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Thursday, June 21, 2018

As Smaller Marijuana Businesses Get Squeezed, State Revenue Takes a Hit

New California law may help big cannabis farmers to the detriment of small growers.

SACRAMENTO, Calif. — Tyler Kearns, owner of the cannabis cultivation company Seven Leaves, stood in one of his half-dozen temperature-controlled grow rooms on a recent day, surveying a crop derived from the same mother plant.

“We have really tried to educate the general public through talks, tours, communication and presentations,” Kearns said, “to bring a better understanding of the legal California cannabis industry.”

But winning public favor is only half the battle for operations such as Seven Leaves. The other challenge is trying to survive as a small business in the state’s increasingly crowded cannabis industry. At about 10,000 square feet of indoor marijuana canopy, Seven Leaves is small for a California cultivator — the kind of business the new law was supposed to help.

The ballot measure legalizing recreational marijuana in California, which voters approved in 2016, promised that the recreational marijuana industry would “be built around small and medium-sized businesses.” Lawmakers placed size limits on cannabis cultivators and prohibited monopolies in the recreational market.

The goal was to protect nascent businesses from being crushed by big farms or well-financed conglomerates. The protections also were supposed to give existing pot businesses — especially those in the black market — a chance to transition to the legal, taxable recreational marijuana industry.

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6 comments:

Anonymous said...

Keep squeezing the eventual cash cow. My gosh gov'ts, where is your sense?

Anonymous said...

The CA Statehouse is controlled by democrats. Kearns is a dumb arse for believing anything the democrats say. But you know it's a given he himself is a democrat so he is getting exactly what he deserves and if he gets squeezed out oh well-voting democrat always has bad consequences.

Anonymous said...

Well the p*ssy wearing hat generation doesn't have that much sense either!

At least there's still alcohol!

Anonymous said...

Somebody (as in crafty lawyers and legislators, egged on by Big Weed) built that loophole into the law and was handsomely paid for doing it. Probably still are.

Anonymous said...

It's too dangerous to just let everyone grow their own in the back yard, it could cause overdoses and permanent psychosis!

If you want to legalize it, LEGALIZE IT!

GOD makes marijuana, not people!

Anonymous said...

The problem is big pharma will muscle in to keep the natural plant growers freedoms supressed. Market Marijuana cocktails in An attempt to dominate the market. Thats not really legalization... Eventually they want you to be able to buy from only them and they will attempt to control the source of their profit.. !!! not good