Running head: THE MARIJUANA INDUSTRY IS FULL OF

UNKNOWNS

The Marijuana Industry is Full of Unknowns

Drexel Noecker

Central Michigan University

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I have conducted research on the currently evolving marijuana industry to determine if it

is the right line of work for myself to pursue. One of my main concerns was regarding the job

security and normal insurance and health benefits offered in many other career paths. Another

main point of interest I researched was marketing schemes and laws for cannabis companies. I

was curious to find out if large companies hired marketing specialists to promote their company

and spread the word about their product. Unlike most jobs, there are not many degrees directly

relatable to the marijuana industry, making myself ponder what work history is required to enter

the marijuana industry as well as if an entry level job is required. There is a large amount of new

products emerging to the market containing THC and CBD since the legalization of cannabis has

started to become mainstream. This led me to question which products will hold market value

and continue to grow in volume and consumer consumption. Through my research I made a

decision concluding whether or not the marijuana industry is right for me.

My research methods included reading various articles, talking to professionals currently

in the cannabis industry, as well as searching for information in published journals and

magazines. I did the majority of my research from the Central Michigan University library

website, searching for publications written by informed authors and recently written documents,

due to the quickly changing laws and regulations regarding cannabis. I also looked at websites

of large cannabis companies to view how they professionally market their brand. Another source

I used was a conversation with my boss from this past summer. He runs a large scale cannabis

farm in Humboldt County, California. After working with him this summer, it was clear he not

only knows a lot about the process of growing marijuana, he also is very informed and up to date

on the ever changing industry. Humboldt County is part of three counties which are side by side,

making up what is called the “Emerald Triangle,” which is claimed to be the largest marijuana
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producing region in the United States. The main weakness in my research method is that

different states and countries all have different laws regarding marijuana, making it hard to grasp

a full understanding of the industry within a specific geographical market. Although I was able

to understand the general outlook of the industry as well as the progressive outlook. None of my

sources were published or received prior to the year of 2018, which legitimizes the research I

have conducted.

One of the main goals of my research was to find out if and how I could incorporate the

degree I am pursuing into the cannabis industry. I currently plan on getting a business degree

focused in marketing and sales, so I looked up information regarding current laws and practices

of advertising cannabis products. Currently in Canada recreational marijuana is legal, yet

cannabis products cannot be advertised in any places where those under the age of 18 can see

them (Ligaya, 2018, p. 2). This law has been hard to interpret for cannabis companies in Canada

because the Health Canada agency has reached out to seven companies reporting issues with

their marketing, although no details were made public. This makes it hard for companies in the

industry to realize the limits set by the government. There are many similar issues in the United

States regarding laws being unclear in the commercial marijuana industry. In response to these

uninterpretable laws, cannabis advocate groups have formed. For example, in Michigan, The

Michigan Cannabis Industry Association (MCIA) formed in mid-January of 2019. This

nonprofit organization formed to host conferences with all of the cannabis business owners,

explaining and navigating unclear rules set by the state government to ensure businesses are

being compliant with the new laws (Jibrell, 2019, p. 13). In California, a group has formed

called the California Cannabis Industry Association (CCIA), acting similarly to the organization

in Michigan. This association focuses on connecting cannabis businesses with insurance brokers
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and lawyers practicing cannabis law to maximize efficiency and legal operations in California

(Jergler, 2018, p. 2).

I recently called my boss to check in and see how their new crop was looking this season

and ask him some questions about how he sees the industry progressing in the future. My boss

explained to me how since recreational marijuana in California has been legal, black market

prices have dropped severely and legal prices have stayed steady (J. Snieder, personal

communication, February 25, 2019). This means that fewer cannabis farmers are making enough

money to continue growing. Since my boss has legal sales and permits, he is able to continue to

profit, although he wants to head in a slightly different direction in the near future. As he

continues to purchase more and more land, he wants to apply for a permit to extract concentrates,

such as wax, oil, and live resin. He says these prices in California continue to rise as well as the

demand for such products (J. Snieder, personal communication, February 25, 2019). Due to ease

of use and less product necessary to consume to reach customer and patient satisfaction,

concentrated products continue to gain market value.

