Source: Sacramento Bee
“California has too many marijuana farms — growing too much product — and if nothing is done it will devastate the industry…more than 1,142 acres of cannabis farms hold state permits. They can produce up to 9 million pounds of crop every year, but the permitted wholesale market can realistically support 1.8 million to 2.2 million pounds. Until now, growers with a temporary license have relied on the black market to sell any product that couldn’t measure up to the state’s pesticide testing program or when there was a better price to be found…[B]ecause the cannabis industry in California has over-relied on both the black market and out-of-state sales, producers and manufacturers over-estimated the actual wholesale demand in the state…Over-production is just one of many hurdles that the cannabis industry faces in the Golden State…Thousands of growers with a temporary license could soon be thrown onto the black market or forced to shut down unless the Legislature passes a law to push back the deadline for an extension application. California also is a messy patchwork of legal statuses for cannabis cultivation and sales.”
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