The U.S. federal government announced on April 23, 2026 that marijuana will be reclassified from Schedule I to Schedule III of the Controlled Substances Act. The order, signed by Acting Attorney General Todd Blanche, took effect on April 22 and removes the key federal prohibition on medical cannabis for products that are FDA‑approved or licensed under state medical marijuana programs.
Village Farms International, which owns extensive greenhouse facilities in West Texas, has said the rescheduling removes a major regulatory barrier that has prevented it from activating its U.S. cultivation assets. The company’s long‑term strategy is to leverage these assets to capture a share of the projected $45 billion U.S. cannabis market, a figure that has been cited in 2023 and 2026 market studies.
The rescheduling also eases the tax burden imposed by Section 280E, which has historically limited deductions for cannabis operators. By moving medical products to Schedule III, the change opens the door for federal approval of new cannabinoid‑based therapeutics and could spur additional research and investment in the U.S. market.
"The rescheduling of cannabis represents a monumental change for our industry, and we applaud the Trump administration for keeping its campaign promises and its commitment to unlocking the medicinal benefits of cannabis for millions of Americans," said Michael A. DeGiglio, President and Chief Executive Officer of Village Farms International. "We look forward to the opportunity to activate our U.S. cultivation assets when regulations permit, and are proud that our efforts to defend our industry and ensure a transparent administrative process last year have been successful."
The change does not legalize recreational cannabis; it applies only to FDA‑approved products and those licensed under state medical programs. Nevertheless, the regulatory shift is a significant tailwind for Village Farms, as it enables the company to move forward with its U.S. growth plans and potentially expand its product portfolio under federal approval.
Investors have recognized the regulatory shift as a substantial tailwind for Village Farms’ growth prospects, reflecting the company’s readiness to capitalize on the newly available market space.
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