The South will rise again!

How Legal Cannabis Could Revitalize Southern Economies

The global economy has experienced one of the most tumultuous economic crises of the past decade, with the aftermath of the COVID-19 pandemic and the ongoing war in Ukraine. American states are not excluded from this economic downturn; However, most state governments are looking for ways to improve their current revenue streams. For most of these states, the cannabis industry has emerged as a legitimate way to replenish dwindling budgets, create jobs, and fund social and educational programs in disadvantaged communities.

For the southern states, this current situation is similar to that of many years ago during the Great Depression. Records show that alcohol decriminalization was one of the key solutions that pulled these states out of this depression. Today, decriminalizing cannabis is seen as one of the government’s solutions to this economic hole. This is a win-win situation for everyone – residents no longer bear the brunt of unjust cannabis prohibition policies, and governments are receiving millions in revenue from cannabis sales.

Current status of cannabis decriminalization

In February, Mississippi became the youngest and 37th state to decriminalize cannabis for medicinal purposes. Mississippi is one of three deep Southern states that permit the medicinal use, possession, and sale of marijuana. The other two states are Louisiana and Alabama.

Mississippi’s journey to decriminalizing cannabis began in 2020 when its constituents voted for cannabis reforms; However, the measure was thrown out by the state’s Supreme Court. This current measure was approved in January and subsequently signed into law by the governor in February.

It came as a shock to many that Louisiana, Alabama and Mississippi would be among the frontrunners for cannabis legalization in the southern regions. To be honest, many industry giants never thought these traditionally conservative states would legalize cannabis unless it was decriminalized at the federal level. It is evident that these states were impressed with the economic returns that a legal cannabis industry could generate for a state.

Outstanding in cannabis cultivation

The South has what it takes to excel in cannabis cultivation. The region already has a proven track record with similarly regulated industries. For example, the area produces one of the highest volumes of tobacco in the country. At least five of the ten largest tobacco producing states are in the southern region.

Cannabis is an agricultural commodity that needs to be cultivated, cured and processed with expertise. With practice and the right strategies, the South could become a top producer of cannabis plants and products in no time. We have observed that most of the South’s leading cash crops have seen price declines in recent years. Although these crops still bring significant revenue to states annually, cannabis has greater potential to generate higher yields.

The southern states know about agriculture, production and the creation of regulated framework conditions. These three skills alone can propel her into a productive cannabis economy. Another piece needed to complete the puzzle is people. The cannabis industry is still in its infancy. Therefore, most of the southern states could find it difficult to get the required workforce. However, there are students at prestigious Southern universities who can be introduced to various niches of the emerging industry. The state can issue policies to encourage talent to stay in the area after graduation.

Curbing the increasing brain drain in the southern states

The United States Congress Joint Economics Committee recently examined the problem of talent acquisition and talent loss in all states. The committee acknowledged that the southeastern region has experienced massive brain drain in recent decades. A high percentage of highly educated residents often leave their southern home states and move to other states in search of better job opportunities and living conditions. This has resulted in a stagnant and eroded economy in the South.

Alabama, Louisiana and Mississippi have taken the first step in reversing this brain drain and talent drain in the region by legalizing cannabis. The operators of this burgeoning cannabis industry in the South are racing to shape the future of the industry and become the most widely recognized cannabis brand for the home. Only one company can have the chance to make the Budweiser or Q-Tip of cannabis in the South, and the current operators are working hard to take advantage of this opportunity.

In the months and years to come, many bright minds from the mainstream industry will be ready to dive into the southern cannabis industry for the space it offers for career growth and financial gain.

What about other larger southern states?

Aside from Alabama, Mississippi, and Louisiana, most voters in other major southern regions of the country, including Georgia, North Carolina, South Carolina, Kentucky, and Tennessee, are far from allowing residents easy access to medical marijuana. Some areas in Arkansas, Florida and West Virginia already have restricted access to cannabis-derived medicines – provided they meet restrictive licensing requirements.

Should other states soon legalize cannabis, they would also seek leadership in the region’s cannabis economy. It would be a competition to see who could come up with the best policy.

We can expect these states to offer cannabis companies tax incentives to improve local economies. For example, companies in Georgia enjoy a steady stream of tax incentives. Although it is yet to pass comprehensive cannabis legislation, its residents enjoy one of the largest movie incentive programs in the country, higher even than New York and California. The higher a state’s tax incentives, the more entrepreneurs flock to the country to set up offices and businesses.

final remark

Southern states have everything it takes to be a cannabis economic powerhouse. The region has the skills, fertile lands, brilliant minds and immense potential to topple what is currently the country’s largest cannabis producer.

But first they must approve cannabis reforms that decriminalize cannabis, grant clemency, and bring social justice to all. In all of these cases, we believe that BIPOC needs to be considered for a crucial role in this emerging industry. Because they are more likely to be charged with cannabis offenses than white people and are least likely to be considered leaders of legal cannabis businesses. From the looks of things, the southern states shouldn’t be the only region trying to find a way out of this current economic downturn. The country should also work on implementing a comprehensive strategy by ending cannabis prohibition.

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