![]() ![]() ![]() Weed Chipper: Huckleberry Hills Farms' Johnny Casali routinely pulps huge portions of his cannabis crop because California is growing too much. As such, most dispensaries are cash-only-a dangerous absurdity in an increasingly cashless world. Third is the continued federal ban on marijuana, which makes building a business extremely difficult and limits access to the mainstream banking system. Second is regulation: Many states make dealing with weed more complex than handling weapons-grade plutonium. First, there’s Nimby-ism: Even in weed-friendly California, nearly two thirds of municipalities have refused to allow legal dispensaries within their borders. But gaining approval to sell it is complicated for retail outlets. Many farmers therefore began growing it in search of green riches. It’s easy enough to get a permit to grow marijuana, a crop that proliferates abundantly if you know what you’re doing. The trouble boils down to simple supply and demand. With the wholesale price of pot per pound in California down 52% since 2017, the year before legal recreational sales started in the state, squeezing out a profit is nearly impossible. Some 95% of California cannabis cultivators operated at a loss last year, according to Jonathan Rubin, CEO of New Leaf Data Services, an institutional-grade wholesale price tracker. ![]()
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