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Chicago’s hemp sector braces for collapse as city ban looms

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Whitney Economics analyzed the potential state and national effects of bans on the sale and production of hemp-derived cannabinoid products. The company conducted a survey in Illinois in March 2025 of Illinois hemp sellers, manufacturers and distributors from the perspective of revenue, state and local taxes, as well as employment and profits.

“The hemp-derived cannabinoid market is a major contributor to the economy of Chicago and Illinois. It is a major source of employment, wages, and state and local tax revenue. Based on a March 2025 survey, respondents indicated that if bans were imposed on the sale and production of hemp-derived cannabinoid products, these companies would go out of business entirely, or otherwise lose state employment. revenue. and increased spending by state and local governments to support displaced workers,” says Beau Whitney.

Illinois hemp derived retail analysis
The state has approximately 1,014 businesses supporting hemp-based retailers. These merchants generate more than $870 million in revenue and have a statewide economic impact of $2.1 billion. Including wholesale and manufacturing, revenue increases by $2.7 billion, with an economic impact of $6.5 billion. These numbers are based on a March 2025 survey of Illinois businesses. These businesses generate about $169.1 million for the state.

© Whitney EconomicsSource: State of Illinois, Whitney Economics Illinois Hemp Cannabinoid Survey (March 2025)

Income based on hemp-derived cannabinoids
Annual revenue from hemp cannabinoid products is $2.7 billion.

© Whitney EconomicsSource: Whitney Economics Illinois Hemp Cannabinoid Survey (March 2025)

Employment and wages
Overall, Illinois’ hemp-derived cannabinoid industry, including cultivation, employs nearly 13,500 workers statewide and pays more than $545 million in wages annually.

There are approximately 4,750 retail jobs associated with hemp-derived businesses. Wholesalers add 6,300 jobs and manufacturers add 2,500 jobs. Wholesale jobs are important because Illinois serves as a regional hub for other states.

© Whitney EconomicsSource: Whitney Economics Illinois Hemp Cannabinoid Survey (March 2025)

Distribution of sales of hemp-derived products in Illinois
The sector breakdown of sales percentages shows a fairly even split between THCA flowers, vaporizers, edibles, and beverages. Beverages were projected to grow in 2025 in terms of total market share, primarily at the expense of vapes and edibles, but also at the expense of THCA flower. High state and local marijuana taxes are driving consumers to the hemp-derived market at every level.© Whitney EconomicsSource: Whitney Economics Illinois Hemp Cannabinoid Survey (March 2025)

The effect of excessive taxes on marijuana on consumer purchasing behavior
A separate report examining the impact of cannabis taxes on consumer purchasing decisions shows that lowering state and local marijuana taxes will increase marijuana sales and tax revenue. However, a simple hemp ban will not have a similar effect, as consumers will buy marijuana and hemp products online or in other states, such as Michigan or Missouri, where prices and taxes are significantly lower. (Source: Cannabis Tax in Illinois – Whitney Economics – April 2025)

Chicago specific data
Chicago has identified approximately 220 retail businesses. (These are merchants with a Chicago address). Wholesaler, distributor and manufacturing data is more difficult to obtain. They generate about $475 million in sales from these retailers. CBD sales add roughly $30 million to that number, but this is a rough estimate because CBD is so common in cosmetics and other non-toxic products. Retail sales tax revenue is estimated at $31 million a year from sales tax alone. This does not include $5.0 million – $7.5 million in license fees.

© Whitney Economics

Retail employment is also significant with 1,030 – 1,250 workers, generating $37,214,900 in wages.

© Whitney Economics

The effect of bans on companies and employment
A majority of survey respondents indicated that if there were severe restrictions or legislation banning sales, they would move to another state or go out of business. “One by one, survey respondents told me they were moving away from retail operations in favor of a distribution model,” says Beau Whitney.

Effects of statewide cuts
Across the state, the impact of restrictions or bans is significant. Negative numbers represent losses in the chart below.

