Member Blog: How to Navigate the Cannabis Payment Landscape in 2023
With the recent crackdown on cashless ATMs in the U.S. for cannabis payments, dispensaries have been scrambling to find alternatives to this banking system. As more consumers nowadays prefer to pay by credit or debit cards, or another form of digital payment, dispensaries must offer convenient forms of making payments to their customers. But until there is federal legalization in the U.S., the cannabis payment landscape will continue to be marred by complications. This complete guide on cannabis payment processing can help you navigate the hurdles better and set your dispensary up for success with the best digital payment solutions. But continue reading for some quick tips on handling cannabis payments in 2023.
Reduce Cash Transactions and Risks
Cash may still be king in the cannabis industry, but it comes with many risks. And in this highly regulated industry, compliance must remain the priority for dispensaries. Cash also limits your ability to retarget or upsell to customers. By reducing cash transactions, you can avoid the following risks:
Cash theft by robbers, employees, or customers.
Mistakes in daily cash counts and accounting.
Inventory compliance issues due to untraceable cash.
Encourage the Use of Digital Payments
With digital payments, instant reporting capabilities give cannabis retailers a better understanding of business performance. Also, providing customers with a modern and convenient shopping experience is a competitive advantage in the cannabis industry. There are significant advantages to encouraging the use of digital payments:
Improved dispensary experience for customers.
Increased safety and security for everyone.
Easy Banking, Tracking, and Reporting.
Maximize the Benefits of Going Cashless
The most important benefit of going cashless is that you’ll see a massive increase in sales and revenue. When a customer is not limited by the amount of cash on their person, they always tend to buy more, and budtenders are better equipped to upsell. Most dispensaries using cashless payment solutions witness:
Minimum 25% increase in average transaction value.
Increased customer loyalty and retention.
Overall improved operations with data insights.
Choose a Compliant Payment Solution
There are quite a few cannabis cashless payment solutions out there, but not all can provide you with the enhanced safety, security, and compliance needed for cannabis retail. Ensure that you choose a multichannel payment solution that integrates seamlessly with your cannabis POS and complies with all laws and regulations. A dispensary cashless payment solution must offer the following:
PIN Debit Payment: The most compliant solution.
ACH Electronic Transfer: No-cost direct payments.
Integration with loyalty and gift card programs.
Implement Cannabis eCommerce and Delivery
To provide customers with the most convenient and efficient way to purchase cannabis products, dispensaries should also consider implementing eCommerce and delivery services. This allows customers to browse and buy products online, with the added convenience of home delivery. Implementing such services also helps reduce cash transactions, as customers can pay digitally if you have a compliant cannabis payments solution.
Set up an eCommerce website by using a cannabis-specific eCommerce platform that integrates seamlessly with your POS system.
Use cannabis-specific delivery software to set up compliant delivery services or outsource to third-party delivery companies.
Dispensaries must have a robust digital payment system that complies with all regulations, which can only be achieved by using a cannabis-specific payment processing system that integrates with your eCommerce platform and POS system.
Bonus Tips
Here are a few more tips for navigating the cannabis payments landscape:
Consider implementing a loyalty program to encourage repeat customers and increase sales.
Ensure that your payment processing system can handle high volumes of transactions to avoid delays or downtime.
Stay up-to-date with the latest regulations and compliance requirements for cannabis payments to avoid any legal issues.
Offer multiple payment options to customers, such as debit and credit cards, ACH transfers, and mobile payments, to provide greater flexibility and convenience.
Conclusion
The cannabis industry is rapidly evolving, and dispensaries must adapt to the changing payment landscape to remain competitive. By reducing cash transactions, encouraging digital payments, and implementing cannabis eCommerce, dispensaries can offer customers a convenient and safe way to purchase cannabis products while complying with state and federal regulations.
Offering the convenience of digital payments increases dispensary profits, enhances the customer experience, and elevates your dispensary business beyond the limitations of cash only. With a truly transparent and compliant cannabis cashless payment solution, you can facilitate faster check-out at your dispensary with simple, frictionless, and secure digital payments. Dive into Cova Software’s free cannabis payments processing guide to learn more.
Gary Cohen is the CEO of Cova Software, the fastest growing technology brand in the cannabis industry. Cohen’s focus has been driving the company’s overall strategy, including its vision, go-to-market plan, and strategic development. Since joining the cannabis industry in 2016 and launching Cova commercially in 4q17, Cohen has led Cova to dominate the enterprise sector for dispensary Point of Sale, while forging client relationships with hundreds of single-store retailers across North America.
With Cova’s cannabis POS and its excellent integrations with eCommerce and delivery services, the online order automatically pops up for the budtender to tender the sales, and the POS system updates inventory once payment is approved. Cova offers multiple eCommerce solutions to choose from, as per your needs and budget, and you can legally sell cannabis online stress-free while staying compliant with strict government regulations.
Update from NCIA’s Diversity, Equity, and Inclusion Program
by Mike Lomuto, NCIA’s DEI Manager
Our DEI Program has a lot to share and celebrate as we gear up for Spring, when we hope to hit the road with our Equity Workshop Tour.
Keep reading for all the highlights and wins to start 2023.
But first, I want to remind you that today is the LAST DAY to throw down sponsorship dollars as part of our Lobby Days DEI Delegation.
ALL Lobby Days sponsorship dollars raised during the month of February directly fund our DEI Delegation.
This allows us to provide travel stipends as part of our commitment to DEI at NCIA. Our delegation consists of some of our organization’s most engaged and knowledgeable social equity policy advocates.
This is one of NCIA’s most important functions. It’s imperative we get it in the win column so that our report back in May/June’s newsletter is one of success for our DEI efforts.
February marked the momentous launch of NCIA’s Global Majority Caucus.
Made up of Global Majority leaders from across the organization – Board Members, Committee Leadership, Equity Members serving on committees, and leaders of DEI Program initiatives.
The purpose of the GMC is to galvanize our Global Majority voices and impact at the nation’s oldest and most established cannabis trade association.
I am humbled by the voices that were present last week and completely inspired by what we will continue to accomplish together.
Together, we will continue to advocate for greater Diversity, Equity, and Inclusion in our industry as we push toward federal legalization, and the more equitable rollout of the myriad of state cannabis programs.
Bringing minority (aka Global Majority) perspectives to the forefront of the industry
Join us for the live recordings every Monday at 1 pm ET on LinkedIn Live
Subscribe on your favorite podcast platforms, and catch up on the first few episodes of the new season, featuring NCIA Board Vice Chair Chris Jackson, NCIA Board Member Rebecca Colett of Calyxeum, and Dr Mila Marshall (Vice Chair of the Education Committee)
Upcoming guests include:
NCIA Board Member Ben Larson of Vertosa, Chris Jensen and Tiffany Watkins (DEIC Chair and Vice Chair), Kay Villamin (SRC Chair), Keyston Franklin (BFSC Chair), and Michael Webster (host of the Power Hour)
February featured TWO Catalyst Conversations (our DEI-focused webinar series)
Featuring Gary Little and Doug Kelly, who are blazing trails in Chicago, alongside NCIA committee members Ace Castillo and Shannon Vetto
For cannabusinesses looking for how to “crack the code” of doing well AND good. We discuss how to create positive community impact AND excel as a business as a result
Featuring NCIA Committee members Vanessa Valdovinos, Keyston Franklin, and Jim Makoso, as well as new Board Member Amy Larson
Especially relevant for newer leaders in the cannabis space, seeking insights into how to succeed and gain lasting power, based on the opportunities 2023 presents.
New York Social Equity Roundtable Submits Public Comments, co-signed by a dozen partnered organizations
Since Spring of last year, we have been building coalition through conducting an ongoing roundtable discussion, consisting of multiple National and New York based cannabis social equity and industry organizations to assess and provide feedback regarding rules and regulations. Big thank you to the participating orgs, including: Minorities for Medical Marijuana (M4MM), Social Equity Committee Co-Chairs of NYC/Hudson Valley Cannabis Industry Association (NYCCIA/HVCIA), NYC NORML, Black and Brown Economic Power in Cannabis (BB EPIC), JustUS Foundation, Unified Legacy Operators Council (UNLOC), Minority Cannabis Business Association (MCBA), Social Equity Empowerment Network (SEEN), The Hood Incubator,The People’s Ecosystem (TPE), Etain, legacy operators, and social equity cannabis business owners.
On February 13th, we submitted our latest round of public comments, in a common effort to assist the New York Office of Cannabis Management in its mission to create an equitable and inclusive cannabis industry for New York State.
DEI Committee leader Raina Jackson served as Lead Author, with support from fellow NCIA committee members Mark Slaugh, Adrian Adams, Stephanie Keeffe, and Osbert Orduna.
Get a glimpse into the impact our Equity Scholarship Program is having
“it isn’t hard for me to find a BIPOC leader within NCIA who shares experiences similar to mine. That has made this a motivating and pleasurable experience.”
– Michael Diaz-Rivera, Owner of Better Days Delivery; Colorado State Rep of M4MM
The Equity Workshop Tour is tentatively (based on sponsorship) set for stops in New York, Chicago, and Detroit, synced up withour Industry Socials. More to come. Sponsorship opportunities are available.
Committee Blog: NCIA Committee Work Provides Lasting Value To All – A 2022 Highlight Reel
by David Vaillencourt, The GMP Collective Facilities Design Committee Chair
NCIA Committees are one of the easiest ways that NCIA enables its members to make a positive impact on the cannabis industry. The Facility Design Committee is one of fourteen (14) committees. We are all member-led, meeting monthly (if not more frequently) to discuss needs and to work together to create resources for the community and industry at large. This translates into blogs, webinars, and more. As the new Committee term gets underway, this article provides a recap of our 2022 term. Who are we? What did we accomplish? How can you as an industry operator or NCIA member leverage these resources? Read on!
“As the outgoing Chair, it was an honor to work alongside over a dozen experts ranging from business management solutions, architects, engineers, construction companies, quality management experts, equipment vendors, and more. I want to thank each and every one of you for your tireless contributions.” – David Vaillencourt, The GMP Collective
Accomplishments and key member takeaways
Now entering our fourth year, the FDC put together a significant amount of content for the industry to utilize. I have highlighted the top three impacts that our Committee felt we made. Seeing busy industry pioneers put aside valuable time in their days to consistently show up and create this content for the betterment of you all was a rewarding opportunity in itself and it’s impossible to do justice and recognition to the hours contributed by all.
“The knowledge and energy that is gained from this collection of experts who all have one overriding goal to advance cannabis as an industry both educates and motivates me… The cannabis industry evolves extremely rapidly, by participating in NCIA committees you ensure that you do not get left behind and you have an opportunity to shape the future of cannabis.” – Cary Richardson, Miles Construction
What is VPD / HVACD and why should you care?
Understanding plant dynamics and how they impact the selection and sizing of HVAC systems is critical to the cannabis cultivation space. The design assumptions and directions made during early planning will impact plant quality, quantity, operational costs, and energy expenditures for the life of the facility. It should not be surprising to owners and shareholders that if the first steps of design are made incorrectly, costs to correct original mistakes may exceed the original project budget, and oftentimes that may be too late. It is easy to get lost in the technical details on paper, but our members broke this important topic down for decision makers to better understand in our blog article and webinar “WTF is VPD” (available for free to watch on demand!).
“The details of HVACD get lost at times on me and [Adrian and Kevin] can explain it in a way, that a layman can understand it. David, Brian, and Sean are the other members who are always showing up, we meet at events and they have valuable input on topics of the FDC. We all connected outside of the FDC multiple times and are working on common business opportunities.” – Chris Uhlig, Ceres Greenhouse Solutions
Social Equity is a major problem
Mike Lomuto who led NCIA’s Diversity Equity and Inclusion Committeemet with Shawn Cooney, our Vice-Chair early on to discuss sustainability and DEI issues in the space. Social equity applicants have so many additional hurdles that the FDC members prioritized how to steer our knowledge to solve real problems social equity applicants face. During several of our meetings, we invited a social equity applicant to share where they were stuck. They benefited from having a team of experts to listen, understand their problem, and offer direction and guidance.
