420 with CNW — Poll Finds That Majority of Biden Voters Support Federal Cannabis Legalization

A new poll has discovered that a majority of people in America support letting states set their own marijuana policies, including the legalization of cannabis. The YouGov poll found that 7 in every 10 individuals who voted to elect President Joseph Biden support the nationwide legalization of cannabis, despite Biden’s opposition to the change in policy.

This survey emphasizes how unpopular cannabis prohibition is in the United States, with none of the demographics surveyed showing majority support for federal marijuana prohibition. The survey found that 25% of respondents felt that states needed to be able to decide whether or not to legalize cannabis with 45% admitting that they felt that marijuana needed to be legalized at the federal level. This figure makes up the majority of respondents who were in support of legalization.

Of those surveyed, only 17% were still in support of cannabis prohibition, with the remaining percentage still undecided on the issue. The poll also found that 78% of Democrats were in favor of legalizing marijuana federally, with 16% of this number arguing that the decision needed to be left to the states. The remainder argued that the plant needed to be legalized at the national level.

The survey also found that 23% of Republicans were in favor of national legalization while about 35% preferred that it be the states’ call. In addition to this, the poll found that more than 30% of those who identified as Republicans were in favor of federal cannabis prohibition. Of those who identified as Independent, 14% supported federal prohibition while roughly 25% were in favor of states making the decision. Additionally, the survey discovered that vast majorities of all age demographics believed that cannabis needed to be legalized, either as a state decision or across the country.

The survey also asked respondents about their coronavirus vaccination status, finding that fully vaccinated individuals who had also received their booster shots were more likely to support nationwide legalization with almost 20% preferring that it be the states’ decision. Of the number that was vaccinated without the booster, 19% were in favor of cannabis prohibition while 30% were in favor of it being the states’ choice. The survey’s findings show that support for marijuana reform was lowest among the nonvaccinated cohort.

The survey also asked questions on same-sex marriages, sex work and abortion rights. The survey involved 1,500 adults in America and was conducted May 8–10 of this year. The survey’s results show the growing popularity of cannabis reform as more states regulate marijuana and move to end its prohibition by allowing companies such as Cannabis Strategic Ventures Inc. (OTC: NUGS) to operate within the markets established.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — IRS Official Discusses Cannabis Sector’s Current Financial Challenges

The U.S. IRS Taxpayer Advocate, an agency under the Internal Revenue Service (IRS), has published a blog post in which the agency discusses the tax obligations that marijuana companies have and the efforts which are being taken at the Congressional level to resolve some of those challenges.

The blog post pointed out that, although companies in the cannabis industry are expected to meet their federal tax obligations, the firms aren’t at liberty to deduct many of the expenses that firms in other industries normally deduct when determining their tax obligations. This disparity stems from the fact that under federal law, marijuana is a controlled substance that cannot be bought or sold legally, so businesses engaged in cannabis business can’t claim tax deductions on an illegal activity.

Erin Collins, the National Tax Advocate (NTA) who penned the post, wasn’t committal about any changes to policy that needed to be made. However, she did acknowledge that Congress was making efforts to enact marijuana legalization or at the very least offer protections to banks that opt to do business with marijuana companies at state level.

The reason for posting this article, according to the author, was to highlight some of the increasing frustrations that a notable and growing category of taxpayers, including marijuana growers, processors, distributors as well as retailers, face. Educating these taxpayers was also a focus of the post.

The NTA wrote that tax code 280E is unequivocal in precluding businesses that “traffic marijuana” from taking advantage of many tax deductions enjoyed by other businesses that the federal government regards as legal. Because of this provision, Collins says that businesses in the marijuana industry end up meeting their tax obligations from their gross earnings rather than from their net income as would ordinarily be the case.

Another challenge facing the cannabis industry is the limited number of IRS locations that can receive cash payments. Businesses not only have to arrange to transport such large sums of cash, but they also have to move long distances in order to access the specific IRS sites capable of accepting large cash payments to clear tax obligations.

As a result of the high tax rate and the limitations on what business expenses can be deducted, it is significantly harder for a marijuana business to reach break-even point in its operations, the post says. The article also mentions that since marijuana isn’t federally recognized as a medicine, people can’t deduct medical marijuana costs as they file their annual tax returns.

The issues raised in this NTA article are known all too well by established marijuana companies such as Cannabis Strategic Ventures Inc. (OTC: NUGS) that have, through dogged determination, managed to find a measure of success despite those huge odds stacked against the industry.

