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How to Ruin Your Weed with a Paper Bag

How to Ruin Your Weed with a Paper Bag

oregon cannabis, colorado cannabis and oklahoma cannabis

People have some whacky ways for curing cannabis, but a paper bag ain’t the way to do it!

When it comes to cannabis, there’s a lot that Chip Baker and Justin Jones can agree on. But when it comes to curing your cannabis in a brown paper bag, the two are at odds.

To Chip, it’s a figment of the past that’s best left there, and age old drying technique before the days of plastic bags and bins. For Justin, it’s a quick and easy way to finish out the drying process that works for him.

The paper bag dry method

Before the days of turkey bags and metal storage bins it was common for growers to dry their flower in brown paper bags. They keep light out and they’re discreet, but that’s about it. The problem with paper bags is that they absorb moisture.

If your flower is sitting in a paper bag, over time the bag will suck the moisture out of your plants. Left too long, your flowers will dry out too much and the bag can instill a strange flavor. But Justin has a technique that he insists works just fine.

Justin puts his flower in a brown paper bag that is extremely dry, so there is no moisture already present. Then with a dehumidifier or fan nearby he can keep the paper bag dry as it absorbs moisture from the plant. After 12 hours doing this process, Justin insists that his flower comes out perfectly dry.

Those days are gone

In Chip’s mind the days of needing to use a brown paper bag are gone. With the advent of Turkey Bags, plastic bins with liners and plain old traditional hang-drying in commercial facilities, not only have brown paper bags become unnecessary, they have become irrelevant.

Legalization has given cultivators access to better technology for harvesting, drying and curing their cannabis to the point where using brown paper bags or cardboard boxes is a figment of the past.

This week’s episode

This week on The Real Dirt, Justin Jones returns to talk about why he likes the paper bag method, how the cannabis industry has evolved and matured in Oregon, how it compares to Colorado and Oklahoma and more!

Roll up a nice hemp/cannabis blend and puff away while you enjoy another great episode of The Real Dirt with Chip Baker!

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Transcript

 

Chip: Once again, you have reached The Real Dirt podcast. Thank you for joining me today. On today’s real dirt, I once again have my good buddy Justin Jones. We just got so much stuff to talk about. And honestly, conversations with Justin was really how I developed the idea of The Real Dirt podcast, because I have such interesting conversations with my friends within the industry. Now I wanted to share those with you, and today we have Justin on the line again. Justin, are you there?

 

Justin: Hey how you doing, Chip?

 

Chip: Oh man, doing good, bro. Feeling good. What’s going on over there on the West Coast?

 

Justin: I’m just transferring some sherbadough here from a ziplock bag into a brown paper grocery bag. And I just want to know, how many guys out there and gals how many people, cannabis growers, know anything about the old brown paper grocery bag?

 

Chip: Oh, I’m moaning, dude. I am moaning over here. I can’t believe you’re telling me you’re putting your fine buds into a paper bag. Oh my god.

 

Justin: Man.

 

Chip: What, why are you ruining your weed? Why are you doing this?

 

Justin: No, man. No, no, no, this is a good thing. This is what you want, it’s good for it.

 

Chip: It’s good for your weed to taste like cardboard?

 

Justin: I don’t know. I don’t know if that’s what it does.

 

Chip: Man, you put your wet weed in a – or dry weed – in a brown paper bag, and it sucks up all of that moisture that’s inside that paper bag before it releases any outs.

 

Justin: But you got to have a dry paper bag. You can’t start with a moist bag, bud.

 

Chip: Oh okay, so you’re telling me it’s all in technique?

 

Justin: Yeah.

 

Chip: Well, let me hear it. Let me hear your technique on how you don’t ruin your weed by putting it into a paper bag.

 

Justin: Well, I don’t put it in there for that long. And you got to know whether you’re rolling the top down all the way, or if you’re just kind of crumpling it up a little bit at the top, or whether you’re leaving it just open.

 

Chip: Okay. Alright, alright. You’re gonna have to start at the beginning. Start at the beginning. Tell me what you’re doing again.

 

Justin: It’s something that the old school probably guys that are older than us smoked, it’s a way that you can – 

 

Chip: Before they had plastic bags, all they had  – 

 

Justin: Before all those plastic bags, you had paper bags, because you could use the paper bag to just kind of shift that lot in a slow way when you’re at the end of your dry and cure, and you’ve done your hang. And now you’re doing your seal and burp, and you just got to get that last little, make it perfect. You could use the brown paper bag, you know? And you got to look at other industries too. I mean, the people store seeds in paper bags, people store other thing, because it does have a little bit of a –

 

Chip: Breeze.

 

Justin: If you have any takes, breeding with the moisture. And so you know yeah, you don’t want to push your, a wet cell paper bag moisture into your bud, but I would say it’s a way to kind of temper it, right at the end a little bit. If you need to, you don’t always need to.

 

Chip: Man, I have seen so many people ruin weed by putting it in a cardboard box or in a paper bag.

 

Justin: Well, why do they put it in there for?

 

Chip: The same, they’re trying to do the same thing you’re doing. Hey, they got their weed almost dry, and they cut them down and put them in a paper bag to like, finish them out, right? Or cure them in a box. And I believe a lot of this came from early 2000s Cannabis Cup, where that’s what Arion of Greenhouse said that they did, is they cured their weed for months in a cardboard box, right?

 

Justin: Would you think there’s actually a certain taste or flavor that gets put in there?

 

Chip: Absolutely. Oh absolutely. It is – alright, so here’s the thing. And you kind of said it earlier about you have to have a dry paper bag, right? Well, it is a little more than that. If you have a dry paper bag, if you’re in Colorado, if you’re in California, if you’re in the desert –

 

Justin: Oh yeah, wait a minute, hold on. 

 

Chip: You’ve got a dry paper bag.

 

Justin: I got a dry paper bag in a small closet that’s got a dehume pounding on the other side of the closet too. So –

 

Chip: You got a dry paper bag?

