On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

420 with CNW — Small Cannabis Cultivators in California Struggle as Climate Conditions Worsen

The multibillion-dollar agricultural industry has been greatly affected by adverse weather conditions, with small marijuana growers feeling the heat most.  Almost 3,000 small marijuana farmers were recently greatly affected by severe weather, another blow to their businesses, which are already grappling with dropping sales, high taxes and increased competition from larger indoor farms.

The state of California has the biggest recreational marijuana market in the country. However, despite working and living in the Northern California counties of Mendocino, Trinity and Humboldt, cultivators in these parts have struggled since recreational cannabis was legalized a few years back.

The three counties make up the Emerald Triangle, which comprises communities founded by marijuana farmers in the ‘60s when individuals began growing marijuana under the thick canopy of old-growth oak, Douglas fir and redwood trees.

In the past, these small-scale farmers have waded through serious wildfires destroying millions of acres in crops, droughts that have destroyed product, the illicit market continuing to affect demand by driving prices down, and compliance fees and taxes depleting business profits.

Historic cold and snow was recently added to this list of setbacks.

Since marijuana is still considered illegal at the federal level, small growers can’t apply for federal assistance to rebuild or recoup their losses following a disaster. It doesn’t help either that annual sales for California have also been decreasing, something that hasn’t happened since the recreational market was launched.

Last year, annual legal cannabis sales hit $5.3 billion, quite a decrease from the $5.7 billion recorded in 2021.

The decline follows a bear run that drove wholesale cannabis prices to $300 per pound, which is a significant drop from the $3,000 per pound price the market experienced a few years before. This shift affected small, seasonal operators the most, as it makes it hard for them to compete with indoor growers who can grow their product year-round and better control conditions for their plants.

In 2022, California shifted the 15% excise tax burden to retailers from distributors, eliminated a cultivation tax on growers and overhauled its cannabis tax structure. Despite this, farmers are still finding it hard to stay afloat.

Farmers across the Trinity, Mendocino and Humboldt counties may soon stop paying taxes because they can’t afford to, with some cultivators going as far as to consider selling their products in the illicit market, where they can avoid taxes and set their own prices. At the moment, many are either focused on closing up shop or cutting their costs significantly.

Outdoor cultivation has its challenges as the farmers in the Emerald Triangle will testify, which is why some businesses such as Advanced Container Technologies Inc. (OTC: ACTX) have brought innovative products on the market to aid in the indoor cultivation of cannabis and other high-value plants.

NOTE TO INVESTORS: The latest news and updates relating to Advanced Container Technologies Inc. (OTC: ACTX) are available in the company’s newsroom at https://cnw.fm/ACTX

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have questions or are you interested in working with CNW420? Ask our Editor

Denver, Colorado
303.498.7722 Office

CNW420 is part of the InvestorBrandNetwork.


Select A Month

Official NewsWire Relationships

Alternative Products Expo Benzinga Cannabis Capital Conference Cannabis Business Summit & Expo 2019 Cannabis Drinks Expo Cannabis World Congress & Business Exposition Cannexpo Marigold PR MjMicro Conference New England Cannabis Network O'Cannabiz Conference & Expo Tether BudTender Tether BudTender Appreciation Week

CannabisNewsWire Currently Accepts



Bitcoin Cash

Bitcoin Cash

Doge Coin






USD Coin

USD Coin

Contact us: 303.498.7722