While more research is needed to get a clear picture of marijuana’s effect on the economy, this is good news for marijuana proponents, and for anyone who’s interested in getting a job in a new and developing field of work.
New research has found a connection between legal marijuana and more job opportunities.
Conducted by researchers from San Diego State and Bentley Universities, the study examined survey results from 2002-2020 in an attempt to explore the impact of legal marijuana on the economy.
Photo by Michael M. Santiago/Getty Images
The analysis was published by the National Bureau of Economic Research and found that legal adult marijuana laws had little impact on work productivity, a topic that’s long been a concern for anti-proponents of the drug. Instead, the data discovered evidence of more job opportunities and rates in the nascent industry, especially in adults over the age of 30.
Other demographics that were positively impacted included young racial minorities and people working within the agriculture sector.
“These results are consistent with the opening of a new licit industry for marijuana and (especially for older individuals) a substitution away from harder substances such as opioids,” said researchers.
While the research is related to the topic of productivity and weed, it differed from similar studies in focusing wholly on economic trends post-legal marijuana and in the fact that there’s a new industry and thus a new source of jobs.
Researchers theorized that not only did legal cannabis result in more work opportunities, it also kept users away from more dangerous substances.
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When it comes to the black market and its harms, the establishment of a legal market eliminated criminal activity and a source of oppression for marginalized people, among them, young men of color, who have been historically targeted by law enforcement.
“Longer-run labor market effects may differ as we learn about the effects of RMLs on cognitive development and human capital acquisition of those under age 21, which could take time to unfold and be reflected in market level effects on productivity, wages, and/or employment,” concludes the study. “Moreover, the labor market effects of reductions in criminal records could also take time to unfold.”
While more research is necessary to develop a clear picture of marijuana’s effect on the economy, this is good news for marijuana proponents, and for anyone who’s interested in getting a job in a new and developing field of work.
Dry January is becoming increasingly common. Here’s how weed can help you.
The holidays are a time of overindulgences, when you drink and eat too much and time doesn’t feel real. Dry January has grown in popularity due to these reasons, providing people with plenty of health benefits that can impact their lives over the course of the year.
Though that all sounds amazing, for a lot of people, giving up on alcohol for an entire month is not an easy ask. While it may be easy to stick to these rules at home, once you enter the outside world, temptation will likely strike. Here’s where weed comes in.
While replacing one behavior with another may not be the answer, if you consume marijuana with some calm and a clear head, the drug may help make the month breeze by, while also boosting your energy and allowing you to stick to your sober goals. Here are three things marijuana can do to help you stick to dry January:
For habitual and social drinkers, Dry January can be difficult to stick to. Adding weed into the mix may help you curb some of your cravings, especially when spending time with friends or doing an activity that usually involves alcohol. Weed could relieve some of the pressure associated with going out.
Weed may prevent extreme behaviors
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While Dry January has plenty of health benefits, it’s also associated with some extreme behaviors. For example, once people quit drinking for a month, it could give them a false sense of security and encourage them to drink more in the following month, getting rid of the health benefits that they carefully constructed. While weed affects your brain and your body, it provides a very different reaction for your body, eliminating hangovers and calories that accompany alcohol.
Lastly, weed can be a helpful addition to Dry January because it’s very fun. January is already a tough month, the unofficial Monday of the year, coming in the wake of the holidays and holiday breaks. Weed might help make the weeks more bearable and allow you to focus on your mental and physical health.
In December, the City of Detroit notified the first 33 successful applicants for adult-use marijuana retail licenses that they had been approved.
Michigan-based Cloud Cannabis began adult-use cannabis sales on Friday at its Detroit location, becoming one of the first dispensaries to do so in the city.
“Today marks the beginning of an exciting new period for both Cloud and the city of Detroit,” said Jacob Saboo, Co-Founder & Head of Retail at Cloud Cannabis. “We are proud to bring our premier retail experience to the city’s recreational customers, while sharing meaningful insights in cannabis education and a first-class portfolio of products with the local community. With big things ahead for Cloud in 2023, we couldn’t think of a better way to kick off the new year.”