“The most meaningful thing that occurred [for me] was participating in a hot seat with a social equity license recipient… We followed up with this individual and it led to us becoming more educated and aware of the issues surrounding social equity in the cannabis industry. Unfortunately, what we uncovered wasn’t that great. Social equity programs in several states are fraught with issues and there are often firms who are preying upon vulnerable people… I have a whole new sense of awareness. It’s opened me to educate myself and others as well.” – Eric Myers, COO, Omega Equipment Supply
But don’t take our word for it – hear it from one of our “hot seat” guests who came to us after having multiple setbacks getting their design plans for a dispensary approved by the city.
“Prior to our meeting with the Facility Design Committee, we had experienced so many setbacks. After my hotseat with the FDC, we were able to identify what we did wrong and why we were having so many delays with the city. [The FDC members] helped us prioritize what steps we needed to take to get our project back on track… We redesigned our floorplan and now we are closer than ever to getting our building permits. We are back on track and I am even more confident in our plan all thanks to the Facilities Design Committee.” – Adolfo “Ace” Castillo Founder/Chief Operating Executive Banyan Tree Dispensary
Networking
Not only do we meet monthly virtually, enabling volunteers from Maine to California and everywhere in between to connect and share knowledge – but many of us made time to connect in person to speak on panels and support each other throughout the year. While the pandemic wreaked havoc on conferences and in-person events, we were able to build lasting relationships thanks to the Committee structure.
“The most impactful aspect of this year was getting to know members at an individual level” – Kevin Quinlan, Mintropy
From left to right Jon Crozier, Chris Uhlig, Adrian Giovenco, Eric Myers, David Vaillencourt, and Cary Richardson all met up in person at MJBiz Con.
Looking forward into 2023
Stay tuned industry! Bookmark NCIA’s Blog page, and subscribe to the newsletterso you can take advantage of the latest webinars and resources published by the FDC and the other NCIA committees. The pathway to a harmonized and equity industry may seem daunting and far away, but rest assured that the hundreds of NCIA members participating in the diverse Committees are working hard to divide and conquer for a unified mission.
Equity Member Spotlight: Checking in on NCIA’s Equity Scholarship Program
by Mike Lomuto, NCIA’s DEI Manager
Three years after the launch of NCIA’s DEI program, we are growing and going stronger than ever. One of last year’s highlights was our DEI delegation that took part in our 10th Annual Cannabis Industry Lobby Days in Washington, D.C., a story we told in this blog, along with many other great and important stories. Now, we are checking back in with a few members to hear about their current progress.
Why has being a member of NCIA been important to you personally?
Anthony Jenkins, Next Level, CEO:
Cannabis is an amazing plant, and I’m passionate about what it can do. NCIA’s members share that passion, which shows in their advocacy for themselves and the plant.
Michael Diaz-Rivera, Better Days Delivery, Owner/Operator:
I was a 5th-grade teacher before starting this business. Being a member of NCIA has allowed me to network with a diverse set of owners across the business spectrum, whether they are social equity operators, and/or novices like me, or established in the cannabis space for years. NCIA has helped springboard me into spaces where growth is guaranteed!
Helen Gomez Andrews, Co-Founder & CEO, The High End:
Building strong business networks is incredibly important in the cannabis industry – and of course, so is advocacy. With this industry and through communities like NCIA, we have an opportunity to reimagine and restructure how business gets done, what board rooms look like, how workers are treated, how to better respect our environment. Being a member has not only helped me strengthen those networks and provided new business opportunities, but it has provided me more channels towards the advocacy that is meaningful to me and my business’ core values.
Why is the Equity Scholarship Program at NCIA important?
Anthony Jenkins:
It is EXTREMELY important because most new entrepreneurs don’t have the money to “test” if a program is going to be beneficial for them. The scholarship gives future cannabis business owners a chance to see the true value that comes with being a member, and once they do, they will continue their membership.
Michael Diaz-Rivera:
Coming from a low-income background and already investing my limited savings 100% into my business, I wouldn’t have been able to participate in NCIA without the scholarship. Not being hindered by my lack of financial resources helped build my confidence in the industry.
Helen Gomez Andrews:
As the founder of a start-up in a regulatory and capital environment with tremendous constraints, the Equity Scholarship Program got me in the door at NCIA, where I otherwise wouldn’t have joined due to the standard price tag. I’ve had a chance to share in, and contribute to, the many different avenues of participation that NCIA offers, make a proper assessment of its impact and properly decide whether or not it makes sense to continue as a member beyond the scholarship period.
What has been your biggest highlight of being an NCIA member?
Anthony Jenkins:
My biggest highlight of being an NCIA member was attending the NCIA’s San Francisco conference in 2021. It was an amazing experience, and we had the opportunity to have a booth, hosted by the awesome team at The People’s Dispensary.
Michael Diaz-Rivera:
My biggest highlight has to be our weekly power hours. Whether learning from industry leaders or having real unapologetic conversations with other emerging business owners, I am walking away from these meetings with priceless jewels of wisdom.
Helen Gomez Andrews:
There are so many! But bringing my kids down to Washington, D.C. for Lobby Days in 2022 was such a highlight. My daughter, who has been a cannabis patient since she was 6 years old, watched as I took a team photo in front of the United States Capitol with a group of people that came together to fight not just for SAFE Banking, but for the federal legalization of a medicine that she uses daily – fighting for her rights and kids just like her – is a moment that our family will never forget.
Have you noticed a shift in Diversity, Equity, and Inclusion at the NCIA since you joined, and if so can you elaborate?
Michael Diaz-Rivera:
I don’t know if I’ve been in NCIA long enough to notice a shift in DEI, but I can say that it isn’t hard for me to find a BIPOC leader within NCIA who shares experiences similar to mine. That has made this a motivating and pleasurable experience.
Helen Gomez Andrews:
I haven’t been a member long enough to notice a shift, but the diversity of the community was noticeable and very appreciated from the onset, and it’s very tangibly not just a talking point.
What is on the horizon for your business in 2023?
Next Level Edibles
Anthony Jenkins:
Next Level has some great things on the horizon. We entered into a partnership with a team in Southern California that will help us increase the quality and efficacy of our infused brown sugar. We are growing our partnerships with dispensaries and delivery services throughout California to broaden our footprint. We are relaunching our website. We will be launching new infused ingredients, and partnering with some of our friends in the industry to bring you amazing infused ready-to-eat products.
Michael Diaz-Rivera:
There is much to be anticipated in the near future for Better Days Delivery and that is why we say, “Better Days Are On The Way.” Most immediately I am excited to announce that I am hiring my first delivery driver and adding more vehicles to my fleet. As I aim to be the best cannabis delivery service in Colorado, I am working to establish contracts with dispensaries throughout the state, nurture the stores I currently deliver for (Shoutout to Native Roots and L’Eagle Services), empower my drivers to be their best, all while serving the community!
Helen Gomez Andrews:
At long last, The High End is on track to introduce our clean-extracted and hand-crafted cannabis products to the Massachusetts market, partnering with independent sun-grown and living soil cultivators and processing in our solventless lab. Our indoor living soil gardens are finally in development too and will be ready to go closer to the end of this year.
Additional thoughts?
Michael Diaz-Rivera:
Thank you Tahir Johnson for starting this program and Mike Lomuto for taking it to the next level. Infinite gratitude to all of my fellow business owners that have helped me to get to this point in my business journey! The Marathon Continues! Better Days Are On The Way
Helen Gomez Andrews:
Immense gratitude to Mike Lomuto for understanding each of our goals in business and advocacy, and ensuring we can contribute to issues that matter to us beyond the obvious DEI work. Without question, DEI advocacy is vital, but we amongst the equity scholars have a diversity of other goals as well. In particular, I’d like to thank Mike for championing Sustainability and organizing a group of members from a working group into an influential body within NCIA that has an opportunity to make a meaningful impact.
Video: NCIA Today – Thursday, February 9, 2023
NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on LinkedIN for NCIA Today Live.
Bills in Congress, SAFE Banking, and House and Senate Committees
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
While it got off to a slow start, the 118th Congress is finally in full swing. Let’s take a look at some of the latest cannabis and government relations news coming out of Washington, D.C.:
Bills are being introduced
When a new Congress begins, all legislation from the last session must be re-introduced and start from scratch again in the legislative process. Over the last few weeks, a couple of cannabis bills have been reintroduced: two from Congressman Greg Steube (R-FL) and one from Congressman Alex Mooney (R-WV).
Rep. Mooney was the first to introduce a cannabis bill for the 118th Congress when he released his Second Amendment Protection Act. Last Congress, a similar bill was filed by the late Rep. Don Young (R-AK) known as the Gun Rights And Marijuana (GRAM) Act. The full text of the new measure is not yet available so it’s unclear what exactly the bill contains, but advocates expect the bill to be similar to the version Mooney introduced in the 116th Congress. Interestingly, although federal law explicitly prohibits all Americans who consume or possess marijuana from purchasing or possessing a firearm, a judge in Oklahoma late last week declared that ban unconstitutional.
Congressman Steube’s two bills were the Veterans Cannabis Use for Safe Healing Act and the Marijuana 1-to-3 Act. The former prohibits the Department of Veterans Affairs (VA) from denying a veteran any VA benefit due to participation in a state-approved marijuana program. For veterans participating in these approved programs, the VA must ensure its healthcare providers both discuss marijuana use with such veterans and adjust treatment plans accordingly and record such use in the veterans’ medical records. The latter bill, the Marijuana 1 to 3 Act, has been introduced by Rep. Steube in past sessions and seeks to do exactly what the title says: reschedule cannabis to Schedule 3 – a reform that would not resolve the federal conflict with the vast majority of state laws with some form of legal cannabis
A SAFE Bet?
The cannabis industry may have been devastated when Congress failed to pass the SAFE Banking Act last Congress, but we’re not giving up yet! Congressional champions have every intention of reintroducing SAFE in both chambers, but don’t expect the bill to look identical to last session.
Last week, Senate Majority Leader Schumer held a closed-door meeting with a number of other Democratic Senators to discuss what’s next for the bill. Reportedly, the Senators discussed changing the text of the bill to reflect some of the “SAFE +” language that was negotiated at the end of 2022, including the HOPE Act. It’s currently unclear if the House’s version will be identical.
Committees Finally Seated
It took Congress longer than usual to seat committees this session – particularly in the House – but we now know which members will have jurisdiction over which issue areas. Our friends at Politico put together an extensive list, but some committees I’ll be keeping my eye on include the House Judiciary Committee, the Senate Banking Committee, and the Appropriations Committees in both chambers.
Dispensary layout plays a huge role in not only how the space will function from an employee and security point of view, but even more importantly, how your customers view their shopping experience with you and how your brand speaks to them. The way your dispensary looks matters and is often a key factor in boosting sales and standing out from your competition.
The dispensary floor plan you land on ultimately drives sales, tech application, experience, and employee retention. It is crucial to totally understand the three types of layouts, how they could work (or not work) for you and then how to implement them. Your end goal is always a positive customer experience, and state/local compliance. Not all states or municipalities allow all three of these models, so make sure you are aware of your regulations before dive too far into space planning.
Let’s review the three main types, pros and cons of each, how each specific layout drives customer experience, and how tech is integrated.
The Bank Layout
The bank dispensary layout is super common, and has a few easy-to-identify features. Picture your local bank and you’ll likely understand the flow. Your customer enters through a secure entry and waiting room. The product is neatly tucked into individual budtender stations, each with its own POS. This means that the customer is prompted to an open station, selects products, fulfilled right there by the budtender. Each budtender manages and reconciles their own inventory and till. The customer exits through the same door they entered, or a separate man-trap exit. The bank model can be a great shopping experience for the customer because they do benefit from a 1:1 budtender experience. Products are suggested and recommended, a trusting relationship is built and the shopping journey is both easy and personal. Tech is replicated at each identical station and any countertop display is also repeated. All product is securely stored behind glass.