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420 with CNW — California Cannabis Firms Sell Assets, Narrow Focus

When the recreational marijuana industry was launched in California, the trend was for every company to be vertically integrated. This meant that everything was handled in-house from cultivation and manufacturing to packing, retail sales and distribution. As the industry has matured, the shortcomings of vertical integration have become all too apparent, and companies are divesting themselves of many divisions and operations in order to focus on their key competencies.

NorCal Cannabis is one example of a marijuana company that has taken the route of shedding excess weight from its operations. In the beginning, NorCal went the vertical integration route, operating everything from cultivation facilities to retail locations and even a huge home-delivery operation.

However, the company noticed that it was bleeding money on each delivery run its vehicles made, so the logical thing for NorCal to do was to divest itself of marijuana delivery, so the company let its delivery license expire.

NorCal CEO Jigar Patel says that things have been looking up ever since the executive team made the hard decision to concentrate on cultivation as well as building the company brand. With 400 dispensaries now carrying NorCal products, the path to sustained profitability is clear and there are no regrets for concentrating on what the company does best.

Eco Farm is another cannabis company that also opted to divest itself of some of its operations. The company’s hand was somehow forced when wholesale marijuana prices in California collapsed in 2021. To survive, the company decided to let go of its cultivation-related operations so that it could focus on tech development, cannabis distribution and its online marketplace.

So far, says Danielle Dao, Eco Farm cofounder, the company has leased two of its three farms and are actively looking for a taker for the third. It wasn’t easy to make this decision, but Dao says “picking their lane” was a matter of business survival, and the company went for it.

The moves made by Eco Farm and NorCal Cannabis are by no means isolated incidents. They reflect a growing realization that long-term business success hinges on not spreading oneself too thin. Rather, a company has to identify its core competencies and concentrate on those if it is to survive the competition that is increasing every day. This is the norm in most industries, and the cannabis industry probably opted for vertical integration in order to ease the work of regulators who are charged with overseeing this industry, which is still illegal at the federal level.

But as more states establish their own marijuana markets and pressure mounts on Congress to end prohibition, it may not be long before all sector actors, including Cannabis Strategic Ventures Inc. (OTC: NUGS), choose which aspects to retain and which ones to let go of when a national market is finally opened.

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420 with CNW — GOP Congressman Wants Committee Hearing on FDA’s Failure to Enact CBD Rules

The top-ranking Republican on a crucial House committee has written a letter to the committee chair requesting that a hearing be scheduled so that the U.S. Food and Drug Administration (FDA) can explain why it hasn’t established regulations for CBD products as well as the Delta-8 THC products that are currently abundant on the market.

Representative James Comer from Kentucky wants the Oversight and Reform Committee of the House to analyze why the FDA has failed to exercise its oversight/regulatory function over the different products made from hemp, particularly CBD products. The GOP lawmaker adds that as a result of the inaction by the FDA, contaminated products as well as ads targeting kids abound on the market. Mislabeling is also prevalent, he says.

In addition, he states that there is an urgent need to hear from the federal agency so that the committee can confirm that plans are underway to put in place regulatory mechanisms aimed at solving the problem in a way that protects children from the risks they face from such products.

It should be remembered that lawmakers from both sides of the political divide worked in concert to get hemp legalized back in 2018. The same bipartisan effort has also been exerted to advocate for the passing of rules aimed at regulating the different products that are made from hemp. While the FDA is cognizant of this pressure, it has remained silent and hasn’t made any concrete steps to publish any regulatory framework for the CBD sector.

Comer also mentions that many companies are selling products with delta-8 THC, an intoxicating product made from CBD. The legislator points out that delta-8 THC exists in a legal gray area since the farm bill of 2018 doesn’t refer to delta-8 THC. It only caps delta-9 THC at 0.3% for products that are deemed legal under current federal law. The only action that the FDA has so far taken is to write warning letters to some companies have had made unsubstantiated medical claims while marketing their CBD and delta-8 THC products.

Comer has a track record of being an avid supporter of the hemp sector, and he even carried CBD products to a House sitting back in 2019 as he sang the praises of the strides made by Kentucky in developing its hemp sector. Consequently, he can’t be accused of trying to get political capital out of pushing for this hearing at which the FDA will be tasked with explaining its plans for the CBD sector.

If regulations for the cannabidiol sector are enacted, companies such as Cannabis Strategic Ventures Inc. (OTC: NUGS) will be in a better position to compete nationally since all companies will be playing by the same rules.

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420 with CNW — How Cannabis Use Has Evolved During the Pandemic

While marijuana has been in existence for centuries, it is still a controversial plant. The U.S. federal government classifies it under Schedule 1 of the Controlled Substances Act alongside hard drugs such as meth and cocaine despite the DEA admitting in 2020 that no cannabis overdose has ever been recorded.