Photo by Anton Petrus/Getty Images
Detroit Delays
While Michigan started adult-use sales in December 2019, municipalities had the right to opt-out. The college town of Ann Arbor embraced recreational cannabis with enthusiasm, while Detroit found itself mired in lawsuits that delayed a rollout.
“Our goal from the day voters approved the sale of adult use marijuana was to make sure we had a city ordinance and a process in place that provides fair and equitable access to these licenses and the courts have affirmed that we’ve done just that,” said Mayor Mike Duggan. “Council President Pro-Tem Tate, and our Department of Civil Right, Inclusion & Opportunity and Law Department deserve a great deal of credit for making this historic day possible. The City’s ability to accept applications was delayed in July after two separate lawsuits were filed following City Council approval of the modified adult-use marijuana licensing ordinance in April, and a judge temporarily halted the process before reversing course and upholding the City’s ordinance.”
Council President Pro-Tem James Tate said, “Three months ago, a Wayne County Circuit Court judge declared our ordinance “unambiguous” and “a fair licensing process”. Despite clear rulings issued by the courts, various plaintiffs continue their frivolous attempts to dominate the adult-use cannabis industry in the city in an effort to leave Detroiters and other Social Equity applicants out of the market.” Judge Friedman ruled against the Temporary Restraining Order that would have prevented Detroit from moving forward with its current Adult-Use Marijuana Ordinance.
Ringing Up Sales
In addition to Cloud Cannabis, House of Dank also fired up sales in the Motor City this week. The company has two locations, one on 8 Mile and the other on Fort St.
“Going recreational in Detroit is a huge milestone for us,” Crystal Jamo, House of Dank’s general manager, told the Detroit Free Press. “Just because we’ve been waiting for it for so long that, like, ‘Pinch me, is it real?’”
Cloud Cannabis is located at 16001 Mack Ave. and situated on the border of Detroit Grosse Pointe, Cloud’s Detroit dispensary offers flower, pre-roll, concentrate, and vape products from top-tier Michigan brands including Mitten Extracts, Wonderbrett, Stiiizy, Pressure Pack, Backpack Boyz, CREAM, Northcoast, and more. The company said a grand opening celebration event will come at a later date.
First 33
In December, the City of Detroit notified the first 33 successful applicants for adult-use marijuana retail licenses that they had been approved. The City’s Office of Marijuana Ventures & Entrepreneurship determined the following 13 non-equity applicants, and 20 equity applicants met all the necessary criteria to be awarded a license:
“All the states have huge potential. They just need to either pass medical cannabis laws or take their existing limited medical cannabis laws and expand them to allow patients to fully come into the markets,” said one top analyst.
The South may be the last frontier for state cannabis legalization, but the region could be a boon for the industry once the floodgates open.
A report from cannabis consulting firm Global Go posits that Alabama, Georgia, Mississippi and Louisiana could provide value for entrepreneurs sitting on the sidelines of Florida’s limited vertical model — especially given Alabama’s approval of medical cannabis last May and further expansions in the other three state’s existing medical programs.
But the success has little to do with the “overall political leanings of (a state electorate),” said Tom Adams, principal analyst and CEO of Global Go and author of the report “Georgia, Alabama, Mississippi, and Louisiana: A Second Shot at Southern State Cannabis Profitability.”
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Instead, it has “everything to do with how liberally medical programs are regulated,” he wrote. Factors for that include:
Limits on types of products allowed.
Qualified conditions approved.
Rules for prescribing doctors.
Store count limits and local opt-out rules.
“Politics absolutely matters, but it’s because it affects these factors that really determine how successful a market can be,” Adams told Green Market Report.
Access is key, in part because cannabis consumption is notoriously underreported. For example, more Oklahomans signed up for their state’s laissez-fair medical cannabis program than admitted to using the product in surveys conducted before legalization.
In Louisiana, participation in the medical program also ballooned after the legislature passed a law to allow more retail sale of flower.
