President Trump has reignited the trade war and recession fears this year. So far, he hasn’t discussed his stance on the cannabis sector.
A key platform for President Trump?
I think that President Trump might be waiting to use cannabis as a key platform during the upcoming election. Cannabis is a hot sector right now! The 2020 presidential election is getting closer.
President Trump’s stance on cannabis
Many of the 2020 election candidates have voiced their opinions about the cannabis industry. Notably, President Trump could use cannabis as a key platform in his campaign. Read President Trump: Is Marijuana Legalization a Key Weapon? to learn more.
An article by The Hill said that the federal government could have an entirely new stream of tax revenues from the cannabis sector. Currently, the revenues are going to the states. Cannabis is legal on a state level. In 2018, legal recreational and medical cannabis in the US generated revenues of $8.6 billion and $10 billion.
According to The New York Post, the Marijuana Business Factbook from MJBizDaily revealed that legal marijuana provided $39 billion–$48 billion for the economy in 2019. The amount could beat the $100 billion mark in 2023.
The cannabis industry could also help increase job growth. Full-time workers could reach 175,000–215,000 in 2019, according to the report. President Trump could back these factors and support marijuana legalization.
Cannabis legalization might help farmers
The Hill discussed how tax revenues generated from marijuana sales could help small farmers and small businesses. Overall, farmers have struggled due to the ongoing tariff battle. The money could benefit the agricultural sector. Cannabis is a diversified sector. Due to higher demand, cannabis could generate higher revenues.
Last year, J.F. Foster, a Missouri farmer, spoke to the AgWeb Farm Journal. He said, “As farmers, we’re all tired of trying to maintain profitability with current commodity grain prices and we’re trying to diversify to keep up in today’s market. Indoors or outdoors, farming heads should be turning at marijuana opportunity.”
Curt Livesay, the owner of Dynamite Ag, thinks that marijuana production will reach another level if US farmers enter the industry. Marijuana would benefit the US agriculture industry.
Medical marijuana booming
Currently, marijuana is still classified as a Schedule 1 Controlled Substance. As a result, many businesses and financial firms struggle to benefit from cannabis. However, medical marijuana is legal at the state level, which made the sector boom.
The hemp business has also improved. The US legalized hemp in the 2018 US farm bill. As a result, many cannabis players expanded their hemp business in the US.
Other candidates’ stance on cannabis
Bernie Sanders, Andrew Yang, and Pete Buttigieg support marijuana. Read Bernie Sanders Tweets on Marijuana Legalization, Andrew Yang Says Cannabis Laws Are ‘Deeply Racist,’ and Where Does Buttigieg Stand on Cannabis Legalization?
Other candidates also support marijuana legalization. Will President Trump join the group? Today, we’ll discuss Bill de Blasio’s views.
Cannabis players’ performance this week
Overall, 2019 started on a good note for cannabis. However, recent scandals and some news have taken a toll. This week has been rough for cannabis stocks. The FBI’s corruption investigation and the FDA’s stern stance on regulations might have been factors. Read Cannabis Industry: FBI and FDA Tighten the Screws and Cannabis Industry: FBI Investigation Poses Challenges to learn more.
Canopy Growth (CGC) (WEED) gained 1.8% on Tuesday. Aphria (APHA), Aurora Cannabis (ACB), and Innovative Industrial Properties (IIPR) gained 0.16%, 1.5%, and 2.3%. In contrast, Tilray (TLRY), Cronos Group (CRON), and HEXO (HEXO) fell 2.1%, 0.92%, and 2.08%, respectively.
Cannabis players’ earnings
Canopy Growth, Innovative Industrial Properties, Tilray, and Aurora Cannabis reported their earnings in August. Cresco Labs (CRLBF) will likely report its second-quarter results on Wednesday after the market closes. To learn more, read What to Expect from Cresco Labs’ Q2 Results. The stock fell 6.9% on Tuesday.
As of Monday, Aurora Cannabis and HEXO have gained 17.7% and 25.3% YTD (year-to-date). Meanwhile, Aphria, Cronos Group, and Innovative Industrial Properties have gained 5.7%, 10.3%, and 142% YTD. Tilray and Canopy Growth have fallen 57.5% and 2.5% YTD.
Read Which Are the Best Cannabis Stocks in August? for more industry updates.
The cannabis industry is an evolution. The industry will likely progress more after cannabis legalization. Stay tuned to gain more insights into candidates’ views on marijuana legalization.