Though hemp is currently in the agricultural spotlight, it is likely to remain a specialty crop in the long-term, and a select few states will dominate the market for it.
That’s according to a recently released report from the U.S. Department of Agriculture (USDA) on the economic viability of industrial hemp in the U.S. based on a review of state pilot programs.
The 83-page document examines the success of states growing hemp under the Agricultural Act of 2014 (the 2014 Farm Bill) and what outside factors will determine the industry’s outcome.
According to the USDA’s report, long-term economic viability of the hemp industry will be affected by:
competition from other domestic crops, including marijuana in states where it is legal, for acreage
global competitors in hemp and hemp products
market information and transparency
the shifting regulatory environment
State Findings
Based on the USDA’s findings, the department estimates hemp won’t become a commodity like corn or soy. Instead, the USDA compares hemp to specialty crops that are only produced in a certain region of the U.S., like sesame, which is grown predominantly in Texas and Oklahoma.
“As with other crops, it is not likely that hemp will be economically viable in every state. Even if barriers to entry are low, growers are not likely to plant or process hemp if more profitable options exist,” the USDA says in its report.
The report adds that currently, the most successful operations for specialty crops, including hemp, are clustered around areas of related infrastructure that minimize transportation costs throughout the production process.
“Specialty and minor crops are often agronomically suited to a limited geographic area or economically viable in only a few states,” the USDA says in its report. “Typically, regional production has centered around a limited number of processing plants or contracting companies. Many specialty or minor crops have no cash or ‘spot’ market and are only grown by growers who have contracts (formal or informal) with processing companies.”
Notably, the USDA found the states that have been the most successful with hemp so far are those that have a long history with the crop. According to the report’s findings, the states that saw the most success under their pilot programs were those that “had proven agronomically suited to hemp in the past,” like Kentucky, which grew more hemp than any other state in the early 1900s.
It also found that the states that quickly established hemp pilot programs were not leading producers of competing major field crops like wheat, corn or soybeans. And Corn Belt States that were major hemp producers prior to its prohibition, like Illinois and Minnesota, had smaller pilot programs than those without predominant crops.
Hemp isn’t just competing with commodity crops, either. The report also found hemp is competing for investment with legal marijuana in some states, presenting another challenge for the crop to overcome.
In addition to agronomic considerations, state hemp programs also have variability in costs for hemp producers, which gives producers in some states and regions an advantage over others, the report says.
“If some states can achieve economies of scale with regards to growing, processing, and testing, that will make it more difficult for producers in other areas to profitably enter the market,” the report says.
Other Barriers to Entry
As of now, the hemp industry is still in flux and its future unknown due to a number of factors, one of which includes the crop’s various end uses.
The USDA says hemp product markets are at different stages of development. While cannabidiol (CBD) oil extract has garnered the most attention from potential producers and investors, its regulatory status is still evolving, making its long-term viability unknown.
Supply and demand for hemp is still shifting, too, and the USDA’s report was inconclusive on where and when it might land. Even though CBD is still in high demand, its supply is flooded in the marketplace, and the demand for hemp grown for fiber or grain may surpass it in the long run.
“As a joint product with oil production, changes in domestic and international fiber output will be influenced by the growing demand for CBD oil. Some producers may have planned to grow hemp for CBD oil or other extracts and also profit from selling the residual fiber, much as cotton producers sell both the cotton lint and the cotton seed,” the USDA says in its report. “But negative returns to fiber could offset profits from oil, and there were few examples of dual use reported as markets developed during the pilot programs.”
If hemp does remain in high demand for any end use, though, U.S. farmers still won’t be in the clear, as other countries present significant competition to the domestic market, the USDA says.
“If hemp for CBD or other purposes proves to be a profitable crop, competition from abroad will likely increase,” the USDA says. “Canada and Europe both have established infrastructure, management expertise, and markets. China has access to lower wage employees, unknown capacity, and the potential for more lenient regulatory standards in the future.”
Shifting regulations, both on the local and federal level, also present a layer of challenges to hemp’s withstanding viability. And a lack of standards regarding hemp production have also posed significant barriers to the industry’s growth.
In addition, the report calls the absence of pricing transparency a “serious impediment” to the industry.
“The history of specialty crops in the United States generally shows that they remain specialty crops. It is difficult to imagine, for example, the demand for acres for industrial hemp matching the demand for acres to grow corn or soybeans for animal or human food. On the other hand, the recent rapid growth of the alternative plant protein food sector does show some possibility for a ‘specialty’ crop to suddenly become a growing market sector,” the USDA concludes. “The next few years should see a resolution of the legal and regulatory issues constraining hemp production in the United States, leaving domestic production, imports, consumer demand, and exports to dictate growth and long-term market size.”