 

Justin: Or I’ll blow a fan, right? If you point a fan right at the side of the paper bag, what you’re trying to do is get some movement, but not too much. And get a little bit of that wet in there, but not too much.

 

Chip: You’re trying to control the dry, so that it doesn’t dry so fast, because you don’t need, you don’t have the best drying room.

 

Justin: Right.

 

Chip: That’s where the paper bag really started as and became, is if you didn’t have enough or the best dry room, you’d hang your plants. And so they, because they won’t at some point in many – unless you have a proper dry room, they’ll never dry. 

 

Justin: Right.

 

Chip: Right? On the coast of California, Oregon, Washington throughout the southeast, you can hang weed up in your house, and it will never dry in your closet. 

 

Justin: Here in Oregon, I struggle with that. And you know, coming from Colorado where you have a hard time not over drying, here you just I mean, most of the time here, your relative humidity is 50 to 60%, which is kind of where you want your stored, finished dry material to kind of, I don’t know.

 

Chip: End up.

 

Justin: Right. Right, right yeah. And so it just is like, you’re fighting the moisture, the over moisture and those sort of things all the time on the west coast, for sure. Especially coming into this time of the year here, where it’s gonna rain three or four days a week, and you’re just always gonna have that moisture in the air.

 

Chip: So yeah, I mean home growers and commercial growers would take their buds down, put them in paper bags, and it would allow them to control the dry rate. They’d increase the heat, or the moisture would be sucked out of the paper bag until they, it would help them dry.

 

Justin: It’s easier, it makes, it gives them a wider landing pad on not fucking it up, right? And so instead of being like, “Oh, if I miss the wind,” if you’re not doing that, you may be, you missed your perfect window by a couple of hours. Maybe this gives you a day of a window to get back to it, to get it fueled up.

 

Chip: So here’s the folly, is because you’re in these wet areas, those cardboard bags and the cardboard boxes, they’re sucking out moisture.

 

Justin: Oh yeah, you can feel it.

 

Chip: Right, yeah, they suck up moisture. So one, you got to get those dry, you have to get all the moisture out of them to dry. So you have to put, get a dehumidifier or heater, right? That’s going to dry out these boxes and get all that moisture out of there, right? Because if they leave the moisture in there, and then put your weed in there, as your weed dries, it’ll suck the moisture out of the bag. 

 

Justin: You’re going the wrong direction, you have to have – yeah. The box of the bag’s got to be drier than your cannabis and you can only leave it in there for a certain amount of time. And you should, if it’s doing its job, the bag or the box should be super brittle dry. And then you put your material in there, and let’s say after 12 hours, you come back. You should be able to feel the difference in the paper, and then get it out of there. 

 

Chip: So you’re not going in the wrong direction. 

 

Justin: It’s the technique. 

 

Chip: Now your bud’s gonna suck it back up. I’ve used the paper bags like, so, so many times. I’ve had, years and years ago.

 

Justin: Well, it’s about, it’s all about reusing, you know? We try to recycle and recycling is good. But reusing is even better than recycling. And at the end of the day, I think cannabis guys are great at reusing those thin metal hangers from the dry cleaner? The dry cleaner hangers, you know? Those are real popular for hanging new branches, right? And so, there’s a way to, ‘cause those hangers suck. You get them from the dry cleaner, and then you don’t really use them to hang your shirts back up later, right? So they get kind of built up, so those are good. And then the brown paper bags, got to have them.

 

Chip: I’m definitely not a brown paper bags fan. I do, however, like to take the brown paper bag, fold the top over one time, maybe one inch or two inch fold and then insert a turkey bag. And then hold the turkey bag up, right? And as you’re going through your cannabis you can just put it right inside to a standing up bag, you know?

 

Justin: I like that.

 

Chip: Yeah, totally.

 

Justin: So, it’s a stand, it’s a turkey bag stand.

 

Chip: It’s a turkey bag stand.

 

Justin: Turkey or goose bags?

 

Chip: All depends on what you’re doing, man. Here in Oklahoma, we sell cannabis out by the gram. Meaning, that we sell it to an extractor by the volume. So we’ll have a volume and it’ll be like, 4,382 grams, right? That’s not quite 10 pounds, but we just, we’ll bag them up in a goose bag like that. 

 

Justin: In those large goose bags. Yeah.

 

Chip: And just get as much as we can, specifically with trim. When we do that with trim, right? And we try to get at least a thousand grams in one container. But it’s going to the extractor, they don’t care. They check it into their system by the gram as well.

 

Justin: You’re not trying to sell some of the, a perfect one pound?

 

Chip: I’m absolutely not. And, we try to go in 500 and 1,000 increments, just to make all the math easy.

 

Justin: Less brain damage.

 

Chip: Yeah, exactly, less brain damage. And I would use a larger container and I’ve been told, and I am we’re going to start the stock these bin containers, the bin bags. So they have a large turkey bag style that goes into the thirty gallon Rubbermaid bin now.

 

Justin: Nice.

 

Chip: Right? Yeah, totally. So I think we’re going to push towards that, and try to even get more cannabis in, right? Into one bag. Because man, it’s one bag, one label. Here in Oklahoma, 10 pounds is a batch. We’re not –

 

Justin: You guys got rules in Oklahoma now for that stuff? 

 

Chip: Yeah dude, there’s all kinds of rules here. Yeah, Oklahoma is really – 

 

Justin: Yeah, we knew it was coming. It was wild west there at the beginning.

 

Chip: Oh, at the very beginning, it was like, you can show up and in 30 days be doing whatever the fuck you want. And that changed, that changed to you can just show up in 30 days, apply for whatever you want. And then that changed to you can show up in 30 days, apply for whatever you want, and then depending on your local municipality, it might take one day to four months for you to get into any type of business, or get in to have a building plan passed or anything like that. And now, we’ve just –

 

Justin: Now you’ve got residency, two years?