Bank models do require custom case fabrication on the casework as well as behind-the-counter wall display. Your measurements will be unique to your space as well as your finish type, lighting, and branding.
The Pharmacy Dispensary Design
We are seeing more and more of the pharmacy layout because it offers great inventory advantages and customer shopping experience. In this layout, the customer walks in through a secured waiting area just as they did in the bank model, but upon entering the sales floor, they are able and encouraged to wander a bit. Budtenders meet them on the floor with digital shopping carts. Once the customer is done shopping, the employee completes the sales transaction and the order is fulfilled in the back of the house. The guest then reviews their order with another employee at the pickup counter and exits through the same door they entered, or a secured exit. This model works well for a few reasons. Inventory control as mentioned, but also specialized employees. You will have some employees trained specifically in selling and customer service and separate employees trained on cash handling and product review. Tech will speak to each other, the orders sent to the back of the house for fulfillment (think like a restaurant). Our example above is actually a hybrid model. In this location, the employees behind the cash wrap fulfill the order as well as take payment. The customer experience is great, they have more interaction with product and merchandise. It feels a little more like shopping freely, but very secure.
The Open Retail Model Dispensary Design
An Open Retail dispensary plan is really what we see in a true ‘Apple store’ layout. It is by far the most interactive, but also holds the highest operating costs. Many experiential dispensaries use this model, or a hybrid version of it. The customer will enter and provide ID, then freely wander through the sales floor. Dummy product (empty packaging for security reasons) is displayed, or products are in locked cases. They will fill a virtual shopping cart which is checked and entered by a budtender on the sales floor and filled back of house. Inventory is centrally located in the back of the house and managed. The guest pays at a central cash wrap area and the budtender meets them to review their purchase. This model is fun and interactive, but also requires more employees than typical to care for each guest. Security systems in place are also a cost factor, since you will likely require far more camera angles and security staff. From a customer point of view, this really is the most premium experience and can lead to high sales. You will be able to facilitate the impulse buying process easily.
A few takeaways on the three types of dispensary layouts. First, every single one of these dispensary layouts can be done in any amount of square footage. You don’t need a massive open space to make any of these super functional and beautiful. All of these can be done successfully in any budget level if you have access to the right sources. If you’re trying to decide on a layout, remember the key components of each. How many employees will I need? How are inventory and fulfillment managed? Can my budtenders handle sales and cash transactions? What experience is my customer used to and what experience do I want my employees and guests to have? Is it compliant in my state? And last, if you love parts of one model and parts of another, each layout can be designed in a hybrid way to retain the best features that work for your unique brand.
Melinda Yoo designs innovative, profitable and award-winning cannabis retail dispensaries across North America. Her work is inspiring, her clients are notable and her vision for the cannabis industry is unparalleled. She leads her team thoughtfully through the creative and technical processes of creating unique retail experiences that are both jaw dropping and profitable.
After over a decade at a traditional, residential interior design firm in Chicago, Melinda followed her curiosity to retail interior design and merchandising. She quickly fell in love with dispensary design and all the quirks and challenges that go with it.
Since then, she has grown and led Sungrown Studio, received press recognition with her magazine-worthy retail environments and thought leadership. Sungrown Studio was named Dispensary Design Master 2022 by mg Magazine. Melinda continues to design amazing retail stores that reflect her clients values and brand.
When she’s not leading her kickass team, you can find her spending time on the hiking trails with her dog or raising her three little humans.
NCIA Best of 420 CLIO Cannabis Award Returns for 2023
The cannabis industry’s most accessible award program returns in 2023. A coveted award by brands and creatives alike, NCIA Best of 420 Award sets the standard for top creative work highlighting this important holiday and the biggest day in cannabis.
When launched in 2021, the NCIA Best of 420 Awards was a digital event for NCIA members highlighting each brands marketing efforts in a very challenging year. In 2022, the Best of 420 Awards partnered with the prestigious Clio Cannabis Awards – live in Las Vegas. What a thrill to showcase the NCIA Best of 420 winners alongside the industry’s most prestigious creative work.
For the cannabis community, by the cannabis community, the award program, wholly conceived and executed by the NCIA’s Marketing and Advertising Committee volunteers, is a labor of love that celebrates the most impactful 420 marketing work in the industry.
seen at Clio Cannabis Awards at Thursday, Sept. 29, 2022, in Las Vegas. (Photo by David Becker/Invision for Clio Cannabis Awards/AP Images)
“The Clio Cannabis Awards presentation during MJ Unpacked was a 2022 highlight for Claybourne Co., it made the sweet success of our 420 campaign even more special. The award brought the internal team together, made our external partnerships stronger, and created free awareness! It’s a great cannabis industry event, and we’re proud to be a recipient.” said Jonathan Griffith, VP of Marketing for Claybourne Co.
Any brand with a 2023 420 campaign is eligible, so now is a great time to start planning for success! Entries will be judged on the following criteria:
Community Impact: How did your campaign bring your community together? How did it highlight the best of the cannabis community to others? Did it support an advocacy campaign such as DEI, or sustainability?
Creativity: How creative was your overall 420 campaign?
Results: Was it an effective campaign for your own goals and KPIs?
It’s never too early to start planning your 420 campaign! Stay tuned for more information about how to enter the NCIA Best of 420 Award program!
—-
Cannabis Community Marketers – as you form your Best of 420 Campaigns, the NCIA Marketing & Advertising Committee provides these: 10 Tips for Winning Campaigns.
Tip #1: Build campaigns with end goals and metrics in mind. What gets measured gets done. Be ready to report on metrics for your submissions even before you start your campaign.
Tip#2: Be authentic and personable. The most successful cannabis brands show their authenticity and personality. Campaigns celebrating the audience /community as much as they do the brand tend to resonate best!
Tip #3: Collaborate and be creative. Campaigns are great opportunities to collaborate within or outside the cannabis community and gain exposure in each other’s networks.
Tip #4: Think beyond the campaign date. You can start a campaign anytime they can be tied to the 4/20 event, before or after.
Tip #5: Apply a 360-degree approach. Where possible and where budget allows, include as many channels and assets as possible for the best ROI and impact.
Tip #6: Engage your community. Great cannabis brands are constantly looking forat ways to engage in deep, lasting relationships with their communities.
Tip #7: Success at all budgets. A campaign does not have to have a big budget, and often the best campaigns are executed on smaller budgets. Focus on 1-2 applications of your campaigns that are better for your KPIs.
Tip #8: Tap into customer passions. Don’t be myopic and see this as an opportunity to tap into the full range of your customers’ interests and what is meaningful to them. This is about relationship building, and you want to see the customer’s lifetime value improve year after year.
Tip #9: Remember those regulations. A reminder that it is not just the general cannabis federal and state regulations but also the marketing and communications regulations in states and across the country that provide guidelines. Be creative within the legal boundaries.
Tip #10: Have fun!
Committee Blog: VPD Topics for Cannabis Cultivation and Opportunities to Reduce Facility Energy Costs
Indoor cannabis cultivation facilities are complex environments, where a large number of variables interact to create an ideal ecosystem to grow cannabis. The upside of an indoor facility is it allows a year-long growing climate, optimized for each stage of the plant grow cycle. The downside, however, is creating this ideal climate is very energy-intensive.
There are three (3) main types of precision cooling equipment offered in the cultivation space. Those are Air Cooled DX, Water Cooled DX, and Chilled Water Units. DX stands for direct expansion systems. The immediate and most noteworthy difference between these systems is that DX units cool air using refrigerant, and Chilled Water units cool air utilizing chilled water. A DX unit uses refrigerant-based cooling and cools indoor air using a condensed refrigerant liquid. Typically, the decision regarding which cooling source is better for a cultivation facility is usually driven by the size of the cooling plant as well as other unique site conditions. Selecting the right HVAC system for your cultivation facility can be a challenging process driven by many factors, however this is beyond the topic of discussion for this article, it should be noted that the following analysis assumes an Air Cooled DX based system.
The total energy costs for indoor cannabis grow operations typically vary between 25%-50% of total operating costs (or approximately 150-200 kWh/sq.ft). In comparison, energy use in a typical commercial building environment is approximately 25 kWh/sq. ft. As indoor cultivation facilities increase, they can be a source of strain on electrical grids. A recent study showed indoor cannabis cultivation alone accounted for 4% of the energy grid usage in Denver. (IEEE, 2020)
With that context, any areas we can identify to improve energy efficiencies without introducing a negative impact to the grow environment can have enormous bottom-line impacts for cultivation owners and society at large.
In this article, we are going to be examining two ways we can optimize HVACD systems to improve energy efficiency. When HVACD systems are designed for grow facilities, the primary variables we are looking to influence are the following psychrometric properties: temperature (either wet or dry bulb) and relative humidity. Mechanical engineers will often refer to an information-packed graph called a psychrometric chart shown below.
This chart helps to visualize the relationships different properties of air like temperature, humidity (relative and absolute) and dew points along the saturation curve have with each other. This is useful to analyze, as these are direct inputs to a scientific measure often favored by growers called Vapor Pressure Deficit (VPD).
Vapor Pressure Deficit, simply described, compares these variables to determine how much additional room for water vapor there is in the air. This is important as it determines how readily cannabis plants can transpire. Controlling transpiration rates help to aid in healthy, robust growth through the plant life cycle. Growers tend to want lower VPD, and thus lower transpiration, early in plant maturity, and increase to higher VPDs, and thus high transpiration, at the flowering stage before harvesting.
So we know a successful indoor cultivation facility HVAC system will need to control temperature and humidity to ensure the desired VPD values. How can we do that efficiently?
Stand-Alone Dehumidifiers Are Inefficient
A cannabis plant can transpire up to 99% of the water absorbed through its roots. Due to this, we often tell people that designing an indoor cultivation facility is like designing a data center with a swimming pool inside. Because of the increased humidity introduced from plant transpiration, we must pay special attention to dehumidification strategies within the grow space. Humid air requires treating significant latent loads in the grow space, requiring additional energy to remove moisture from the airstream. This is one reason HVACD systems can consume up to 50% of the energy budget in a cultivation facility. As previously mentioned, higher humidity levels will lower the VPD in the room, preventing a plant from transpiring effectively to continue healthy growth. To combat this, sometimes stand-alone dehumidifiers are added into the grow room.
While these units can do the job of removing moisture from the room, it is a very energy-intensive process. One of the issues with stand-alone dehumidifiers is that they reject heat back into the grow room, thereby adding additional cooling load onto the main HVAC equipment.
Integral Hot Gas Reheat System
An air handling unit, sometimes called an air handler or AHU, is a piece of equipment that is used to condition and circulate air as a component of a heating, ventilating, and air conditioning system.
The air handler is usually a large metal box that contains a blower, heating and cooling elements, filter chambers, sound attenuators, and dampers. It then connects to ductwork that distributes the conditioned air throughout the space before returning it back to the AHU.
Of particular interest are the units cooling coil and reheat coil. These two components are namely responsible for controlling VPD levels in our grow space. In an AHU equipped with Integral Hot Gas Reheat, the cooling coil serves as a dehumidifier, by cooling the air thereby reducing its moisture/latent load (we recommend considering capturing this water for treatment and reuse: read more here). The hot gas reheat capability utilizes heat from grow space and compressor heat to reheat the air before returning to the grow space (without using additional heating energy).
While this may seem like a minor design change, it results in a considerable reduction in energy. As the chart below illustrates, leveraging Integral Hot Gas Reheat units can result in a 30-35% reduction in HVACD energy when compared with other dehumidification systems. Additional automation capabilities built-into these systems will ensure that the grow room will remain tightly controlled within the desired state points of your grow room to optimize VPD.
This reduction in energy quickly adds up to reduced utility bills. Despite marginally higher upfront costs as compared to standard HVAC equipment coupled with standalone dehumidifiers, this option results in a lower 5-year system cost than common HVACD systems installed in cultivation facilities, and these savings will only increase over time.
