New Mexico recently legalized cannabis, and is following a rapid pace to get regulations in order to open up. The newly signed Cannabis Regulation Act will create new jobs and have plenty of room for small business owners and large producers. Read more below to find out the details of this hot market that’s on the rise!
Regulation Basics
In early April 2021, New Mexico legislators decided to legalize adult-use cannabis. This makes New Mexico the 17th state to fully legalize cannabis. Under the Cannabis Regulation Act, adults 21 and older will be able to use, grow, and purchase marijuana for recreational purposes. It’s expected that the state will launch its legal, regulated market in 2022, but a specific date has yet to be determined. However, it has been established that recreational sales must begin no later than April 2022.
Economic Potential
New Mexico is taking steps to ensure that the amount of product they create can meet demands. Kelly O’Donnell, a professor from the University of New Mexico’s School of Public Administration, has done some critical economic research to calculate how much product will be needed and how much revenue this will bring in. A total demand of 34.19 and 117.22 metric tons of cannabis will be needed to supply the newly opening market. This will generate approximately $342 million during the first year of sales, and grow to around $1 billion by 2026.
Next Steps
This last week, over 100 applications for the Cannabis Regulatory Advisory Committee were submitted. Assembling this committee is one of the first major steps in establishing regulations that will guide the industry as it opens. Public hearings will also be a part of creating these regulatory rules before cannabis sales begin. The department has met in the last few days with the currently existing medical division to begin developing new rules for the recreational market.
The market is quickly moving to open up so that businesses can get to work cultivating the amount of product that will be needed to supply dispensaries. As such, the first licenses to be awarded will go to cannabis producers. Applications for people interested in a production business will be accepted no later than September 1st, 2021. Now is the time to gather your team, assemble your application pieces, and contact Canna Business Services to help you guarantee your spot in New Mexico’s newly opening robust cannabis market.