An estimated 55 million people in the U.S. use marijuana, and many more states continue to enact marijuana laws either through legislative means or through ballot measures. So how has the use of this substance evolved in the course of the COVID-19 pandemic?

Sales jumped in many states

When the pandemic started in March 2020, many people initially panic-bought marijuana in a bid to have a supply that could take them through the lockdown period. This panic buying drove up sales, and the sales numbers kept climbing for many states including Colorado, Washington and Oregon. Some reports indicate that people turned to marijuana to relieve the stress of the pandemic or as a way to combat anxiety.

The categorization of marijuana businesses as essential allowed the retail outlets to remain open during the lockdowns and innovations such as curbside pickup and home delivery allowed many people to access the substance and boost overall sales.

Rising costs helped the black market to thrive

In some states, such as California, excise tax on marijuana can be as high as 35%, and this makes the final cost of the product so high that some people end up resorting to the black market for cheaper products. With a raging pandemic and many medical users unable to afford the ongoing costs of their medical marijuana, there was a tendency for many people to resort to illicit suppliers of the substance.

To this day, cannabis taxes are a subject of hot debate in places such as California, and there are fears that the black market could overrun the legal industry if the tax regime isn’t revised to give the licensed operators some respite.

CBD could hinder COVID-19 transmission or severity

Research has also shown that cannabidiol (CBD) has the potential to prevent the transmission of the SARS-Cov-2 virus, the virus that causes COVID-19. The cannabinoid may also limit the likelihood of someone developing the severe complications of this illness.

However, these studies used test tube and mice models, so more work may be needed to verify whether the same effects can be replicated in human trial subjects. What is clear is that combining CBD with THC (the cannabinoid that makes cannabis users high) is likely to water down the beneficial effects of CBD against the coronavirus.

As the pandemic goes on, we may see new developments in the way people use the cannabis products made by companies such as Cannabis Strategic Ventures Inc. (OTC: NUGS) either for medical or recreational purposes.

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420 with CNW — Cannabis Growers Could Be Left Out of California Drought Plan

As another record-setting dry summer approaches, marijuana cultivators are on the brink of being left out of a California program aimed at assisting growers while preserving water resources. The plan, suggested by state governor Gavin Newsom, aims at injecting approximately $268 million into paying various farmers so that they leave their fields to fallow during summer.

However, marijuana cultivators haven’t been included in the proposal being discussed to pay growers not to plant anything during summer. The state government is working with the largest providers of water in a bid to ease the rate at which water resources will be utilized for agriculture this summer.

It should be noted that only select areas of the state are to benefit from this drought assistance program. The area of interest is the watershed whose origin is the Sierra Nevada ranges found in the northern region of the state. The program is aimed at convincing farmers not to grow crops, including alfalfa, rice and nuts, which require plenty of water during their growth cycle.

Analysts say that it is unfortunate that California isn’t looking at marijuana farmers as worthy of receiving support at a time when their tax burden is huge yet operational conditions aren’t ideal due to the brutal drought. It is as though marijuana growers aren’t looked at as practicing agriculture, says Mendocino Cannabis Alliance’s Michael Katz. He says if support isn’t forthcoming to the cannabis sector during the drought, plenty of small-scale farmers are likely to be distressed and go out of business.

According to California’s Department of Cannabis Control, it is premature for marijuana growers to complain about being left out of the drought plan. The DCC says the plan is still in its draft form and there is no telling which growers will or will not be included in the final text of the program.

However, the executive director of an umbrella organization called the Origins Council representing nearly 1,000 small-scale cannabis farmers doesn’t take any comfort from the position of the DCC. Genine Coleman says that for half a year, he has been busy lobbying local and state government agencies to come up with a policy on fallowing but no commitment has been made on this issue.

With the first quarter of the year receiving the least amount of rain in the state in recorded history, all the counties in the state have declared drought emergencies. It would therefore be reasonable for all crop cultivation activities to be included in the drought assistance program.

As thing stand, it looks like only established firms like Cannabis Strategic Ventures Inc. (OTC: NUGS) with the capacity to use their own wells will weather this drought while smaller actors in the industry could find themselves in dire straits without the drought assistance.

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420 with CNW — How No-Till Cultivation Can Be Beneficial to Marijuana Growers

There is an emerging trend in which marijuana growers are switching to techniques that involve the use of living soil, such as the no-till method, to grow their crops. This method is increasing in popularity because of its beneficial effects on the environment, its ability to reduce grower costs and its positive effects on the quality of the marijuana harvested at the end of the grow cycle.

