{"id":304,"date":"2022-05-05T07:45:37","date_gmt":"2022-05-05T14:45:37","guid":{"rendered":"http:\/\/www.inedc.com\/22\/?p=304"},"modified":"2022-05-05T20:58:11","modified_gmt":"2022-05-06T03:58:11","slug":"growing-pains-cannabis-profit-margin-has-become-too-narrow","status":"publish","type":"post","link":"http:\/\/www.inedc.com\/22\/05\/05\/growing-pains-cannabis-profit-margin-has-become-too-narrow\/","title":{"rendered":"Growing pains: Cannabis profit-margin has become too narrow"},"content":{"rendered":"
(Rebecca O'Neil, Sierra Sun)<\/pre>\n
PLACERVILLE, Calif. \u2014 If the cannabis market \u2014 legal and illicit \u2014 was looking risky before, the industry\u2019s countenance is now straight hostile.<\/p>\n
\u201cWe\u2019re seeing a lot of flower selling plus or minus $300 a pound \u2014 that means it could be as low as $200 or as high as $400,\u201d said Basil McMahon of Elevation Distro. \u201cIt\u2019s hard to make a living to sell flower at that price.\u201d<\/p>\n
The oversaturated market eliminates any sort of financial incentive one might have had to go legal, according to licensed cultivator Brad Peceimer, who noted that the state\u2019s cultivation tax alone requires the grower pay $161 per pound of the product.<\/p>\n
That is \u201cseparate and in addition to the effective 27% excise tax\u201d assessed at retail, McMahon said.<\/p>\n
Daniel Batchelor, owner of both the dispensary and the distro, said that each tested batch \u2014 separated by strain \u2014 is subject to a $500 Certificate of Analysis charge.<\/p>\n
Peceimer said many growers will take a loss in the current market\u2019s conditions given the government\u2019s sizeable and guaranteed cut of the product before cannabis seeds, or clones, can ever take root.<\/p>\n
\u201cThat\u2019s before you pay for the water in the ground, the fertilizer or soil amendments, the labor,\u201d Peceimer said, adding that there\u2019s little relief for small time farmers looking to scale up. \u201cThere is no return. If you were growing barley and it cost you $1 a pound to grow but it sells for 50 cents, growing more doesn\u2019t make you twice as rich, it makes you twice as poor.\u201d<\/p>\n
Peceimer said he has heard of pounds selling for as low as $150 on the black market. Even tax free, Peceimer said the profit margin is hardly worth pursuit. […]<\/p>\n
READ MORE<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"
(Rebecca O’Neil, Sierra Sun) PLACERVILLE, Calif. \u2014 If the cannabis market \u2014 legal and illicit \u2014 was looking risky before,<\/p>\n","protected":false},"author":1,"featured_media":305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":""},"categories":[8],"tags":[],"_links":{"self":[{"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/posts\/304"}],"collection":[{"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/comments?post=304"}],"version-history":[{"count":1,"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/posts\/304\/revisions"}],"predecessor-version":[{"id":306,"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/posts\/304\/revisions\/306"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/media\/305"}],"wp:attachment":[{"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/media?parent=304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/categories?post=304"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.inedc.com\/22\/wp-json\/wp\/v2\/tags?post=304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}