The medical marijuana business has never been healthier and riper for the picking than it is now. More and more investors and entrepreneurs are getting in the booming industry everyday. If you want to know where to invest in the cannabis business to get the most bang for the buck, keep on reading.
New markets have been created in states such as: Connecticut, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New York and Oregon. More and more states in America are expected to jump on the bandwagon in the next three years.
The revenues generated by medical marijuana industry in America are estimated to reach over $8 billion in the next few years. The sale of cannabis in Colorado and Washington is headed to the $500 million mark in the year 2014.
In this article we will discuss the current state of the cannabis industry in America and some of the hot areas of the industry to think about investing in.
Section 1: Current State of The Cannabis Industry In America
About 50% of American states have passed medical marijuana laws as of late 2014. More states are expected to join in and take advantage of the tax dollars to be made. The only problem is that marijuana is still illegal in the eyes of the federal government.
Banking remains a difficult hurdle for marijuana business owners. Many bank refuse to do business with dispensaries or grow operations. Dispensaries are forced to find a place to stash all of their cash since they can’t legally place them in business bank accounts.
Despite this fact, the industry is flourishing. In America today, there are well over 2000 medical marijuana dispensaries. There are nearly as many licensed cannabis grows, approaching the 2000 mark.
More than half of the American population is in favor of legalizing cannabis. The recreational cannabis industry in Colorado and Washington are bringing in millions of dollars for businesses and state taxes.
Alaska, Oregon, and Rhode Island are rumored to be the most likely next states that legalize recreational cannabis as Colorado and Washington have. Washington D.C and Florida are other states where some form of recreational cannabis legalization is likely to occur in the next few years.
In 2013, a document was released by the United States Government called “The Cole Memo”.
It was an open letter that was addressed to all U.S Attorney General’s. It stated that the U.S Department of Justice would not get in the way of medical marijuana laws as long as the businesses were obeying the state laws and the state laws were strictly enforced.
Since the memo, the cannabis industry has seen a big jump in acceptance and activity. Even with all of this growth, many investment companies are still unwilling to invest in cannabis-based businesses.
The reasons they are not willing to get into the cannabiz are usually things like:
• They want a more secure investment
• They are afraid of the federal government interfering and prosecuting them for being involved with a schedule 1 narcotic
Although many of these big-name investment companies are hesitant to jump in on the cannabis bandwagon, there are a handful of investment firms that on the contrary are focusing their efforts strictly on the green business.
Here are some companies that invest in cannabis businesses:
-Bulbulyan Consulting Group
-Emerald Ocean Capital
–High Times (HT Growth Fund)
-Mentor Capital, Inc.
-Dutchess Capital Management
Section 2: The Best Areas Of the United States for Marijuana Businesses
A common question from people wanting to get in the marijuana business is “where should I go to get in?”
The following states are currently the hottest states in America to be involved with the cannabis industry:
The current leader in the industry in the United States with over 1000 medical marijuana dispensaries, hundreds of state-approved grow facilities, and many ancillary businesses such as; cannabis edibles, cannabis tours, insurance, marketing, packaging, and security. Plus a flourishing recreational cannabis industry has brought thousands of jobs to the state.
Although not nearly as structured as Colorado, the state of California is still a hotbed for marijuana businesses. The state struggles to collect taxes from cannabis industries owners since it does not have a system in place to keep cannabis industries accountable for all sales and products. Nevertheless, there are many medical marijuana dispensaries in California, and the opportunity to grow cannabis at home is currently the easiest place in America to do it in.
The state of Washington is still lagging behind as far as getting their recreational cannabis laws and businesses set up. But the future looks bright, especially in areas like Seattle where many jobs and cannabis industries are poised to make an impact.
The state of Oregon is a great place to be involved with the cannabis industry. It has favorable laws for cultivating cannabis, with some of the highest plant limits in the United States.
Arizona, like Washington, has had some hiccups in regards to their medical cannabis laws and regulations. They seem to take one step forward and two steps back. But there is a booming market for cannabis businesses across the state and the next few years is expected to bring many more cannabis businesses to the area.
Michigan’s medical marijuana scene has struggled over the years to fully explode due to changing regulations. The state does however have medical marijuana dispensaries and many supporters for the legalization of cannabis on a recreational level.
Nevada is hot, not just temperature wise. The state has seen an amazing increase in the interest of cannabis in the past year. More and more cannabis businesses are opening every day and there are numerous opportunities to find a niche in the cannabiz in Nevada.
Maine is leading the way in New England as far as cannabis is concerned. Although not many medical marijuana dispensaries (only 8), there are thousands of residents who are legally growing and selling cannabis throughout the state.
9. New Mexico
New Mexico has a few medical marijuana dispensaries, but not nearly enough to cover the entire state. The state is poised for a surge in the upcoming years.
There are other states as well with cannabis industry’s but for whatever reason not quite as many opportunities for new canna businesses or jobs at this point in time.
These are the Second Tier as far as States in America to be Involved with the Cannabis Industry
Alaska is an up-and-coming state in regards to cannabis laws. Although the conditions are not ideal for outdoor growing, the state has seen an increase in home cultivation of cannabis, and a keen interest across the state for legalization of the plant.
Residents of New Jersey have been waiting for the state to loosen its cannabis laws and allow medical marijuana dispensaries to open in all major cities. For now, they are still waiting.
Like New Jersey, Rhode Island thought they would have hundreds of dispensaries by now. So far, the industry has been held up by some old-fashioned governmental opinions.
Montana did have an exciting cannabis industry up until a year or two ago when many of their canna-businesses were shut down.
It still is home to thousand of supporters of the industry and it is likely that in the near future they will get back on track.
After these First Two Tiers are the Up and Comers
The following states are either new to the industry, or have been in it for a while and are just starting to see the light.
Hawaii residents have been growing high-quality cannabis for centuries. The state has had a tough time getting the medical cannabis industry off the ground. Recent laws are loosening some of the restrains and the future may hold better things for cannabis entrepreneurs in Hawaii.
A newcomer to the canna-business, the state is just getting its feet wet. Not a bad place to look into investing in real estate for future businesses.
Another newbie. Illinois is just getting started. The state is determined to make a splash in the industry and many residents are trying to plant their feet before the explosion.
Massachusetts should have been in a higher tier by now. The government has been stifling the industry for a while now. There were supposed to be 35 medical marijuana dispensaries opened buy now. But things have been slowed and residents are getting few up. The future of the industry in Mass is unknown at this time, although it is expected to take off sometime soon.
It is quite possible that New York will eventually be near the top of this list. For now though, New York is a future star waiting for the cloud cover to pass.
Minnesota has strict cannabis laws at this time. Although they recently become a medical marijuana state, the laws are very limited. We shall see how it all unfolds.
To learn more areas that are recommended for cannabis investments and the best types of cannabusinesses to invest in, click here.