Government Shutdown Leaves Budding Cannabis Producers in Limbo
*By Tracey Cheek*
The cannabis industry enjoyed a productive 2018, but the government shutdown may be turning the industry's green light to yellow.
Cannabis stocks are up overall, but according to Debra Borchardt, co-founder and CEO of Green Market Report, the government shutdown has left some farmers and companies in limbo.
“When you think about the shutdown obviously there are people in very important jobs like the TSA and the Secret Service, so you would think cannabis is not so important, but we also have a lot of people that are depending on things that are now stalled because of this,” Borchardt told Cheddar Monday.
In December, the federal government legalized recreational hemp with the passage of the 2018 farm bill. But those farmers eager to start growing are now unable to proceed with their plans.
“The farmers that want to capitalize on this are stuck waiting for the Department of Agriculture to approve them for their applications to start growing hemp,” Borchardt said. “For them, they're in this limbo land waiting to get started.”
In that limbo land, Borchardt said, background checks and approval can't be secured or processed.
“Right now all they can do is file an application ー but there’s no one to process it.”
Beyond the shutdown's impact on growers, the shutdown has potentially stymied a number of cannabis companies' plans to go public.
“If you're a cannabis company and you're ready to go public and now all of a sudden you've been stalled, well that's affecting everything you’ve been trying to do. Your expansion plans and maybe even the companies that are waiting for you to expand," Borchardt said.
For full interview [click here](https://cheddar.com/videos/how-the-government-shutdown-can-hit-the-cannabis-industry).
After the 2021 boom, IPO activity slowed down significantly, in part due to monetary policy – but things are getting moving again with tech-friendly companies like Iboutta and Rubrik making a public debut.
With an increasing demand for mental health services, one person wanted to change the therapy game. In 2017, CEO Alex Katz founded Two Chairs, a company that uses technology to match patients with the right therapist.
Not only is April Financial Literacy Month, it’s also the kickoff of the spring homebuying season. So now is the time to make sure you have a financial plan in place – and why it might not be wise for that to include buying your first home.
While the U.S. may slowly be on the path to lowering inflation (and therefore interest rates), Europe has thoroughly trounced America, putting it on the path to lower rates by this summer.
April's release of the monthly Housing Starts and Building Permits reports by the Census Bureau provides crucial insights into the construction activity in the housing market. These reports are an economic indicator, shedding light on the current state of the housing market and its broader economic impact.
Caitlin Clark is heading to the Indiana Fever, the number one draft pick and the highest-scoring college basketball player of all time. And while she may not be getting millions from the WNBA, there's a few ways she'll net compensation for her generational talents.
Author of 'Clean Meat,' Paul Shapiro joins Cheddar to discuss how the cellular agricultural revolution helps lower rates of foodborne illness and greatly improves environmental sustainability. Plus, how his company The Better Meat Co. is bringing healthier food options to the table.
Recent headlines might make it sound like World War III is imminent, but when it comes to your finances, it's not the time to panic. The market is coming off its longest winning streak since 2011.
You may have noticed fewer new venture capital-backed startups (like Airbnb or Uber) lately. The market slowed to a crawl after 2021, but things are expected to take off again in 2025.
Corporate earnings season is underway, that time when companies share their billions in sales or double-digit profits. But the data shows even companies are struggling with high inflation and interest rates.