However, the fact that Alabama, Georgia, and Louisiana do not have ballot initiative processes remains a critical issue. Adoption and expansion of the programs depend on the will of the state legislatures — and lobbying and educating elected social conservatives in the Bible Belt on the cannabis question has proved sluggish.
Growth Potential
“Still, even if the region only sees Missouri’s $33.08 per capita spending in 2021, just over half Florida’s level, the combined markets could grow quickly to nearly $800 million,” Adams wrote.
Andrew Livingston, director of economics and research for Denver-based cannabis law firm Vicente Sederberg LLP, noted that the word “potential” is key when it comes to speculating growth stories.
“All the states have huge potential,” he told Green Market Report. “They just need to either pass medical cannabis laws or take their existing limited medical cannabis laws and expand them to allow patients to fully come into the markets.”
Livingston noted that state-level medical cannabis laws help demonstrate the legitimacy of cannabis patients and business.
“That legitimacy changes the lives of voters at the state level and those state level voters put pressure on federal legislators to evolve and recognize,” he added.
He believes that Mississippi, which permits flower sales and does not cap the amount of licenses operators can hold, “will show over time the potential of a market that allows the patients to truly actualize their demand.”
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Pressure from Florida
Despite tight Southern medical markets, the possibility that Florida will adopt adult-use consumption next year could open the floodgates for cross-border traffic and potentially persuade neighboring legislatures to open up their markets to capture that revenue for state coffers, Adams said.
“Because, boy, if Florida goes adult use, and anybody from Alabama, Mississippi, or Louisiana can go down there and get cannabis, that’s just money left on the table by the legislatures of those states,” he said.
“The big move will happen when Florida goes adult and and suddenly, there’s hundreds of millions of dollars in tax revenue at stake.”
The first year of recreational cannabis sales in Montana brought in nearly $203 million, including December sales of $25.6 million. Here’s how other states fared.
Experts predicted strong sales, but these legal marijuana states sales blow expectations. Over the past year, Massachusetts recreational sales totaled $1.42 billion, according to a report from the state’s Cannabis Control Commission. July sales were the highest, amounting to $132.4 million, followed by $130.8 million in cannabis sold in August.
Flower was the product category that was most in demand, followed by vape-related products, pre-rolls and edibles.
Since the legalization of recreational weed sales in November 2018, the Bay State has pulled in $3.9 billion in total gross sales. Medical sales in 2022 totaled $260.2 million, while gross medical cannabis sales reached $929.6 million in December.
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Meanwhile, MA officials announced the creation of a new board, charged with overseeing how the state will hand out money from a trust fund that will support members of overpoliced communities who are seeking to run cannabis businesses, reported The Boston Globe.
The Cannabis Social Equity Advisory Board, which consists of five cannabis industry experts, will be guiding the Executive Office of Economic Development in overseeing the trust fund.
The members include:
Keisha Brice, a former Curaleaf executive who was appointed by former governor Charlie Baker as the board’s chair.
Chris Fevry, appointed by state treasurer Deborah Goldberg
Aaron Goines, nominated by Governor Maura Healey in her role as the outgoing attorney general;
Meaka Brown and Phil Smith were appointed together by Baker, Goldberg and Healey.
NM Rec Sales Strong In December
Marijuana sales have also been skyrocketing in New Mexico, reported the Albuquerque Journal.
According to sales figures provided by the Cannabis Control Division, New Mexico reached another record in December with over $28 million recorded in total marijuana sales, surpassing record October sales by $3 million.
Medical sales grew to $15.1 million, as compared to around $14 million in November.
Andrew Vallejos, the state’s acting director for the CCD, said he was surprised by a significant increase in overall cannabis sales.
“I don’t know exactly what attributed to the increase in medical and recreational, as a bump up in December, but it was kind of surprising to us to see how robust those numbers were,” he said. “The sales (numbers) are interesting in and of themselves, but what I’m encouraged by is the fact that it means a steady cash flow for (businesses) to stay open and to make a profit.”