Maintaining Consistent VPD, but at higher Temperature / Humidity Ranges
The second energy-saving measure we would like to discuss goes back to the earlier discussion of VPD. Recall the equation for VPD is
V P sat – V P air = VPD
This is important, as it provides growers the flexibility to fall within desired VPD ranges, but at higher temperature and humidity ranges than typically used. Many growers target grow room setpoint temperatures around 72-75F and limit relative humidity to a maximum of 50 percent, but by allowing slightly higher room setpoint temperatures of 76-82F, with corresponding relative humidity increases, we can create identical VPDs at higher setpoint temperatures. The cost-benefit of this small adjustment is considerable. The HVAC system (including cooling and dehumidification) can be sized at roughly 20-30% smaller capacity, reducing the owner’s up-front equipment costs. In addition, the system’s energy consumption and costs during operations will be significantly lower, to the tune of 30-40%. In a theoretical 30,000 square foot facility, this could result in $1,125,000 savings in the first 5 years.
The case for a hybrid greenhouse, using VPD controls
Another way of growing instead of full indoor, is a highly efficient, sealed greenhouse. It is designed to maximize sunlight inside the growing environment, meaning energy used for lighting is dramatically reduced. And because it is sealed, energy-efficiency is maximized, as leakage is kept to a minimum. In order to make this work, these greenhouses need to be hybrid (using insulated walls and glazing) and the orientation and design play a bigger role.
In this hybrid greenhouse environment, the growing space typically heats up as soon as the sun comes out, no matter the outside temperature. Cooling in this instance would increase the power usage vs. increasing the humidity to keep the VPD level in the same range. When the sun goes down, the opposite happens. The grow environment starts to cool and it would be expensive to try and keep the temperature up.
In order to achieve VPD control, the control system needs to be able to variably adjust temperature and humidity, based on inputs like weather forecast, time of the day, day of the year, etc. Being able to control the grow environment by VPD level will significantly reduce the energy consumption for your HVACD system.
NCIA’s #IndustryEssentials webinar series is our premier digital educational series featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.
In this edition of our NCIA Committee Insights series, originally aired on December 14 and produced in collaboration by NCIA’s Cannabis Manufacturing Committee, Scientific Advisory Committee and Hemp Committee we introduced and framed the myriad regulatory, scientific, linguistic, and ethical issues that come with the rise of minor, novel, and synthetic cannabinoids.
Learning Objectives:
• Understand the role of minor, novel, and synthetic cannabinoids in the cannabis industry and the unique issues relating to their current status.
At the conclusion of the discussion our panel hosted a lengthy moderated Q&A session so our network could get all their burning questions answered by these leading manufacturing, biochemical, and legal professionals from the hemp and cannabis industries.
Panelists:
Scott Seeley
Biochemist and Patent/TM Attorney @Eastgate IP
Cassin Coleman
Founder
Cassin Consulting
Keith Butler
CEO
OP Innovates / Hemp Mellow
Paul Coble
Intellectual Property Attorney
Harris Bricken Sliwoski LLP
There is more to cannabis than THC and CBD. As our understanding (and commercialization) of cannabis evolves, new compounds like CBG, delta-8-THC, THCv, and others are coming onto the scene. These various “minor” cannabinoids, however, bring with them a host of new issues.
Over the next few months this collaboration will continue to explore these issues with various subjects ranging from basic and advanced overviews of these molecules, regulatory recommendations, risk management and compliance concerns all the way to consumer and manufacturer safety. Stay up to date and be the first to know when additional follow-up sessions are scheduled by signing up via the form below.
From Lab to Label: Safeguarding Consumers in the Cannabinoid Product Landscape (Part III): https://bit.ly/3Xc9Lx6
Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing (Part IV): https://bit.ly/3rEUeKP
Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids” (Part V): https://bit.ly/3P3r5AW
Committee Insights | 11.29 | The Pathway to Greater Equity in New York’s Adult Use Cannabis Market
In this edition of our NCIA Committee Insights series, originally aired on November 29 and produced NCIA’s Diversity, Equity & Inclusion Committee, we held a lively discussion to present the official recommendations jointly submitted to the New York Office of Cannabis Management in Fall 2022.
Since early 2022, NCIA and our DEI Committee has been conducting an ongoing roundtable discussion consisting of multiple national and New York based cannabis social equity and industry organizations to assess and provide feedback regarding rules and regulations. We also covered the PIES Program, which is an innovative program that draws on the lessons learned from other states to create a streamlined solution with true DEI front and center.We also covered the PIES Program, which is an innovative program that draws on the lessons learned from other states to create a streamlined solution with true DEI front and center.
Learning Objectives:
• Learn about NCIA’s New York Social Equity Roundtable, a collaboration of multiple National and New York based cannabis social equity and industry organizations
• Gain insights into how New York is rolling out its Adult Use Cannabis market with regards to Social Equity and Justice Involved individuals
• Understand how our recommendations would impact New York’s market if implemented, and Identify opportunities for organizations and the state agency to work collaboratively
Panelists:
Frederika McClary Easley
Director of Strategic Initiatives
The People’s Ecosystem
Scheril Murray Powell, Esq.
Chief Operating Officer
The JUSTÜS Foundation
Maur Stringer
Founder, Owner, CEO
The Magi Tree LLC
Cynthia L. Mompoint
Black and Brown Economic Power in Cannabis
Adrian Adams, Ed.D.
CEO
Ontogen Botanicals
Mike Lomuto (Moderator)
Diversity, Equity, and Inclusion Manager
National Cannabis Industry Association
Sponsored By:
Member Blog: Dude, Where’s My Payments?
by Gary Strahle,
Cannabis industry merchant service providers get shut down. How has this impacted retailers and at what cost? Learn how operators are mitigating theft and working with the National Cannabis Industry Association to drive legislation.
In order to best understand what payment methods will suit you best, you must first understand the inherit risks that are associated.
Let’s put it bluntly; there is no such thing as a federally compliant payment in cannabis, not even cash. Given states have legalized the sale of medical adult-use cannabis, it is still very confusing and in some cases crippling when choosing your method of payments.
Cash is king.
Because federal banks legally can not do business with the cannabis industry, retailers have limited options for securing their resources. This makes dispensaries targets for theft. Criminals are coming after both product and cash which requires operators to make heavy investments in security systems. These include state-of-the-art video surveillance, 24/7 on-site security, steel doors, bulletproof glass, expensive safes, terrible insurance policies, and a lot of trips to your favorite credit union. State-chartered credit unions are the only banks accepting cash from cannabis businesses.
Although cash comes with some inherit benefits, coins don’t. Coin change is a big problem for retailers as there has been a national coin shortage. What are you supposed to do when your angry customer is complaining over the 75 cents you can’t return to them? Do you give them customer credit? Do you make an adjustment or a discount? Do you request your POS provider to create a “round up” feature that brings every cash-related transaction up to the nearest dollar?
Benefit:Tax Exposure.
Risk: Tax Exposure, Theft, Time, Money
So what about Cashless ATM?
A cashless ATM is where customers break out their debit card at the register to pay for their retail purchase. Just like any other ATM, you are drawing against an even $10 or $20 amount from your bank account. So if your purchase was for $17, a budtender would hand you back $3 cash in change for your purchase.
While there has been mixed results with cashless ATM’s there was a crackdown made by Visa and Mastercard to shutdown these types of transactions on their network. A significant number of retailers lost their capability to process all of a sudden and had to revert to cash-only payments. While a good chunk of the high risk payment providers were shut down, others continued processing without service interruption for reasons I will explain later.
Although cashless ATM payments can mitigate some of the risks involved with cash on hand, they are subjected to a number of costs that can factor into your daily management and or customer experience. First, if your payment terminals are not integrated with your retail POS, good luck reconciling your money at the end of the day. Budtenders will frequently miscode payments on the POS and assign card payments to cash transactions or vice versa. This makes it extremely tedious to reconcile your books. On the other hand, everyone hates ATM fees. Our colleagues have witnessed fees as high as $25 in places like Las Vegas. Typically you will see most cashless ATM fees between $3-3.50, however, it is common to see them even higher.
Benefit: Processed as an ATM transaction(not a Cannabis Transaction) Settlements are deposited directly into the bank.
Risk: Added fees to customer.
What is different about Pin Debit?
Pin debit allows charges to the penny. This is a cool way to allow customers to pay with their debit card without having to pay the ATM fees. It is relatively new and still unclear if these processors will get away with miscoding their RCC. If you looked at the customers bank statement you would see the charge from your dispensary just like a cashless ATM however the way it got there is much different. Processors are telling networks and banks that these are “pharmacy” transactions. When a customer calls the bank and discusses your transaction at a cannabis dispensary it would seem like things could start going down hill quick for both the payment provider and the merchant (dispensary). With all risk considered it remains as an option for many to process their payments. In conclusion what I’m about to share about credit payments would make you consider pin debit twice.
Benefit:To the penny charges, no ATM fees.
Risk:Miscoded RCC, Merchant Service Shut Down.
How about plain debit or credit?
Don’t do it. This from personal experience has impacted my life. A close family friend was indicted and served time in jail for fraudulently processing credit card payments for delivery giant Eaze. This was a get-rich-quick scheme that broke friendships, businesses, families, and a healthy portion of the retail cannabis industry. Just like pin debit, credit charges are miscoded but in this case purchases were being identified as “dog treats” or “flowers.” The charges would not show up on the customer bank statement as a purchase from a dispensary. Understanding the high risks associated with processing cards in such a way is explicitly fraudulent and has the highest likelihood of involving some form of trouble .
Benefit:Massive increase in Sales.
Risk:Non-payment, Chargebacks, Miscoded RCC, Merchant Service Shut Down.
In summary.
If you or your business are looking to service card payments for your customers, choose your options wisely. In my own personal opinion, you face the least amount of risk using an integrated cashless ATM solution, however if the customer is demanding a more traditional debit experience then it could be worth running a cost/benefit analysis.
The bottom line is that those who have the most dynamic and redundant integrated card payment solution will be the most continuous while mitigating the risks of cash. The payment providers getting shut down do not have redundancy in their network providers or payment methods and therefore non sustainable.
Some payment providers will eat the time in jail and or fines as they are or were able to make a significant amount of money greater than the cost of the punishment.
Until we can successfully make legislative changes being pushed forward by NCIA, those who care about making change should donate to their cause and participate in NCIA’s 11th Annual Cannabis Industry Lobby Days in 2023.
Author: Gary Strahle is a Technical Architect with over a decade worth of operational cannabis industry experience. 2023 NCIA Retail Committee Chairman. Avid surfer and golfer with a passion to help others.
Cannabis Cloud – Applications, Consulting & Payments. Founded in 2015, providing service to over 2,500 cannabis businesses. Specialized as a Salesforce Partner innovating industry standard solutions from seed to sale, Cannabis Cloud’s payments integrated Retail Point of Sale hosts a robust api for connecting Metrc as well as external menus such as Weedmaps or Leafly.
Member Blog: The Importance of Genetic Studies for Identifying Plant Mutations
by Angel Fernandez, Joselyn Guadamuz, and Maria de Catarina of MyFloraDNA
The cannabis industry has experienced significant growth in recent years, highlighting the importance of quality control measures. One of them is the utilization of laboratory partners to ensure the genetic integrity of the products. However, the connection between cannabis and genetic studies is often underappreciated.
A genetic study or test is a type of analysis that is carried out on a tissue or cell to search for essential traits in the genetic material of the plant. The results obtained from these analyses can provide a lot of information that helps confirm or refute many theories.
In recent years, genetic studies of cannabis have played a crucial role in the industry by providing growers with more advanced tools and techniques. These studies have enabled growers to improve crop yields by identifying key traits and characteristics for reproduction. Furthermore, genetic testing has been instrumental in quickly and effectively detecting diseases that affect crops and identifying the gender of the plant well in advance of flowering, thus saving growers time and resources.
Even more, genetic testing also allows cannabis workers to detect changes or damages in the genetic material of their plants.
