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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

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We don’t really deal with a lot of mites because of our IPM program

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Flora Farms Pest Management Program it is built to reduce to nothing depending on the harvestso the plant ends up clean. Luke Allenbrand, Flora Farms’ crop leader, leads an integrated pest management program that focuses on prevention. “We don’t honestly deal with a lot of mites because of the IPM program, because of the predatory mites that we’ve put down as a precaution,” says Luke. “It allows us to have a much cleaner garden in the back half.” Preventative work keeps spray volumes relatively low because the curative side of the program rarely needs to be heavy.

“Actually, we are at the lowest number of these sprays that we have. The milliliters that we are using are numbers that do not exist to be a prevention,” says Luke. “But as soon as you see an uptick of those mites or anything, we bring it up to a therapeutic amount, which is still a small milliliter. And as long as you’re on a fast track with it, you see them disappear within 10 days.” The targets are spider mites, which feed on the plant’s THC and terpene production and degrade the flower.

© Flora Farms

Tested solutions
The three products used by the company are derived from agricultural and food use. “We actually apply about three insecticides that are very common around the agricultural and food grade of these products, using a suite of IPM, Venerate and Grandevo, insecticides that will deal with these mites,” says Luke. The application is intermittent rather than constant. “We usually use a 5-day spray cycle so we can have rest periods in between, so it’s not just a consistent density of that spray,” says Luke. He sees progress against mites in the gaps between the successions.

However, at some point, the spraying stops. “We finish the spray cycle by day 40. We usually don’t want to spray anywhere after day 40. At that point, you’re going to damage the product,” says Luke. “And at that point, we’ll put predatory mites in. It really helps us get to that final push point by day 59, 60 of that harvest. So we actually have a lot less of our spray in that late period. So it’s a much better tasting product.” Predatory mites take over the job of spraying, leaving nothing on the flower.

Biological control
Biological control has two forms. “We usually use them, they’re called crazy mites, and honestly, it’s crazy to see,” says Luke. “Actually, I’ve seen some of the ones in a close-up photo kill a bug, some of the cocoons actually drive away, and even attack the spider mites themselves. Very beneficial. Callias are also slow. They’re little bags that we hang on plants and they’re very beneficial to us.” Different predators work at different speeds, which is why the program runs more than one.

Missouri’s testing regime is the context in which growers operate. Each plant is tested for pest control chemicals and must pass before the product goes ahead. “Other crops and other black market shops or smoke shops in Missouri don’t have to worry about the testing we have to do,” Luke says. “Everything we use here is natural. Each of our pest management is a lot of essential oils that fight these mites. Everything we would put on a plant is food grade.” The test covers foreign chemicals, heavy metals, and anything else that an unregulated supply should never consider.

The whole arc is from biology to chemistry and back to biology. “We go from predatory mites to a food-grade spray regimen, and then back to predatory mites at the end. That way, these plants will have time to finish with no chemicals, nothing,” says Luke. “The rest of that life cycle, about 15 to 20 days, is the most natural it will have. No spraying at all during that, just to push predatory mites off that end, so there’s no residual mite damage on those plants.”

For more information:
Flower Farms
florafarmsmo.com

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California Bill To Legalize Marijuana Dispensary Drive-Thru Windows Advances In Senate After Clearing Full Assembly

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It has been passed by a California Senate committee and passed by the Assembly bill that would allow marijuana dealers to offer car windows to serve customers.

The measure, which cleared the Senate Business, Careers and Economic Development Committee on a 7-3 vote Monday, says licensed cannabis retailers and micro-businesses with storefronts can sell marijuana products “in a motor vehicle to a customer in a drive-through located on the premises.”

Under Assemblywoman Gail Peller’s (D) AB 2697, cannabis businesses would need permission from the local jurisdictions in which they operate to add a drive-thru.

The sponsor told committee members before the final vote that the bill will “expand access to legal cannabis products while strengthening our ability to compete with the illegal market.”

Annie Aubrey of Chuck’s Wellness Center, a retailer in Placerville, testified that the legislation is “about improving access.”

“A large portion of our customers use cannabis as medicine, including seniors, veterans and people living with chronic conditions that affect mobility, the population that this regulated system seeks to serve,” he said. “For many, even simple tasks like getting out of a vehicle or navigating a retail space can be physically difficult or prohibitive…A drive-thru option removes that barrier, giving patients and consumers access to what they need in a way that’s dignified and consistent with their healthcare needs.”

