To be sure, the Emerald Triangle region of Northern California (comprised of Trinity, Mendocino and Humboldt Counties) grows the most marijuana by volume, hence the nod to greenery in its new moniker. However, if the pace of cannabis farming keeps up at the current clip, the Central Coast could soon surpass the northern neighbor region. And the region has a unique advantage over the Emerald Coast: No deep roots in the gray or black market.

Our Orange County marijuana business lawyers have been at the forefront of this industry, which has ballooned to an estimated $4 billion-a-year, and climbing. It’s been beneficial to the local tax base and also presents a new wave of opportunity for agricultural entrepreneurs seeking a legally sound yet lucrative opportunity. While the new law hasn’t entirely erased the stigma surrounding marijuana, the Central Coast lacks the cumbersome challenge of working to bring into compliance well-established underground growers transitioning into above-board – but heavily-regulated -operations. The risk of government raids is much lower (though not erased completely), but so are the profits, whittled by expensive new mandates and taxes. Operational, financial and legal concerns also persist as long as the drug remains illegal in the eyes of the federal government.

But while getting legal isn’t cheap, our California marijuana business attorneys serving the Central Coast emphasize its necessity in the long-game. Whereas only 200,000 medical marijuana patients were the primary legal market pool prior to the new state law, that now has expanded to the entirety of the state’s adult population – plus tourists. That huge opportunity means there is a market for growers, but smart entrepreneurs need to do it right. Long-time growers do have the advantage of equipment and experience, but staying competitive could mean relocation after careful jurisdiction shopping. Moving has its own set of logistical and financial burdens, but if one can find another location with an ideal climate, labor pool and transport routes AND lower cannabis crop taxes, it may well be worthwhile. Working with an experienced marijuana lawyer is key to ensuring all licensing and regulatory requirements are met.

At the lower end of the tax scale is Santa Barbara County, which has a current marijuana tax rate of 4 percent. Local leadership was strategic in this, hoping to regenerate some of the farming jobs lost to free trade economics. And still, only 330 acres of the county is devoted to growing cannabis, which is but a small fraction of what the vineyards own and operate. Those same vineyards are credited with replacement of dairy cattle and beef industry that fell by the wayside in the region. The county’s Board of Supervisors said their community is embracing the reality that marijuana is already in their communities, they won’t be successful in pretending it’s not – but they hope to keep the pace of growth reasonable, while also beneficial for the local tax base. Early estimates are that expected to be somewhere between $2 million and $3 million, most of which will go to enforcement, but there will be some left over for the benefit of unrelated public services.

The Orange County CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges from Los Angeles to Santa Barbara Counties along the Central Coast. Call us at 949-375-4734.

Additional Resources:

Marijuana is emerging among California’s vineyards, offering promise and concern, Oct. 14, 2018, By Scott Wilson, The Washington Post

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California Cannabis Growers Grapple with Regulation, Oct. 8, 2018, California Marijuana Business Attorney Blog

Think about champagne. Yes, it is an alcoholic drink. It’s also a grape-growing region in France. If you want to call a liquid beverage “champagne,” law requires that you must grow it in certain parts of France and only in accordance with very specific guidelines that cover everything from planting to pressing to packaging. That’s what allows sellers to charge top dollar for it.

So what does that mean for marijuana growers in California? Many were among the first in the U.S. to practice and perfect careful cultivation techniques when the drug first became legal for medicinal purposes. And unfortunately, while legalizing bud has been boom for consumers, it’s been a bust for growers. It has meant a near-crushing amount of oversight and safety testing. A virtual mountain of regulation, cannabis cultivators are finding that the laws meant to protect the consumer and the environment are being largely placed on their shoulders.

Our California marijuana cultivation attorneys know some of these firms have paid more than $120,000 in consults and fees. Although some can scrape by with money saved and the help of investors, it’s estimated some 10,000 marijuana growers in California may be poised to go up in smoke. By some educated guesses, fewer than 5 percent are going to make through in this era of legalized pot.

That’s why numerous growing are working with MAP, hoping to carve out a niche and a means of specializing and protecting the intellectual property of Northern California growers, whose unique methods of cultivation and strains that may only do well in certain climates.

Last year, the state senate approved a measure that would require the food and agriculture department to cook up a means by which cultivators who are licensed could found their own “appellation standards” and other processes that could be applied to marijuana grown in a very specific geographic place – and to do so within the next three years. Formalizing certain types of marijuana by region of growth, the idea would pay less mind to the city or county where the cannabis is cultivated, but more would be reflective of the communities that have been sewn together in the last two decades. Boundaries would be more cultural and environmental than the arbitrary lines recognized by the government – which in a way, is most appropriate.

However, there is concern this effort may not be feasible long-term as advancements in lighting and grow techniques mean that certain strains that may only thrive in a place near the Hindu Kush mountains of Afghanistan or the hot, humid climate of Jamaica can now be mostly engineered in a greenhouse. But we don’t know to what extent the chemistry is different unfortunately because federal law has prohibited most scientific research on the plant.

Geologists in Portland are studying the effects of how light, soil composition and air all impact the growth and production outcomes of certain strains. That could give us a good sense of whether MAP’s plan is feasible.

California marijuana cultivation lawyers at the Cannabis Law Group are committed to helping cannabis farmers protect their investment and their brand.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

THE QUEST TO MAKE CALIFORNIA’S WEED THE CHAMPAGNE OF CANNABIS, October 2018, By Matt Simon, Wired

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