 

Chip: Two years residency here. If you’re interested in coming to Oklahoma, you can only be an investor for 25% now. If outside residents of the state of Oklahoma, they have a 25% stake max for two years. And then, there’s a lawsuit I hear that they’re trying to lift that. Who knows if that’s going to maintain other states it has maintained?

 

Justin: We have a chain in Colorado, we spent years fixing those laws. Because they were very restrictive, and once all the money inside of Colorado ran out as far as investment money and that sort of thing, then you had to be like, “I gotta go outside of the state.” So I first started that you could get a, you could get an out, you could get a loan. And the loan could be guaranteed, like a convertible into ownership is that. So you get a loan from a guy from another state that says that could turn into ownership if that person moved to Colorado, lived there for two years, became a resident, then they could like, convert. So that you could do a loan that was convertible, if these other things happened. And then after that – 

 

Chip: That’s a convertible loan.

 

Justin: Right. And then after that, it became you could just have out of state ownership. And then now it’s, in Colorado, the public, pub coast are circling and making moves, because now you can have 49% ownership can be a publicly traded company. So, it was always that they wanted to be able to just go, background check, deep, deep dive on every single owner. So having a publicly traded company that could have thousands or tens of thousands of stockholders, right? Didn’t work. So now, so they fixed a lot of that. And so now, you’re seeng companies in Colorado start to go public, or go that direction. So Colorado’s now available for the multistate operator, the MSO. But we were really talking about Oklahoma moving forward and the regulations, and so you guys are now using the Franwell Metrc tracking system?

 

Chip: That is not in place yet, but it will be.

 

Justin: They’d said they’re going, so they’ve contracted.

 

Chip: Mhm, they’ve contracted. They say it’s going to be six months before they get it in place, who knows? 

 

Justin: Sure.

 

Chip: Right?

 

Justin: Yeah, well, that’s good. And what I like about that, and be it what it is, Metrc really is tracking probably 90% of the legal cannabis, and as we move forward towards a national legalization effort, having one company that’s kind of got most of that in line, it should be good down the road. That we hopefully in the next decade start to integrate the entire country into –

 

Chip: Yeah, well Metrc’s – 

 

Justin: Legalize cannabis.

 

Chip: Metrc definitely steps it up. It’s costly to scale Metrc, it’s difficult to scale it. So maybe some of the people who were, got tons and tons of square feet, and lots of plant numbers, they may change their operations.

 

Justin: There’s new companies coming in that are going to make it, they’re going to take and give you a user interface for your company that really works for you. And then behind the scenes, it plugs everything in the Metrc the way it’s supposed to. And so, Metrc is very clumsy, and it’s very designed towards the applications that the states want to use it for, for tracking the inventory, for tracking taxes, and these sorts of things. And yeah, there’s things that they thought were, would be great for the license ease on the user end, but they’re still real clumsy, and that hasn’t been their focus. So there’s some definitely some other companies that can overlay, and they’re trying. Nobody’s really knocked it out of the park yet, but I think that’s coming. 

 

Chip: It is coming. And it is easier, you can print your own tags now. The technology’s changing. It also makes monitoring, enforcement and regulation, the local government here easier, right? And it will drive more of that, because now they can go into a field that is all RFID, they can immediately get all the data of all the plants in it, you know? They can immediately like, follow that all the way from seed to sale in your operation that will make people tighten up their operations, their business models, account for everything. I mean, I tell you, I hope they haven’t made all the rules, because I hope they don’t make us weigh that shit, wet, dry, stem weight, bud weight. I hope we could skip all that. I know you got, I know Colorado has, I mean it is, that’s not just a Colorado thing.

 

Justin: No, it really, tracking the waste, tracking all that plant material is kind of the foundations of the early legalization, and it really hasn’t changed. And it’s really if you look at other industries, people are doing that on multiple levels. So, you just, when you’re trimming a plant down, just stick it all in this bin, the leaves go in that bin, the bud goes that way, weight it wet, we weigh it, we weigh it wet before we weigh it dry after you get all those markers all the way through.

 

Chip: Yeah, I mean, in all of my business, we monitor all of our waste, right? Our waste stream really does say a bunch about what you’re doing in business. And for instance, at Growers Coco, my soil manufacturing plant, we monitor all of the coco dust that’s wasted, we calculate all of the inputs into what all the outputs are, we’re always looking at our trash stream, our plastic, our wood stream going outside the business. Because the fact of the matter is, if you have a lot of bags that are torn in production, that shows up in your trash. And that means that there’s something wrong with your machine, or my employees, or the material where the bags are getting ripped and used inappropriately, right? Are not used inappropriately, thrown away. And each one of those bags cost us 40 cents, or something like that.

 

Justin: Well, it adds up. Yeah.

 

Chip: Oh, it adds up, man. And then you, also on the waste stream, you get to calculate how many pallets of material that you’ve gone through. So it is important in that business, that manufacturing business to track it for sure.

 

Justin: Well, that’s really what we’re doing with cannabis now that you can see the flow. It’s all manufacturing, you know? It’s agriculturally based, growing, processing, packaging, manufacturing, all the way down to get those consumer items.

 

Chip: Now, at some point though, it’s over regulated, right? It’s something I mean, from in my view, cannabis is harmless, right? Until you turn it into an extract. And at that point, it becomes like, I’ll call it dangerous, right? Because if anyone consumed or a child consumed a chunk of extract, a gram of extract, they would be fucked up, right? And they’re not going to die, but it would definitely be a, considered a poisoning, an overdose, right? They’re not going to die, but like, you know –

 

Justin: Yeah, you don’t want to do that to your kids.

 

Chip: You don’t want to do that to your kid, or to yourself, or to anybody. And like that’s to me where it becomes dangerous, and it should be regulated in some way.

 

Justin: Well, that’s why the regulations, well and that’s why you’ll see 10 milligram doses of edibles and not a hundred milligrams. 

 

Chip: Yeah, I don’t believe here in Oklahoma there’s a limit, currently.

