California’s new marijuana regulations will hurt small farmers, two lawmakers say

In a bid to protect family farms, two California legislators are seeking revisions to the state’s marijuana cultivation regulations.

State Sen. Mike McGuire and Assemblyman Jim Wood support a 1-acre cap on grow sites to prevent small farmers from being pushed out by corporate farming operations, the Los Angeles Times reported.

A cap of licensed marijuana farms at 1-4 acres was originally proposed in the draft regulations, but the California Department of Food and Agriculture did away with the stipulation in the rules that go into effect Jan. 1.

The final rules recently released by the state have no cap on the size of cultivation sites.

According to the Times, the lawmakers wrote in a letter to the CalCannabis Cultivation Licensing Division that “this last-minute revision rolls out the red carpet for large corporations to crush the livelihood of small family farmers who should be given a fair chance to succeed in a regulated market.”

One comment on “California’s new marijuana regulations will hurt small farmers, two lawmakers say
  1. AmericanMade on

    Here’s the thing with being a small farmer in CA. . . .You are already screwed.

    The laws and license fees are not easily navigated by the small 1 acre farmer. On top of that, if your county does offer licenses, most likely they are already over subscribed and you will most likely not get one.

    An example would be Oakland CA, Alameda county. Right now the only way to get a license to operate in the city of Oakland, is to have an equity partner. (read up on that I’m not going to go into it) The licenses are over subscribed. . .. And let’s say they do license anybody and everybody, the price of flower would fall even more and drive people out of business.

    Then we have Pesticide testing. . .or. . “Pest Free flower”. . . And we have Track and Trace.. . Distributor and delivery fees.. . Insane taxes . . . .All of which drive up the price of flower at the dispensaries retail level. (so why would I buy flower for $60 for 3.5 grams when I can get it all day long for $20 through non legal channels?)

    Then we get another problem. . .The costs associated with being legit and selling at wholesale prices is going to get so out of whack, that the underground market will flourish. . . Which is exactly what legalizing marijuana is supposed to get rid of.

    The winners in the cultivation market will only be the large corps who can get economies of scale. .. And what are their costs right now?. . .$1/gram or less?. . Small farmers will not be able to compete.

    Reply

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