Marijuana Business Factbook 2019

199 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Financial & Operational Data: Wholesale Cultivators | Chapter 3 MJBIZDAILY.COM CHART 3.15: Wholesale Cultivator Median Startup Costs By State Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Wholesale Cultivator Median Startup Costs By State (Businesses Launched In Or A�er 2016) $0.5M $1.0M $1.5M $2.0M $2.5M $3.0M $3.5M $4.0M $4.5M $5.0M Maryland Nevada California Rhode Island Oregon Illinois Oklahoma $4,500,000 $1,200,000 $700,000 $500,000 $260,000 $150,000 $42,000 Wholesale cultivation startup costs also vary from state to state, depending in part on application and licensing fees, real estate availability and the level of paperwork/number of hoops that must be jumped through. Each market may be similarly affected by the cost of obtaining equipment, although access to clones and seeds also may vary. Maryland: The state’s medical marijuana market took more than four years to launch, leaving many businesses on the hook for expenses such as real estate even though the businesses weren’t generating any money. License fees for growers are some of the highest in the nation. Nevada: Unfavorable growing conditions in Nevada ― primarily heat and aridity ― mean there are few outdoor grows in the state, as they are extremely inefficient and cost-prohibitive. The need to build out greenhouse or indoor grows drives startup costs higher relative to other states where low-cost outdoor grows are abundant , such as Oregon. California: Between the sheer size of the state ― with varying rules in each county and municipality ― and the 16 different types of cultivation licenses, startup costs in California run the gamut. Some growers have small outdoor grows that require a single license, while others have stacked several greenhouse licenses and taken more than $1 million to get off the ground. Rhode Island: While cultivator application fees are moderate relative to other states, licensing fees are tied to the size of the grow and are significant at the upper end. Oregon: License and application fees in Oregon are modest, and the abundant outdoor grows have lower startup costs than greenhouse and indoor grows. The explosive growth in cultivation has driven up real estate costs in regions that allow cannabis cultivation.