 

Justin: There will be, there will. It’s five here in Oregon, 10 to 5 milligrams a serving, 50 in a bottle or a pack max. In Colorado, it’s 10 per serving, 100 in a pack, you know? One item is 100 milligrams, 10 pieces of whatever edible, or however that looks. Your Dixie Elixirs you talked about in one of our previous chats, they’ll have measuring guides on the model, or even sometimes they’ll come with a little cap, like your [inaudible 21:01] bottle has your little one ounce measure cap. Yeah, that’s how [inaudible 21:05]. So the tracking’s overly done, but that’s because we’re still operating under these, the guys that the feds aren’t going to do anything to you, if you’re operating legally in your state. And so I think that the tracking system is there, because it’s been there since day one of Colorado rack, the tracking systems are what’s helping protect the industry from the feds saying, “Hey, we’re going to take these guys out.” So, as legalization happens nationally, maybe some of these, some of these things will become less burdensome. That’s not happening anytime in the future. So you just have to get used to it, you just have to spend the money on that end of the business, and compliance, and inventory tracking and do it right. 

 

Chip: Yeah, man. And it is exciting to see it blossom here in Oklahoma, it’s a great place to be. The people are just incredibly nice for sure. It’s inexpensive to relatively speaking, to California or to Colorado, to set up an operation. But the real reason we’re here is the opportunity to help other cannabis farmers to cultivate OKC. And through our research at our cannabis farm, really figure out how cannabis grows best in Oklahoma, indoor or outdoor, greenhouse, the best type of products to use, how the season works, like, it’s really just this huge R&D effort on our part.

 

Justin: That’s what sets you guys aside from some of the other companies out there that are selling nutrients, or equipment, or dirt, or whatever, is that you guys are actually practicing, and have been the whole time. You’re in it, you’re in the same side of things so –

 

Chip: We want to get better, we want to help other people do it better. We want to overgrow the current stigma of cannabis, and that’s what we’re doing at Cultivate OKC, Bakers Medical, Growers Coco, at our farm here in Oklahoma. I mean, man, this place has been, this was a really great spot. I mean, Oregon was in a similar manner years ago, and Oregon had a boom and bust. I mean – 

 

Justin: It’s all balanced out here now.

 

Chip: Oklahoma is going to do a similar thing. Hey, give me the timeline, because Oklahoma will boom and bust due to the open regulations. And then the regulations and just the market environment, it’ll make it change. 

 

Justin: Yes, eventually. 

 

Chip: Right, eventually.

 

Justin: And how fast it happens. Here in Oregon, they’ve had to remove us to marijuana [inaudible 23:56] –

 

Chip: Was it medical and then rec? How did it fold out there?

 

Justin: Right. So medical has been around forever. Obviously, there was a great private market scene going back, 40, 50 years now. But medical converted into recreational and here in Oregon, they actually did away with the medical marijuana system from a commercial standpoint. So when all of the medical marijuana stores were forced to convert to recreational marijuana, and give up their medical marijuana licenses, and just sell recreational marijuana. And so, that’s what you see now. There’s still a few handful of just medical only stores here in Oregon, but it’s only really in areas that are banning the recreational sales. So at the end of the day, if you have a medical card which you can still have your medical card in Oregon, and you can still grow your own, and if you have a medical card, you can grow a few more plants that just with your recreational growing rights. But at the end of the day, you can go to the recreational marijuana store with your medical card, and then you pay no taxes, and you can get a higher amount. So instead of one ounce of flower, you can get four ounces of flower at one trip. And instead of four grams of hash, you can get whatever, whatever it is. So they haven’t totally screwed over the medical side. But at the end of the day, people jumped in and it was wide open. And it was really easy to get a license in [inaudible 25:28]  Oregon, and that would have 2015, going into ’16. And then, that’s when the conversion started happening here with Measure 21 and the, it Measure 21 which was the legalization of recreational here. And then they really were able to find out how much cannabis these guys can grow in Oregon and it became a huge overproduction, especially of outdoor. You could get an outdoor rec grow going for pretty cheap out on a farm down in Southern Oregon, and these guys just grew way too much. And that first year –

 

Chip: Best climate in the world. Best climate in the world.

 

Justin: And I think it was 2000, it was fall of ’16 that was going in as there were still a conversion going on, but it was it was going in and I believe that it was like the best growing year ever. It was in the 80s and dry all the way until Halloween. And so it was just a major harvest. So anyways, a lot of guys were only able to get 100 bucks a pound. That’s kind of what it came to for outdoor, and people just started really not doing well. So I think that people started dropping out and then with the hemp thing, in ’19, a lot of cannabis guys grew hemp, smokable hemp instead of ganja, and that cut it down even more on the licensed growers here in Oregon. And now, it’s bounced back out. And if you’re growing indoor, and you’ve got some really good indoor hydroponics type of bud, you can get up to 2500 a pound now wholesale, selling to the stores. I think it’s more in the 17 to 2, and maybe 22. And then maybe there’s a few of the really good name brand grows up here that are that are really great that are getting more, a little bit more with that 2500 premium.

 

Chip: I mean, two years, it’s been.

 

Justin: It’s just now been turning hemp. I’d say five years, four to four years.

 

Chip: So it took four to five years of like, flooded, like, what was the lowest price that cannabis, that quality cannabis got to? Tell me that.

 

Justin: Five to six hundred.

 

Chip: What about that greenhouse cannabis? That major production, the major –

 

Justin: Less than 100, less than 100. ‘Cause we had to start specking out a tier two outdoor grow in Oregon, which is 40,000 square feet of canopy. So that’s an acre of canopy. And basically, if you looked at what it costs you to grow, and for your licenses, and obviously it’s pretty cheap, because you’re just using the sun, natural stuff there. So you’re not like, paying for electricity like you would an indoor thing. These guys were lucky to get 100 bucks a pound and basically pull off 1000 pounds. So you get 1000 pounds of, you could revenue about 100,000 on an acre. 

 

Chip: Grown it like that, it’s fairly inexpensive putting it into a grow, right?