In this system, the soil isn’t cultivated as is usually the case in conventional agriculture. Instead, mulch and cover crops are used to provide an enabling environment for the robust proliferation of microorganisms, which break down nutrients and make them available to the marijuana plants. For example, networks of fungus can break down minerals contained in the rocks within the soil so that marijuana roots can absorb them for use by a grower’s plants.

By doing away with topsoil tilling, cannabis growers eliminate the need to purchase costly cultivation equipment and instead rely on simple hand tools. Additionally, there is hardly a need to apply synthetic fertilizers, especially after a few years when the soil is now healthy and can avail all the nutrients marijuana plants need on a continuous basis.

Talk about the commercial cultivation of marijuana and many people will immediately think about how much water the system guzzles on a daily basis. With no-till cultivation, water use is minimized since the living soil with its plentiful organic matter retains water more effectively than soil that is cultivated in the conventional way. The mulch covering the soil prevents evaporation since the soil is shielded from the harsh rays of the sun.

Josh Turner, Massachusetts-based Green Meadow’s VP in charge of cultivation, says that no-till systems yield marijuana with a higher potency and a richer terpene profile. This makes sense given that the microorganisms in the soil make various nutrients from rocks, plant debris and soil available to marijuana plants, thereby enabling the cannabis to be of a high quality.

However, cannabis growers planning to switch to the no-till system need to be patient because it takes several years for living soil to establish itself. Additionally, the initial stages of this method are costly. However, once the living soil reaches a point when it is self-sustaining, those initial costs can be recovered over the subsequent years when input is minimal.

An inevitable consequence of creating a rich living soil is that weeds will compete with marijuana plants due to the presence of rich nutrients in the soil. To manage these weeds, mulch the cultivation beds and rotate the cover crops so that weed development is stifled.

As inflation soars and the population becomes more picky about where they spend their money, cannabis sector players such as Cannabis Strategic Ventures Inc. (OTC: NUGS) are having to get very creative so that their products remain competitively priced in order to maintain or even grow their market share in the jurisdictions where they operate. No-till farming is one of the cost-cutting options on the table.

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420 with CNW — A Look at the Relationship Between Different Social Media Platforms and Marijuana

The cannabis industry operates in a sort of regulatory limbo where dozens of states have legal cannabis markets, but federal law explicitly outlaws the production and sale of cannabis. This means that although marijuana businesses pay taxes, there are significant restrictions placed on them by federal legislations.

One restriction placed on the cannabis industry is on advertising. For example, because the controversial plant is considered a Class I controlled substance with a high potential for abuse, the Cannabis Control Commission in Massachusetts doesn’t allow cannabis businesses to advertise on most platforms unless data shows that they can reasonably expect at least 85% of the viewers to be 21 years old.

This policy encompasses radio, television, social media, billboards, mobile apps, podcasts and print media. So how exactly do the various social media platforms treat cannabis?

As it stands, you will most likely have your social media accounts deleted or banned if you use them to promote or advertise cannabis in America. Meta, which owns Facebook and Instagram, is one of the largest advertising platforms in the world, and it regularly cracks down on accounts that promote cannabis.

Twitter also considers cannabis to be federally illegal and will remove any content that promotes products and services related to cannabis. On the other hand, stakeholders say professional networking platform LinkedIn is the best social media platform to promote cannabis products. Anecdotal accounts show that LinkedIn is currently the most cannabis-friendly platform on the web.

According to Brooke Benavides, the marketing director at CMW Media, there has been growing conversation about cannabis on the networking platform. Unlike most other social media platforms, LinkedIn allows cannabis businesses to grow their platforms organically, Benavides says, providing industry professionals and businesses a platform to discuss matters relating to cannabis without fear of repercussion.

Reddit has also provided businesses in the cannabis sector an opportunity to increase awareness of their products. Via the Ask Me Anything (AMA) subreddit, which has more than seven hundred thousand members, players in the sector can have interactive sessions with the community.

Liz Gottbretch, director of Lantern, an organization that focuses on deliveries, says YouTube, Twitch, Pinterest and Alphabet Inc. are also home to several “cannabis adjacent communities” that cover topics such as food, gaming and how-to’s. These communities allow users to share content that is related to cannabis but doesn’t go against platform guidelines.

It might be valuable to evaluate the social media strategies of notable marijuana companies such as Cannabis Strategic Ventures Inc. (OTC: NUGS) in order to gain insights into how these types of companies manage to use any of those platforms without falling afoul of the stringent user guidelines.

