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        <title><![CDATA[California marijuana lawyer blog - Cannabis Law Group]]></title>
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        <lastBuildDate>Sun, 17 Mar 2019 14:37:46 GMT</lastBuildDate>
        
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                <title><![CDATA[California Marijuana is So Copious, It Could Cause a Market Crash]]></title>
                <link>https://www.los-angeles-marijuana-lawyer.com/blog/california-marijuana-is-so-copious-it-could-cause-a-market-crash/</link>
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                <dc:creator><![CDATA[Cannabis Law Group]]></dc:creator>
                <pubDate>Sun, 17 Mar 2019 14:37:46 GMT</pubDate>
                
                    <category><![CDATA[California hemp farmer attorney]]></category>
                
                    <category><![CDATA[California marijuana business lawyers]]></category>
                
                    <category><![CDATA[Marijuana delivery services]]></category>
                
                
                    <category><![CDATA[California marijuana cultivation lawyer]]></category>
                
                    <category><![CDATA[California marijuana lawyer blog]]></category>
                
                    <category><![CDATA[glut of marijuana]]></category>
                
                    <category><![CDATA[marijuana cultivation California]]></category>
                
                
                
                <description><![CDATA[<p>So much weed is being grown in California, it could create a bubble that will soon leave us set up for bust. There are too many marijuana farms, too much product and not enough demand. It has the potential, according to Vessel Logistics, to result in an an industry collapse. This is obviously something to&hellip;</p>
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<p>So much weed is being grown in California, it could create a bubble that will soon leave us set up for bust. There are too many marijuana farms, too much product and not enough demand. It has the potential, according to Vessel Logistics, to result in an an industry collapse. This is obviously something to which marijuana businesses and our Los Angeles marijuana business lawyers are paying close attention. </p>

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<p>The research firm/marijuana distribution company, crunched the numbers to learn nearly 1,150 acres of cannabis farms have a permit by the state. Those farms can generate an estimated 9 million pounds of the crop annually, yet the wholesale marked for the drug in the state – just realistically at this point – is about 2.2 million pounds. That means even if cannabis farms cut their production by half – we would STILL have an overstock.</p>


<p>In a typical trade situation, we’d look to offload that excess to markets in other states selling less. But we’re forbidden to do that by federal and state law. The drug remains a Schedule I narcotic, which our Los Angeles <a href="/services/business-licensing-state-and-local-medical-marijuana-licenses-mm/" rel="noopener noreferrer" target="_blank">marijuana lawyers</a> know that neither farmers nor distributors can ship this product across state or international lines without breaking serious felony drug trafficking laws – even when those states allow the drug to be used and sold legally.
</p>


<h3 class="wp-block-heading">California Not The Only One Dealing With Cannabis Surplus</h3>


<p>
Overproduction of marijuana is an issue in several other states. An Oregon state audit revealed that state is generating twice as much cannabis as the legal and medicinal market can support – and that’s on top of the fact the state already has more than a year’s worth of supply just sitting on shelves.</p>


<p>That is going to have significant consequences for the state’s economy. It has investors and shop owners nervous and buyers worried that with a market collapse, all the local marijuana businesses will soon fold.</p>


<p>Los Angeles marijuana lawyers know this could be the beginning of the end for marijuana prohibition.
</p>


<h3 class="wp-block-heading">Evolving Federal Law on Legal Cannabis in the U.S.?</h3>


<p>
At this point, 33 states in the U.S. adopting rules to allowing medical marijuana cultivation, use and sales. Another 10 states allow the drug recreationally. It certainly no longer fits the bill of a <a href="https://www.dea.gov/drug-scheduling" rel="noopener noreferrer" target="_blank">Schedule I narcotic</a>, which, per the U.S. Drug Enforcement Administration, has no accepted medical use and a high potential for abuse. Its cohorts in that category include LSD, methamphetamine and peyote. The chips just don’t stack up.</p>


<p>Still up until now, growers with temporary state marijuana permits leaned on the black and gray markets to sell their overstock. Sometimes this included those that couldn’t quite meet the requirements of the state’s pesticide testing program or those where black market buyers were willing to pay a higher price. We are/will be seeing a whole lot less of that now when growers finally obtain their permanent permit and licensing, as they are then subject to the California <a href="https://cannabis.ca.gov/wp-content/uploads/sites/13/2018/09/FAQ_CCTT_8.15.18.pdf" rel="noopener noreferrer" target="_blank">Track-and-Trace program</a>, which follows the buds from seed to sale, at every phase of the supply chain. That program is expressly for the purpose of ending practices like black market sales, but those with temporary permits aren’t subject to it.







The problem, say analysts, is that California has long over-relied on both the black market and out-of-state sales and production. This may have led to over-representation in wholesale demand.


