How Legal Cannabis Could Transform Nebraska’s Economy

Economic Impact In The Cornhusker State

As discussions around cannabis legalization continue across the United States, Nebraska finds itself at a crossroads. While Nebraska legalized cannabis in 2024 through voter approved Measures 437 and 438, litigation and regulatory hurdles have slowed the progression of a cannabis program in the Cornhusker State. However, public support has shown the desire for medical cannabis in Nebraska and it’s easy to see why. A robust medical cannabis program could generate substantial tax revenue, create thousands of jobs, and provide new opportunities for entrepreneurs and small business owners.

 

Legal cannabis could transform Nebraska’s economy in two primary ways:

1) Increased Tax Revenue and Allocation

One of the most compelling arguments for cannabis legalization in Nebraska is the potential tax revenue it could generate. States that have already embraced legal cannabis have seen significant financial windfalls, such as Colorado and New York. Even states like Oklahoma, with only legalized medical cannabis, are reaping the benefits that legalization has brought to their economy. If Nebraska moves forward with building a dynamic medical cannabis market, similar revenue streams could be directed toward vital public services, such as education, infrastructure, healthcare, and criminal justice reform.

2) Job Creation and Economic Growth

Medical cannabis would also given Nebraskans thousands of jobs across multiple sectors. From cultivation to retail, the industry requires a diverse workforce and key areas of employment will come from licensed cannabis businesses such as cultivators, dispensaries, and manufacturing facilities. Among horticulturists and trimmers to store managers and packagers, many jobs will need to be filled that will require transferable skills. Additionally, the cannabis industry also fuels growth in complementary sectors such as security, marketing, legal services, and compliance consulting.

According to a 2022 Leafly report, the legal cannabis industry in the U.S. supports over 428,000 full-time jobs. Nebraska could tap into this growing workforce, reducing unemployment and stimulating local economies.

 

Comparing Nebraska’s Market Potential To Neighboring State Cannabis Programs

Given Nebraska’s central location, a legal cannabis market could prevent tax dollars from flowing to neighboring states where cannabis is already available. However, a number of these states with with established cannabis markets can offer a glimpse into what Nebraska could expect:

• Colorado: A pioneer in cannabis legalization, Colorado saw over $16 billion in sales since 2014, benefiting both urban and rural communities.
• Illinois: With a population similar to Nebraska, Illinois set a precedent for Midwestern cannabis markets, generating $2 billion in sales in 2024 alone.
• Missouri: Since launching adult-use sales in 2023, Missouri recorded over $1 billion in revenue in its first year, with strong contributions to state programs.

 

Medical Cannabis Opportunities For Nebraska Small Business and Entrepreneurs

It’s important to recognize that medical cannabis wouldn’t just benefit large corporations; it would create significant opportunities for local Nebraska entrepreneurs. A well-regulated medical cannabis market could support:

• Craft Cannabis Growers: Small-scale cultivation operations supplying local dispensaries.
• Local Cannabis Retailers: Independent dispensaries offering unique, locally produced products.
• Ancillary Service Businesses: Marketing firms, security companies, and testing labs.
• Social Equity: Programs aimed at supporting historically disadvantaged entrepreneurs.

By implementing equitable business licensing practices, Nebraska could foster a diverse and thriving cannabis industry that empowers small business owners rather than allowing out-of-state corporations to dominate the market.

 

Prepare Now For Nebraska’s Green Wave of Cannabis

The economic case for a stable and dynamic medical cannabis program in Nebraska is strong. With potential tax revenue reaching hundreds of millions of dollars, thousands of new jobs, and a thriving entrepreneurial ecosystem, legalization and effectively rolling out a robust program presents an opportunity for economic transformation. As policymakers consider the future of cannabis in the Cornhusker State, the economic argument is one they cannot afford to ignore.

Reach out to our experts at Canna Advisors directly or book an hourly consultation to discover how you can position yourself to tap into this new market the second it’s launched.