With the end of the year rapidly approaching, the country is bracing itself for the numbers that will be put out in California by the cannabis industry. It’s been predicted by most, if not all, major news outlets that once the Golden State opens up to recreational marijuana in January, it will yield approximately one billion in licensing and tax revenue.
The green rush has created an opportunity for small business owners to flourish. The cultivation rules released a week ago have small to moderate farmers nervous about being pushed out of the competition completely. The state did very little in the verbiage that was used when setting forth the state regulations. There wasn’t a cap on how large a farm could be or how many licenses one company could hold. The only regulation that has been put forth for cultivation was set for with the legislation requiring the regulatory agencies to limit the number of Type 3, medium cultivation. Steve Lyle of the state Department of Food and Agriculture was quoted as saying “…there is no limitation for the for the other categories of licenses.” This encourages large grows, which require deep pockets.
On the other hand, many large companies are not yet ready to get involved due to the federal government not approving the plant. Large investors and any company looking to get into the industry are hesitant if they receive any funding from our government. With the fear always looming that the feds will move forward with threats of seizing accounts of any company receiving federal funding, it’s a hindrance for large companies including pharmaceuticals to cash in on the green rush.
This is the largest reason why the middle class has the opportunity to own dispensaries. It’s estimated the cost from the beginning to the end of the process is over a half a million and can be upwards of $800,000 depending on the conditions the city puts out for each property to meet before receiving their permit. These numbers are high but, they are doable. People have been known to band together two and three partners to raise the money and get a piece of the pie that has always gone to the largest companies.