 

Justin: Yeah but I mean, it’s just $100,000 is not a lot of revenue. And especially –

 

Chip: If for just the costing, agree.

 

Justin: Costing, harvesting, it all has to come down at the same time. So you can’t necessarily just one man that. It just doesn’t work. It didn’t work. Now that’s changed. It came back up. Yeah. Well, and they were just trying to call them those oil fields. And nobody really was buying that material for a smokable sort of thing –

 

Chip: Oh man, all of our R&D, that’s what we’ve done with it for sure, man. It’s like –

 

Justin: It’s just going to the extractors.

 

Chip: It’s going to extractors. “Oh, I don’t like that strain. Oh, that didn’t work out. Oh, that takes too long. Oh, that one’s a little sick. Oh,” you know?

 

Justin: It’s different if you’re a vertically integrated company. And so if you have an indoor and an outdoor grow in Southern Oregon, and you have an extractor, and you have a store or two, then it’s fine. Grow the outdoor, because you’re just going to shove that through your extraction mine, and take it to your store, and you’ll eventually get retail for it, right? So, but there were too many independent growers that weren’t vertical also. So all the guys in Oregon that started out vertical and went with the grow in a store, that sort of thing, they’ve all have done well the entire time.

 

Chip: Yeah, right. Absolutely. Oh, man, you know, it’s business dude. Those same years in the hydro industry were a lean eight years for us. And I would say, it was about three years. ‘Cause it hit, well one, Oregon and California ruled the cannabis industry, regardless if you’re independent in your state, like their numbers and their volume like, really has a lot to do with what’s going on the rest of the country. I so

 

Justin: Oh yeah.

 

Chip: But in Colorado, it kind of hit peak about the same time, right? But it was more affected in some way, and we seem to like, the flood happened there a season before, and slow up a season before it did out there, too. The numbers started coming up a little bit earlier on, it was a solid three years though, in Colorado.

 

Justin: Yeah, for sure. Well, it just took longer. It took longer. Yeah.

 

Chip: Right.

 

Justin: And it’s a different curve but no, it’s definitely – 

 

Chip: [inaudible 31:00].

 

Justin: You brought up the outdoor. You bought an outdoor, we’re talking production, we’re talking where, who produces for what, so what’s up with all these fires, and what’s going on –

 

Chip: Oh man, everybody [inaudible 31:13].

 

Justin: How’s that going to affect the industry?

 

Chip: Dude, I’m telling you all the ganja from, I’m not saying all, but a shitload of the ganja producing region in the country just got burned.

 

Justin: Even if it didn’t actually get burned down, did it – I just read an article about all the grapes in Sonoma and Napa are going to be unusable this year, because they smell like fire. And so they’re, even if the farm didn’t get burnt on, there was so much smoke for such a large amount of time, it’s still happening.

 

Chip: Yeah, fires aren’t new over there. We lived over there for almost 20 years. And yes, some of it is so smoky that it will not sell and then, people have developed an ability to like, get that smoke out in some way, too. I’m not exactly sure how it’s done. But maybe just with the natural aging process, the smoke goes away. I’m not sure if you can extract it with that smoky flavor. I do know that, I mean, I personally know three different people who’ve lost most of their gardens, or all their gardens, right?

 

Justin: Yeah.

 

Chip: And it is, as far as my listeners and people that I follow on Facebook and Instagram, multiple farmers have lost their gardens and their infrastructure, and it might not come back next year. 

 

Justin: Right. 

 

Chip: Right. So I mean, this is like, last I checked, I’m not sure if you’re in front of the computer, but this is the August complex, right? It’s what they’re calling it now. And they had several different fires that merged together in August. And it was 100,000 acres, right? Like, that is such a huge area, man. I mean, it spans like, from Santa Rosa all the way up to Hayfork and beyond.

 

Justin: I just was looking at a map yesterday and it’s a huge part of the region there for sure.

 

Chip: It’s a huge part, and that’s not the only fire, that’s just the biggest one. There are other fires throughout California, Southern California. And those coastal regions are where the cannabis is produced, a lot of the hill cannabis, so to speak. Now what this won’t affect are the people that are in, I mean for next year anyway, it won’t affect for all those people in the valleys, and in the “ag land.” A lot of those people were pushed out of the forest area, even though man I mean, fire does not care where you are. And the wind starts to blow, and it moves as fast as the wind blows. And I’ve literally watched it travel what looked like 10 miles to me in the matter of moments.

 

Justin: ‘Cause that’s what we just had in Oregon here. And it did affect a lot of the, a bunch of marijuana guys, and hemp guys.

 

Chip: Southern Oregon’s huge, had a huge fire too.

 

Justin: Huge fire, but the one we had up here by Portland was big too, and it caused some problems. And same sort of thing you’re just saying, we had a big windstorm, which normally doesn’t happen until like November, December once it’s rainy. It happened starting the day after Labor Day, and basically there was already a fire going, and it wasn’t that big and then we got these like, hundred mile an hour winds up in the mountains coming down into the valley. And it moved, the one fire moved 20 miles to 12 hours. 

 

Chip: Wow.

 

Justin: Yeah. So –

 

Chip: Man, that was just big.

 

Justin: I’m concerned about that even just the size of some hemp fields and they look fine, but you just, I didn’t get, I don’t know what’s going to happen. It was so smoky here, and the air quality was like, as bad as it can get, you don’t even want to be outside. So, what did that do to the outdoor cannabis plants, hemp or whatever the, you know. We know them to be a sponge, we know them to be bioremediators of some level. So is the, are those plants going to be infected, or toxic, or have heavy metals, or some other thing from being smoked out for about seven or eight days here in Oregon? So even if you weren’t close to the fire and didn’t get hit that way, you lost sunlight production really because there was this weird sepia filter going on for the last eight days. And all the plants just stopped growing. Yeah, all the plants just sort of stopped growing, everything, like, everything stopped growing. 

 

Chip: [inaudible 36:10] max CO2.