As the cannabis industry matures and improves, we have its women to thank for numerous contributions—everything from improving processes in getting clones or seed to sale, to consulting startups on how to launch their businesses.
Ahead of International Women’s Day on March 8, we are reflecting on women’s achievements and contributions in the industry.
At Cannabis Conference 2020, taking place April 21-23 in Las Vegas, these women will speak on subjects as far-ranging as pest and disease challenges in growing hemp, tips for hiring and retaining dispensary staff, and cannabinoid and terpene science—all to help the industry continue to progress.
We'd like to thank them for speaking at Cannabis Conference 2020 and for continuing to make impactful and far-reaching contributions to the market.
Apgar
Dr. Leslie Apgar, Greenhouse Wellness
Dr. Leslie Apgar is a board-certified OBGYN with 17 years of experience in direct patient care. She is also the co-founder and medical director of Greenhouse Wellness, as well as co-founder of Blissiva, a female-focused cannabis line. Apgar is also the founder of Pura Vida, a cosmetic spa and laser center in operation for 12 years.
Beckerman
Dr. Janna Beckerman, Purdue University
Dr. Janna Beckerman is a professor and extension plant pathologist specializing in diseases of horticultural crops at Purdue University. She obtained her Ph.D. in plant pathology from Texas A&M University, and her M.S. and B.S. in Biology from the State University of New York College of Environmental Science and Forestry.
Bolt
Marguerite Bolt, Purdue University
Marguerite Bolt is the hemp Extension specialist at Purdue University in the Department of Agronomy. She received her M.S. in Entomology from Purdue University, and her B.S in Entomology from Michigan State University. Bolt’s research has focused on hemp-insect interactions and plant chemistry. She is interested in the secondary compounds that hemp produces and how they affect insect pests, although she has had to shift her focus to agronomic production questions surrounding hemp. Her position is new to Indiana and she is serving as a catalyst to link growers to production facilities and the research community through online resources, field days, and workshops.
Chasen
Emma Chasen, Eminent Consulting
Emma Chasen is a Brown University graduate with a specialized Biology degree in Medicinal Plant Research. Chasen created the role of Director of Education at the venerable Portland cannabis dispensary Farma where she developed a robust training curriculum rooted in cannabis science, product knowledge and empathetic patient care. Chasen now co-owns and operates Eminent Consulting, a firm that specializes in helping brands develop educational marketing collateral and ongoing educational programs to further elevate their brand presence in a competitive industry.
Wilcox
Mackenzie Ditch Wilcox, Cresco Labs
Mackenzie Ditch Wilcox currently serves as Counsel - License Applications for Cresco Labs, a vertically-integrated, multi-state cannabis operator headquartered in Chicago, Ill. Wilcox’s legal background in tax, business and grant writing brings a unique and focused perspective to merit-based cannabis applications. In this position, Wilcox utilizes her legal education and experience to guide the license application process for the company, including licensing, regulatory incorporation and application strategy. In addition, Wilcox helps manage the application licensure process of Cresco Labs’ Social Equity and Education Development (SEED) program, which aids qualifying Social Equity Applicants in applying for various cannabis licenses. To date, the SEED program has incubated and assisted over 40 social equity-qualifying entities in applying for licensure in various areas of the cannabis industry, including retail, craft grow and infuser applications in Illinois.
Wilcox received her bachelor’s degree from Loyola University Chicago and her Juris Doctorate at DePaul University College of Law. Prior to joining Cresco Labs in July 2019, Wilcox worked as a civil litigator in Chicago, Ill. She is a member of the Cook County Bar Association and Illinois State Bar Association.
Dubbé
Gina Dubbé, Greenhouse Wellness
Gina Dubbé is a serial entrepreneur and venture capitalist. Currently, she serves as the managing director and co-founder of Greenhouse Wellness, a medical cannabis dispensary in Maryland and is also co-founder of Blissiva, a female-focused cannabis line. Prior to her work in the cannabis industry, Dubbe co-founded TheraPearl, a hot and cold compress. Her work with TheraPearl led the company to rank on the Inc. 500 list and she received accolades including "Forbes Magazine Women Who Built Outstanding Businesses."
