The size and yield of the large-scale companies. The

The group
of marijuana dispensaries, farms and other smaller businesses are contesting
the regulations set out by the state in November 2017.

This comes
in an effort to help protect their growing businesses against the larger
corporation and businesses. These large-scale investors could force the minor
farmers and entrepreneurs out of business.

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On November
23 a lawsuit was filed against the state Department of Food and Agriculture for
their lack in enforcing restrictions on the total amount of growing licenses
that may be obtained by any person or company. Thereby allowing the large-scale
patron to operate vast companies and corporations, squeezing out the local
cannabis dispensaries, farmers, weed delivery services, and other small-scale,
locally operated business.


The large-scale
companies could occupy the marketplace if the state does not implement a limit
on how many licenses can be gained by a single company or individual. This
failure by the state to protect the emerging market could have a potentially
devastating effect on the small to medium scale farmer, the local entrepreneur
and the locally owned cannabis dispensaries.


In 2016,
voters who approved Proposition 64 held no noticeably defined policies or
mandates however they did put forward a five acre limit for each individual
farm or business. This was to promote protection for the already present cannabis
businesses. The proposed limit was suggested to be in place for the opening
five years. These primary five years are crucial to the existing farmer and
local businesses to gain an iron grip in this fast rising market. The five acre
limit could protect the small-scale and locally owned businesses and farmers by
putting a cap on the size and yield of the large-scale companies.


The Growers
Association were counting on the five years as enough time to get them set up,
running and a significant part of the local economy.


The California’s Growers
Association’s Executive Director, Hezekiah Allen, said that the larger scale
investor or business may be able to amass many licenses. This lack of limits on
the number of licenses these businesses can obtain and the loophole created
comes despite the Adult Use of Marijuana Act promoting provision for the
protection of the small-scale farmers and businesses.


In November
2017, the newly released regulations dissolved the 2016 voter’s supported
provision of five acres per individual entity. The new limit is set instead on
no more than one acre of cannabis grow per license, leaving a loophole allowing
large scale business free to stack licenses and obtain a significantly larger
size of marijuana yield. The stacked licenses would give way for multiple acres
to be obtained. These large yields will bring down running costs for the larger
business and thereby reducing the price of the sold marijuana for recreational
use. This threatens the smaller scale businesses.


large-scale businesses and companies could potentially flood the market with
their lower costs giving way to lower prices. This will regulate the economy
and make the smaller scale businesses unable to compete in the market and be
driven to the black market, causing the illegal market to grow once again.


Allen said
that the main areas that will incur suffering from this and their affected
businesses would include the Trinity, Humboldt, and Mendocino counties. These
three counties are by some research and estimates believed to be the counties
that produce just less than two-thirds of the marijuana that is consumed by the
United States.


definition of a large scale license is that of any one farm that is equivalent
or greater than one acre. The regulations set out in November 2017 hold
restrictions for these types of larger scale licenses for the first five years.


On the
other side of the fence sits businessman Steve DeAngelo. DeAngelo is currently
operating dispensaries on a large scale and a large agricultural site. DeAngelo
argues that the lower costs and lower price of the product is a positive aspect
for the market. He counters that these low prices will be welcome in the face
of taxes and costs already increasing due to the recent Legalization.
DeAngelo’s marijuana distribution company, FLRish holds a four acre site for
growing and cultivation in the Salinas
Valley. Steve DeAngelo is
reported to have spent around $300,000 for the Californian Law firm,
Californian Strategies.



The lawsuit
was filed on January 23 at the Sacramento County Superior Court by the California’s Growers Association just over three weeks
since the birth of recreational marijuana sales in the California state. January 1st saw the
initial start of the experiment in the newly legalized recreational sales for
recreational marijuana.

lawsuit comes after long-held dread that marijuana agriculture would become
under complete corporate reign.

California Department of Food and Agriculture hold the responsibility of
issuing the licenses and they have declined to comment on the lawsuit.