California’s cannabis industry is in a free-fall, with some municipalities in the northern part of the state making plans for significantly reduced tax revenues as a result of a collapse in wholesale prices.
Once selling for more than $4,000 per pound, bulk buyers are now shopping in the $300 to $500 range for fresh harvests, according to experts, and some growers reported clearing out their crops for less than $200 per pound for fear of being stuck with product.
The price represents a sharp drop from recent years, according to industry insiders.
“It’s been a steady decline since we got here in 2010, but with the passage of Proposition 64 in 2016, prices accelerated downward quickly,” Rachel Greene, a longtime grower with experience in Mendocino and Humboldt Counties’ cannabis programs, told The Epoch Times. “It was a combination of a lot of people getting in the game and the old corporate warfare model of operating at a loss to drown out the competition.”
Prop. 64—known as the Adult Use of Marijuana Act—was passed by voters and made recreational sales legal, creating the beginning of a regulatory framework to manage the industry.
Legitimate and illegitimate family businesses were severely impacted by the plunge in profits and salability of a once easy-to-move commodity, according to farmers.
Far out Man, and I know where we can get some good chit man.
same will happen here. you cant tax anything at such exorbitant amounts and not expect people to find another way! the weasels and scammers in politics always looking how to feather their nests along with their family members nests while screwing everyone else! not gonna happen this time!