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US Marijuana Industry Hits All-Time High

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The legal cannabis industry is thriving in the U.S., reaching its highest-ever number of jobs and sales, a new report shows. Vangst, a cannabis industry job platform, found that at the beginning of the year, there were 440,445 full-time-equivalent jobs in the legal cannabis industry—a 5.4 percent increase from 2023. Annual sales of legal marijuana, recreational and medical, increased by 10.3 percent to $28.8 billion last year, it added.

https://www.newsweek.com/us-marijuana-industry-all-time-high-jobs-sales-1891143



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Cannabis Consumers Are Being Hit By The Tariffs

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Tariffs are the word of the day – but marijuana consumers need to be ready to see a change also.

From apples to automobiles, hundreds of industries are trying to figure out the new tariffs.  What is clear is prices are going up on a random amount of things.  But, why is a surprise, is cannabis consumers are being hit by the tariffs also. Although cannabis itself cannot be imported or exported due to federal restrictions, the industry heavily relies on international suppliers for key components like vaporizer hardware, packaging, and cultivation equipment.

RELATED: Mixed Messages From The Feds About Cannabis

For instance, products sourced from China now face cumulative tariffs as high as 45%, including a 10% increase imposed in February 2025. Similarly, imports from Canada and Mexico face 25% tariffs. These measures have particularly affected items like vape cartridges, batteries, and specialized packaging materials, which are difficult to source domestically at competitive prices. As a result, many cannabis companies are passing these increased costs down the supply chain to consumer

The financial burden of these tariffs is substantial. Analysts estimate that most cannabis businesses lack the margin flexibility to absorb a 10%-15% cost increase. This has led to higher retail prices for products like pre-rolls and vaporizers, potentially pushing consumers toward cheaper, unregulated black-market alternatives. Such a shift raises concerns about product safety and could undermine the legal market’s growth.

Additionally, the tariffs have caused stock prices of major cannabis companies like Tilray Brands and Canopy Growth to decline by 5%-10%, reflecting investor concerns over profitability.Smaller businesses, already constrained by high taxes and limited banking access, are particularly vulnerable to these economic pressures.

Efforts to mitigate tariff-related expenses include exploring alternative manufacturing locations in countries like Malaysia or India. However, transitioning production is complex and time-consuming due to logistical hurdles and regulatory compliance requirements. Domestic production is another option but often comes with higher costs and limited capacity.

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Packaging regulations in many states exacerbate the situation by requiring child-resistant designs, further limiting affordable domestic alternatives. Some companies are exploring sustainable packaging solutions as a long-term strategy to reduce dependence on volatile international markets.

The ongoing trade tensions show no signs of easing under Trump’s administration, leaving cannabis businesses with little choice but to adapt quickly. Strategies such as diversifying suppliers, investing in automation, and innovating with local materials may help companies weather the storm. However, without significant policy shifts or financial support mechanisms, the industry faces a challenging road ahead.



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Outdoor Marijuana Grows Are Better All The Way Around

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Despite the massive investment by some in the industry, outdoor grows are the healthier, cleaner option

Like fruits and vegetables, outdoor floors yield the richest flavor and the least expensive products. The same can be said about cannabis, outdoor marijuana grows are better all the way around. When the industry started becoming legal, hundreds of millions were invested in indoor grow with the assumption cost per pound would stay high. Companies like Tilray built massive indoor grows, but over time they have caused expensive upkeep, high consumer prices, and upset neighbors. And do they produce the best cannabis? By leveraging natural resources like sunlight and soil, this method reduces environmental impact, enhances product quality, and fosters community harmony.