New Mexico legalized adult-use cannabis in April 2021 after Gov.Michelle Lujan Grisham signed the Cannabis Regulation Act. Some two months later, the law took effect, allowing adults to legally possess, use and grow recreational cannabis, including six plants or up to 12 in a household with more than one adult.
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Montana Combined Marijuana Sales Surpass $300M
Meanwhile, the first year of recreational cannabis sales brought in nearly $203 million for Montana, including December sales of $25.6 million.
Combined with medical marijuana sales, a total of $303,563,879 was spent on cannabis over the past year, state revenue department figures showed, reported by KTVH.
“That’s representative of about 40 tons of product in the system in Montana, and that’s all Montana-grown and Montana-processed and sold right here in the state,” said Pepper Petersen, president and CEO of the Montana Cannabis Guild.
Petersen estimated that the marijuana industry supports over 5,000 jobs statewide.
He said that these figures only show that the market was present for years.
“It just shows that this market has been here,” Petersen continued. “I think that’s what we see, is that we’ve taken from the black market so much and put it into the white market – the legitimate market, as it were, with licensed producers, a very safe product.”
The state now has one of the most robust medical marijuana access programs in the United States. By contrast, adult-use possession is punishable by up to one year in jail and a $1,000 fine.
Oklahoma voters will decide on a citizens’ initiated measure (State Question 820) legalizing the adult-use marijuana market in a special election to be held on Tuesday, March 7, 2023.
“Voters in both traditionally ‘red’ and ‘blue’ states have historically cast their vote in favor of ending the failed policy of cannabis criminalization,” NORML’s State Policies Manager Jax James said. “If the past is precedent, Oklahomans will once again demonstrate that legalizing and regulating marijuana is favored by the majority of voters, regardless of geography or party affiliation.”
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Representatives with the group Oklahomans for Sensible Marijuana Laws in July turned in over 164,000 signatures to the Secretary of State’s Office in order to place SQ 820 on the November 2022 ballot. However, the Secretary of State’s office took an excessive amount of time to verify the signatures. Opponents of the measure then filed a series of questionable legal challenges litigating various facets of the campaign, including challenges to the initiative’s summary language.
Weeks before the 2022 election, in a unanimous decision, the Oklahoma Supreme Court determined that voters would have to wait to decide the issue until either the next general election (in 2024) or until the Governor or the legislature calls for a special election. Governor Kevin Stitt (R) had said that he personally opposes legalizing marijuana for adults. He then issued an executive proclamation calling for the special election on Tuesday, March 7, 2023.
SQ 820, sponsored by the group Oklahomans for Sensible Marijuana Laws, permits adults to legally possess and home-cultivate personal use qualities of cannabis while also establishing a licensed, retail marketplace. Those with past marijuana convictions, or those who are currently incarcerated for certain cannabis-related crimes, would be able to petition the courts for either record expungement or re-sentencing consideration.
Oklahoma voters in 2018 approved a statewide ballot initiative permitting the licensed production and retail sale of cannabis to those with a physician’s authorization. That initiative was also approved during a special election. The state now has one of the most robust medical marijuana access programs in the United States. By contrast, adult-use possession is punishable by up to one year in jail and a $1,000 fine.
Among other things, Missouri will likely have a fully-functioning, legal adult use marijuana market this year; and proponents continue their push to make Florida another conservative-leaning state with liberal marijuana laws.
As we step into 2023, we are also walking into lots of uncertainty. The state of the world and its economy are on the minds of many, and it can be easy to feel a bit apprehensive about the new year. But though there is some uneasiness about these cloudy prospects in the future, there are also many rays of light piercing through those clouds.
While the start of 2023 has not ushered in the era of federal marijuana legalization as some had hoped, it has certainly started off with some glimmers of optimism. From red states legalizing adult use marijuana, to major ballot initiatives, and even growing support for legalized marijuana, there are all sorts of reasons for cannabis users to be smiling this year. Here are five things to look forward to as we charge forward into 2023.
