Cannabis Regulations

Exorbitant Costs Could Drive California’s Pot Growers Underground

The high cost of complying with California’s new marijuana regulations is pushing the bulk of the state’s growers off the grid and could entrench an illegal underground supply chain. One such small farmer, Lisa Austin of Willits, told The Californian that corporate takeovers and mono-cropping is breaking her heart and costing rural towns loss of income. “Small farmers built the industry, the strains, and the business,” she points out and advocates the cooping of farms and lowering entry-level costs into the mainstream industry as key elements for small cottage growers. Austin also calls for more incentives and an open-mind approach to their dilemma. Licensing Compliance Regulations are too costly A Salinas Valley consultant says it costs in the region of $750,000 annually to rent a greenhouse, cover taxes and implement steps necessary to comply with the new regulations. These exorbitant overheads have translated into less than one percent of California’s …

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