Another concern I had about currently joining the marijuana industry, is the fact that no

federal banks can legally support cannabis businesses in the United States. This also means that

insurance is not provided for these businesses, leaving the full risk of each owner’s investment in

their own hands. Due to the Controlled Substance Act (CSA), medical and recreational cannabis

are still considered illegal substances, yet there is no clause excluding marijuana from national

bank insurance programs, leaving a large grey area which scares the majority of banks away

from the cannabis industry (Cawley, 2019, p. 12). Until laws are officially implemented

regarding marijuana related businesses’ involvement with national banks and insurance agencies,

I think there will be a limited number of cannabis businesses receiving loan from banks or
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insurance agreements. With this being stated, there will not be any benefits for employees until

laws are set in place.

After conducting this research and answering the questions I proposed, it is clear to me

that the cannabis industry has made outstanding progress in the last decade, although there is still

a tremendous amount of progress yet to be obtained. The marijuana industry currently has more

legitimacy than it has ever had before, yet regarding laws and regulation, the industry is not close

to where in needs to be in order to be treated equally to other industries such as tobacco and

alcohol. Alcohol and tobacco companies can provide insurance and benefits to employees as

well as legally have access to federal banking in order to take out loans and hold money in

accounts. Without approval of the federal government in the United States, it is hard for the

marijuana industry to possess these rights. Even in Canada, where the government legalized

recreational use of marijuana, there are still restrictions held against the industry such as

marketing and promotional advertising (Ligaya, 2018, p. 1). While the marijuana industry in our

country lacks federal support, which excludes access to banks as well as crop insurance

(governmental funding when a crop is harmed by weather or nature), the industry is still very

profitable. The issue with someone like myself entering the marijuana industry currently, is that

without enough money to start up my own business, it is hard to earn a comparable living to that

of which a four year degree would average. Joining the marijuana industry would be easy if one

was looking for an entry level job. Although at this point there is not much one can do outside of

prior experience in order to land a higher paying job at a marijuana company. With all of these

facts being stated, I believe now is not the best time to join the marijuana industry. Within the

next five years, closer to when I graduate college, if the marijuana industry continues to grow as

quickly as it currently is, I think it will be a much more stable industry to consider working in.
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I would recommend to anyone considering joining the cannabis industry right now, to

wait until laws are less hazy. Regulations vary from state to state in the United States right now,

making it difficult to choose which state is best suited to work or start a business in. The federal

illegalness prohibits transportation of cannabis across state borders. This creates individual

markets in each state resulting in price variance as well as over flooding markets in certain states.

Once cannabis is federally legal, the market within the United States will reach equilibrium

making it easier to estimate profit margins. I would recommend waiting until the cannabis

industry receives the right to access banks before choosing a career in this field. After

researching, I have concluded that much of the unstableness is caused by the federal disapproval

of cannabis. Personally I would prefer to wait until cannabis is federally legal before joining the

industry full-time.
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References

Cawley, T. (2019, January). Banking on the green rush. Texas Banking, 108(1), 12-13.

Jergler, D. (2018, December 3). Cannabis industry has 'really strong need' for specialty

insurance: Expert perspective. Carrier Management. Retrieved February 22, 2019.

Jibrell, A. (2019, January 21). Cannabis group to advocate for businesses. Crain's Detroit

Business, 35(3), 13.

Ligaya, A. (2018, November 17). Cannabis marketing rules still hazy post-legalization. The

Canadian Press. Retrieved February 20, 2019.

Marijuana's biggest winners are going global. (2018). PR Newswire Europe Including UK

Disclose. Retrieved February 22, 2019.

McLaughlin, M. (2018, December 14). The green rush. The Mississippi Business Journal,

40(50), 4.

Wehring, O. (2018, September 21). This week in soft drinks & bottled water, featuring Coca-

Cola Co's cannabis claims, Refresco's orange juice blockchain and say hello to hop-

flavoured water. Just-drinks Global News. Retrieved February 20, 2019.