The cannabis industry celebrated its favorite holiday with 420 and New Jersey opened its doors to the first recreational cannabis sale. The hemp genetics section of the supply chain continues to experience a strong 2022, with seed and clone prices up 70% year over year. The industry continues to navigate financial, logistical, agricultural, political, and supply chain-based issues with more farmers and acres being planted in the southern states. We believe this is the driving force behind increased genetics prices this year.
With the northeastern states bringing recreational cannabis programs online, further support for the hemp industry will follow. States with legal cannabis programs tend to have higher CBD consumption and provide more support to their hemp programs from a government level. The perfect example is New York recently expressing that it will allow provisional marijuana licenses to hemp cultivators already licensed in the state. This essentially provides a lifeline to struggling CBD companies and helps the state shore up any potential inventory shortages that could force consumers back to the legacy market. Legal cannabis will no doubt be good news for operators in states currently lacking one.
Kellen Finney, Eighth Revolution
Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.