 

Justin: Yeah. So, it’ll be interesting to see what that just did to these plants. And maybe they got cleaned up. Because that went away and the weather’s been good. And they’ve had some good, maybe they were able to well still –

 

Chip: Well if there’s enough time, if there’s enough time before harvest, the plants outgrow it.

 

Justin: Sure.

 

Chip: Right? And, and but if you’re harvesting right at –

 

Justin: It’s different if it got rained out on you. Right. 

 

Chip: If you’re harvesting right at the smoke, right? Like, if the fire is at your house, if you’re under that sepia layer we’re talking about, and it is the harvest season, you’re going to be the most affected, unfortunately. And maybe you’ve got some technique or something that we’d love to hear about here on The Real Dirt, let us know. Man, that’s just is hard. When it’s just smoke, and you’re harvesting your weed.

 

Justin: Yeah.

 

Chip: Oh, I’ve been there, man. 

 

Justin: You guys didn’t have any fire problems in Oklahoma right?

 

Chip: Fire season comes like fall and winter for us. That’s the dry season.

 

Justin: Yeah.

 

Chip: That’s because – but last year, there was some fires and fires happened here. They put up fire warnings, do not burn warnings. It’s windy, lots of grassland, it’s dry. The trees are small, comparatively. 

 

Justin: Definitely sounds like there’ll be a shortage of, there’s gonna be some sort of shortage for the suppliers. 

 

Chip: It is going to affect the demand. And it was already, demand was already up. So, demand is not going anywhere. It’s going to keep going up, just prediction. And supply, man, we just lost a huge chunk of the supply. And I mean, I’ll tell you, Oklahoma didn’t have the best outdoor growing year this year. If you were trying to pull before October, it was rough. It was humid and rainy throughout the state. Colorado, they had that early freeze this year. 

 

Justin: Oh, yeah. 

 

Chip: So their outdoor, their outdoor, like, it was diminished by that. Sure, some people have survived and a chunk of people lost out over that. On the East Coast, it was also a little bit more humid and wet, more hurricanes came through this year than any year before. So I think the overall outdoor production for 2020 is gonna be low. Combined with COVID, with all the new farms not being able to get the supplies, the materials, the people, the employees out to the garden, this is a really great year to be involved in cannabis. I predict that the price will initially dip as outdoor, what is comes into place, and everybody floods the market. And then between December and January, most of that will have run through the marketplace. And then the price will increase. Currently here in Oklahoma, there’s indoor weed between $3 and $3600. 

 

Justin: Yep. 

 

Chip: Right? Wholesale. This is of a similar nature in California. In Colorado, it’s cheaper, but  2800 bucks, $2600, that’s all going to go up next year, right? The wholesale price of weed is gonna go up. Fortunately for you listeners and consumers out there, generally the end user price doesn’t go up terrible. No, you guys are gonna, you guys are going to continue to pay $10 to $20 a gram, $40 to $60 and eight, right? And that’s been going on since 1996.

 

Justin: Yes, it has. Well, that’s good. Yeah, the consumer price is, well, and they might go up a little bit. Or you might see the higher end cannabis become a little bit more expensive, and maybe the quality of the lower priced stuff is not quite the same, right? You see a little gap, a bigger gap there.

 

Chip: Yeah, absolutely, man. It’s a good year to be in it. I’m glad I am. Things are good. We’ve had a better year than ever at my grow stores and with Growers Coco fiber.  More people than ever are growing cannabis.

 

Justin: When’s Oklahoma going recreational?

 

Chip: Oklahoma.

 

Justin: Yeah, when’s that going out? 

 

Chip: I just said some Chip’s predictions, okay, here’s the other, here’s more of Chip’s predictions. I think sometime next year, it’ll be introduced into legislation. I think it’ll be a legislative movement here. If it’s 2021, and they’re just gonna push it over to recreational 2022. Maybe –

 

Justin: Right. No vote, no public vote?

 

Chip: No. 

 

Justin: Just go to dispute the laws downtown, and get it, and then pass it?

 

Chip: Yeah, I think that’s what gonna happen.

 

Justin: We’re gonna see more of that as the country goes that way, it doesn’t necessarily gonna have to go to a big statewide vote. And in which, if they feel like everybody is good with it, and you trust your local congressperson and representatives to do, then it works.

 

Chip: Yeah, absolutely. Maybe it moves to 2023, if it has to be a voter sponsored initiative here, that might occur. But as far as yeah, recreate or adult use I would prefer to call it, I’m [inaudible 41:46] for 2022. 2022! Yeah, I mean, who knows? Who knows what’s gonna happen with the economy and the recession and, and everything. It’s incredible how like, because we’ve kept all of our spending and whatnot, internal, and everybody’s just like, sitting at home, and buying stuff online, and saving money, and not doing stuff. And it’s, our economy ain’t so bad right now. I mean, the stock market’s holding its own, banking hasn’t crashed, people are still buying houses. I mean, I know there’s a bunch of people out there hurting right now, and I’m sorry to hear it if you are, man. I know it. But like, it’s weird that to me, that just a little bit of stay at home, a little bit of government sponsored cash, has really kept this country floating, man.  I don’t even know what’s going on.

 

Justin: Yeah, well, people definitely are smoking more cannabis. 

 

Chip: Absolutely. ‘Cause unemployed people smoke more weed. That is a 100% a fact. Every time I’ve been unemployed, I’ve smoked more weed. How about you?

 

Justin: Yeah. Oh, for sure. I think that it’s also, if you’re stuck at home, and you’re dealing with this pandemic and everything, it’s a smarter choice. If you’re bored, and you’re not going out. I mean, the thing about alcohol and how social it is, is that maybe you go out two or three times a week, and maybe it’s a happy hour with some work colleagues, or you’re meeting some friends over here, and have a couple beers.

 

Chip: You might say, fuck it. 

 

Justin: Well, people don’t necessarily feel the same about just sitting at home every day chugging three, four beers, bored by yourself. So we’re, because it just the social aspect. So but, sitting at home and packing a bowl, I think it’s more tangible in the situation, in the current situation, right?