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Outdoor cannabis cultivation drastically lowers greenhouse gas emissions compared to indoor growing. Research shows outdoor farming can emit up to 50 times less carbon dioxide than indoor production, which relies heavily on artificial lighting, air conditioning, and dehumidifiers. Additionally, outdoor grows eliminate the need for energy-intensive equipment, reducing electricity consumption and promoting sustainability. Water conservation is another key advantage; outdoor farms often use natural rainwater or precision watering techniques, minimizing waste. Furthermore, the absence of chemical fertilizers in many outdoor setups helps protect local ecosystems from pollution.

sunlight through trees

Outdoor growing is more cost-effective for both producers and consumers. It eliminates expenses associated with indoor cultivation—such as high electricity bills and specialized equipment—making cannabis more affordable. For home growers, cultivating outdoors fosters a connection with nature while empowering individuals to produce their own medicine sustainably.

Sun-grown cannabis benefits from exposure to full-spectrum natural light, enhancing its terpene profiles and cannabinoid production. This results in richer flavors, aromas, and potency that indoor setups struggle to replicate. Outdoor cultivation also allows plants to grow larger and healthier due to unrestricted space and access to diverse soil nutrients. This translates to higher yields and better-quality products for consumers. Additionally, outdoor-grown cannabis often develops unique characteristics influenced by the local terroir, offering a diverse range of experiences akin to wine production.

Outdoor marijuana farms are less disruptive to neighborhoods compared to indoor facilities. Indoor grows often require extensive infrastructure upgrades, leading to increased energy demand and noise pollution from machinery. There has been an uprising by some local governments about the grows.

RELATED: The Science Behind Why Music Sounds So Much Better When You’re High

In contrast, outdoor farms blend harmoniously with their surroundings, relying on natural processes rather than artificial systems. Moreover, outdoor cultivation supports local biodiversity by integrating companion plants that deter pests naturally and enrich the soil.

While outdoor cultivation is environmentally friendly, it poses challenges such as susceptibility to pests and weather fluctuations. However, solutions like greenhouses can provide controlled environments while retaining the benefits of natural sunlight. Choosing resilient strains adapted to local climates further ensures successful harvests.



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The Cannabis Industry Needs Luck With The DEA

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It will take more than Irish luck to help the cannabis industry win over the DEA.

Million of consumers are fans of cannabis, not only to chill out but for medical reasons. In fact, it has become a replacement for alcohol and spanned a movement call California sober. Aside from the thousands of mom and pop small business owners, cannabis employees over 440,000 people. Even the staid AARP has agreed it has health benefits. Over 80% of the country believe it should be legal in some form, but the cannabis industry needs luck with the DEA to move forward. Rescheduling cannabis means changing its classification under the Controlled Substances Act (CSA), moving it from a more restrictive schedule (like Schedule I) to a less restrictive one (like Schedule III), acknowledging its potential medical uses while still maintaining regulatory controls. 

The Drug Enforcement Administration (DEA) had scheduled hearings on the proposed rescheduling of cannabis to begin on January 21, 2025. However, these hearings were abruptly canceled by DEA Administrative Law Judge John Mulrooney following legal challenges from pro-reform witnesses. This cancellation has pushed back the rescheduling process by at least three months, with no clear timeline for when it might resume.

DEA Interim Final Rule: What Is 'Synthetically Derived THC'?
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The delay stems from allegations of improper communications between DEA officials and anti-rescheduling witnesses. While Judge Mulrooney rejected some key arguments from rescheduling proponents, he granted a request for leave to file an interlocutory appeal, effectively putting the entire process on hold.

The transition to the current administration has further complicated matters. On February 11, 2025, Terrance C. Cole was nominated for DEA administrator, an individual known for his opposition to cannabis reform. This nomination signals a potential shift in the DEA’s approach to marijuana policy, which could further impede rescheduling efforts.

Even if rescheduling were to move forward, it would face significant regulatory challenges. Critics argue that as a Schedule III drug, marijuana would remain under DEA regulation, requiring the approximately 15,000 cannabis dispensaries in the U.S. to register with the DEA and fulfill strict reporting requirements.

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The cannabis industry eagerly awaits rescheduling, as it would bring significant benefits, including the ability to claim federal tax deductions and credits currently prohibited under 26 U.S.C. § 280E. However, the ongoing delays and potential policy shifts under the new administration have created uncertainty in the market.



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