Plants, like all living organisms, have a complex genetic makeup that plays a crucial role in their growth and development. However, the genetic material of plants can be susceptible to mutations, which are changes in the DNA sequence that can occur naturally or be caused by external factors. These mutations can have varying effects on the plant, from having no impact to causing serious detrimental effects on its growth and development.
One of the main factors that can cause mutations in the genetic material of plants is found in controlled environments such as in vitro culture laboratories. In these environments, plants are exposed to chemicals and UV radiation that can cause mutations in their DNA. However, not all mutations are harmful to plants. For decades, scientists have been making changes to the genetic material of plants with the goal of improving crop quality and characteristics.
While controlled environments can cause mutations in the genetic material of plants, it’s also important to consider the impact of environmental factors in uncontrolled environments, such as outdoor crop plantations. Factors like air (oxygen) and sunlight (UV rays) are two of the main factors influencing mutations in the genetic material of plants. Because these two factors are part of the normal conditions in which a crop lives on a plantation, mutations can be expected to occur at some point in the growth process of plants.
The damage caused by these factors can not only generate simple changes in the genetic material of the plants but can also have serious detrimental effects on the plant, such as growth inhibition. Even subsequent cumulative damage to genetic material can not only prevent plant cells from dividing and growing but can seriously damage tissue and ultimately kill the plant.
Although some of these mutations can be subtle and go undetected, the composition of the plant could have changed at a molecular level, which may mean that, for example, in the case of cannabis, a mutation causes the cannabinoid content to be of poor quality or even non-existent, but to the naked eye the plant looks normal. This is why genetic and molecular studies have played a key role in this industry.
Additionally, if a grower obtains a particularly outstanding trait in their plant, the only way to obtain information on that trait and validate its function is through genetic studies, allowing them to obtain a genetic profile of the plant as proof that it is unique. These studies also work to detect unique, outstanding traits, such as high THC or CBD production in cannabis, which would not be possible without laboratory analysis, as these traits cannot be measured visually.
It is crucial for growers to have a good understanding of the genetic material of their crops in order to ensure that they are of good quality and to detect any mutations that may have a negative impact on the plant. Genetic and molecular studies play a vital role in this industry by providing growers with the necessary information to make informed decisions about their crops, and to ensure that the plants they grow are of the highest quality and free of mutations that could have a negative impact on the final product.
About MyFloraDNA: We are a genomic laboratory based in Woodland California, delivering modern genomics for the cannabis industry.
Our services include Trait detection (cannabinoid profile and sex/gender ID), Pathogen Detection, and Genetic Validation Services. We offer breakthrough solutions using the inner power of your plants.
Angel Fernandez, author. CEO & Co-Founder at MyFloraDNA. Member of the NCIA’s Scientific Advisory Committee. “It is time to fill in the gap between DNA Sciences and Agriculture. MyFloraDNA is willing to show the huge opportunities that exist for modern genetics in agriculture. Now, it is time for another agricultural revolution”.
Joselyn Guadamuz, co-author. Scientific Researcher and Content Writer at MyFloraDNA.
Maria de Catarina, editor. Public Relations Specialist at MyFloraDNA.
Video: NCIA Today – Thursday, January 26, 2023
NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook and LinkedIN for NCIA Today Live.
Member Blog: 2023 Cannabis Compensation Survey Announcement
The 4th annual Cannabis Compensation Survey is open for participation registration until April 2023.
This survey analyses data provided by employers and produces industry-specific benchmarks for 140+ unique positions. It complies with federal guidelines meant to protect anonymity and ensure unbiased results.
Participation in the survey grants your organization exclusive access to the Detailed Report – containing more data, additional percentiles, and demographic breakdowns by state, headcount, and revenue. The Detailed Report is ideal for conducting internal compensation reviews and can be used to attract, engage, and retain key talent.
Per federal guidelines – the survey welcomes organization-wide submissions only (meaning no individual submissions). Typically, data submission is completed by an organization’s HR department, payroll administrator, or a representative from leadership. It is 100% free to participate.
Produced by FutureSense & Marijuana Business Daily, the project is endorsed by National Cannabis Industry Association and supported by Green Leaf Payroll & Business Services and Western Management Group. The survey’s mission is to support cannabis businesses, their operators and their employees by standardizing pay analysis for a dynamic, evolving, and important industry.
Enrollment is open through April 2023.
Data submission kits will be sent out in March 2023 and due back by May 31, 2023.
The final results will be published in August 2023.
By Madeline Grant, NCIA’s Government Relations Manager
It’s always an invigorating time on Capitol Hill when a new Congress begins to get to work. The atmosphere is unlike any other; Hill offices are getting situated with their staff, hallways are full of exhilarated constituents, freshman members are finding their footing while moving into their offices, and committee assignments are being finalized. Congressional staffers, members of Congress, lobbyists, constituents, and advocates are back in action.
As we gear up for the 118th Congress, let’s take a look at some bills that we will see introduced to address descheduling, decriminalizing, and banking legislative efforts for the cannabis industry.
The Cannabis Administration and Opportunity (CAOA) Act
The long-awaited CAOA was unveiled last congress by Senate Majority Leader Chuck Schumer (D-NY), Senator Cory Booker (D-NJ), and Senate Finance Committee Chair Ron Wyden (D-OR). The comprehensive legalization would end federal prohibition by removing cannabis from the Controlled Substances Act, empower states to create their own cannabis laws, ensure federal regulation protects public health and safety, and prioritize restorative and economic justice. CAOA was first released as a discussion draft last year, alongside a request for comments from stakeholders. The National Cannabis Industry Association worked directly with Senator Schumer’s office and submitted comments to the bill. Although there was no movement, NCIA will continue to work directly with these offices to continue to improve the bill for the cannabis sector.
The States Reform Act
Rep. Nancy Mace’s (R-SC) States Reform Act was introduced last congress by a freshman congresswoman from a state without any cannabis laws. The bill would federally decriminalize cannabis by fully deferring to state powers over prohibition and commercial regulation, regulate cannabis products like alcohol, institute a three percent federal excise tax on those products to fund law enforcement and small business programs, and protect our veterans by ensuring they will not be discriminated against in federal hiring for cannabis use or lose their healthcare, and more. Last year this bill received positive feedback from the industry and NCIA will continue to work with Rep. Mace’s office this congress.
The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act
The MORE Act would end the criminalization of cannabis for adults by removing it from the list of controlled substances, eliminate related criminal penalties, and take several other major steps toward criminal justice reform, social justice, and economic development. Some key provisions of this bill are automatic expungements, impose a five percent tax on the retail sales of cannabis, create the Office of Cannabis Justice to oversee the social equity provisions, ensure the federal government could not discriminate against people because of cannabis use, and much more. Rep. Jerrold Nadler (D-NY), who served as chair to the House Judiciary Committee, was the sponsor of the bill last congress and was able to advance the bill through the chamber with ease. However, with Republicans winning back the majority in the House, successes like this will be more challenging. Additionally, Rep. Jim Jordan (R-OH), the new chair of the House Judiciary Committee, has not been supportive of the cannabis sector.
The Securing and Fair Enforcement (SAFE) Banking
The SAFE Banking Act aims to protect banking institutions- as well as their insurers- that choose to offer services to legitimate cannabis-related businesses operating in accordance with their respective state laws. The bill prevents federal banking regulators from imposing penalties on depository institutions that offer services to cannabis-related businesses. SAFE Banking is a bipartisan bill that has passed the House seven times. The broad consensus was that inaction on SAFE Banking came down to Senate leadership. As bipartisan Senate discussions materialized towards the end of last Congress, Republican senators requested the Department of Justice (DOJ) to analyze the bill. The DOJ wrote, “because marijuana would remain illegal under federal law, Congress should ensure efforts to provide access to financial services for state-legal businesses does not unintentionally erect obstacles to prosecution of other illicit activity or activities involving money laundering of proceeds of other illegal drugs or sales of marijuana that do not comply with state requirements.” Despite the concerns, the DOJ stated they would be happy to work with Congress on ways to improve the bill. As the 118th Congress begins, we will continue to do what we can to get SAFE Banking to this finish line.
The Harnessing Opportunity by Pursuing Expungement (HOPE) Act
In 2021 Rep. David Joyce (R-OH), who is a co-chair of the House Cannabis Caucus, and Rep. Alexandria Ocasio-Cortez (D-NY) introduced the HOPE Act to help states with expunging cannabis offenses by reducing the financial and administrative burden of such efforts through federal grants. Both lawmakers have advocated for cannabis reform on their respective sides of the aisle, with Rep. Joyce (R-OH) sponsoring the first Republican-led effort to decriminalize cannabis at the federal level in the House. Towards the end of last year discussions surfaced around including the HOPE Act in a SAFE Plus package. Unfortunately, with the end of the congressional session quickly coming to an end, so did the proposed package.
NCIA will continue to work with Capitol Hill offices to advance cannabis policy in the 118th Congress. With a shift in political dynamic, it’s imperative to continue to be a resource for congressional offices. Don’t miss the opportunity to attend our 11th Annual Cannabis Industry Lobby Days will be held May 16-18 in Washington, D.C.! You can register here. If you’re interested in getting more involved in our policy efforts or have questions about NCIA’s lobby days please reach out to madeline@thecannabisindustry.org. Stay tuned for more updates from the Government Relations team and check out last week’s blogs here.
Video: NCIA Today – Thursday, January 12, 2023
NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday here on Facebook for NCIA Today Live.
Reach thousands of leading cannabis businesses while supporting NCIA’s advocacy work to protect and expand the industry by securing the right sponsorship package for your marketing needs. Contact us at Sponsorship@TheCannabisIndustry.org to learn more
And They’re Off! 118th Congress Begins with Eyes on the House
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
After November’s midterms, a runoff Senate election in Georgia, and last week’s speakership drama, the 118th Congress has finally begun.
Last year was an historic year: from the enactment of the first federal standalone cannabis reform since the adoption of the Controlled Substances Act of 1971 to President Biden’s marijuana reform announcement in the fall. In addition, three states (Rhode Island, Maryland, and Missouri) took action to legalize adult-use marijuana and regulate cannabis. Nearly half of the U.S. population – more than 155 million people – now live in jurisdictions with some form of legalized adult-use marijuana.
At the federal level, members of Congress introduced a wealth of policies aimed to end the antiquated federal cannabis prohibition and address the harm caused by the discrepancies between state and federal laws and regulations. This tremendous bipartisan momentum for cannabis reform sets the stage for a productive 2023 and 118th Congress.
However, as you may have seen or heard on the news, the 118th Congress was off to a slow (to say the least) start as arguments over the Speaker of the House position escalated over the course of the week. After days of negotiations and a multitude of concessions, Rep. Kevin McCarthy (R-CA) eked out a victory in the wee hours of Saturday morning to become Speaker. The contentious and historic fight for the Speakership largely confirmed expectations for this Congress: With House Republicans’ narrow four-seat majority, governing is going to be difficult and messy. This will undoubtedly make cannabis reform a challenge, but one that NCIA is ready to rise to.
The House returned Monday for week two of the 118th Congress, while the Senate remains in recess through January 23, with a few pro forma sessions scheduled over the coming weeks. House Republicans will now move to finalize organizing for the new Congress: the Steering Committee have already begun meeting to determine chairmanships for a number of committees including Ways and Means and Small Business. Once these chairmanships are resolved, the Steering Committee will turn to populating committees with new members – most committees have several openings – and may begin to populate some this week. The exact numbers will be determined by the final ratios between Republicans and Democrats, but we’re expecting a mirror image of the ratios used in the 117th Congress.
All of these decisions will have a substantial impact on cannabis reform, as Leadership and committee chairs determine what legislation is considered. While Republicans’ slim majority in the House brings a number of challenges, it will also undoubtedly provide a number of opportunities for reform and negotiation.
It’s the final episode of NCIA Today for the year 2022! NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook for NCIA Today Live.