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New York Officially Opens Doors to Thriving Weed Industry
New York legalized marijuana last year, and now the state has opened the floodgates to allow recreational dispensary purchases, as we havereported. In fact, New York is likely to become one of the top cannabis-selling states very quickly.
In fact, Matt Hawkins, the founder and managing partner of Entourage Effect told The Fresh Toast, “New York recently kicked off its adult-use market, and as the state is expected to become the second largest in terms of sales (after California), the revenue it generates will support broader industry growth for years to come.” So this is exciting news for all cannabis enthusiasts, especially those living in the Northeast.
Florida’s Marijuana Ballot Initiative
Florida has a booming medical marijuana market, but a ballot initiative is trying to move the Sunshine State from a medical marijuana state to a recreational one. The ballot measure requires signature collecting and support from the majority of Floridian’s, as it requires a minimum of 891,589 signatures by the start of February, 2024, accordingBallotpedia.
According to the ballot’ssummary, the amendment “allows adults 21 years or older to possess, purchase, or use marijuana products and marijuana accessories for non-medical personal consumption by smoking, ingestion, or otherwise.”
This proposed amendment aims to take effect in 2024. But in order for that to happen, lots of hard work will have to occur this year. So look to Florida throughout 2023 for new developments as proponents push to make Florida another conservative-leaning state with liberal marijuana laws.
Missouri Roll’s Out Recreational Marijuana
Conservative-leaning Missouri will become the latest red state to sell recreational adult use marijuana. The dispensaries can open their doors as early as February 6, depending on how quickly the establishments obtain approval.
According to the Missouri Department of Health and Senior Serviceswebsite, “Once approved, comprehensive facilities will be allowed to sell marijuana to patient ID cardholders, primary caregiver ID cardholders and adults over the age of 21.”
There are several steps in the adult use process in Missouri, but by the end of 2023, the state will likely have a fully-functioning, legal adult use marijuana market.
Photo by Michael M. Santiago/Getty Images
Marijuana Continues to Gain Mainstream Support
Polling continues to show that Americans are warming up more and more to the idea of legalized marijuana. In fact, some of the latest numbers show almost 90% of Americans believe marijuana should be available in some form.
According toPew Research, “An overwhelming share of U.S. adults (88%) say either that marijuana should be legal for medical and recreational use by adults (59%) or that it should be legal for medical use only (30%).” The same Pew Research article goes on to say that just one in ten people polled said they believe marijuana should not be legal.
These numbers show that U.S. citizens have come a long way when it comes to thoughts on marijuana in the mainstream. With more states loosening restrictions each year, marijuana use continues to become more normalized in many aspects of society.
Whispers of a recession have become more common, and many are bracing for a potential economic downturn in 2023. But not all industries are likely to feel the effects of a recession equally. As we have previouslyreported, marijuana might not be completely recession proof, but it is very resilient, and sales continued to grow even during the pandemic.
Sales as of late are still strong. Kyle Shenfeld, president of Rainbow Realty Group, told The Fresh Toast, “Our clients saw a steady boost in sales during the holiday season and we expect continued growth in the new year.” So while tough economic times might still lie ahead, marijuana sales are likely to remain strong for now.
Is there a relationship between cannabis legalization and the number of children with pediatric asthma? A new study published in Preventive Medicine sheds some light on the question.
Researchers behind an “ecologic analysis” estimated the impact of medical or recreational cannabis legalization on the number of pediatric asthma cases, reported New Medical.
Asthma is considered the most prevalent chronic condition among children in the U.S., with pediatric asthma estimated to affect over 6 million children. At the same time, marijuana use has been increasing among adults, especially in states where it is legal.
So, is there a connection between the two? The study authors seem to think so. They concluded that asthma prevalence increased in states where cannabis was legalized for recreational use in recent years.
According to recent statistics, marijuana was used by 11.9% of parents with minor children in legal recreational marijuana states, followed by states with medical marijuana programs and the lowest (6.1%) in states without legal marijuana laws. As cannabis legalization and popularization grow, so does exposure to secondhand smoke, which can lead to pediatric asthma.