Goldsberry
Debby Goldsberry, Magnolia Wellness
Debby Goldsberry is executive director at Magnolia Wellness, an award-winning dispensary in Oakland, Calif., and the managing director of the Berkeley Community Care Center dispensary at Amoeba Music. She co-founded the Berkeley Patients Group (BPG) medical cannabis collective in 1999, directing its growth for more than 11 years. In 2017, Goldsberry published her first book, “Idiot’s Guide: Starting and Running a Marijuana Business.”
Tina Gordon
Tina Gordon, Moon Made Farms
Tina Gordon is the founder and owner of Moon Made Farms, a Sun and Earth Certified regenerative Sungrown Cannabis farm in Southern Humboldt County. Moon Made Farms sits at 2,100 feet elevation in a south facing oak grove and is guided by lunar farming, supported by full sun, fresh air, and rain caught water. Full season plants are grown from seed in hügelkultur mounds, beds, and trenches that were built from materials sourced from the land. Tina is a founding member of the international Cannabis Farmers Association and co-owner of San Francisco’s Vapor Room.
Scottie Gordon
Scottie Gordon, Curaleaf, Inc.
Scottie Gordon is Vice President of Licensing & Regulatory Affairs at Curaleaf, Inc., headquartered in Wakefield, Mass. Prior to joining Curaleaf in April 2019, Scottie was Chief Operating Officer of Ermont, Inc., the seventh vertically integrated medical marijuana facility to open in Massachusetts. In addition to overseeing a 36,000-square-foot cultivation, production and retail facility that operated seven days a week, she managed all department heads to ensure production schedules and sales forecasts were met and that all human and capital resources were properly allocated to maximize growth. Her background as an attorney was a critical component in her role at Ermont when it came to regulatory compliance, licensing, risk management, corporate and physical security, cash management, and inventory control. A graduate of Michigan State University and New England School of Law, Gordon was an associate at a Boston law firm where she primarily advised clients in the cannabis industry on corporate, licensing, regulatory and compliance matters.
Hackett
Michelle Hackett, Riverview Farms
Michelle Hackett, president of Riverview Farms, brings three generations of agricultural knowledge to the cannabis industry. With a Bachelor’s Degree in Business from St. Mary’s College of California, and years of experience in Sales & Marketing for agriculture, she continues to elevate RVF’s role in the industry. She and her sister, Lauren Hackett, who leads RVF’s Retail Division, have helped shape Riverview Farms into the largest female-minority owned and operated cannabis company in the world.
James
Wanda James, Simply Pure
Wanda James is the co-founder and CEO of Simply Pure Dispensary in Denver and is a leading advocate in the cannabis industry. She is also the founder and President of the Cannabis Global Initiative (CGI), a marketing and consulting firm that specializes in diversity development, regulatory framework and marketing. She was appointed to the Los Angeles Small and Local Business Commission and sat on the Board of Directors for the Starlight Children’s Foundation, and the Board of Directors of the Greater Los Angeles African American Chamber of Commerce.
Kidd
Haylee Kidd, Safety Vision
Haylee Kidd is the West Coast Account Executive for Safety Vision. Haylee graduated from Texas State University with honors and started her journey at Safety Vision as an intern. She was quickly offered a full-time job as an inside sales representative and then promoted to oversee the West Coast division for Safety Vision. Haylee has spent years learning the ins and outs of the cannabis industry, including its compliance laws. She has worked with numerous customers to create a customized solution tailored to their specific needs. Haylee strongly believes security is a top priority in the cannabis industry, and she is ready to show you why!
Kowalski
Emily Kowalski, LeafLine Labs, LLC
Emily Kowalski is the Director of Cultivation at LeafLine Labs, LLC, one of two medical cannabis companies serving the patients of Minnesota. She utilizes her 10 years of experience in propagation, greenhouse production and outdoor nursery production to cultivate consistent, healthy cannabis in LeafLine’s state-of-the-art indoor facility. Kowalski never settles for status quo and digs deep into data to drive quality and efficiency within her operation. She received her B.S. in Horticulture from the University of Wisconsin–Madison.
Neiden
Cassie Neiden, Cannabis Business Times, Cannabis Dispensary & Hemp Grower
Cassie Neiden rejoined GIE Media/Cannabis Conference as its Conference Programming Director in February 2020. From 2014 to 2019, she held several editorial roles at GIE Media with titles such as Cannabis Business Times, Cannabis Dispensary, Garden Center, Greenhouse Management, and more.
Previously, Neiden served as Director of Marketing & Communications for Firelands Scientific, an Ohio-based vertically integrated medical cannabis company. Within the state’s nascent and tightly regulated market, Neiden led the company’s community outreach efforts and helped to launch its infused products line—including tinctures, edibles and solventless concentrates.