Member Blog: In 2022, U.S. Cannabis Supply Exceeds 48.8 Million Pounds
When it comes to the national and state cannabis markets, most of the conversation is centered around demand. Cannabis investors have for years raised funding based on the potential of the market, or on the growth in demand. Cannabis business operators have talked about capturing market share and, of course, policymakers have always talked about taxes. Until recently, very little data was available on cannabis supply. On December 1, my team at Whitney Economics published a report on the total cannabis supply in the U.S. market. We wanted to share some of our data and insights with the NCIA community.
The Supply and Demand of American Cannabis
The total cultivated output of cannabis in the United States in 2022 is 48.8 million pounds. This figure may be surprisingly large to some people, because it includes both legal and illicit cannabis supply, and addresses all delivery methods, including flower, edibles, concentrates, and other products. Current legal sales of cannabis will be an estimated $29.3 billion in 2022, and are projected to be at $81.6 billion by 2030.
Interesting Fact about Cannabis Demand: Unless there is some major development in cannabis application or market conditions, the total demand for cannabis will not grow substantially over the next decade. Instead, demand will shift from the illicit market to legal channels for cannabis. There will be more legal supply than illicit cannabis supply in the U.S. by 2026 or 2027. While the total number of consumers will be rather consistent, the value of the cannabis market (in terms of dollars) is actually forecasted to decline over time as more and more states come online and competition from both inside and outside of the U.S. drives down prices.
Consumer Consumption is Consistent and Predictable
The U.S. cannabis market is as big as it seems, with one out of three adults over the age of 18 consuming cannabis at least once in the past year. That number currently equates to more than 80 million adults. The report also includes data on total consumption, which is extremely consistent from state market to state market. Consumption is the basis for the amount of supply in a market.
Interesting Fact about Consumer Participation: When it comes to purchasing cannabis products, consumers remain very price sensitive. That is to say that the “elasticity of demand” is very high. This elasticity number can be used to predict legal consumer participation levels, based on how much higher the legal price is than the illicit price. Predicting consumer conversions into the legal market is not that difficult to do.
Consumer participation in the legal cannabis markets is very predictable and based on three factors:
Price of legal cannabis relative to the illicit cannabis market
Availability of legal cannabis supply
Ease of access to legal cannabis
These three factors are interrelated. For example, if supply or access is limited, prices will rise and there will be less legal participation. Or if policy makers tax cannabis too much, the rate of legal conversion will slow significantly and policies surrounding public safety will be impacted. There is a sweet spot, however.
There Can Also Be Too Much Supply
On the other hand, if there is too much supply, this can be harmful to cannabis businesses as it creates a pricing race to the bottom. When businesses compete on price, profit margins are compressed, and businesses fail. States including Oregon and Michigan are currently in that situation, as prices have collapsed and some licensees are calling for cannabis business licenses to be limited.
State-by-State Cannabis Cultivation Capacity
In the 2022 U.S. Cannabis Supply Report, we were able to calculate the total legal cultivation capacity of every state in the country. California leads the nation in cultivated output at 22.2 million pounds this year alone. Using this valuable information, investors, operators, regulators, and other stakeholders in the U.S. cannabis industry can see which state markets are oversaturated by supply.
Interesting Fact about Cannabis Cultivation: Today, the total legal cultivation capacity that has already been licensed is greater than the total U.S. demand (illicit + legal) for cannabis. With more and more states coming online, this imbalance will only get more pronounced. Business operators in the cannabis industry should ready themselves for a reckoning when it comes to their profit expectations.
New Analytical Tools Have Been Developed That Combine Supply and Demand
The development of an integrated supply and demand model that encompasses both the legal and illicit markets for cannabis in the United States is a significant development for the cannabis industry. Stakeholders in every state now have the capability of assessing the market for operational, investment, and regulatory risks with granularity. Policymakers at the state and community levels can incorporate both these supply and demand models in order to make informed, data-driven decisions. There is a lot of potential in these new tools, and we are just beginning to scratch the surface of bringing a higher degree of sophistication and analysis to the cannabis industry.
Beau Whitney is the founder and Chief Economist at Whitney Economics, a global leader in cannabis and hemp business consulting and economic research, and has served as Senior Economist for NCIA.
Serving an international clientele, Beau is considered one of the leading cannabis economists in the U.S. and globally. His applications of economic principles to create actionable operational and policy recommendations has been recognized by governments, and throughout the economic, investment, business communities.
Drawing upon his previous hi-tech experience, Beau has applied his supply chain and operations expertise to the cannabis industry, where he has designed and implemented efficiencies into the cultivation, extraction, edible manufacturing, wholesale and retail distribution operations of a vertically integrated cannabis operation, that eventually went public in 2015.
His Whitney Economics and New Frontier Data white papers analyzing the adult-use, medical and industrial cannabis markets have been referenced in Bloomberg, the Wall Street Journal, Washington Post, New York Times, USA Today, the Associated Press, as well as in leading cannabis industry publications. Whitney is a member of the American Economic Association, the Oregon chapter president of the National Association of Business Economics, is a member of multiple regulatory advisory committees throughout the U.S. and participates on the Oregon Governor’s Council of Economic Advisors.
Beau has provided policy recommendations at the state, national and international levels and is considered an authority on cannabis economics and the supply chain.
Reform Whiplash in Washington
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Last week, cannabis advocates were dealt another blow with the exclusion of the SAFE Banking Act (SAFE+) in the National Defense Authorization Act (NDAA). That being said, all hope is not lost—the government runs out of funding this Friday, 12/16, and members of Congress are working hard to craft an omnibus bill that may present another opportunity for SAFE+.
Earlier this year, the House of Representatives passed their version of the NDAA — which did include the language of the SAFE Banking Act. Since then, all eyes have been on the Senate, where negotiations over the inclusion of “SAFE+” to the NDAA have been the focus. There was much discussion over what exactly the “plus” in SAFE+ would include, but there was no doubt that theHOPE Act would be a part of that, and potentially theGRAM Act. As of a few weeks ago, NCIA and other advocates were feeling cautiously optimistic about the possibility of SAFE+ being passed via the NDAA.
That was until Senate Minority Leader Mitch McConnell (R-KY) took to the Senate floor last Tuesday to specifically call out SAFE+. He said:
“House and Senate Democrats are still obstructing efforts to close out the NDAA by trying to jam in unrelated items with no relationship whatsoever to defense. We’re talking about a grab bag of miscellaneous pet priorities — making our financial system more sympathetic to illegal drugs or the phony, partisan permitting reform and name-only language that’s already failed to pass the Senate earlier this year. If Democrats wanted these controversial items so badly, they had two years to move them across the floor. Heck, they could have scheduled those matters for votes this week. But no, we’re doing more mid-level nominations, while Democrats keep threatening to take our Armed Forces hostage over those extraneous matters.
Leader McConnell even gloated about the exclusion of SAFE+ later in the week, saying, “just as Republicans insisted, just as our service members deserve, this NDAA is not getting dragged down by unrelated liberal nonsense. Good smart policies were kept in and unrelated nonsense like easier financing for illegal drugs was kept out.”
While the NDAA is slated to pass the Senate and be signed into law over the coming days, NCIA is continuing to pursue all options for passing SAFE+, including the omnibus bill that Congress is negotiating (currently) behind closed doors.
In other political news, the runoff election between Sen. Raphael Warnock (D) and Hershel Walker (R) was held in Georgia last week, with Sen. Warnock winning. This meant that Democrats held a 51-49 majority over Republicans; that is until Sen. Kyrsten Sinema decided late last week to change her party affiliation from Democrat to Independent. Like the other two Independent Senators (Angus King [ME] and Bernie Sanders [VT]), she plans to caucus with the Democrats. Regardless, the announcement came as a surprise to many.
While the clock may be running out, NCIA won’t stop advocating for SAFE+ and other cannabis issues to be passed into law.
Committee Insights | 12.7.22 | How To Use A Marketing Mindset To Raise Capital For Your Cannabis Company
NCIA’s #IndustryEssentials webinar series is our premier digital educational series featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.
In this edition of our NCIA Committee Insights series, originally aired on December 7 and produced by NCIA’s Marketing & Advertising Committee, our panel of cannabis finance specialists, leading operators and capital raising experts will guide you through best marketing practices and considerations to deploy when fundraising in the cannabis industry from a marketing perspective.
Learn tips and tricks and do’s and don’ts from marketing pro’s and industry insiders to best position your company to get the attention of investors in the current market conditions just as you’ve done when targeting consumers.
Cultivating Community in a City Near You: Announcing NCIA’s 2023 Event Calendar
It’s been a year of big change for NCIA. As we come to the end of 2022, we want to take a moment to send a message to our members and supporters about these changes, and most importantly, get excited for what’s next for the future of NCIA events.
The End of An Era
The events industry has faced unforeseen challenges these last couple of years, and NCIA was not isolated from these issues. Outside of needing to postpone our large tradeshows until late 2021, we also had to postpone a whole calendar of approximately 40+ events nationwide which was our primary way of connecting our community and meeting with our members face to face. Our team overcame these challenges by building our expansive digital presence and online events program to continue to provide education and exposure opportunities to our members, however this did still require a significant pivot in organizational strategy. Due to the residual hardships brought by the pandemic, we learned earlier this year that the Cannabis Business Summit & Expo was not going to be able to be produced on the scale or quality that we or our members had come to expect throughout the years. So, in tandem with our previous tradeshow co-producers, we made the difficult decision to dissolve our existing partnership and accepted an offer from them to acquire our tradeshow portfolio. For those who have been attending our tradeshows since 2014, we can’t thank you enough for your participation in those events and making them so impactful for the industry. There are too many good memories to revisit, and hope you take a moment to remember some of your personal highlights throughout the years as we look forward to coming together for new events in 2023.
Looking Ahead to 2023
For now, we will be taking a hiatus from the tradeshow space. This will allow our team to refocus our efforts into other impactful networking and educational opportunities. We’re excited to get back to our roots and focus our efforts on intentional and innovative gatherings that connect Main Street cannabis businesses with each other and with NCIA’s advocacy efforts.
We’ve listened to the feedback from our members, and know that in-person networking remains essential to building your business and growing your network. In these uncertain economic times, every dollar spent and any time away from your business impacts your bottom line. As the leading cannabis trade association representing small-business owners, we’re committed to making the investment to meet our members where they are, and to continue facilitating experiences where our members can make key connections with fellow business owners. Moving into 2023, we’re reinvigorating our events program starting with our regional Industry Social and Cannabis Caucus event series, leading into the cannabis industry’s biggest policy and advocacy event of the year: NCIA’s 11th Annual Cannabis Industry Lobby Days.
We invite you to move forward with us as we enter a new chapter in our history. Without further ado, we are excited to announce the lineup of events for the first half of 2023!
Join NCIA to Take Advantage of Complimentary Tickets
As always, NCIA members receive complimentary access to all of these events based on membership level. Looking to have an expanded presence at each event? Consider upgrading your membership today in order to include your entire team or prospective clients.
Huge thanks to the initial sponsors of these events which have made a significant investment in NCIA’s community building efforts moving into 2023! Learn more about each of these pioneering businesses helping drive our mission forward and reach out to schedule a meeting with their team surrounding the upcoming events.
Gold Sponsor
Silver Sponsor
Bronze Sponsor
Support These Events Through Sponsorship
Has your company had trouble breaking through the noise on a crowded expo floor this past year? Is your brand looking for quality B2B connections with market leaders? Want to play a larger role and align your business with NCIA’s community building and educational efforts?
Consider one of our affordable sponsorship packages, starting for as low as $500, which will allow you to reach thousands of leading cannabis businesses while supporting NCIA’s advocacy work on behalf of small cannabis businesses. Contact our team at sponsorship@thecannabisindustry.org to learn more.