 

Chip: Absolutely. Oh, absolutely. And Netflix is like, I mean, weed and Netflix has been the number one way people have billed their time this past six months.

 

Justin: That I mean, I gotta admit, I got my kids the Nintendo Switch, and I found some games that I enjoy on there that are kind of fun. I didn’t see myself playing Super Mario Brothers at my age, but hey, it’s something you can catch a buzz, sit there and do that for 20 or 30 minutes. I mean, I don’t, I’m not promoting gaming as a full time job or anything, but you got to find some different home enjoyment. And people have been putting time and effort into their home gardens, and hopefully people have been, grew some extra, grew some cannabis plants at home if it’s legal in your state, just because you spent less time running around town and doing stuff away from the home front this year, and I think next year will be similar so.

 

Chip: Absolutely. I think people are going to stay at home more. I think that people are going to grow their own at home more. I think that throughout the country now, it’s legal to grow your own, and accepted to grow your own even if it might not be legal where you are. That people are going to sit home, man. They’re going to grow some weed, the amount of weed that enters the marketplace isn’t going to be, isn’t going to meet the demand. We’re not gonna have an oversaturation. I could be wrong, but that’s my prediction. There’s gonna be a lot of first time weed growers this year because of this, right? 

 

Justin: Well, it’s been good catching up here.

 

Chip: Yeah man.

 

Justin:   Some different topics, and jumping around a little bit but –

 

Chip: Once again – 

 

Justin: Hopefully, you can turn this into a good a good podcast.

 

Chip: How we’re just throwing it all out there these days, Justin.

 

Justin: I know. Hey, you know –

 

Chip: [inaudible 45:47] The Real Dirt is we just throw it out. 

 

Justin: We need to do an episode, we did it years ago where we were, we just prank called a bunch of people and did like, a 10 minute check-ins.

 

Chip: We should prank, we should do Justin, Chip and Justin prank call. Okay, we’ll schedule that one up next up.

 

Justin: Yeah, let’s do that again. That was fun, just check in with a bunch of people. But otherwise, it’s harvest time here in Oregon. The hemp plants are coming down, we’re here, we’ve had decent weather after all that smoke. But we got a rainy weekend going on now, and then a little bit more dryness coming, and so people are scrambling. I got a call the other day, and somebody needed help harvesting 50 acres of hemp so, it’s going down. And we’ll see, we’ll know here in the next six weeks how it all ends, I suppose.

 

Chip: Well thanks for the call again, Justin. Thanks for joining us on The Real Dirt. 

 

Justin: Always a pleasure. 

 

Chip: And thank you for listening. This has been The Real Dirt podcast with Chip Baker and Justin Jones. If you enjoyed this episode, you can download others at iTunes and Spotify. We’re The Real Dirt podcast. Please, please, please subscribe. Hey man, thanks for joining me. You guys have a great rest of your day. Later.

Revolutionizing Cannabis in Michigan

Revolutionizing Cannabis in Michigan

cannabis in Michigan is legal and growing

Six Labs isn’t just another cannabis cultivator. They’re aiming to be the next generation of cannabis.

Joe Ori knew coming into cannabis in Michigan with no industry background was going to be difficult. He couldn’t just open up a shop with his name and get attention, he had to come up with a way to differentiate his business from others.

So he created Six Labs.

Joe and five other partners created Six Labs not to just participate in the booming cannabis industry in Michigan, but to bring the industry into the next generation. Six Lab’s business model was designed specifically to address the problems in the cannabis industry and to find solutions.

Craft Cannabis in Michigan

From the quality of their products to the transparency they give to consumers regarding their processes, Six Labs stands above the competition where transparency isn’t necessarily a requirement.

In this week’s episode of The Real Dirt with Chip Baker, Chip talks with Joe about how he got into the cannabis industry and started Six Labs, the problems they aim to solve in Michigan and across the country, and what states are doing to hold themselves back from success in the industry.

Learn more about Six Labs

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Get great deals on grow gear

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Transcript

Chip: Welcome to another episode of The Real Dirt with Chip Baker. On today’s dirt, we have Joe Ori. He is founder of a cultivation facility in Michigan, Six Labs. Hey Joe, how’s it going?

 

Joe: Hi, Chip. Thanks for having me.

 

Chip: Oh, man, you’re currently speaking to me in my new podcast studio, we’re under construction. So listeners, forgive the poor sound quality. We’re fixing to turn this back into an awesome state of the art podcast facility to bring all of the great people like Joe and others to you. If you haven’t listened to any other Real Dirts, if this is your first one, please go to iTunes and Spotify and subscribe  The Real Dirt podcast. Man, I was really excited when you contacted us about chatting because you know, you’re an entrepreneur. My favorite subject is business. No matter if we’re talking sugarcane, or pecans, or ganja, my favorite subject. You’re in one of the hottest states right now, Michigan. Can you tell me a little bit about what’s going on in Michigan?

 

Joe: I don’t know, you know Chip, how much background you or your audience knows about it. But when we say that, we tell our investors that Michigan is a new market, they all kind of do their own research and say, “Well, it’s not really new.” They did have a medical program back in 2008, 2009, that was wrought with problems. It basically became a legalized black market, if you will. And so back in on 2016, 2017, the state looked at what they had and said, “We’ve got to revamp this thing.” And they rewrote the laws, and modernized them, if you will. I mean, it’s kind of crazy to call anything in the cannabis world “modernizing,” because it’s all relatively new. But they rewrote the laws, and opened it up to real businesses coming in. And so, when you said I’m a  founder, I’m a co-founder. I have five partners. And we saw an incredible opportunity to meet and have a substantial footprint in the state of Michigan. So it’s a relatively new market, when you look at it in perspective, and then we have a substantial lack of supply of pretty much every product. Very recently, the caregivers who were the effectively the market back in 2008, 2009, and up until 2016, 2017, were recently taken offline relative to certain products and their ability to sell to dispensary. So now there is an incredible lack of supply, and the prices are extremely, extremely high at the cultivation level, and they’re anticipated to be that way for a while. And obviously, the Coronavirus didn’t help some of the newly minted companies meaning ones that came online before us, or were planning to come online. Because construction stopped and everybody’s kind of halted. So, Michigan is going to have a pretty solid market for a few years, and then we’ll see which, what happens. You know, we’re trying to force the state to avoid the problems that Oregon ran into. And in Colorado with an oversupply of growers, and I think I know a little bit about you. I think you guys are in Oklahoma, and I’m very well aware of what you guys got going on there. I have a very good friend of mine who’s just started a company in Oklahoma. And you guys got thousands and thousands or whatever, six, 7000 licensed growers, and in all different sizes, I know that. But you know, that’s kind of the thing. Every state’s different. You don’t know what again, it’s like a box of chocolates.

