Kentucky’s governor claims that medicinal marijuana is “the future,” and part of that future should include allowing farmers to grow cannabis for export to other states. Gov. Andy Beshear spoke on the subject during an interview with the press, confirming it is a priority for him. “This is the future. It’s where things are going. It’s time we joined so many other states in doing the right thing”.
While the Governor is correct in wanting to do the right thing like many other states, things really got interesting when he spoke about potentially selling to other states. “Kentucky and our topography, our farmers could benefit significantly from the legalization of medicinal marijuana and then allowing them to grow medicinal marijuana for other states,”
CAN THEY DO THAT
Not really.
Hemp was federally legalized in 2018 under the Farm Bill, meaning it can travel across state lines. Cannabis can’t, not even medicinal. There is hope though. Lawmakers and activists are working towards an amendment where marijuana could be legally sold between states that have legalized it.
Other Governors are also wanting such a deal to go through, in fact, back in 2019, Gov. Kate Brown stated she’d be willing to sign an agreement allowing cannabis to be sold between cooperating states. Rep. Earl Blumenauer (D-OR) and Sen. Ron Wyden (D-OR) are two members of Congress who have already laid the framework for the policy shift (D-OR). Shortly after Blumenaur signed the interstate commerce bill, federal lawmakers introduced legislation to prevent the Justice Department from interfering with states that have signed affirmative agreements to sell marijuana over state boundaries.
However, the bill failed to gain traction.
HOW KENTUCKY WOULD BENEFIT
We’ve seen that tax revenues some states are already collecting, Kentucky would stand to benefit immensely from that influx of cash. Investopedia shows us that cannabis sales in the US are expected to reach over 31.1 billion by 2024. Additionally, a recent report from New Frontier shows us that legalizing cannabis federally would make a huge impact; an additional $105.6 billion in aggregate federal tax revenues. But what about Kentucky specifically?
1. TAX REVENUE: We can look at other states, like Colorado in 2019, bringing in over $300 million in taxes and fees on cannabis. Washington also cleared $300 million that year. 2019 was the year Massachusetts began selling marijuana, they brought in about $396 million. The year before, California reported over $411 million in excise tax.
2. JOBS: Even if the state stuck to medical, there would be a huge shift in the job market. To start we would set up nurseries and dispensaries, creating immediate jobs in the industry. This would also get the economic ball rolling for related industries from packaging to shipping. There would be increased activities for law firms, especially when applying for licenses, accountants, insurance, security,
advertising and more would boom.
If we added recreational marijuana into the mix we’d see additional revenues in those industries as well as travel, food and beverage, and event industries. The same report from New Frontier anticipates if marijuana was legalized federally, it would create over one million jobs by 2025.
3. INVESTMENT OPPORTUNITIES: On a local and national basis, legal marijuana has the potential to be a huge boon to the economy. It may also aid in the protection of clients’ financial portfolios across the country and beyond. While marijuana remains illegal federally, investors are finding it tough to profit from the industry’s expansion. While investors can engage through over-the-counter
exchanges, the majority of the top companies in the early legal cannabis market were situated in Canada or other nations.
If cannabis companies could work together on the federal level, they would have the freedom to list their stocks on all U.S. exchanges. This would increase liquidity and allow access to a larger pool of investors. If the cannabis industry’s growth rates continue to be as strong as they have been in recent years,
investors are certain to take notice.
If you’re in one of the fortunate states to have legalized marijuana and are ready to get growing, Contact me to get started on a vibrant campaign that not only meets but exceeds your state and market requirements—not to mention converts customers for better revenue, social footprint, and company growth.