Unfortunately, there are a variety of insects with the potential to damage the majority of your cannabis plants. Before we can fight back, we must be able to identify each symptom an insect may leave behind. Symptoms often vary amongst individual pests allowing us to identify them and treat the plant accordingly. This blog serves to highlight some of the biggest threats to cannabis gardens, including the following insects:
Aphids
Spider Mites
Fungus Gnats
Thrips
An aphid is a soft-bodied insect with a piercing-sucking mouthpart, allowing it to access a plant’s vascular system and steal its nutrients. They are visible to the naked eye but come in various colors, sometimes blending into the plant and making them hard to spot.
So, how can we know if aphids are present in our cannabis plants? According to Ryan Douglas, author of “Playing Plant Detective: How to Identify Insect “Fingerprints,” these insects often leave behind a smokey mold or “sooty mold,” consisting of a black or brown fungal disease. Aphids are mainly attracted to the protein within the sap of the plants, so the rest of the sugars in the sap pass through their body and are left behind on the leaves. This forgotten waste is known as honeydew and does not stay forgotten for long as ants are highly attracted to it. With this in mind, some other signs to be aware of are the collection of ants and left-over honeydew.
For preventative and exterminate measures, regularly check your plant for symptoms of the pest, remove and spray off as many bugs as possible, and also consider insecticide soaps and sprays that will not harm your plants.
Figure 1. Aphids in different phases of life
Spider Mites
Spider mites are smaller than aphids but still visible to the naked eye. They are often dark red, orange, or brown. Spider mites also have tiny piercing mouths that allow them to feed on nutrients obtained from the plant leaves.
It can be hard to spot their presence in the early stages, as they tend to remain under the plant leaves until their population expands. Once the populace has reached a larger capacity, spider webbing will be present along the top of the plant canopy. In addition, the mites will often leave behind little white specks on the top of the leaf. The idea is to spot the mites before webbing occurs; this can be done by frequently and thoroughly examining your plants.
Early detection of spider mites is vital for exterminating and preventing their growth. According to Nebula Haze, author of “Cannabis Pests, Bugs, & Viruses,” these mites quickly reproduce and gain immunity to extermination methods. Therefore, it is important to use multiple forms of extermination consistently to prevent their return.
Figure 2. Spider mite webbing on a cannabis plant
Fungus Gnats
Unlike aphids and spider mites, fungus gnats primarily feed on plant roots. These gnats look like tiny black flies and can have quite harmful effects on plants. Not only are the flies feeding on the roots, but the larvae destroy root hairs and young roots of the cannabis plants (Haze, 2022).
Fungus gnats are not as easy to trace because their usual resting spot on the plant allows them to blend in with the dark soil and surface area. A more visible clue of “fungus gnats is the presence of their feces on the leaves, nursery pots, and grow benches” (Douglas, 2022). If there happens to be any flying bugs around the plant, that could also be a prominent symptom.
Ensuring prevention and extermination are possible from a variety of practices. Be sure not to over-water the plants, as gnats a more attracted to overly damp areas. It may also be helpful to hang sticky cards near your plants and, once again, utilize insecticide sprays when necessary.
Figure 3. Fungus gnat, in comparison to a quarter
Thrips
A thrip is yet another insect that raises a threat to the healthy growth of cannabis plants. “Adult thrips are small, fast-moving insects, while young thrips look like tiny unmoving pale worms on the leaves” (Haze, 2022). Depending on their stage of life, they could look a variety of ways. They often blend into the plant because of their color and will jump around if they feel threatened. These variables cause their extermination to be quite tricky.
Thrips have small, piercing mouths like spider mites and aphids, but the leaves often look more scraped than pierced (Douglas, 2022). Douglas gives a great suggestion to test a plant for thrips. If you hold a white piece of paper under the suspected leaf and tap on the leaf, you will be able to see the thrips fall on the paper. As adults, they will typically appear as orange, brown, or yellow.
Figure 4. Thrip-damaged leaf
Examining your cannabis plants regularly makes the prevention or early diagnosis of pests a manageable task. As you examine your plants, keep in mind the range of symptoms that stem from various insects. In the end, if you happen to come across any harmful pests, be diligent in your extermination methods and find the necessary method according to the pest you discover.
References
Haze, N. (2022, August 7). Complete pest guide – cannabis pests, bugs & viruses. Grow Weed Easy. Retrieved October 19, 2022, from https://www.growweedeasy.com/bugs-pests-symptoms-marijuana-grow
Photographer: Whitney Cranshaw, Colorado State University, Bugwood.org
About MyFloraDNA: We are a genomic laboratory based in Woodland California, delivering modern genomics for the Cannabis Industry.
Our services include Trait detection (cannabinoid profile and sex/gender ID), Pathogen Detection, and Genetic Validation Services. We offer breakthrough solutions using the inner power of your plants.
Authors: Ashlyn East and Angel Fernandez
Angel Fernandez, CEO & Co-Founder at MyFloraDNA. “It is time to fill in the gap between DNA Sciences and Agriculture. MyFloraDNA is willing to show the huge opportunities that exist for modern genetics in agriculture. Now, it is time for another agricultural revolution”
Editor: Maria Zuccarelli
Member Blog: Glove Fit – Too Loose, Too Tight, or Just Right?
While everyone has heard the saying, “…fits like a glove,” disposable glove wearers don’t always adhere to the literal meaning behind this popular phrase – especially in the cannabis industry. This is part and parcel of the problem, particularly when companies routinely buy only one type of glove, in one or two sizes, for the entire staff to wear. That may make for a much easier purchasing decision, but it’s capable of putting cannabis workers’ hand health – and even job place safety – at risk. Because of the highly tactile nature of work in the cannabis industry, worker productivity is best enhanced with better-fitting gloves that need to be changed less often.
Aside from offering workforces a supply of gloves in various thicknesses and sizes, which seems like a logical solution, what other factors come into play with regard to finding a proper glove fit? As it turns out, quite a bit.
Sizing Up the Supply
While many employees are aware of the different types of disposable gloves, the majority of workers have never laid eyes on a glove-sizing chart. When ordering supplies, it’s advisable to start with the specific glove sizes that have worked for staff, while sampling several others to offer a wide variety. Hand-related safety risks in the cannabis industry include the potential for cuts, pinches, and even sprains.
The Downside of Ill-Fitting Gloves
Neglecting a proper fit can easily lead to work-related disorders in the cannabis industry. These include occupational skin diseases (OSDs) like dermatitis, work-related musculoskeletal disorders (WMSDs) caused by repetitive tasks that can strain the muscles, tendons, ligaments, and blood vessel damage, and the biggest risk of all – partial contamination. Ill-fitting gloves, such as the excess material in a size too large, can catch, snag, and tear. Frequently ripped gloves increase costs, while ill-fitting gloves also leave the wearer with less tactility, reducing worker productivity and efficiency.
Glove Preferences by Type
Disposable gloves come in several different varieties, of which the tactility and durability are directly related to the quality of their raw materials and ingredients. The optimal glove type for cannabis-related work is nitrile, due to their enhanced strength, durability, and puncture resistance. They also offer some of the best protection against chemicals, bacteria, and fungi.
Conduct a Trial Run
Many purchasers are unaware that reputable glove suppliers will often offer a free trial of samples, both of varying thickness, colors, and sizes, in order for individual workers to determine the best glove for their needs. An ordering process that takes into account the needs, safety, and risk factors associated with every staff member’s needs is an essential consideration for every cannabis grow operation.
Before you place your next bulk glove order, do a little research to determine what factors are at stake for the fit, comfort, and safety of your workforce. A great place to start would be Eagle Protect’s comprehensive Disposable Glove Buying Guide.
Justine Charneau is the head of cannabis industry sales at Eagle Protect, a disposable glove supplier dedicated to the responsible sourcing of quality products that ensure customer safety and impact reduction, ultimately mitigating customers’ risk. Eagle Protect is the only global PPE supplier that is a Certified B Corporation, a designation that a business has met the highest standards of verified performance, accountability, and transparency. She can be reached at justine@eagleprotect.com
Video: NCIA Today – Thursday, December 1, 2022
NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. We check in on the first-ever cannabis legislation to land on the President’s desk, ask if you saw the NCIA skateboard in Las Vegas, plans for our events next year and so much more. Join us every other Thursday here on Facebook for NCIA Today Live.
Reach thousands of leading cannabis businesses while supporting NCIA’s advocacy work to protect and expand the industry by securing the right sponsorship package for your marketing needs. Contact us at Sponsorships@TheCannabisIndustry.org to learn more
Committee Insights | 6.28.22 | Meet the Cannabis Influencers: Everything You Need to Know About Influencer Marketing
NCIA’s #IndustryEssentials webinar series is our premier digital educational series featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.
Got questions about how influencer marketing can help your cannabis brand? Interested in working with a cannabis influencer but don’t know how?
You’ll get all your questions answered in this edition of our NCIA Committee Insights series originally aired on Tuesday, June 28, 2022 in which members of NCIA’s Marketing & Advertising Committee convened an all-star panel of innovative influencers who’ve worked with the cannabis industry’s leading brands.
Tune in to the conversation featuring moderator Allison Disney as she speaks with the amazing Alice Moon, Shayda Torabi, and Monica Lo to discuss how to reach and engage cannabis users with original branded content.
What You’ll Learn:
WHY influencer marketing should be in your marketing mix
WHO is most influential in cannabis conversations online
WHAT a successful influencer marketing partnership looks like
HOW to engage the right influencer partner(s) for your brand
The cannabis industry is one of the fastest-growing sectors in Michigan. It’s also an ever-changing industry, leading to myriad challenges for businesses operating within this space. One issue licensees face is a significant gap in vital business intelligence that’s needed to remain relevant in an extremely competitive market.
To help fill this gap, Rehmann partnered with A&K Research, Inc. of Northville, Mich. to survey cannabis operations within the state and to create the 2022 Michigan Cannabis CFO Outlook. As one of the leading professional advisory firms serving the cannabis industry in Michigan, Rehmann spearheaded this project to help cannabis licensees make empowered business decisions based on peer feedback.
The 2022 Michigan Cannabis CFO Outlook shares findings from the survey, including top challenges the cannabis industry faces in Michigan. Top-of-mind concerns: managing the financial side of the business; deciding whether it’s time to sell the business and how best to go about it; staying on top of compliance requirements; navigating federal legislation and resulting tax burdens; and understanding potential changes in lending laws that impact relationships between banking institutions and legitimate cannabis-related businesses.
In addition, this report features industry spotlights highlighting current cannabis businesses facing these issues in real-time. They share how they’re navigating this ever-evolving industry and economic landscape.
Michigan Marijuana Sales
Just how quickly is this industry growing? Michigan saw $21 million in medical cannabis sales and $188 million adult-use marijuana purchases in July 2022 – a total that is about $15 million greater than the previous monthly record set in April 2022. Most of the marijuana sales for both medical and recreational use were for flower products, followed by vape cartridges. Data also shows a continuation of a sales trend in Michigan’s marijuana market, with medical cannabis purchases decreasing and adult-use sales increasing.
Report Takeaways
Here’s a snapshot of report insights and some of our takeaways. You can download the full 2022 Michigan Cannabis CFO Outlook here.
Tax and M&A Activity
39% of companies are considering or are in the process of selling their business. This could be due to the current challenges of operating within the Michigan cannabis market or for a variety of other reasons. Many licensees are entrepreneurs who enjoyed starting and growing the business from the ground up and are ready to move on.
Half of the companies are paying an effective tax rate between 20% and 30%. One in five currently show a loss from operations. This was surprisingly much lower than we expected. It’s not uncommon to see tax rates of over 50% within the industry depending on where the business falls in the vertical chain and how aggressive you can be with your structure or costing model.
Cannabis Business Operations
Just over one-quarter (28%) of businesses have been subject to some level of federal, state, or reporting audits. The industry is still young, and as we continue to look at this data year over year, we expect this number to drastically increase. It’s important to have your finances in order to be prepared for that time to come.
Almost two-thirds (65%) use QuickBooks for their accounting system, with the remainder being dispersed between Sage, SAP, Dynamics, and Xero. Accounting for the cannabis industry can be extremely complex. Many cannabis businesses started with QuickBooks and are now outgrowing that system and ready for more powerful systems to meet their unique needs.