The study revealed that the overall prevalence of asthma in the pediatric population was no longer dropping in recent years (relative to 2016-17). Furthermore, the study discovered no significant difference in asthma prevalence between states with legal medical marijuana and recreational programs.
Photo by Kelly Sikkema via Unsplash
The number of children with asthma aged 12 to 17 grew in states with legal adult-use cannabis markets, compared to states that have not legalized marijuana.
At the same time, previous research has shown that certain cannabinoids found in cannabis such as THC, may act as a bronchodilator, reducing respiratory obstruction and increasing airflow to the lungs. In fact, a 2012 study published in the journal American Review of Respiratory Disease showed that on average, those who used cannabis actually displayed better lung function than their peers who did not smoke at all.
The Dangers Of Secondhand Smoke
On the other hand, the new study refers to secondhand smoke, as did a recent University of California, Berkeley study that revealed secondhand marijuana smoke to be more harmful than secondhand tobacco smoke.
That study, published in JAMA Network Open, found that nonsmokers may be exposed to air pollutants at concentrations equal to twice federal air quality limits.
An aerosol monitor positioned where a bystander might sit measured the air quality — more precisely,fine particulate matter (PM2.5) — of a bong smoker’s living room where a group of young adults smoked cannabis over the course of two hours. The instrument recorded PM2.5 levels before, during and after eight sessions.
The results showed that cannabis bong smoking increased PM2.5 from background levels by at least 100-fold. Moreover, after the initial 15 minutes of smoking, PM2.5 concentration — which can travel deep into the respiratory tract and impact lung function — significantly exceeded air quality levels considered safe by the Environmental Protection Agency.
When all these issues are adequately addressed, you can grow cannabis with the best bud quality and quantity.
In increasingly competitive markets, it is vital to do everything possible to maximize profitability and ensure survival in the face of significant headwinds. High selling prices plus high demand and low production costs result in ideal cannabis business profitability. The difference between the two can mean the difference between the life and death of your company. So what are the secrets to growing great weed?
As a result, establishing high-quality cultivation facilities is critical to running a profitable cannabis enterprise. Cultivators seek new support as they transition from traditional soil or media strategies to more effective growing methods.
One effective technique is aeroponics, which is excellent at growing any plant (cannabis inclusive) in the air in a controlled setting while using less labor, nutrients, and water. Let’s dive deeper into how to set up a successful aeroponics operation!
Photo by Jordan Siemens/Getty Images
Climate: Environmental Control
We kick off with the environment. Photosynthesis involves a lot more than light, plant, and moisture. You should aim to accomplish more than just cultivate plants. You should want to cultivate highly profitable plants. That implies you need to speed up photosynthesis so your plants can grow faster, bigger, and stronger than your competitors.
As a result, it is critical to understand how much moisture your environment can take from your plants as they break down carbon dioxide and release oxygen and water into the air surrounding them. Hence, the need to be familiar with Vapor Pressure Deficit (VPD).
VPD is the amount of “drying power” available in the airflow around your plants. It also measures how much mineral can be absorbed by the plant roots and converted into potency and size. We advise that you have facilities in your grow rooms to keep your environment within 5% of your temperature and humidity specifications for the best outcomes.
Humidification/Dehumidification
Cultivators often need to pay more attention to the importance of humidification/dehumidification. With cultivation starting at a very humid stage to encourage root initiation, humidity should be gradually reduced from a near 90% to a drier 50% in your end-of-flush flower rooms. You should understand that the critical variables for speeding growth throughout the phases are relative humidity (RH) and the associated VPD. Hence the need for proper humidification/dehumidification.
Cooling
Temperature control may appear simple, but the heat released by HPS lights, LED lights, or the sun varies across spaces, over time, and with the plant’s proximity to the light source. Temperature sensors should be placed throughout rooms to detect and activate temperature resources.