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420 with CNW — Marijuana to Add Approximately $100B to American Economy This Year

Despite being prohibited by federal law, cannabis has quickly become one of the most lucrative industries in the country. After only a few short years of legalization, the state-legal marijuana industry has generated billions of dollars in sales and filled state coffers with billions of dollars in cannabis sales taxes.

Furthermore, the industry has created more than 300,000 new job opportunities across the country. Cannabis was one of the few industries considered essential at the start of the coronavirus pandemic, and it managed to consistently break sales records while other sectors struggled to keep their doors open.

With lawmakers considering federal legalization, cannabis may prove to be even more lucrative in the future. According to an analysis from the MJBiz Factbook, marijuana sales are poised to add a whopping $99 billion to the U.S. economy this year. By 2026, the impact of cannabis sales on the American economy will be greater than $155 billion.

Published by the MJBizDaily, the data shows that cannabis could have a significant positive impact on the economy, especially if federal limitations are removed. Researchers from MJBizDaily studied industries that have similarities to the marijuana sector, deliberated with economists, and multiplied projected medical and recreational cannabis retail sales by a standard multiplier of 2.8 to measure marijuana’s projected impact on the economy.

However, their results cannot be taken as concrete proof of the industry’s impact because cannabis has a unique structure compared to other sectors. For starters, it is illegal under federal law and has to operate under a multitude of limitations, despite bringing in millions of dollars in taxes every year.

Additionally, cannabis production typically involves a variety of cross-sector activities such as agriculture, manufacturing, retail, and even hospitality and events. These are all sectors that tend to be high value and have a greater impact on the economy. Rather than just estimating the amount of tax dollars cannabis would pump into the economy, this analysis looked at how the industry would impact the broader economy.

The researchers found that for every $10 spent at medical and recreational cannabis retail locations, an extra $18 would be injected into the local economy. This additional $18 would come from the hundreds of thousands of people who work in the cannabis industry through payments of housing and transportation, and other needs and wants.

As agricultural, manufacturing and retail ventures in the cannabis industry move to new regions, established companies such as Cannabis Strategic ventures Inc. (OTC: NUGS) are likely to continue expanding as well as they leverage their expertise and contribute to the growing economy.

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420 with CNW — Congress Appoints Negotiators to Finalize Manufacturing Bill with Possible Cannabis Banking Protections

Cannabis banking has been a contentious issue since states started legalizing medical and recreational cannabis. Since federal law prohibits the cultivation, production and sale of cannabis, most financial institutions refuse to work with businesses in the cannabis space. This forces marijuana businesses to operate on a cash-only basis, which significantly increases the risk of robberies and prevents these companies from accessing much-needed capital.

After years of advocating for access to financial services, the cannabis sector is a step closer to its goal after Congress appointed negotiators to finalize a manufacturing and innovation bill that would protect banks that choose to service cannabis businesses. Additionally, Rep Maxine Waters, who chairs the House Financial Services Committee, has listed the Secure and Fair Enforcement (SAFE) Act as a priority for the panel. In a recent press release, the committee noted that operating on a cash basis has led to significant public safety risks and makes it easier to engage in money laundering and tax evasion.

According to Safe Banking Act sponsor Ed Perlmutter, more than two-thirds of the America COMPETES Act Conferees have voted for or cosponsored the SAFE Banking Act. Even though he wasn’t appointed to the conference, Perlmutter says that he appreciates the support his legislation has received from the Financial Services Committee.

He says that it is now time to raise awareness of the public safety problem caused by the lack of access to banking in the cannabis space and to include his cannabis banking legislation in the America COMPETES package. The House of Representatives has passed some form of the SAFE Banking Act six times, but the legislation has repeatedly stalled in the Senate.

Alternatively, history may well repeat itself, and the bill could fail to advance past the Senate. Senate majority leader Chuck Schumer has made it clear that he would rather pass comprehensive cannabis reform before a cannabis banking bill. In December, several lawmakers expressed their frustration with Schumer and the Senate for failing to include cannabis banking protections in the National Defense Authorization Act (NDAA).

Democrats have a very slim majority in the Senate and likely won’t be able to pass any cannabis bill without winning over GOP legislators. Furthermore, none of the GOP senators appointed to the conference have cosponsored the SAFE Banking Act, and Senate Minority leader Mitch McConnell has shown his displeasure at House Democrats including cannabis banking provisions in the America COMPETES Act. The fate of cannabis banking protections along with the concerns of marijuana industry actors such as Cannabis Strategic Ventures Inc. (OTC: NUGS) now remains in the hands of the negotiators who will work out a manufacturing law that can be approved for enactment.

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