Perceptions of the Current Michigan Cannabis Industry
The majority (56%) expect retail pricing needing another 1-3 years to stabilize. One of the biggest concerns within the industry is pricing of cannabis. We’ve seen a significant drop in retail pricing over the past several years and there is concern that it may drop even more.
Nearly half (42%) think that between 26% and 50% of wholesalers are losing money at current retail prices. Given the struggles with pricing, growers who are selling wholesale are facing a lot of challenges at this point. As more and more operations start up within Michigan (a state without a license cap), the market continues to move toward oversaturation.
What some of the survey respondents had to say about the state of the industry:
“As a small-sized grower focusing on high-end quality, we are impacted greatly by falling retail prices. The rampant increase in licenses/grows caused a glut in the market that has yet to subside. We are focusing all our efforts on lowering costs to keep up with falling prices.” [Grower]
“The industry is currently in a very fragile state. The testing numbers are overinflated for potency, customers are going back to the black market and the current pricing is not sustainable. In addition, new businesses for all areas are opening and believe there is enough capacity for everyone to make money.” [Testing Facility]
“If 280E would go away, things would be much better. Limited licensing for cultivation and processing would also help.” [Grower, Processor & Provisioning Center / Retailer]
To download your digital copy of the full report today, click here.
Chris Rosmarin manages the commercial audit practice in Grand Rapids and also leads the Firm’s cannabis practice. He provides audit and other assurance services, due diligence services and accounting advisory services to various companies both large and small.
Chris understands that clients expect and deserve a partner that is responsive, invested in the relationship and dedicated to helping them respond to their challenges. He strives to deliver on those expectations by meeting deadlines and being available and present throughout the relationship.
Rehmann is a professional advisory firm that provides accounting and assurance, business solutions and outsourcing, specialized consulting, and wealth management services. For over 80 years, Rehmann has provided forward-thinking solutions to our clients. With nearly 900 associates in Michigan, Ohio, and Florida, we are the momentum behind what’s possible. We focus on the business of business — allowing companies and individuals to focus on what makes them extraordinary. We help you look to the future with confidence, thanks to our unrivaled expertise and integrity. Through our partnerships with our clients and communities, we drive impact that empowers our world. Find us online at rehmann.com.
Cannabis Reform – Legislative Victory and What Is To Come
by Madeline Grant, Government Relations Manager
After months of focused attention on the long-anticipated midterm elections, the U.S. Senate has finally approved the House-passed bipartisan cannabis research bill under unanimous consent. It marks the first time a standalone piece of cannabis legislation has ever been sent to the president’s desk. H.R. 8454, the Medical Marijuana and Cannabidiol Research Expansion Act, was filed in July and quickly moved through the House before being taken up by the Senate.
When signed by President Biden, H.R. 8454 will open the door for new innovative treatments derived from cannabis. Leader Schumer stated ahead of the vote, “If you’re one of the millions of Americans who deal with conditions like Parkinson’s or epilepsy or post-traumatic stress, or any number of other conditions, cannabis might hold promising new options for managing these diseases,” according to Marijuana Moment.
Under the legislation, the U.S. attorney general would be given a 60-day deadline to either approve a given application or request supplemental information from the marijuana research applicant. It would create a more efficient pathway for researchers who request larger quantities of cannabis. Additionally, the bill would encourage the Food and Drug Administration (FDA) to develop cannabis-derived medicines. To do this, the bill would allow accredited medical and osteopathic schools, practitioners, research institutions, and manufacturers with a Schedule 1 registration to cultivate their own cannabis for research purposes. Another section would require the Department of Health and Human Services (HHS) to look at the health benefits and risk of cannabis as well as policies that are inhibiting research into cannabis that’s grown in legal states and provide recommendations on overcoming those barriers.
The point – the passage of this legislation finally sets the agencies in motion to allow the needed cannabis research we’ve been waiting for in the United States. The Senate passage of H.R. 8454 comes at the heels of when President Joe Biden issued a mass marijuana pardon and directed a review of the drug’s scheduling status. Just before the vote, Senate Majority Leader Chuck Schumer (D-NY) said on the floor that is continuing to have “productive talks” about a broader package of cannabis reforms he hopes to pass before the end of the lame-duck session.
As the legislative days grow shorter and we near the end of the 117th Congress, the NCIA Government Relations team will continue to be a resource for congressional offices on both sides of the aisle during the lame-duck session. Bipartisan and bicameral offices have been in negotiations about the so-called SAFE Plus package for months and we will continue to monitor any action as it moves forward.
If you are a Blooming or Evergreen NCIA member please make sure you attend our Government Relations update on December 6 at 3:30 pm EST.
We want to hear from you! A portion will be dedicated to answering your specific questions you submit through registration. This will be very interactive and a great way to get to know the Government Relations team. If you are a Blooming or Evergreen member, please go ahead and register HERE. Please be sure to submit questions so we can make sure to include time to answer all of them.
Please stay tuned for updates and more information to come. If you have any questions or want to learn more about how you can get involved with NCIA please contact madeline@thecannabisindustry.org
Member Blog: Future Of FDIC Easing for Cannabis Banking After Biden Decriminalizes Marijuana
Over the years, the simple possession or use of cannabis has seen many lives upended by arrests and criminal convictions. Unfairly, racial disparities have determined that black and brown individuals suffer most of these convictions, arrests, and prosecutions, even though white individuals use and possess cannabis at similar rates. The resulting criminal records lead to individuals being denied fundamental rights to employment, housing, and education opportunities.
However, on October 6, 2022, President Biden made an announcement that could change the cannabis and criminal clemency conversation. The president asserted he would:
grant pardons to individuals with prior low-level federal cannabis possession offenses
change federal cannabis laws by reviewing the cannabis Schedule I rule.
The federal government’s classification of cannabis as a Schedule I substance puts it in the same category as more lethal drugs like heroin and LSD while drugs like fentanyl are not considered less severe than marijuana since it falls under Schedule II.
As more states legalize the sale and use of cannabis, the classification of Schedule I no longer makes sense. Additionally, more direct research on the proper utilization of marijuana can develop suitable restrictive and preventative measures to protect against harmful outcomes of cannabis use.
The Biden initiative is crucial because it can begin to remove the burden of employment, education, and housing limitations often experienced by individuals with simple cannabis possession convictions. Besides, if marijuana is rescheduled to Schedule II, or as many advocates champion for a complete descheduling, it could mean the end of cannabis prohibition altogether.
Widespread Support for this Initiative
Nearly 70% of Americans support the President’s pardon proclamation. Publicly, two in three Americans support Biden’s plan for cannabis reforms, and three in four support the removal of cannabis from Schedule I of the Controlled Substances Act.
Bipartisan support for this move is also high, with 74% of Independents, 84% of Democrats, and 58% of Republicans backing the proposal. At the state level, 68% of respondents support governors that want to issue pardons for people with low-level cannabis possession convictions.
Why This is Important
The expeditious review process requested by President Biden has the potential to open the cannabis industry to further changes, like the easing of banking restrictions for cannabis businesses. For instance, the call for action by governors is already inspiring many to rethink state and local relief for marijuana users. Kentucky, Colorado, and Kansas are three states already actively considering enacting the Biden pardons and drafting new reform bills for marijuana cases.
“The lack of safe banking and financial services for the cannabis industry in the State of Colorado has become a dire public safety issue for highly regulated cannabis businesses operating in compliance with state law,” Gov. Jared Polis’ office wrote to House and Senate leaders.
“Further, the lack of safe banking exacerbates the uneven playing field faced by small and minority-owned cannabis businesses, despite their serving the same communities and being subject to the same increased state regulation as other cannabis businesses in the State,” the letter said.
It’s true – over the years, the cannabis industry has dealt with a lack of financial and banking services because of the strict regulations and criminalization associated with marijuana. Consequently, this has resulted in severe public safety issues, even for cannabis businesses that operate within the compliance mandates of the state law.
Additionally, operators are disadvantaged because they lack funding or banking systems that support cannabis business processes. But following Biden’s pardon, many hope that Congress’ marijuana reform will pass the Secure and Fair Enforcement (SAFE) Banking Act for the industry.
If passed, the protection against armed robbery will increase. Also, the SAFE Banking Act will support the minority, veterans, and women who own small cannabis businesses. This, in turn, is expected to improve public safety amid the growing use of cannabis and cannabis products while simultaneously creating jobs within states.
Ushering in the Era of Cannabis Banking and FDIC
Even though the SAFE Banking Act has been in the House of Congress seven times, federally insured banking services and modern digital banking solutions like electronic payment processing are still inaccessible to the cannabis industry.
The Act lags in the senate under Democratic and Republican control. However, the senate is said to be preparing to enact the reform for the SAFE Banking Act as part of the Biden marijuana proposals. And why not? There is significant support for the SAFE Banking Act.
For instance, National Association of State Treasures members have voiced their support for the SAFE Banking Act. Public policy also demands the immediate relief the ACT will provide cannabis businesses. Therefore, the expectation that leaders in the government will push for banking reforms for cannabis businesses is prevalent.
The SAFE Banking Act is an Advocate for the War on Drugs
Many believe that the baking legislation would advocate for the war on drugs because it would offer protection against the risk of robbery and violence. By denying cash-based cannabis businesses access to the traditional financial system, the state and local governments provide an invitation threat that has seen many victims working in cannabis businesses lose their lives or livelihoods.
On the other hand, the right to payment solutions, like credit cards, protects against armed robbery. Nonetheless, for the banking legislation to work, it requires the support of criminal reforms. This is where initiatives like predicant Biden’s pardon and marijuana schedule reform come in.
The SAFE Banking Act will solve the injustice associated with financial inequality, thus, providing public safety that protects customers, employees, and businesses in the cannabis industry. And with reduced invitations for armed robberies working in tandem with the use of mandated cannabis products, the war on drugs will ensue.
Cannabis Businesses Contribute Equally to the Economy
As such, it is only fair to provide them with the same rights and protections that other businesses, whether big or small, enjoy. Therefore, starting with the push to decriminalize and legalize marijuana, not just at the federal level but at the state level, is a solid place to start.
Following this pardon with an advocacy of the SAFE Banking Act will additionally provide cannabis businesses with the capability to carry out operations securely and optimally. But attention must be paid to the details pertinent to these reforms to ensure thousands of convicts get a better chance at life and cannabis businesses get opportunities to continue contributing to the economy.
FAQs
What does President Biden’s pardon for marijuana possession entail?
President Biden’s cannabis reform initiatives are set to accomplish three things:
Pardon convicts with low-level marijuana possession offenses, thus, allowing them to get housing, education, and employment without prejudice
Reduce the marijuana Schedule level on the Controlled Substances Act from Schedule I to Schedule II, which lessens the seriousness of marijuana possession
Inspire governors to offer the same pardons at the state and local levels where most marijuana convictions are carried out
Is there support for President Biden’s announcement?
Yes. There is ample support from the public and bipartisan control for Biden’s pardon and advocacy for the marijuana schedule change in the Controlled Substances Act.
What would the pardon mean for cannabis banking?
The de-scheduling of the marijuana Controlled Substances Act would remove the many legal hurdles and fears of the financial institutions that keep them from supporting cannabis businesses. This would reduce the discriminatory risks associated with banking or financing cannabis businesses.
Joshua Gilstrap is the Marketing Manager for e2b teknologies, in addition to his marketing responsibilities Joshua leads business development for e2b teknologies emerging Canna Suite product line. A business graduate with a focus in marketing from Miami University in Oxford, Ohio, he joined the e2b team in the Fall of 2019. Josh brought with him a wide array of business and practical experience in planning and execution. Since coming aboard he has led multiple projects including website hosting and theme standardization company wide, marketing automation streamlining the efficiency of the customer journey, and sales automation where he is changing the conversation from promotion to education, from pitching to catching, and from push to pull in order to keep up with the shifting tides of a digital transformation.
This site uses cookies. By using this site or closing this notice, you agree to the use of cookies and our privacy policy.