Hemp is cleaving the Republican party in two 🗡️

HEMP
Hemp is cleaving the Republican party in two 🗡️

Who would've thought hemp policy would be the key sticking point between President Trump and Senate Republicans?

I certainly didn't have that on my bingo card even a year ago, but hemp-derived THC appears to have become a cleaver between Trump and senators in his own party. 

Social conservatives, led by Sen. Ted Budd, are fighting to strip a one-month delay on the ban for hemp-derived THC out of the continuing resolution before they head out for August recess. Budd has twelve cosponsors, including one Democrat — if the CR doesn't pass, the government could head toward a shut down. 

That's how the ban was written in the first place, by sticking it inside a must-pass funding bill. 

Libertarians like Sen. Rand Paul are on the other side, pushing to delay the ban. Trump himself called Senate Republicans and urged them to develop a comprehensive federal framework for hemp. 

The issue has Trump and Paul on the same side as Kirsten Gillibrand and now Ted Cruz, who are in it for very different reasons, opposing Budd and Tom Cotton. Bizarre times.

But the whole episode is emblematic of something I've been circling around in my reporting for the last few years: This is how the cannabis policy sausage gets made in the U.S. Haphazardly, in a rushed, emergency fashion, and attached to far more important priorities like keeping the lights on in D.C.

Read the full story. 

-JB

“These busybodies in there that want to ban everything are jumping up and down. It’s like they watched ‘Reefer Madness’ in 1937 and they believe the whole world’s going to be hooked on marijuana,” Sen. Rand Paul told reporters after meeting with other Republican Senators.

New York lets cannabis microbusinesses sell at farmers markets 🧑‍🌾

Gov. Kathy Hochul signed a bill letting licensed cannabis microbusinesses and dispensaries sell directly to consumers at approved Cannabis Showcase Events, essentially pop-ups and farmers markets, alongside other licensees. 

Flock cameras used to track weed consumer across state lines 📸

Consumers in prohibition states who cross state lines into legal adult-use states have a new reason to worry about mass surveillance. Police reportedly used Flock license plate readers to track a Wisconsin man who made frequent trips into Michigan as a pretext to search his car for cannabis. 

Michigan dispensary's "bulk pounds" ad ends its license ⚖️

Zaza Recreational's operator, Unique Farms, agreed to permanently surrender its Michigan license after regulators found it selling pounds of cannabis straight from the vault and advertising "Bulk Pounds Now Available."

Join Sweed and Cultivated for a candid conversation with retail leaders from Nova Farms and Black Canna as we explore what it takes to turn first-time visitors into loyal, repeat customers.

Together, we'll discuss:

- Local visibility and discoverability
- Customer acquisition strategies that drive traffic
- Conversion opportunities that increase retention and lifetime value

You'll leave with practical ideas you can put to work right away to improve how customers find your dispensary, what they experience once they're there, and why they keep coming back.

Moderator:
Brad Cross, CRO, Sweed

Panelists:
- Matt Davidson, Vice President of Retail and Marketing, Nova Farms
- Larry Leggett, Founder, Black Canna
- Jay Rosenthal, Co-Founder & Managing Director, Cultivated

Register today »

Large Colorado cannabis grower gets hit with its own mess 💰

Mammoth Farms sued two former contractors for financial misconduct, and they countersued alleging the Denver-based company ran unapproved edible production and ignored stop-work orders from OSHA and the Denver Fire Department. One of them, former payroll administrator Jaime Travis, also alleges years of harassment by CEO Justin Trouard.

Newton owes cannabis operators $2 million, a judge rules ⚖️

A Massachusetts judge ruled Newton illegally charged Ascend Mass and other cannabis operators $2.4 million in host community fees untied to any actual city cost, as state law requires. It's the latest in a run of Massachusetts host community fee lawsuits since a 2022 law tightened the rules, with operators clawing back money cities collected under the old, looser standard.

Earnings season continues this week. We’ll be listening to the calls, breaking down the balance sheets, and catching up with all the key execs to bring you what you need to know. 

Republican legislators and the White House may be butting heads over hemp, but legal cannabis companies seem optimistic about the impending ban on hemp-derived THC that could take place as early as Nov. 12. 

Cresco Labs

Cresco Labs CEO Charlie Bachtell said during his company's Aug. 6 earnings call that the proliferation of legal hemp likely introduced a large consumer base to the product who might not have otherwise had access. 

"If that goes away I think it's fair to say that we would expect there to be benefits," said Bachtell.

Cresco reported $15.4 million in income on $173.3 million in revenue in the second quarter. Revenue increased $22 million quarter-over-quarter, which was enough to swing income into the black from a $17 million loss in the first three months of the year. $CL.CSE ( ▲ 13.33% )

Curaleaf

"Hemp is everywhere in every market. You can't go anywhere without bumping into hemp products across the whole country,” Curaleaf CEO Boris Jordan said. 

“Even in states that don't have regulated cannabis programs, you're gonna have hemp. As a matter of fact, in some of those states, you have larger hemp markets than you do in regulated cannabis states. So it's gonna have an impact across the board.” $CURLF ( ▲ 10.42% )

Verano

"We believe the intended closure of the hemp loophole later this year is already providing preliminary benefits to the legal regulated cannabis sector,” Verano CEO George Archos said. 

“As an example, in Ohio, the regulated cannabis industry recorded a meaningful sales lift for the month of April after the state's preemptive hemp ban went into effect at the end of March.” $VRNO ( ▲ 4.85% )

And more:

Here’s the rest of the calendar:

Aug. 7
Trulieve - 8:30 AM
Canopy - 10:00 AM

Aug. 10
Village Farms International - 7:00 AM

Aug. 11

Vireo Growth - 8:00 AM
Ascend Wellness Holdings
Organigram

Aug. 12
Marimed 

Aug. 13
Chicago Atlantic - 9:00 AM