Cannabis License Opportunities In The Midwest For Q3 2024

Midwest Cannabis Business Insights Heading Into The Q4 Ballot

As we’re now squarely in the second half of 2024, cannabis business applications and licensing processes have presented many opportunities and challenges in our nation’s heartland.

This post will highlight key trends and regulatory developments across the Midwest cannabis industry. Some states such as Minnesota have made huge strides while others like Illinois are experiencing ‘normalization.’ Others like Nebraska need more momentum, and finally, those like Indiana continue to lag altogether.

Laws are changed via ballot initiatives and legislative action. This year, it’s even more important to understand your state’s landscape, as Presidential elections generally bring out the most voters and often bring forth new local candidates that can redirect the trajectory of a state cannabis program.

 

States Forming The Midwest Cannabis Expansion

Minnesota

Certainly the star of the Q3 2024 Midwest cannabis industry, Minnesota solidified its framework, verified its social equity applicants, and opened a limited-time application window this quarter for cannabis business types such cultivation, manufacturer, and retailer (dispensary).

In an effort toward diversity, equity, and inclusion, this window was only for social equity applicants (including military veterans and those disproportionately disadvantaged by the failed war on drugs). There will be a subsequent round for ‘non-social equity’ applicants expected this winter.

Among other things, Minnesota’s mezzobusiness licenses and legal THC-beverages in mainstream stores make it a unique market. If interested in applying for a license in the next round, you should be preparing now.

 

Missouri

In Q2, there was a second round of Microbusiness applications (57 winners announced in Q3). Missouri is the star of cannabis license buying and selling in Q3 2024. It is a hot market with many experienced operators looking to expand and divest. If interested in acquiring a Missouri cannabis license, please reach out to speak with our M&A team.

 

Ohio

As one of the more established markets in the Midwest, Ohio expanded its cannabis program this quarter by implementing adult-use sales (voted in by Ohioans last year).

The Division of Cannabis Control (DCC) issued the first dual-use dispensary certificates of operation this quarter in early August, allowing those dispensaries to begin selling non-medical cannabis. Sales of non-medical cannabis may not begin until the licensee holder receives a certificate of operation. Those applications were released in Q2.

Following 24 months from the first date of issuance of a non-medical cannabis operator license, the DCC must review the number of licenses on a biannual basis and may authorize additional licenses.

 

Established States Leveling The Midwest Cannabis Industry

Michigan

First in the Midwest to adult-use in 2018 (ballot initiative), Michigan is experiencing the pros and cons of the locally focused, ‘cottage industry’ approach to cannabis business licensing and oversight. The Cannabis Regulatory Agency (CRA) is famously transparent and efficient, with a heavy emphasis on social equity.

Consider licenses and applications ‘always available’ in Michigan, since it’s about making your case to the local government and not the state (with a limited number of licenses issued after a finite application window). The concern is to not veer toward an Oklahoma ‘wide open’ market. We’re seeing operators lose profit margin and licenses being over-issued this quarter.

 

Illinois

A trailblazer in the Midwest, in that adult-use was launched in January 2020 via legislative act and not a vote, Illinois remains a robust market for cannabis businesses focus on increasing equity and diversity. Nothing too new here this quarter in the licensing realm. If interested, Illinois is another hot market for M&A activity.

 

Cannabis States With Room To Grow

The Dakotas and Iowa

North and South Dakota wouldn’t be combined here (as they so often are) unless there was truly no update. This is that; and let’s toss in Iowa. These states continue to have small medical programs with no new licenses on the horizon. Efforts toward adult-use legalization on the November 2024 ballot are underway this quarter. Iowa has one of the most restrictive medical programs around; allowing possession (but not access) to specific medical patients.

 

States In Need of Midwestern Cannabis Advocacy

Nebraska, Kansas, Indiana, and Wisconsin

Have you signed a petition yet? Called your legislators? These heartland states are the most restrictive and slow to our fledgling industry. It starts with advocacy (in every state) if you’d like to see legal possession, adult-use, aan expanded medical program, or a program at all (which leads to licensing updates).

 

Make an Impact On Midwest Cannabis This Election Cycle

While states like Michigan and Illinois offer established markets with clear regulatory pathways, others like Kansas, Nebraska, and Wisconsin present more uncertain landscapes.

For businesses seeking to enter or expand in the cannabis industry, staying informed about regulatory changes, legislative developments, and market dynamics is essential for navigating the complex and evolving cannabis sector.

Reach out to our Midwest cannabis Consultants today or book an hourly consultation to discuss your best next steps.