Cultivators, Prepare For Legalization

Cultivators, Prepare For Legalization

It’s a new day in the world of cannabis. A significant portion of Americans support adult-use cannabis legalization, and it seems that the government is starting to take a cue. More often than not, Democrats and Republicans have shared support behind the push for cannabis legalization and reform.

At this point, it’s best to begin anticipating legalization at a federal level. However, it’s bound to cause significant changes in the industry at large. The issues that cannabis companies’ problems are plentiful, though federal legalization can undoubtedly help. However, there are bound to be even more hurdles without proper preparation, especially as the market competition grows exponentially.

Preparing for the green rush will help your cannabis business gain a competitive edge, but what does preparation look like exactly? The cannabis industry is new to most states already, and legalization at a federal level will introduce new legislation that could create more barriers, even if it does ease specific laws. Mainly, it’s anticipating anything that could lead to an economic blowback, whether due to the rising competition or the supply chain.

The publication explained the four categories to prepare for: the economy, THC, regulations, and location. For starters, we’ve already seen a flood of investors emerge into states where cannabis is legal, many of which only began embracing reform when they realized the potential value of the market. Anticipate seeing a slew of fresh faces in the cannabis industry, which will undoubtedly be dumping cash in hopes of a significant return. Unfortunately, this will create a more competitive market to survive in.


Investments will flood the cannabis industry beyond what we’ve seen so far. However, federal legalization will finally open the doors for the cannabis industry to operate out in the open, even at financial institutions. Companies can legally pursue bank loans and lines of credit without blowback from banks or other financial agencies. Plus, cannabis consumers will be able to use their credit cards to purchase products at legal dispensaries. Overall, companies should start preparing to transition their current banking mode to established financial institutions.

Perhaps the most crucial aspect of legalization for recreational consumers is THC. Though CBD products have grown widely available for medical and non-medical purposes, the psychoactive component of cannabis would be entirely legal. Cannabis companies will be able to transport cannabis across state lines without repercussions. As the current law states, THC products sold in state-legal dispensaries must be cultivated and manufactured in their home state. Federal legalization will shift the way companies can sell their products. Cannabis companies will have the option to grow and package their products in states with the best conditions and then ship them nationwide. Plus, it could open the doors for further expansion.


One of the many benefits of legalization is knowing the trust built with consumers. The $20 baggie from the guy around the block might come through when you need it most, but chances are, there’s no quality assurance. A legal market opens the doors for companies to bring top of the line, safe, tested products to their customers. However, it also means that there’ll be rigid testing standards. Most businesses’ operations will be under a microscope and must enforce a quality management system. Cultivators should also anticipate everything from mandatory reporting and surprise visits to randomized audits.

Locating & Relocating

Once cannabis legalization moves forward, better options will be available for growers to take their plants to sunnier, drier, and warmer conditions. Cannabis businesses who seek to shift their operations from indoor to outdoor could find it effective in reducing energy costs, but it does come with its risks. Arizona, California, New Mexico, and Texas remain prime spots for growing cannabis. However, this could be costly compared to your business’s potential success. Leaving to another state would likely also mean catering to another demographic while the alternative is to continue growing the local economy.

This breakdown is merely a prediction of what the future of legalization could bring. Still, everyone is looking forward to the day where we could stuff cones for weed with dispensary-quality cannabis.

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