© Whitney Economics

For more information:
Whitney Economics
Beau Whitney
(503) 724-3084
www.whitneyeconomics.com

Cannabis News

Most Americans Back Legalizing Marijuana, But Trump Voters Not On Board, Conservative Group’s Poll Shows Amid Rescheduling Rumors

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As President Donald Trump prepares to announce his decision on rescheduling marijuana, a new poll from a religiously conservative research firm again shows that a majority of Americans are ready to fully legalize cannabis. Trump voters, however, are not on board with the change, except for the younger ones.

The survey — conducted by YouGov on behalf of the Ethics and Public Policy Center (EPPC) — was detailed in a post last week on its Family Matters blog by one of the organization’s senior researchers. Overall, 57 percent of respondents found that they “somewhat” or “strongly” support the legalization of cannabis.

The demographic breakdown of age and political affiliation showed familiar divisions on the issue, with a majority (53 percent) of those over 46 who voted for Trump in the last election opposing legalization. However, 49 percent of Trump voters aged 18-45 say they support reform.

Among people who voted for former Vice President Kamala Harris in the last election, however, there was an unusual finding: more people in the older cohort (87%) said they support legalization than the younger group (71%).

When asked about the net impact of legalization on society, 68 percent of younger Harris voters said the social benefits outweigh the costs, and an even greater majority (82 percent) of older Harris voters said the same.

By contrast, majorities of young and older Trump voters (59 percent and 67 percent, respectively) said legalization is associated with “more social costs than benefits.”

Adults aged 18-45 without children were more than 60 percent in favor of ending the ban, compared to 52 percent who are parents, the poll found.

“This provides the blueprint for a new political coalition interested in curbing the abuses of our fast-track entry into the widespread world of medical marijuana,” said EPPC’s Patrick Brown. he saidand if the Trump administration moves to reschedule marijuana, “conservatives and well-intentioned liberals should not accept a new reality of capitalism-driven marijuana availability without a fight.”

“Concerns about widespread weed’s potential for children’s health — and the long-term outcomes of young adults — will not go away, regardless of the profit motive involved,” he said.

While this poll shows a partisan divide on the issue with most Republicans opposed to legalization, other independent polls in recent years have indicated that ending prohibition is an increasingly bipartisan issue. That being said, Support among GOP voters has fallen slightly over the past year, according to a recent Gallup poll.

A separate research firm associated with the Trump poll of registered voters recently showed this A majority of Republicans support various cannabis reformsincluding rescheduling, states’ rights to legalize and the marijuana industry’s access to banking services and stock exchanges.

Sources familiar with the decision the administration may make on marijuana reform have not suggested the president wants to. legalize marijuana, though. The proposal to move cannabis from Schedule I to III of the Controlled Substances Act (CSA) would mean that it would still be prohibited. But marijuana companies could begin taking federal tax deductions, which could help reduce some research barriers related to Schedule I drugs.

Also announced this week was the president’s executive order on the planned rescheduling It may also include additional components on banking access for cannabis businesses and Medicare coverage for CBD.

on monday Trump said he is “very hard” considering rescheduling cannabis in part, to ease the restrictions on research on its effects.

Those against policy change have it he increased his efforts to prevent the administration from continuingArguing that reclassification to Schedule III will further normalize the use of marijuana, even though the plant has not been federally legalized. The rescheduling, however, would allow marijuana companies to take federal tax deductions while reducing some of the research barriers associated with Decision I drugs.

Rep. Andy Harris (R-MD), one of the most vocal prohibitionists in Congress, said this week Trump has no authority to unilaterally reschedule marijuana by executive order. But while lawmakers could overturn any administrative move to enact reform, he acknowledged it would be a “huge increase” in the Republican-controlled Congress.

Meanwhile, they are the top Democrats in Congress saying that the modest reform would not go far enough– including Sen. Ron Wyden (R-OR), who said the move is nothing more than an attempt by the president to “gaslight” voters into thinking he legalized cannabis to boost his “pathetic” approval ratings.

A major organization in the drug testing industry said this separately Amid reports of “sounding the alarm” Trump may soon end the reorganization proposalthat the policy change would have “catastrophic consequences for the safety of US workers and the transportation sector.”


It’s Marijuana Time tracking hundreds of cannabis, psychedelic and drug policy bills in state legislatures and Congress this year. Patreon supporters by pledging at least $25/month, you’ll get access to our interactive maps, charts, and audio calendars so you never miss a development.


