With the recent acceptance of marijuana legalization by the Trump administration, the marijuana industry is poised for rapid growth. Legalization has transformed communities and won over skeptical local politicians and cops. The new tax dollars will fund schools, scholarships, and road paving. It will also pay for drug treatment and lift up minority communities that have been devastated by the War on Drugs. Those who support legalization see a lot of opportunity in the industry.
Cannabis is legal in several states, including Colorado, Massachusetts, California, Nevada, Maine, and Washington. The industry has seen explosive growth, including the construction of extraction and grow facilities. But with all this growth comes an increased risk of fires. To minimize these risks, the NFPA Standards Council recently approved the development of a new standard for cannabis production facilities. The standard will guide fire safety standards for these facilities.
Recent studies have indicated that sales of marijuana will hit $20 billion this year, and will top $26 billion by 2025. In fact, sales of recreational marijuana could reach up to $45.9 billion in 2025, making it bigger than the craft beer industry. However, this projection is conservative and is not yet guaranteed to happen. As always, there’s no sure bet on the market, but the current trend has a good chance of paving the way for a boom.
Legalizing cannabis is a huge opportunity for job creation. The first half of 2017 saw revenues from medical marijuana sales rise to $742 million, and the second half will exceed that figure. Despite the risks of legalization, the market is expected to generate $40 billion in sales by 2021. While Ohio is likely to be the smallest state in terms of employment, it still has a promising future for the cannabis industry.
Meanwhile, Big Pharma and Big Tobacco have both placed bets on marijuana companies. Tilray, a Canadian company that has made headlines in recent months, recently filed its first IPO on the U.S. stock exchange. The company raised $153 million in the process, with shares priced at $17 per share. The stock’s price soared by 1,159% in just two months.
While federal enforcement of marijuana is a complex issue, many predict that federal laws will continue to be liberalized. As Attorney General Jeff Sessions has stated, marijuana is not a drug of abuse. The administration’s decision to relax federal laws may ultimately determine how the industry grows. Regardless of how the industry grows, the Trump administration’s efforts to make it more affordable may be the catalyst for further expansion.
The SAFE Banking Act is a limited legislative action aimed at helping the cannabis industry. It restricts federal banking regulators from taking punitive action against marijuana-related businesses, such as denying deposit insurance to them. These laws may also limit the industry’s ability to expand, as it would be harder to secure funding if banks feared criminal prosecution. So, many banks may be wary of such a risk.
The federal government is still reluctant to legalize cannabis, but it is increasingly clear that it will have an impact on the industry. In Colorado, recreational marijuana has been legal since 2014. The state has collected more than $500 million in taxes and has projected sales to outpace those states on Black Friday and Thanksgiving combined. Likewise, Nevada’s first four days of legalization generated $3 million.
The Canadian cannabis market is already big. Canada recently made marijuana legal for adults and people under 18 to buy it from regulated stores. In Illinois, it is already legal in some provinces, including Quebec, and the U.S. government has made efforts to expand recreational marijuana to other provinces. marijuana However, the state of Wisconsin is unusually restrictive with regard to marijuana. Proponents of legalization have pushed for expungement of criminal records, which is a key element of a successful cannabis industry. In California, prosecutors expunged criminal records for marijuana-related offenses.
Under President Trump’s new policy, the United States will legalize cannabis in 2021. If legalization is successful, the industry is poised to expand to 70 countries in just a few years. Despite its shaky start, the industry is set for a boom under the current administration. However, it will be a long road to get there. For now, the marijuana industry remains illegal for adults.
The cannabis industry is already making huge political donations to politicians. They have funneled hundreds of thousands of dollars to political action committees, focusing on Republicans in the House. While Democrats have been the biggest beneficiaries of marijuana campaign auto blue amnesia ministry of cannabis donations in the past, the industry has focused its attention on Congressional Republicans. Those Republicans who support state’s rights are its best allies. Moreover, President Trump’s executive orders have allowed hemp production and distribution in the U.S.