Neiden is also an experienced freelance writer, with bylines in Martha Stewart Weddings, Agence France-Presse (AFP) and Cleveland Magazine. She is an alumna of Kent State University’s School of Journalism & Mass Communication with a bachelor’s degree in magazine journalism.
O'Leary-Randall
Alice O’Leary-Randall, Mary’s Medicinals Publications
Alice O’Leary-Randall is a senior spokesperson for the medical cannabis movement, co-founded in 1976 with her late husband, Robert C. Randall, the first person in the U.S. to legally receive medical cannabis. For more than two decades the two worked tirelessly to reform the prohibitions against cannabis. After her husband’s untimely death in 2001, O’Leary-Randall became a hospice nurse and later a grief counselor. She retired in 2012 and re-entered the medical cannabis field. She frequently writes and speaks on the issue. Working with Mary’s Medicinals of Denver she developed the Cannabis Primer series in 2015 and Mary’s Prime Time in 2017. She has served on the Board of Directors for American Cannabis Nurses Association and the advisory board for United in Compassion, an Australian medical cannabis organization. Her book, Medical Marijuana in America: Memoir of a Pioneer was first released in April 2014. Her most recent book, released on December 17, 2019, is Pain-Free with CBD, co-authored by Eloise Theisen and published by Rockridge Press.
Ratliff
Alisia Ratliff, Independent Consultant
Alisia Ratliff, PMP, is an accomplished Chemist and licensed Project Manager, who boasts more than nine years of experience from various industries. She has successfully managed a start-up operation from build-out to launch, led an expansion of a high-producing cannabis manufacturer, and independently consulted many private companies on design of processing facilities, equipment sourcing, financial projections, talent sourcing and product development using a breadth of technical knowledge.
Sabeh
Dr. Nadia Sabeh, Dr. Greenhouse Inc.
Dr. Nadia Sabeh (A.K.A. “Dr. Greenhouse”) is president and founder of Dr. Greenhouse, Inc., an agricultural and mechanical engineering firm that specializes in the design of HVAC systems for indoor plant environments. Dr. Sabeh first became interested in controlled environment agriculture (CEA) as an undergraduate, while working on a small shiitake and oyster mushroom farm in southern Idaho. For over 20 years, Dr. Sabeh has dedicated her education and career to helping farmers control their environments, allowing them to grow crops indoors, in greenhouses and in locations that would otherwise make it impossible or impractical to do so. She and her team have designed HVAC systems for facilities growing cannabis, strawberries, leafy greens and vine crops all over the world, including Europe, the Middle East, Canada and the U.S. Dr. Sabeh has her Ph.D. in Agricultural Engineering from the University of Arizona’s Controlled Environment Agriculture Center (CEAC) and is a licensed Mechanical Engineer in the State of California. She currently serves as the Chair of a new American Society of Agricultural and Biological Engineers/American Society of Heating, Refrigerating and Air-Conditioning Engineers co-sponsored committee that is developing the standard “HVAC for Indoor Plant Environments Without Sunlight.”
Schau
Jamie Schau, Brightfield Group
Jamie Schau attained an M.A. in Global Policy and Strategy from the University of California, San Diego, and has been with Brightfield Group since early 2015, performing quantitative and qualitative analyses of various aspects of the U.S. and global cannabis markets as Head of Research.
Shreeve
Anna Shreeve, Urban Paragon, Inc., Targeted Intent, Inc. and The Bakeréé
Anna Shreeve is president of Urban Paragon, Inc., Targeted Intent, Inc., and The Bakeréé. Shreeve entered the medical cannabis industry seven years ago with her son, and she and her team opened The Bakeréé, a division of Cookie Fam Genetics, a collaboration with legendary breeder “Jigga.” Shreeve’s group holds two recreational producer/processor licenses in Washington, and a recreational retail/processor license in Oregon.
Sigman
Zoe Sigman, Project CBD & Broccoli Magazine
Zoe Sigman is the Program Director for Project CBD and the Science Editor for Broccoli Magazine. She has built out educational content focusing on scientific information about cannabis for organizations like Farma and Groundworks Industries, Oregon Health and Sciences University (OHSU), and Hudson Hemp. Sigman has also testified about CBD and cannabis regulation to the FDA, and regularly speaks about cannabis and cannabis science to patients, medical professionals and consumers.
