Posted on 05/06/2023 4:51:20 PM PDT by dynachrome
California’s cannabis industry is in a free-fall, with some municipalities in the northern part of the state making plans for significantly reduced tax revenues as a result of a collapse in wholesale prices.
Once selling for more than $4,000 per pound, bulk buyers are now shopping in the $300 to $500 range for fresh harvests, according to experts, and some growers reported clearing out their crops for less than $200 per pound for fear of being stuck with product.
The price represents a sharp drop from recent years, according to industry insiders.
“It’s been a steady decline since we got here in 2010, but with the passage of Proposition 64 in 2016, prices accelerated downward quickly,” Rachel Greene, a longtime grower with experience in Mendocino and Humboldt Counties’ cannabis programs, told The Epoch Times. “It was a combination of a lot of people getting in the game and the old corporate warfare model of operating at a loss to drown out the competition.”
Prop. 64—known as the Adult Use of Marijuana Act—was passed by voters and made recreational sales legal, creating the beginning of a regulatory framework to manage the industry.
Legitimate and illegitimate family businesses were severely impacted by the plunge in profits and salability of a once easy-to-move commodity, according to farmers.
(Excerpt) Read more at theepochtimes.com ...
Will the White Basement be affected?
I remember crashing on my couch, man.
I wondered when this would happen.
Think I saw something where the market on the entire coast is crumbling.
Maybe California should just raise taxes and fees on legal marijuana.
After all, that’s the liberal Democrat thing to do.
most of it now is being shipped to other states for the normal price,.
I guess the welfare checks and the food stamps just don’t buy as much weed as they used to?
biden will add weed $$$ to the EBT cards.
If I understand this, I’m surprised. Isn’t the state the only legal retailer? Isn’t the state collecting taxes? If those two assumptions are correct, where are the state “revenooers” burning these crops. If I set up a still here in Kentucky and start openly peddling moonshine, I doubt I could get away with it. The state turning its head to someone violating drug laws is one thing but condoning this loss of taxes, I’m shocked.
There is so much fraud in the weed biz it’s astounding.
Not quite. They’re just growing their own and telling corrupt .gov to shove their taxes.
Not just this biz, but all biz...
There are thousands of corrupt biz owners hiring millions of illegals...Their attitude? Profits regardless of consequences.
Very corrupt.
Start with a product that any idiot can grow at home. Legalize it, but impose massive taxes on the legal sale of it. Do nothing to stop illegal streetcorner sales.
Gosh, who could have predicted a price crash?
And the people at the state and federal level who regulate all this? They’re the most corrupt on the planet. They make the cannabis biz look like the pillars of society.
Lots of illegal grow operations in Cali.
There are plenty of empty buildings now in Northern California and it looks like more inventory is likely to come into the market soon.
A little history lesson for the youngest FReepers....
https://www.youtube.com/watch?v=k2pXxHW1DHs
Bummer!
Put the government in control of the middle east pretty soon you’ll have a shortage of sand.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.