It is pretty crazy seeing all this money been thrown around. But it is very sad to see the people who really brought cannabis to the level to where it is today are being pushed to the side. Its defiantly an end of an era. But at least its very comforting that an individual can grow the best herb in the world at their home for personal use. At least most of us can just say no to big business. BUt on the other hand here in California taxes are so high the black market is thriving. So there is still a place for the small timer to make a few bucks, even though it is illegal. But thats never stopped us before right?
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Crazy times for sure. I work in consulting and farm planning and stuff and have offered up some projections as to how I think this thing is going to go down over the next few years. I successfully anticipated this glut of product on the market. It was easy to see from my perspective as folks called me wanting consults in switching from medical to recreational. I just knew there was going to be way too much product on the shelf, and the prices would bottom out.
It happened.
My next prediction is that over the next 2-5 years (as we are seeing in Canada) that in the US all of these farms losing their asses right now are going to be FORCED to sell to other companies just to save face. My buddy is looking at $350k in debt. He has no choice but to sell for pennies on the dollar.
And that is exactly why I predict a Merger & Acquisition phase in cannabis in the coming years. Folks in emerging markets will not experience this immediately. The Cali issues seem to be simply the upfront barriers to simply doing biz there. In my opinion there is little room for upstarts in Cali simply due to the capital requirements. I don't even work with a farm unless they have at least $1 million in cash secured. Otherwise a farm simply won't make it. (Trust me I have seen three other farms try to boot strap it and all have failed.) I am on a $2 mil project right now and those problems don't exist.
And nobody has EVER stopped us from doing business regardless of what those folks say or try to do to stop it. I think the cannabis community can do a bit better of a job in understanding the regulation side, but the regulators truly have NO clue as to how things work on the ground level. ;)
Yeah the regulators really got the dollar sign in their eyes. I’m here in Salinas Valley and since it’s a prime location for growing the county imposed the highest tax rate for growing which i beleave its 30$ a square foot. People are already starting to go under and now there considering lowering the tax. But it’s up in the air. I do fell there will be only a few companies standing in the end. But honestly I’ve already said no to the clubs and these big operations by growing my own stash. Feels good too, especially with those high ass prices due to the extra tax at the consumer level.