Simakis
Michelle Simakis, Cannabis Business Times & Cannabis Dispensary
Michelle Simakis is editor of Cannabis Business Times and Cannabis Dispensary. She joined GIE Media in 2012 and most recently served as editor of Garden Center magazine, the leading trade publication covering the independent garden retail market. Under her direction, Garden Center expanded its Top 100 Independent Garden Centers List by devoting an entire issue to telling the stories of the leaders and companies ranked on the list. She also helped to launch the Garden Center Executive Summit, the educational conference for key-decision makers in the industry, and recently developed a the only daily e-newsletter in the market. Simakis received her bachelor’s degree from Ohio University’s E.W. Scripps School of Journalism.
Skodzinski
Noelle Skodzinski, Cannabis Business Times, Cannabis Dispensary & Hemp Grower
Noelle Skodzinski has 20+ years’ experience in publishing. She co-founded Cannabis Business Times with previous owner Tim Hermes in 2014. She has been named among the Top 50 Most Influential Women in Cannabis. In 2012, she founded mediaShepherd–a website serving media professionals–where she served as president and editorial director. Previously, she was editorial director of the Publishing Group at North American Publishing Co., where she oversaw two national business magazines, all related digital content products, as well as the annual Publishing Business Conference, and Publishing Business Virtual Conference. Skodzinski also held posts as editor of The Crafts Report magazine, managing editor for Inside Direct Mail and senior writer for Target Marketing, among other posts.
Sparr-Jaswa
Andrea Sparr-Jaswa, Cannabis Business Times & Cannabis Dispensary
Andrea Sparr-Jaswa joined GIE Media, Inc. in August 2019 as the science editor for Cannabis Business Times and Cannabis Dispensary magazines. Previously, she held the title of Director of Education at the science-focused dispensary Farma in Portland, Ore., where she curated weekly staff educational sessions, analyzed lab data, promoted community outreach and consulted with clients one-on-one. Her time in Oregon working with some of the cannabis industry’s top educators and researchers instilled a deep appreciation for developing transparency and trust through the language of science.
Stefano
Dr. Jade Stefano, Puffin Farm
Dr. Jade Stefano is co-founder and CEO at Puffin Farm, a Washington State sungrown cannabis producer and processor licensed since 2014. Stefano is on the Board of Directors of the Washington Sungrowers Industry Association, a non-profit that advocates and lobbies for sungrown cannabis farmers’ interests in the state. She holds an undergraduate degree in Biology from Reed College and is a state-licensed Doctor of Naturopathic Medicine. At Puffin Farm, Stefano oversees operations, product development and co-manages crop production with her husband Benjamin Short. She has been a cultivator for over 20 years.
Symonds
Anna Symonds, East Fork Cultivars
Anna Symonds is the Director of Education for East Fork Cultivars, running the CBD Certified free educational program which has directly taught cannabis science to thousands of people including the staffs of more than 100 Oregon dispensaries. Symonds holds an MA in Communication and is an active athlete competing in the USA Rugby Women's Premier League. As an Athlete Ambassador for the nonprofit Athletes for CARE, Symonds advocates for cannabis rights, education, and research.
Thomas
Sumer Thomas, Canna Advisors
As a licensed attorney and licensing specialist, Sumer Thomas offers a unique perspective on the legal landscape of the cannabis industry as well as a critical eye towards new laws. Thomas’ main focus is supporting the needs of her clients while delivering superior competitive license application content and consulting services. Thomas manages complex processes across a full spectrum of client needs that range from license applications to operations readiness and exit strategy. Thomas’ interest in the evolution of cannabis markets is bolstered by her law degree from the University of Florida. Her legal background in tax, business and administrative law brings a broad perspective for solving clients’ complex problems. Thomas has an in-depth understanding of mature and developing state cannabis markets—gained from working in over a dozen states—along with a global perspective gained while living abroad. Thomas works for Canna Advisors, one of the premier cannabis consulting firms in the country, which boasts experience in 30 U.S. states (plus D.C., Puerto Rico, Guam and Canada). Thomas is a licensed attorney in both Florida and Colorado. She is a member of NORML, the NCIA, the Colorado Bar Association and the Boulder County Bar Association.
Vilchis
Priscilla Vilchis, Premium Produce
Wearing multiple hats, Priscilla Vilchis is the CEO and CMO of Premium Produce. She is a self-made business magnate and was the youngest and first-ever minority female CEO to be awarded licenses to cultivate and produce medical and retail (recreational) cannabis in Nevada and recently launched her “Reina” cannabis brand. Vilchis’ ultimate goal is to generate reimbursements from health insurance providers for medical cannabis.