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or for what it’s worth, a White House spokesperson told Marijuana Moment last week that no action has been taken so far.

They have been members of Congress in bipartisanship weighing a possible decision to reorganize last week—Democrats like Rep. Alex Ocasio-Cortez (D-NY) call the reform a “no” and others like Rep. Andy Harris (R-MD) have pushed back against the proposal.

The Washington Post reported last week that Trump planned to issue an executive order to federal agencies to move forward with cannabis rescheduling.

The outlet also said the president met with marijuana industry executives Robert F. Kennedy Jr. earlier this week in the Oval Office. with Secretary of Health and Human Services and Centers for Medicare and Medicaid Services Administrator Mehmet Oz. During that meeting, Trump called Johnson, the House Speaker, who opposed the rescheduling of cannabis,

If the administration ultimately enacts the rescheduling, it would mark one of the most significant developments in federal marijuana policy since its prohibition half a century ago, when it was banned under Article III. With a reclassification, marijuana has medical value and a lower abuse potential compared to Schedule I drugs like heroin.

Mike Latimer’s photo.

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Innovative substrate strategies boost plant production while reducing peat use

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Three recent studies from Dr. Jeb S. Fields’ Environmental Nursery Production Lab show that growers can reduce peat use in plant production by layering different substrate materials—a practice called substrate stratification—while maintaining plant growth or quality.

In the first study, the researchers tested how incorporating wood fiber into the bottom layers of containers affects plant growth. They found that using coarse wood fiber underneath and a finer moisture-retaining material on top helped the roots develop well, keeping the seedlings healthy and vigorous. The approach also offers growers the flexibility to tailor substrate mixes to specific crops or growing conditions.

A supporting study confirmed that layering low-peat and high-peat materials in the same container can significantly reduce overall peat use. Plants grown in these stratified mixtures performed as well or better than those grown in traditional uniform substrates.

A third study reinforces these findings, showing that stratified systems can cut total peat use while maintaining or improving plant quality compared to traditional uniform mixes.

Together, these findings give growers practical tools to reduce peat use, manage costs and achieve more sustainable production, all while maintaining the high-quality plants that customers expect.

Collectively, these findings provide practical strategies for nurseries and nurseries seeking to sustainably produce high-quality plants. By combining layered substrates, careful packaging and peat alternatives, growers can reduce peat dependence, improve root architecture and improve production efficiency.

These studies represent a step forward in sustainable gardening, demonstrating that environmentally responsible substrate management can go hand in hand with the production of high yielding plants.

According to Dr. Fields, “Researchers around the world have been looking for alternatives to peat for decades, but the answer may lie in managing the way we use the substrate we have. Through stratification, we can effectively reduce peat use by 50% without sacrificing plant growth or quality. Substrate stratification also allows the use of low-cost or recycled materials in place of permanent media and other sustainable growth materials and sustainable growth. Horticulture industry”.

The full article can be read on the ASHS HortTech e-journal website https://doi.org/10.21273/HORTTECH05570-24; https://doi.org/10.21273/HORTTECH05660-25; and https://doi.org/10.21273/HORTTECH05683-25

For more information:
American Society for Horticultural Science (ASHS)
ashlars.org

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Striving for inclusivity in Caribbean cannabis market

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The government of Antigua and Barbuda has reiterated its intention to build a medical cannabis sector based on local empowerment, careful regulation and cultural respect. At a stakeholder dialogue organized by the Medicinal Cannabis Authority (MCA), officials presented a new roadmap for the development of medicinal cannabis on the island.

Addressing industry stakeholders, Attorney General Sir Steadroy Benjamin emphasized that the administration’s aim was to redirect the profits of this industry to people who have historically been shunned by foreign investors.

“I want to make it clear that my government (…) is fully committed to ensure that the economic benefits of this industry benefit the people of Antigua and Barbuda as a whole, and not just land investors,” he said, and to assure participants “that the pie is significant.”

This change comes as the authorities have acknowledged that previous economic initiatives in the country often concentrated profits in the hands of large operators. The government now wants to ensure that this trend is “ended”, with the new cannabis regulatory framework serving as a corrective model.

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