business - Unlicensed operator Empire sued New York state over raids and dispensaries near schools.
Crain’s New York Business - Metrc compliance software is coming to New York in December.
- Virginia MED sales exceeded expectations, with polls showing Democrat Abigail Spanberger leading the gubernatorial race.
- Colorado prices keep dropping.
Westword - Moving fast, Minnesota issued its first events license.
- Massachusetts, once again, delayed pot cafes.
WGBH
International:
- Unherd examines the U.K.’s “cannabis industrial complex.” It includes MED company Mamedica in which Snoop Dogg founded Casa Verde just invested 4.5M pounds, about $6M.
- After another company registered it first, Cookies lost a court battle to use its trademark in Australia.
Fun and interesting:
- Ellen Holland shares some tips for storing your weed.
High Times - And a new High Times mural honors some of the heroes of weed reform.
- For Halloween, Massachusetts brand Good Vibes is introducing the first glow-in-the-dark-tincture.
Respect My Region
CALIFORNIA HITS
State:
- As expected, Gov. Gavin Newsom repealed July’s pot tax hike.
AP - State wildlife officers raided six sites this summer as part of a crackdown on environmentally damaging operations tied to organized crime.
SFGate - Following July’s Glass House raid, undocumented farm workers fear deportation.
Context.News
Local:
- Department of Cannabis Control (DCC) director Nicole Elliott highlighted “thoughtful, nuanced work” in Humboldt and Sonoma Counties to strengthen their local industries.
- A big Emerald Triangle raid on an unlicensed farm found several pesticides banned for use on cannabis.
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