Photo courtesy of Platinum
Nearly 80% of Illicit-Market Vape Cartridges Collected During Buy-Back Program Were Unfit for Consumption
Platinum partnered with Miramar, Calif.’s Mankind Dispensary to allow customers to exchange illicit-market vapes for a Platinum vape product. Testing on the surrendered vape cartridges has since revealed alarming statistics.
An illicit-market vape cartridge buy-back program set in motion by Platinum and Miramar, Calif.’s Mankind Dispensary has revealed that the majority of unregulated vapes collected are unfit for consumption.
During the month of September, Mankind’s customers were invited to turn in vape cartridges that had been purchased from sources other than a legal cannabis dispensary in exchange for a Platinum vape cartridge.
“Our partner, Platinum Vape, came to us and said, ‘We want to do something about this vape crisis and we want to learn a little bit more,’” John Butters, VP of Strategy for Mankind, tells Cannabis Business Times. “We had similar goals. We heard about some of the scary things that are out there in some of the illicit-market vapes and some of the problems they were causing, and we wanted to get an idea of how it was affecting our local community. So, we said yes, and we allowed customers to come down with any illicit market vape they had and [they] could trade it in with a small cost for a Platinum vape cart. There has to be a small cost for it to be legal.”
Two dozen cartridges collected during the program were viable for testing and were released to Infinite Chemical Analysis Labs to undergo testing for potency, pesticides, heavy metals and vitamin E acetate. Samples passed or failed these tests based on the California Bureau of Cannabis Control’s testing regulations for the legal cannabis market.
“We saw that 79% of them were deemed as unfit for consumption overall,” Josh Swider, co-founder and CFO of Infinite Chemical Analysis Labs, tells Cannabis Business Times. “About 80% wouldn’t have passed the California compliance regulations.”
Sixty-two percent of the cartridges failed for pesticides, while 37% failed for lead.
“One of them [tested] extremely high [for lead]—approximately 100 times the limit,” Swider says.
Five cartridges contained 20% or more vitamin E acetate.
“When you consider they’re supposed to be zero, those levels are beyond alarming,” Platinum President George Sadler tells Cannabis Business Times. “[Vitamin E acetate] was in five cartridges, which is telling us that those cartridges more than likely came from the same illicit manufacturer because the consistency was there in just those five cartridges.”
Half of the products tested contained less than 50% THC, while the average legal cannabis vape cartridge contains 60% to 95% THC.
“I thought [the fail rate for pesticides] would’ve been a little higher, to tell the truth, but it was very alarming,” Swider says. “Some of them had high concentrations of pesticides. Eleven of the samples actually contained pesticides [that, when heated, turn into] cyanide—[pesticides] like myclobutanil. … Some of [them] were diluted so much with the vitamin E acetate that you didn’t see any pesticides. Maybe it diluted all the THC material out with vitamin E acetate. That could be one reason we didn’t get more fails.”
Butters, on the other hand, was surprised at the high fail rates.
“I did not anticipate levels being this high, to be honest,” he says. “I thought maybe one in 10 carts would have something in it that would be scary, but seeing that [with] 80% of the carts, you were more likely than not to get something that was hazardous to your health, that was very shocking to me. I knew it was a lottery, but I didn’t know it was more than likely that I’d get something that would harm me.”
Testing is Mankind’s first line of defense when it comes to protecting public health, Butters says, followed by the dispensary’s purchasers vetting vendors to ensure product quality and ethical cultivation practices.
“To see that this many people were using carts that wouldn’t even come close to hitting our shelves is scary for our community, and it makes us want to be more proactive about getting this information out there so people aren’t taking an illicit experience and thinking that’s what cannabis is because that’s not the case,” he says. “[This is] just people shortcutting and doing things that put the community at risk.”
\Mankind runs a similar buy-back program year-round that allows customers to exchange illicit-market vapes for a 35% discount on a legal cartridge.
“We’ve continued this program on just because we see the value and it’s important for us to protect our community and maintain the quality of cannabis nowadays,” Butters says. “We’ve put a lot of work in and our tax dollars go into this testing and assuring it’s safe for customers, and we want to maintain the integrity of that.”
And while most cannabis businesses can agree that California’s tax rates are high, the statistics uncovered during this program demonstrate the reasoning behind them, he adds.