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


<p>Additional Resources:</p>


<p><a href="https://www.sacbee.com/news/politics-government/capitol-alert/article228120439.html" rel="noopener noreferrer" target="_blank">California is growing so much marijuana it could crash the market</a>, March 2019, By Andrew Sheeler, Sacramento Bee</p>


<p>More Blog Entries:</p>


<p><a href="https://www.marijuanalawyerblog.com/legal-marijuana-toke-prompts-pentagon-to-review-security-clearance-of-tech-billionaire/" rel="bookmark noopener" target="_blank" title="Permalink to Legal Marijuana Toke Prompts Pentagon to Review Security Clearance of Tech Billionaire">Legal Marijuana Toke Prompts Pentagon to Review Security Clearance of Tech Billionaire</a>, March 17, 2019, California Marijuana Lawyer Blog</p>


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            <item>
                <title><![CDATA[Planning Marijuana Strategy Under Trump Administration]]></title>
                <link>https://www.los-angeles-marijuana-lawyer.com/blog/planning-marijuana-strategy-trump-administration/</link>
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                <dc:creator><![CDATA[Cannabis Law Group]]></dc:creator>
                <pubDate>Wed, 28 Dec 2016 16:20:15 GMT</pubDate>
                
                    <category><![CDATA[California marijuana legalization]]></category>
                
                
                    <category><![CDATA[California marijuana lawyer]]></category>
                
                    <category><![CDATA[California marijuana lawyer blog]]></category>
                
                    <category><![CDATA[marijuana attorney]]></category>
                
                
                
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                <description><![CDATA[<p>As we head into 2017, there is a great deal of uncertainty about what a Trump administration will mean for those in the marijuana industry in California and beyond. Cannabis advocates and industry players are struggling with attempting to formulate a strategy when no one knows exactly what the President-elect thinks about legalization. There have&hellip;</p>
]]></description>
                <content:encoded><![CDATA[

<p>As we head into 2017, there is a great deal of uncertainty about what a Trump administration will mean for those in the marijuana industry in California and beyond. Cannabis advocates and industry players are struggling with attempting to formulate a strategy when no one knows exactly what the President-elect thinks about legalization.</p>


<p>There have been efforts to piece together an idea of what the strategy will be, based on off-hand remarks and Trump’s cabinet picks. Then there is the fact that conservatives have historically demonized marijuana use (including both the new attorney general, Sen. Jeff Sessions, as well as the new health and human services secretary, Rep.Tom Price). But then there is also the fact that Republicans have largely embraced the notion of empowering states’ rights. Plus, marijuana is no longer a red-blue issue, with many conservative Republicans favoring legalization, and there are also liberal Democrats who oppose it. Trump himself has said that he is in favor of medicinal marijuana access.</p>


<p>In light of all this, those in the industry have worked out some loose-level strategies and ideas that will likely need to be tailored as time goes on and the policies become more concrete.</p>


<p>The first notion is that pro-marijuana advocates can’t rest on their laurels or assume that their positions are safe. Now is not the time for complacency. At a recent <a href="https://arcviewgroup.com/" rel="noopener noreferrer" target="_blank">ArcView Summit</a>, industry investors and other insiders seemed optimistic, thinking there was no way Trump would meddle in state’s rights and also, cannabis is a cash cow for states. However, we also have a number of authoritarian personalities and stalwarts of the radical right who might have no qualms about re-invigorating the war on weed to assert their power. Just this year, Sessions told a Senate panel that those who support marijuana aren’t, “grown-ups” and those who smoke it, “aren’t good people.” The marijuana industry is in an especially fragile place because the law was founded on the Cole memo, which the Obama administration extended as a means to provide temporary relief to patients, growers, distributors and others. It could easily be reversed.</p>


<p>The second is for companies to gird themselves for the possibility of a government crackdown – and a possible return of the market to criminal gangs. We know for certain that Sessions is anti-marijuana. But whether we will see a resurgence of federal crackdowns will depend on how much power Trump delegates to Sessions. Some have imagined a likely scenario wherein Trump will not be very hands-on in the process, given is lack of experience in law enforcement. There could be political implications that might make Trump wary of reversing the Obama-era marijuana policy, given that even some of the reddest states have some form of legal marijuana. If a crackdown were to occur, it’s likely we’ll see a surge in drug-related gang activity. It could perhaps be even worse than before because state and local authorities might be reluctant to return to pre-legalization police policy involving marijuana. That would mean there is no legal/ recreational marijuana, but it’s still available on the streets. Guess who is going to be selling it? Without the cooperation of local authorities, federal investigators are going to have a hard time tackling that issue. Of course, the administration could at that point start using this as grounds to assert a wider crackdown on undocumented immigrants (i.e., they are bringing drugs, crime, etc.).</p>


<p>Currently, there is bipartisan consensus that we need to reduce incarceration and that marijuana should be legal. However, those agreements could be in jeopardy, which is why it’s important that we are careful about how the pro-marijuana messages are framed over the next four years. This will be especially important because Trump has proven to be someone who is easily influenced by the media and public opinion. That has the potential to be used to the advantage of those in the <a href="/services/business-plans/" rel="noopener noreferrer" target="_blank">legal marijuana</a> industry.</p>


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


<p>Additional Resources:</p>


<p><a href="https://www.leafly.com/news/politics/cannabis-strategy-trump-four-ways-play" rel="noopener noreferrer" target="_blank">Cannabis Strategy Under Trump: Here are Four Ways to Play It,</a> Dec. 1, 2016, Leafly</p>


<p>More Blog Entries:</p>


<p><a href="/blog/study-medical-marijuana-laws-linked-to-more-older-worker-participation/" rel="noopener noreferrer" target="_blank">Study: Medical Marijuana Laws Linked to More Older Worker Participation</a>, Nov. 16, 2016, California Marijuana Lawyer Blog</p>


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