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It stinks to be in the cannabis industry in California right now.
We aren’t just speaking metaphorically either. Four years after cannabis advocates and workers celebrated the opening of the largest legal recreational marijuana market in the world, misguided licensing and taxation policies have created an emporium of dysfunction.
Today, hundreds of California cannabis farmers are choosing to let crops rot in the fields rather than risk a money-losing harvest or returning to the illicit market.
Astonishingly, amid this crisis, California’s Department of Tax and Fee Administration recently announced yet another tax increase. On Jan. 1, 2022, the state’s cannabis cultivation tax will increase by almost 5%, raising it to a whopping $161 per pound.
Let’s compare how much higher the cultivation tax is for cannabis than, say, wine grapes, almonds or raisins. Actually, no such comparison is possible because no other agricultural product has a cultivation tax. On the contrary, other agricultural industries are supported by federal crop subsidies to protect family farms from market fluctuations that could put their homes and livelihoods at risk.
To Read The Rest Of This Article By Tiffany Devitt and Jim Arabia on Cal Matters
Published: December 13, 2021
Founder & Interim Editor of L.A. Cannabis News