“For the longest time, we’ve all disliked having to pay taxes on our cannabis, especially the high tax rates we pay,” Butters says. “But at the end of the day, if that’s making sure that the products going out to the market are safe and do less harm, that’s critically important for us. We’re all in this for the long-term benefits, and a lot of our customers are in this for the medical benefits of cannabis, so we want to make sure they’re getting the product they signed up for when they come in. When we do things like this, it creates transparency in the market, and it allows people to see what’s going on and what’s going into their bodies. It’s almost always received with open arms because people want that kind of information.”
Platinum participated in a similar buy-back program in Michigan, also during the month of September, in partnership with The Greenhouse Dispensary, although the testing performed on those surrendered vape products was not as extensive as the testing in California.
“We just wanted to get a definitive but broad scan of what’s going on in the illicit market,” Sadler says.
For him, the testing results show that regulators need to take additional steps to crack down on the illicit market to protect consumers.
“That’s what makes this a little more tough to absorb, that as a licensed manufacturer in multiple states, [we have] guidelines that we have to live by, [and] the money that we spend on being compliant … isn’t going toward closing down these [illicit] companies, and these companies are everywhere,” Sadler says. “When you know that somebody in your basement is building a bomb and they go blow up a building, you own part of that because you knew that they were doing it in your basement. The same thing happens [with] the municipalities. …When you know that you have in your district eight to 15 stores that are not licensed, which means they’re not paying business license [fees], they’re not paying taxes, and you know they’re sitting there … and you also know that what they’re putting out to the consumer … is stuff that is going to cause damage, you own part of that.”
The testing results should also warn consumers against purchasing illicit-market products, he adds.
“The biggest part of this and the biggest thing that needs to be understood is that none of this is on the licensed market,” Sadler says. “With the restrictions and everything that’s in place for testing, you get a really good, clean product versus somebody going to the black market. Yes, you can save $10 to $15 by purchasing from an unlicensed store, [but] is it worth it? Just look at those numbers.”
Infinite Chemical Analysis Labs entered California’s cannabis industry when it was still a gray market, Swider says, and the lab used to see a 90% fail rate due to pesticides.
“You’re seeing a similar trend still in the illicit market, where the legal market is 100% clean now,” he says. “Anything going onto the shelf is going to be clean, so it’s alarming that it’s still around and that the consumers are ignoring the warnings. That’s one thing that concerns me. You see these things—the lead over 100 times the legal limit—and no one should be inhaling lead. … It’s one of those things where [consumers are] literally smoking poison and they’re fine with it because they’re getting high.”
Swider hopes the statistics revealed in the buy-back program will help consumers make more educated decisions about cannabis.
“We want consumers to have hard numbers and data out there to help them decide, ‘Maybe I should stop making bad decisions,’” he says. “Maybe they just don’t know. I’m not sure why, but they have the option of having a clean product or something that’s going to kill them, and they’re still going for the something that’s going to kill them. We just want to put this out there, and hopefully people will start seeing this and take away that they should be smoking legal products and not products from the illicit market.”
Sadler echoes this sentiment. “The bottom line of why we did this … was to get people to understand what’s going on in the black market and what’s going on in the municipalities where they’re not taking a hold on their responsibility."
Africa Studio/Adobe Stock
Michigan Will Phase Out Caregiver-Sourced Cannabis
The state will formally put an end to this segment of the wholesale market Oct. 1.
Michigan’s Marijuana Regulatory Agency announced a plan to phase out caregiver-sourced cannabis in its medical cannabis dispensaries. Effective immediately, licensed cannabis businesses may no longer purchase cannabis concentrates, cartridges or other infused products from caregivers in the state.
Cannabis flower is a different story—for now. The final day for caregiver-sourced cannabis flower transfers will be Sept. 30. Between now and then, the state will impose certain regulatory rules on how to track cannabis flower inventory purchased from caregivers. Along the way, growers and processors will be mandated to decrease the amount of cannabis flower they purchase from those sources.
“The flower is what there was a huge shortage of, and the caregivers kind of filled that gap so to speak,” Jordan Ezell, owner of Interlochen Alternative Health, told Michigan’s 9 & 10 News.
Read the full advisory bulletin below.
“We have always put patients first when we make decisions regarding medical marijuana,” MRA Executive Director Andrew Brisbo said in a public statement. “This phase out process is an important next step in implementing the will of Michigan voters and making sure that patients continue to have access to their medicine.”
Last spring, the question of supply and demand in the Michigan medical cannabis market spurred a debate over whether to allow longtime “caregivers” to sell products into the newly regulated marketplace. For years, Michigan had something closer to a gray-market cannabis setup, where caregivers would provide home-grown cannabis to registered patients. That changed in 2016, when state lawmakers developed a plan to license and regulated medical cannabis dispensaries. In 2018, voters approved a regulated adult-use market. But caregivers were left out in the cold, and licensed cannabis products were on short supply.