Amy O’Gorman Jenkins of the California Cannabis Operators Association said the legislation will provide “operational flexibility” in a highly regulated system.

“It doesn’t expand who can access cannabis,” he said. “It allows retailers, with local approval, to serve existing patients and customers more efficiently.”

Jenkins also argued that this measure could improve security.

“Currently, road traction transactions are already allowed. This means that workers regularly have to leave a safe premises while transporting the product, and sometimes they have to deposit cash in parking lots,” he said. “AB 2697 provides an additional mechanism for obtaining product, but requires a fixed and secure transaction point, keeping employees inside and reducing exposure to theft.”

Pellerin, the bill’s sponsor, previously said that “California cannabis retailers lack a common and accessible transaction channel for consumers that so many other retailers in California offer, including fast food, pharmacies, banks and even liquor stores.”

“Cannabis consumers with mobility issues or other disabilities have limited options for obtaining cannabis without having to get out of their vehicles. And while home delivery is legal, there are restrictions on service areas,” he said. “Allowing cannabis sellers to add a secure ride option, if allowed by their local jurisdiction, will improve the consumer experience, increase the security of cannabis sellers and help expand California’s legal cannabis market.”

The California Association of Narcotics Officers opposes the proposal, however, as a representative, Ryan Sherman, testified that it would make it more difficult for dispensary workers to check the IDs of customers who are of legal age or to spot signs of current intoxication at drive-thru windows.

“This bill prioritizes speed of sale over public safety while undermining existing protections designed to prevent illegal sales and protect public safety,” he argued.

Under current policy during the COVID pandemic, dispensaries can already offer street pickup.

The invoice that moving forward in the legislature would mandate that auto sales “be made through a fixed panel security window with a security drawer or similar secure transfer mechanism that is part of a building located within the premises.”


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.


Learn more about our marijuana bill tracking and become a Patreon supporter to gain access

California regulators recently approved emergency rule changes to the state’s marijuana licensing process. to make it easier for companies to receive benefits In line with the Trump administration’s latest move to federally regulate medical cannabis.

While Gov. Gavin Newsom (D) recently He took credit for helping lead the state’s push to legalize marijuana and discussed his limited experience with cannabis use.

In October, however, Newsom vetoed a bill that would have It allowed micro-marijuana companies to ship medicinal cannabis directly to patients Through common carriers like FedEx and UPS, he said the proposal would be “too burdensome and complex to manage.”

Newsom signed a bill earlier this month streamlining research into marijuana and psychedelics.

In September, the governor also signed a measure pause on the recent tax increase on marijuana products.

Separately, the state attorney general says Indian tribes cannot independently participate in the marijuana trade with licensed cannabis businesses without obtaining their own commercial license from state officials.

California officials have recently been rewarded nearly $30 million in grants for marijuana-focused academic research projects.

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Concert Series Specials launched for state medical cannabis patients

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Post Dispensary, Kentucky’s first medical cannabis dispensary, is connecting with patients in Owensboro, Henderson, Bowling Green, Elizabethtown, Madisonville, Hopkinsville and surrounding areas by aligning unique specials with the region’s summer concert calendar. Located at 300 N Main St. in Beaver Dam, minutes from major highways connecting these vibrant cities.

This summer, The Post Dispensary is offering special pricing and incentives for Concert Series Events at the Beaver Dam Amphitheater, SPARKS in the Park 4th of July celebration and surrounding events, such as Owensboro’s ROMP Festival (June 24-27, 2026). Patients can stop by before or after shows for big savings.

“We’re more than just a booty,” said a dispensary representative. “From Owensboro’s world-class ROMP Festival to Beaver Dam’s Amphitheater events, we’re making it convenient and budget-friendly for patients in Owensboro, Henderson, Bowling Green, Elizabethtown, Hartford and beyond to combine our love of music with compassionate care and an affordable product.”

The Post Dispensary hosts regular Patient Guidance events on the second Saturday of every month. These units have professionals on hand to assess patients and issue written certificates at low cost, application support and expert consultations in a welcoming environment. The next Patient Drive aligns perfectly with summer travel patterns, making it easy for patients from Owensboro, Bowling Green, Elizabethtown, Madisonville, Henderson, Madisonville and surrounding towns to plan a trip to Beaver Dam that combines care with community and entertainment.

For more information:
Post-Dispensary
thepostdispensary.com/










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