Michigan Cannabis: Possible Game Changers in 2024
- The Michigan cannabis industry reached the $3 billion mark in sales in the previous year and continues to grow at an astounding rate. The competition in the market is expected to intensify in 2024, with winners and losers emerging in the industry.
- There are speculations about potential federal rescheduling of cannabis and the enactment of the Secure and Fair Enforcement Regulation (SAFER) Banking Act. These changes would provide cannabis operators with improved access to banking and allow them to write off many of their costs, benefiting both large companies and small craft operators.
- Brian Hanna, Executive Director of the Michigan Cannabis Regulatory Agency, plans to open a state-run cannabis testing facility. This lab would work as a reference to ensure the accuracy of THC levels reported by other labs, a practice that is currently under scrutiny. The establishment of this lab would enhance transparency and consumer confidence in the cannabis industry.
2024: A Pivotal Year for the Michigan Cannabis Industry
As we move into 2024, Michigan’s cannabis operators are transitioning from a year of record-breaking sales, surpassing the $3 billion mark. Contrary to other states, Michigan’s legal cannabis market is growing at an unprecedented rate. Retailers and producers cut prices, driving the average cost of an ounce to around $80, in an attempt to grab market share.
The market’s competitive nature will make 2024 a year of turmoil for the cannabis industry, with winners and losers being defined. However, possible developments could provide a boost to cannabis operators.
Federal Rescheduling and the SAFER Banking Act
The cannabis community eagerly anticipates that 2024 might be the year the federal government reschedules cannabis. Additionally, advocates signal that this could be the time for the government to address cannabis operators’ access to banking.
The Secure and Fair Enforcement Regulation (SAFER) Banking Act would protect financial institutions from government liabilities when collaborating with licensed cannabis businesses. This would give cannabis operators access to banking, paving the way for traditional funding for the industry and facilitating market access for legacy and former-caregiver-run businesses.
These legislative shifts would allow Michigan operators, presently taxed at almost 70%, to deduct many of their expenses. This would be a significant advantage for both corporate and small craft operators.
The Anticipated Opening of Brian Hanna’s Lab
The Michigan Cannabis Regulatory Agency, responsible for cannabis regulation, may launch its testing facility in 2024 – a priority for Executive Director Brian Hanna since his appointment in 2022. The independent facility aims to keep the Michigan market free from THC inflation claims.
Industry insiders believe that companies often choose labs producing test results with higher THC levels. The widespread belief is that many successful testing labs regularly inflate THC test results, undermining the industry and cannabis culture. This lab could be an essential step towards increased transparency in the industry.
In the past, factors like taste, smell, and bud structure were used to determine cannabis quality. Nowadays, most consumers and purchasing managers ask about price and THC levels. This reference lab could help restore trustworthiness to the testing process and set a new benchmark for transparency in the burgeoning industry.
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