To continue the growth of the newly licensed market, Michigan regulators eventually allowed the state’s approximately 36,000 caregivers to sell their products to licensed growers and processors that would then test the caregiver-sourced cannabis before selling into the retail space.
According to mlive.com, the ratio of cannabis flower grown by licensed business and then sold in the state’s licensed marketplace has increased from 2.4% in November 2018 to 38.2% in January 2020. The rest of what’s been sold in dispensaries has come from caregivers—a significant majority of a market that serves more than 267,000 registered patients.
GIE Media’s Cannabis Group Announces New Hires, Promotion
Two new editors and the promotion of one of the brands’ digital editors support the rapid growth of Cannabis Business Times, Cannabis Dispensary, Cannabis Conference and Hemp Grower, the Cannabis Group’s newest publication.
Feb. 25, 2020 – Cleveland, OH – Due to the continued expansion of its Cannabis Group, GIE Media is pleased to announce the addition of two new editors and the promotion of one of the brands’ digital editors to support the rapid growth of Cannabis Business Times, Cannabis Dispensary, Cannabis Conference and Hemp Grower, the Cannabis Group’s newest publication.
Williams
Patrick Williams joined GIE Media’s Cannabis Group earlier this month as senior editor for Cannabis Business Times and Cannabis Dispensary. He joined GIE Media in 2017 and worked as the associate editor and senior editor for sister publications Greenhouse Management and Produce Grower. Previously, Williams was a freelance writer for B2B and consumer media and an editorial intern on GIE Media’s Golf Course Industry magazine. Williams graduated from Kent State University in 2015 with a bachelor’s degree in journalism.
Melissa Schiller was promoted from assistant digital editor to senior digital
Schiller
editor for Cannabis Business Times and Cannabis Dispensary magazines in January 2020. She joined the Cannabis Group in June 2017, and previously worked as an audience development associate for GIE Media’s Ornamental Group of publications, where she managed the circulation for Cannabis Business Times, Garden Center, Nursery Management and Greenhouse Management magazines. Schiller has also worked as a contributing writer and editorial assistant for a community newspaper and as a freelance writer for Northeast Ohio Media Group and Modern Tire Dealer. Schiller graduated from Hiram College in 2013 with a bachelor’s degree in creative writing.
Bennett
Theresa Bennett joined the Cannabis Group as an associate editor for Hemp Grower and Cannabis Business Times magazines in November 2019 after working for GIE Media’s Recycling Group of magazines. Prior to joining GIE Media in 2018, Bennett was the K-12 education reporter for the Akron Beacon Journal. Outside of GIE Media, Bennett is a freelance writer whose work has appeared in Modern Farmer, The Devil Strip and newspapers across the country. Bennett graduated from Kent State University in 2017 with a bachelor’s degree in journalism.
“We are thrilled to announce this expansion of the Cannabis Group’s editorial team to support the continued growth of Cannabis Business Times, Cannabis Dispensary and Hemp Grower magazines, as well as Cannabis Conference, which is now in its fourth year,” said GIE Media Group Publisher Jim Gilbride. “We look forward to the ongoing contributions of Theresa, Patrick and Melissa to continue to grow and develop the publications, websites, enewsletters and the annual Cannabis Conference.”
“Patrick and Theresa are talented additions to the team,” said Editorial Director and Cannabis Business Times Co-Founder Noelle Skodzinski. “These new hires, as well as the promotion of Melissa to an expanded role, will help advance our editorial mission to provide news and actionable intelligence to cannabis cultivators, dispensaries and hemp operations in North America.”
About GIE Media
Established in 1980, GIE Media Inc. has grown from one publication into a leading marketing and communications business-to-business media company serving 17 industries. The company goal of Group Interest Enterprises is to publish the highest-quality business magazines, websites, e-newsletters, conferences, reference books and other forms of business media in growth industries, with a quality standard based upon editorial value and market leadership.
GIE Media Inc. is headquartered in Valley View, Ohio, and is privately owned by its founder Richard Foster. The company employs nearly 100 editors, publishers, sales representatives, marketers and other professionals.
Legislative Map
Cannabis Business Times’ interactive legislative map is another tool to help cultivators quickly navigate state cannabis laws and find news relevant to their markets. View More
Theresa Bennett
Melissa Schiller
Eric Sandy
