A Profitable Venture in a Conservative State
The medical cannabis industry in Arkansas is breaking records, despite the state’s notoriously conservative stance on drug legalization. A recent report by the Arkansas Democrat-Gazette highlights that residents spent an astonishing $23.2 million on medical cannabis in July alone. According to Scott Hardin, a spokesperson for the Department of Finance and Administration, the sales for July are strong indicators that Arkansas will surpass last year’s record-breaking medical marijuana sales of $270 million.
The Sales Story So Far
Between January and July 2023, Arkansas medical marijuana patients have shelled out $164.6 million, marking a $7.3 million rise compared to the same period in 2022. This spending equates to an eye-popping 5,157 pounds of cannabis, adding up to 34,214 pounds for the year.
“Should sales remain on this trajectory, Arkansas is likely to end 2023 with sales crossing the $280 million mark,” Hardin mentioned in a recent press release. But the financial story doesn’t stop there. The state collected $2.5 million in tax revenue from medical marijuana sales in July alone. This year’s cumulative medical marijuana tax revenue already stands at $18.5 million, making a total of $108 million since Arkansas’ first dispensary opened in May 2019.
Comparison with Other Months
It’s worth noting that July’s $23.2 million figure ranks fifth in monthly sales for 2023. March took the crown as the highest-earning month, with a staggering $25 million in sales. Even the least profitable month has not gone below $22.4 million, Hardin notes.
A Curious Case of Tax Revenue
While sales have been booming, the tax revenue hasn’t exactly mirrored this upward trend. The $18.5 million in collected taxes from January to July 2023 is a slight dip from the $18.7 million recorded last year.
The Major Players
The top-selling dispensaries contributing to these numbers were Suite 443 in Hot Springs and Natural Relief Dispensary in Sherwood, selling 551.7 and 462.1 pounds in July, respectively.
Patient Growth
The Department of Health reports that the number of registered medical marijuana patients has risen to 94,059, up from 88,893 in 2022. This incremental growth in patients substantiates the upward sales trajectory.
A Roadblock to Recreational Use
In contrast to these impressive medical marijuana sales figures, Arkansas has remained reluctant to legalize recreational cannabis. Last November, voters struck down Issue 4, a ballot measure aimed at legalizing adult-use cannabis. The rejection disappointed many advocates, including Responsible Growth Arkansas, who had been pushing for cannabis reform.
Criticisms and State-Level Opposition
The proposed measure wasn’t without its critics. Complaints included the lack of expungement provisions and the ban on home cultivation. State officials also questioned the ballot’s clarity, leading to its eventual dismissal by the state Board of Election Commissioners. Arkansas Governor Asa Hutchinson opposed Issue 4, stating that the legalization of recreational cannabis would hinder industry recruitment due to complications surrounding workplace drug testing.
National Trends vs Arkansas’ Stance
While more conservative states are softening their stances on cannabis legalization, Arkansas remains a stronghold of resistance. Recent national developments, such as changes to drug screening policies in Michigan and military cannabis testing amendments proposed by Florida’s Matt Gaetz, contrast sharply with Arkansas’ more conservative outlook.
In summary, Arkansas has cultivated a thriving medical cannabis market. Still, the state’s conservative values and regulatory hurdles pose challenges for expanding into recreational use. For now, it appears that medical marijuana will continue to be a substantial and steadily growing sector in Arkansas, albeit within its strict limitations.