Airflow
It would be best if you used fans with your cooling, heating, humidity, and dehumidification systems to mix the air in the room. This will help break down the boundary layer on the leaf surface and allow for better transpiration. As previously said, VPD is essential to growth success. We recommend 0.5-1.5 meter/second flow rates to match your genetics and the phase of the flowering period.
Rich, beautiful scents and aromas are produced from good airflow and budding. Every facility must consider aroma management. If you live in a populated region, you will have to deal with ordinances and neighbors. The best way to accomplish this is to reduce the air that leaves a facility. It’sIt’s also the least expensive option.
Photo by Olena Ruban/Getty Images
Cultivation Media
Because hydroponic and aeroponic systems require no soil, water serves as the media and transport system for nutrition. Start with fresh, clean water that has “nothing” in it. Nothing in this situation indicates no pesticides, heavy metals, microbes, or diseases.
The first step is to test your water supply, whether well, surface, or municipal. This will get you a rough estimate of how “empty” your water is. Water supplies change over time. Thus, it is also an important input to assess water quality with annual or biannual testing. Clean water is essential for aeroponics success and an excellent method to reduce production costs. You can reuse and recycle 95%+ of the water you pump into your facility with the right design and management.
Organic particles and bacteria can be removed from water using UV light. The primary application of UV is to purify the water supply. Still, it is also critical for salvaged water that you’ve saved from humidity in your cultivation rooms. A note of warning, though; UV light must be handled with caution. Exposure will result in sunburn and eye damage, so use this resource with extreme caution.
RO is currently the standard technique for cleaning your inbound water. The method employs pressure filtration, which involves pushing the water through several meshes or filters that block or extract big particles, organics, and metals. Normally, this is 98% efficient. But these systems require special attention and management because they include filters that must be changed regularly depending on the purity of your water supply and the sort of material screened.
Capturing the moisture absorbed into the environment as the plants grow is the most effective way to preserve water in a rapid-growth aeroponic cultivation room. While DEHU water is efficiently distilled (or free of particles), it may contain healthy bacteria or pathogens transferred through the air or in the equipment filters. Generally, clearing them with UV light makes this water instantly recyclable in any fertigation system.
Oxygen Reduction Potential (ORP)
An oxidizing agent can be measured by ORP. Oxidizing treatments are a typical and low-cost way to disinfect water during and before usage in hydroponic systems. While in operation, oxidizers can be used to assess and deal with the “”cleanliness”” of a nutrient water solution. There are several oxidizing agents, the most common being hydrogen peroxide, chlorine, ozone, and chlorine dioxide.
Used Fertigation Water, or “Flush”
At the onset of the flowering cycle, take the clean water and mix it in the precise nutrient salt flower mixture before feeding it to your plants. Your plants will use some nutrients over the growth cycle from blossom to harvest. Since the salts and metals in the mixture may be removed by the same process of reverse osmosis that your source water goes through, nutrient-rich “”flush”” water can also be cycled in the source water feed.
Conclusion
When all these topics are adequately addressed, you know the secrets to growing great weed, especially in quality and quantity. This guarantees maximum returns for a cannabis farmer looking to make a considerable profit margin.
There are reasons for hope, though. New and emerging adult-use markets in the Northeast region, as well as the Florida medical market, should show considerable growth next year.
Without much meaningful development concerning legalization efforts in 2022, many sobering themes likely will carry over into 2023.
Layoffs will persist, and continued price compression and competition from the illicit channels will drive brand share consolidation in mature markets. West Coast legacy operators will continue to be bogged down by legislative limbo, a lack of access to banking services, and an incredibly competitive gray market unbound by onerous tax regulations — which, in turn, will lead to more operators fleeing the troubled market.
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Additionally, companies will shift toward tighter capital management and budgeting as cash becomes more expensive and harder to grab.
“Painfully, we will see more cannabis businesses fail,” said Poseidon Asset Management managing director Patrick Rea. “This culling will thin the competitive herd and hand more power to the established incumbents — increasingly MSOs — with their lower cost of capital and growing footprint of assets and operations.”
