Can regenerative farming save outdoor cannabis cultivation?

Key points:

• Regenerative cannabis farmers focus on cultivating in native soil with natural inputs.
• Higher product quality allows for premium pricing.
• Cooperative models help small producers increase visibility and access.
• But success depends on connecting with retailers who value sun-grown practices.

Daniel Stein knows soil — not just as a growing medium but as the foundation of his business.

Stein has positioned his Briceland Forest Farm in Humboldt County at the heart of California’s regenerative cannabis farming movement – a push toward methods that restore ecological health that also offers a path towards profitability for small outdoor cultivators.

Stein’s approach is straightforward: cannabis and vegetables grown in native soil, boosted by compost and mulch instead of off-site fertilizers or container mixes.

“It’s easier, and you have a lower overhead because you’re letting natural processes do the work for you,” Stein said.

For small outdoor cannabis operators squeezed by falling wholesale prices, tight regulations and scarce shelf space, regenerative cultivation is emerging as a potential survival strategy. Growing in native soil with compost and other natural inputs can cut overhead while producing higher-quality flower that may command premium prices.

It could also arrest a troubling trend. The number of licensed outdoor cannabis farms in California has declined by 60% since 2019, according to Higher Origins.

How could new data change the conversation around cannabis farming?

Regenerative farming’s value-add for operators may soon be quantified.

An ongoing study led by researchers from Cal Poly Humboldt and California State University-Chico is taking a closer look at the practice’s use in cannabis.

The universities are selecting farmers in six counties to partner with. Researchers will track soil health, water usage, input costs and economic outcomes for small cannabis farms using regenerative methods.

Dan Mar, lead researcher and faculty member on the Cannabis Studies program at Cal Poly Humboldt, said the study aims to provide data to policymakers that reflects the realities of small, licensed cultivators.

“Our intent is not to change policy but to provide solid science, solid data about these small farmers,” Mar said, noting that many state regulations were shaped by worst-case scenarios of illicit growers rather than current farm practices.

These include strict rules on water storage, setback requirements and plant densities that present barriers, especially for smaller farms.

Many state regulations don’t account for the lower impacts of regenerative techniques, Mar said.

In addition to reducing expenses, regenerative farming also lessens environmental impact.

Is regenerative outdoor cannabis better than indoor?

But for regenerative farming to be sound business strategy, consumers will need to buy in — literally.

On the retail end, the quality of the finished product is the selling point.

The flavor, terpenes and cannabinoids in sun-grown cannabis are better than marijuana grown indoors – much like an heirloom tomato purchased at a farmers’ market is better than an ordinary tomato from a grocery store, Stein said.

“The main way it pays off is building a clientele that recognizes the quality difference and seeks it out,” he said.

“Depending on your market, it commands a higher price than industrial outdoor.”

Retailers committed to sourcing from these regenerative growers are central to the regenerative farming strategy.

What role do retailers play in regenerative cannabis cultivation?

Eli Melrod runs Solful, a licensed retailer with four locations in San Francisco and Sonoma County. It’s also one of the few in California featuring only sun-grown cannabis sourced from small-scale, environmentally conscious farms like Stein’s.

Melrod saw about 1,500 cannabis samples a week while he was working in a cannabis testing facility. It’s where he was introduced to the Emerald Triangle.

“I had this epiphany about regeneratively grown cannabis using organic practices,” he said.

“I was blown away by the quality. The taste and feel – it’s a way better experience than when it’s mass produced.”

Most retailers offer two tiers of flower: high-priced premium indoor and low-cost mass-produced outdoor, Melrod said.

“We’re a whole different thing – we’re premium sun grown,” he said. “Farmers aren’t spending tons of money on fertilizer and lights, so our cannabis tends to be much more affordable than Alien Labs, but it’s higher than cheap outdoor-grown cannabis.”

A quarter ounce of sun-grown cannabis retails for about $50 at Solful stores. A half ounce sells for about $80. A half ounce of Alien Labs, a premium indoor brand, sells for about $120.

While average wholesale prices weren’t available, Solful typically pays twice as much for small-batch regeneratively grown cannabis as for a regular pound of outdoor cannabis, Melrod said.

He argues that the cultivation method matters to consumers who want better quality and transparency.

“There’s a clear difference in how these plants are grown and how the end product feels,” he said.

Is market access the biggest barrier facing regenerative cannabis farmers?

But market visibility for regenerative cannabis farming is still limited.

Genine Coleman, executive director of the sun-grown cultivation advocacy group Origins Council, notes that many small farms don’t have the resources to educate the market or compete with bigger brands for shelf space.

That’s a problem Coleman said could partially be solved by allowing farmers to sell cannabis directly to consumers, a proposal that’s yet to catch on in California.

“It’s about market access,” she said. “It requires the farmers to leave the farm and spend a day or two in dispensaries doing demos and getting facetime with the consumers. That’s extremely laborious.”

She sees inroads as more specialty retailers support direct sourcing and certification programs gain wider adoption but says that reforming how cannabis is regulated and marketed will be critical for small farms’ survival.

Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.