Posted: Tue January 14 10:40 PM PST  
Business: Co-Founder
Updated: Tue January 14 10:41 PM PST
Tags: policy, california, business

Small Business Impeded In California Cannabis Industry

Big Cannabis Taking Over in California

By: WeedClub Team, Tuesday, January 14, 2020 at 10:34 PM PT

In 2015, California's then lieutenant governor Gavin Newsom ventured into the heart of the Emerald Triangle to pitch small growers on legalization. Prior to legalization, small growers were making good to great living under the vague protections of the medical marijuana laws. Small farmers feared that legalization meant that big cannabis would swoop in and take over while pushing them out of the market. 

The Humboldt County crowd whole-heartedly believed the pitch that they would not get written out of the industry and the growers who worked so hard to cultivate the industry would be protected from a big cannabis takeover. With support secured, 57% of Californians approved Prop 64 to legalize recreational cannabis.

Now, what small farmers were afraid of happening has happened. The new legalized cannabis market is dominated by large-scale competition that's heavily capitalized. In addition to big competition, restrictive zoning, costly permitting and other regulatory hurdles have prevented small farmers from accessing the legal market.

This is becoming a story that serves as a warning to other cottage farmers in different states. Despite any supposed protections the political class may promise, legalization may leave you behind in favor of big cannabis. With legalization comes heavy regulations which make it harder for cottage growers to meet. If you can't jump through the hoops, there's someone else, usually big cannabis, ready and willing to meet all the regulations with ease.



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