There are reasons for hope, though.
New and emerging adult-use markets in the Northeast region, as well as the Florida medical market, should show considerable growth next year.
That’s bolstered by increasing market access. Half of the U.S. population over the age of 21 now have access or live in a state that has adult-use legal, with more than half recorded as past six-month consumers, according to BDSA analyst Brendan Mitchel-Chesebro.
“Even though there’s still these problems with price compression, even though there’re still regulatory issues — people waiting for SAFE Act to pass, people waiting for 280E reform – there’s still a lot of reasons why we think that there’s going to be huge growth in a lot of these markets,” he said.
Likely Winners
Many in the industry remain bullish on Florida, especially as it gears up for a well-funded adult-use ballot initiative push for 2024. BDSA believes Florida will be the biggest contributor to sales growth nationally through 2026, with $2.7 billion in projected medical sales next year.
“In our opinion, that’s the thing that would effectively cut into the illicit market the most, and that’s why some markets that have been up and running for a few years are still having problems with (the gray market),” Mitchel-Chesebro said.
In the Midwest, Missouri shows promise for MSOs and big vertical out-of-state operators. Friendly state taxes, good product split backed by a maturing retail footprint, and a smooth compliance process could make the difference in the Show-Me State.
Photo by Nikolay Ponomarenko/Getty Images
Additionally, cross-border traffic from Arkansas and Kansas, which have fallen short on their own legalization efforts, should beef up sales in the new market, which is expected to launch in February.
Cy Scott, CEO of cannabis data firm Headset, expects Missouri’s adult-use rollout to put additional pressure on the Illinois market to accelerate license grants, given the number of already-licensed medical dispensaries converting to adult-use locations.
If the rollout is successful, BDSA predicts around $270 million-$280 million in adult-use sales in 2023. Factoring in the maturing medical market, Missouri could very well reach $730 million in total legal sales.
More Normalization
The New Year also could see additional normalization from consumption lounges and bigger retail shifts to raise foot traffic and basket size, Mitchel-Chesebro said.
Dispensaries could begin to move away from the “deli layout” in favor of a more open retail floorplan similar to Apple stores. The BDSA analyst pointed to places like Planet 13, where employees are on the floor to assist shoppers, yet customers can move and browse around and check out display cases on their own.
“I think that that’s going to be a big shift when we’re talking about storefront retail,” Mitchel-Chesebro said. “I think that a lot of people recognize that it is more approachable, especially for newer consumers.”
Still, convenience is king in the industry, which should see a stronger push toward direct consumer sales utilizing delivery and curbside pickup services.
‘The Missing Component is Capital’
Morgan Paxhia, co-founder and managing partner of Poseidon Asset Management, said this year is poised to be “the most bifurcated trajectories we have seen in the legal cannabis industry.”
Paxhia predicts a year full of the most defaults, wind downs, and state-level bankruptcies the legal cannabis industry has ever seen — especially with the sobering lull in meaningful federal banking legislation.
“We see this cycle finally coming to a head as the tight capital markets have persisted for so long combined with onerous cannabis taxes, deflationary cannabis prices and inflationary costs,” he said. “This cycle was well on its way and COVID interrupted it, like many other industries. We think most of this stress is within smaller companies.”
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However, Paxhia also sees a healthy return of M&A for many areas of cannabis, too, such as operators, ancillary technologies, and hydroponics. “We see this driven by companies continuing to seek operating efficiencies, scale, and stronger competitive footprints.
“We see that inward, digestion period running its course and companies getting back on offense,” he said. “We also wouldn’t rule out activity, not likely M&A activity per se, with mainstream strategies, like alcohol, tobacco, CPG.”
A meaningful return of equity capital flows after a long protracted bear market is also possible, likely benefiting the largest companies first due to lower perceived risk.
“Big picture, we know more now than ever about how to run a successful legal cannabis company. There are more experienced operators than ever. There are more legal states than ever,” Rea noted.
