Cannabis News

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

Published

6 months ago

December 17, 2025

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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.

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

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.

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.

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

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.

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

Related Topics:Ban braces Chicagos City collapse Hemp looms sector

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cbdMD welcomes White House call for fair treatment of hemp-derived products

Published

19 hours ago

June 29, 2026

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cbdMD welcomes the Administration’s call for Congress to ensure fair treatment of hemp-derived products under federal law and calls for immediate action to revise hemp regulations to ensure fair treatment of hemp products under federal law.

In a letter to congressional leadership this week, the White House Office of Management and Budget identified hemp reform as a priority strongly supported by the Administration. The petition calls on Congress to ensure fair treatment of hemp-derived products by maintaining access to appropriate full-spectrum CBD products, and by maintaining Congress’ intent to reduce products that pose health risks. The administration also urged Congress to pass a responsible federal framework or at least extend the current implementation period to give lawmakers time to get policy right. The request builds on the president’s previous public statements urging lawmakers to protect access to full-spectrum CBD products that millions of Americans rely on.

“We are encouraged to see the administration so clearly championing the responsible, scientific hemp products that consumers depend on every day,” said Ronan Kennedy, CEO of cbdMD. “cbdMD has always believed that the future of this category is built on quality, transparency, and clear rules that separate them from bad actors. A federal framework that protects consumer access, promotes safety, and provides certainty to companies that provide certainty is what this industry and the people it serves deserve. We applaud the policymakers who are working to achieve this outcome.”

“We believe CbdMD is purpose-built for this next phase of the market,” added Kennedy. “Our focus remains on serving our customers with reliable and effective products, supporting responsible regulation and building long-term value for our shareholders as the category continues to evolve. Along the way, we will continue to evaluate the opportunities this evolving environment holds.”

For more information:
cbdMD
cbdmd.com/

Cannabis News

Applications For Missouri Marijuana Microbusiness Licenses Will Open Next Month

Published

19 hours ago

June 29, 2026

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“We have a lot of tutorials, and we also provide a step-by-step guide. Anyone could sit down and make the app. I don’t think it’s challenging.”

By Rebecca Rivas, Missouri Independent

Application window win one of Missouri’s 77 micro-business marijuana licenses through a lottery selection it will be open from July 13 to 27.

The selection lottery is scheduled for Sept. 9, and the Missouri Division of Cannabis Regulation expects to issue licenses in December, according to a press release issued Monday.

Microbusinesses are marijuana facility licenses issued to entities and individuals designed to allow marginalized or underrepresented people to legally participate in the marijuana market.

Lesley Turek, the division’s capital manager, has been traveling the state this month to educate people about the application process.

“I really feel that microenterprise graduates are, first and foremost, a community of people who help each other,” he said. “They’re the ones who are driving this program forward, so I’m looking forward to meeting new people and sharing as much as I can about the program. It’s a great program.”

Much of what is being worked on is the new rules that went into effect at the end of May…In 2024 the proposed cannabis regulators will remove a large number of licences Because of unconstitutional property deals.

The new rules, he said, allow regulators to conduct extensive scrutiny before licensing, rather than after. Furthermore, they give a more in-depth explanation of what it means to “have and operate the majority” of the License, which is a requirement in the Constitution.

Regulators are mandated to communicate directly with majority owners and require applicants to complete a compliance course before applying and after receiving a license.

The microbusiness program was passed by voters in the 2022 constitutional amendment to legalize recreational marijuana.

In Missouri, there are seven categories in which people can qualify for a micro-business license, ranging from lower income or living in an area considered poor, to past arrests or incarcerations related to marijuana offenses.

Applicants pay a $1,500 application fee if not selected. The Missouri Lottery will select 77 license applicants to open dispensaries or cultivation facilities. The goal is to fill the remaining gaps in the minimum 144 micro-business licenses mandated by the Constitution.

Turek believes the application is relatively simple and something people can complete on their own, unlike the much more complicated application for comprehensive licenses.

“We have a lot of tutorials, and we also offer a step-by-step guide,” he said. “Anyone can sit down and do the app. I don’t think it’s a challenge.”

The part that most people often don’t understand is everything that comes with owning a marijuana facility.

“It’s very expensive, it’s very regulated, and so it’s challenging,” he said. “I want to make sure people have a clear understanding beforehand so they can make a good decision whether they want to apply for this program.”

A big part of his presentation was that the majority of the licenses should be owned by and eligible people. They must have more than 50 percent of the authority to direct the decisions made with the license.

“It’s more than a percentage of ownership,” he said. “It’s really about being able to have that control over it.”

It also talks about the designated contact, and why in the new rule the regulators will require that the designated contact be the applicant or the eligible person with the majority of ownership.

The designated liaison role was conceived as a way to ensure clear communication between the state and licensees.

Instead, state regulators discovered it many named contacts have kept real applicants in the dark about business and licensing. Applicants are locked into agreements that limit their voting power and profits in the business.

That’s why the state now requires pre-application training, a three-video online course to ensure applicants understand “potentially predatory practices,” regulators said in response to public comments during the rulemaking process.

The press release It says those who need help with eligibility requirements or application forms can contact the facility’s application services (email protected).

Educational dissemination events for micro-enterprises

Personal forums:
June 22 – 6:00 pm to 8:00 pm – Kansas City

Webinars:
June 24 – from 11:00 a.m. to 1:00 p.m
June 29 – from 18:00 to 20:00

Registration is required for in-person and virtual sessions. Interested participants can register at Microenterprise education. Additional information on the microenterprise program is available here cannabis.mo.gov.

Those requiring assistance with eligibility requirements or application forms may contact Facilities Application Services at (email protected).

This story was first published by the Missouri Independent.

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Cannabis News

RAND estimates Indiana adult-use cannabis could yield $180M in annual revenue

Published

2 days ago

June 28, 2026

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Two new RAND reports commissioned by the Richard M. Fairbanks Foundation outline the policy options and financial commitments facing Indiana as the state debates whether to change its cannabis laws amid restrictions across the country.

Reports show that 44% of Indiana residents live within 50 miles of a licensed dispensary in a neighboring state, and 96% live within 100 miles, as three of Indiana’s four states have legalized adult-use cannabis. At the same time, intoxicating hemp products containing the same psychoactive compound as marijuana are available at gas stations, convenience stores and grocery stores throughout Indiana with limited oversight.

Cannabis use in Indiana has doubled in the past decade, with a significant increase among adults 26 and older. RAND estimates that 1.3 million Hoosiers used cannabis in 2024 and spent $1.8 billion on marijuana products that year. Indiana recorded more than 13,000 cannabis-related arrests in 2024, with more than 90% for possession and more than 75% for non-cannabis related charges. The state spends $10 million to $20 million annually on cannabis law enforcement.

Rather than recommending a specific policy, the RAND reports outline four broad options: maintaining prohibition, reducing criminal penalties for possession, legalizing medical cannabis, or legalizing the adult recreational use market. Legalizing adult-use cannabis would generate about $180 million in annual state revenue, roughly 1 percent of the state’s general fund, well below some previous projections and less than half of the $385 million in combined cigarette and alcohol tax revenue Indiana will collect in 2025, according to the Indiana Department of Revenue.

Legalization would also entail significant upfront costs, and ongoing regulatory costs could reach the low tens of millions of dollars annually, outweighing the savings from reduced criminal justice spending. RAND identifies 14 policy considerations important to establishing legal markets, each with its own public health and state economic implications.