States with legal cannabis markets have seen agriculture employment grow 9 percent faster than they would have without legalization, according to new economic research from Texas Tech University.
The findings, presented at the Agricultural & Applied Economics Association's 2026 annual meeting last month, offer the first comprehensive look at how cannabis policy changes ripple through traditional farming sectors. Researchers analyzed employment data across multiple states before and after legalization took effect.
"The agriculture sector is seeing measurable growth that we can directly attribute to cannabis policy reform," said Dr. Maria Chen, lead author of the study and agricultural economics professor at Texas Tech. "This isn't just about cultivation jobs—we're seeing increases across processing, distribution, and related agricultural services."
The Numbers
The 9 percent employment increase represents thousands of new jobs in states that have moved to adult-use legalization. The study controlled for other economic factors and compared employment trends in legalized states against similar states that maintained prohibition.
Researchers tracked job growth across several categories: direct cultivation positions, agricultural processing roles, packaging and distribution jobs, and ancillary services like soil testing and irrigation management. The data spanned from 2016 through 2025, covering early-adopter states like Colorado and Washington as well as more recent markets.
The employment bump varied by state size and market maturity. Larger agricultural states with existing farming infrastructure saw faster job growth than smaller states building cannabis sectors from scratch. States with outdoor cultivation climates posted higher numbers than those relying primarily on indoor grows.
Industry Response
Cannabis industry groups pointed to the findings as evidence that legalization creates economic opportunity beyond retail and dispensary operations.
"We've been saying for years that cannabis is agriculture, and this study proves it," said Aaron Smith, executive director of the National Cannabis Industry Association. "These are real farming jobs in rural communities that need economic development."
But the research also highlighted challenges. Many agriculture workers in the cannabis sector lack the same labor protections and benefits available in traditional farming. The federal prohibition on cannabis means workers can't access USDA programs or crop insurance that other agricultural employees receive.
Some agricultural economists noted that the 9 percent figure might undercount total impact. Because cannabis remains federally illegal, many cultivation operations don't report employment data the same way traditional farms do. The actual job creation could be higher.
What's Next
The researchers plan to expand their analysis to examine wage levels and job quality in cannabis agriculture compared to other crops. They're also studying whether cannabis cultivation displaces other agricultural activities or represents net new economic activity.
"We need to understand if cannabis is creating genuinely new opportunities or just shifting resources from other agricultural sectors," Chen said.
The study comes as more states consider legalization measures. Lawmakers in states with large agricultural economies—including Texas, North Carolina, and Georgia—have cited job creation as a key argument for policy reform.
Federal rescheduling could accelerate the trend. If cannabis moves from Schedule I to Schedule III under the Drug Enforcement Administration's pending review, more traditional agricultural businesses might enter the market, potentially driving further employment growth.
The full study will be published in the American Journal of Agricultural Economics later this year.
This article is based on original reporting by www.marijuanamoment.net.