 

Chip: Yeah. Oh, yeah. Michigan’s hot for a bunch of reasons. One, it has a historic cannabis presence. Historically, people have grown and consumed vast amounts of cannabis in Michigan, right? 

 

Joe: Yeah. 

 

Chip: There’s growers, and there’s growers in underground networks. And in states like that, they blossom a little bit differently than states that don’t have a cultural connection to cannabis. Ann Arbor and Detroit were huge hub spots for cannabis and hashish for 50 years.

 

Joe: Oh, yeah. I mean, there’s no shortage of people who are using and have been using for years and are fans of the of the product. Obviously, strangely enough, there’s quite a few municipalities that still haven’t opted in. I mean, when you look at the map of Michigan, and you start to pinpoint where you might open some retail stores, you’re really kind of limited in the sense that I think [inaudible 4:40] and don’t quote me, but it’s I’m pretty close, I’m sure. Like, I think there’s only about 138 municipalities that have opted in, to actually have retail stores. So you know –

 

Chip: These are counties?

 

Joe: Those are, those would be cities, municipalities. And the crazy thing is Detroit, itself. Detroit proper still hasn’t opted in for recreational cannabis. So you’re talking about a monstrous opportunity, once that does happen. And people are trying to forecast where it’s going to be in the next place it’s going to open, and there’s a lot of lobbying efforts going on. But when you get up in northern Michigan, yes, I do agree with you that there’s an incredible base of people that are fans and supportive of the plant, hopefully going to force the rest of the hands of the state to jump online, but it hasn’t been as easy as you might think.

 

Chip: Oh no, it’s not easy, man. It’s hard, it is absolutely hard. And, where it used to be maybe a little easier, the commercialization of it is definitely difficult.

 

Joe: It’s the craziest part of this business. I mean, we came in, and we said, “Okay.” We’re what we call early, late adapters, right? We didn’t come in in 2008, we don’t have a company that started in Colorado or California. But we said, “Let’s identify what’s wrong with the industry. Let’s identify problems, let’s solve problems.” So once we came together, and the group came together, rather organically. We had, we didn’t pick and parcel, we just were a group of guys who knew each other as through friendship or business. And we ended up having, an attorney myself, we had an accountant, we had a financier, we had a restaurateur who’s master of logistics. And we actually had a builder who oversaw the entire project. And those are the partners that came together. And then we had a younger partner, who is really, really passionate, embedded in the cannabis world. So with those six partners, hence the name Six Labs, we came together. And some people don’t understand the product, some people are really talented in business, and then other people are passionate know the product, but but don’t know how to sell it. So, you have a, we’re basically jelling those those processes together, just to make a, what I believe to be, the next generation cannabis company. Because everything that we do, from the minute that we started our project, has been geared towards solving problems. So we researched and we traveled throughout the country before we even met with the designer for our facility. Aand we said, “Okay, we like these things. These things seem to work, is there anything better in the industry right now?” Then we found all these other things that don’t work, and we went out and tried to solve those. So when we created our facility, we got some people in the state, were looking at us saying, “You guys are never going to make it, you spend too much money.” We could have built our facility for probably 6 million, and we would have had a great facility. We went out organically, raised money with former business associates, friends, family. And we built a $10 million plus facility that we basically said this, Chip. If the federal government gets involved in this in the next few years, and the FDA starts to place regulations, we said this, we don’t know what those regulations are going to be. Okay, we don’t. But we said this, “If we’re not passing after those regulations, then no one else is.” And that’s the only thing we could do to say that we were going to definitely make this next step whenever that comes. But yes, right now, there are a multitude of problems. I mean, you can talk about the ones that we have poked on, which is confusion and intimidation in the market, product quality, lack of consistency, perception, fact that there’s no brands. I mean, there’s no national brands. And then, what you have now is some of these companies that are in other states, because they can’t get licensed and it’s too much money to do it. They’re just buying labels in other states, but it doesn’t mean that it’s their cannabis. So one of the other thin we wanted to do is be transparent. We want, you don’t necessarily know where you’re getting your cannabis from, especially if it’s got some label on it from a company in California. And now they’re saying, “Well, we’re growing the same cannabis here.” And we wanted to basically give our consumers a seed to sale transparency, where they know everything about it, as much information as you possibly can give them, and educate them. So that they can make the best decisions for their medical, or their recreational needs. So, but, it’s an evolving market. It’s super exciting. That’s the best part about it is that it’s so new, it’s so young, and no one really knows where it’s going that you really, there’s no right or wrong answer.

 

Chip: Yup. It’s all just started. Yeah you know, Joe, interesting, I’m listening to your story, I realized you’re a hybrid cannabis entrepreneur. Almost all the cannabis entrepreneurs fall in about in three different kinds of areas. There are the growers or weed dealers that have been doing this forever, and so it’s natural progression, right? There are the investors, whether it’s family office, venture capitalists, that get approached by a grower, “Hey, one of these growers are drug dealers,” to fund their operation. And then there is the like, brother in law and family friend that get together, whether it’s smoking a joint on the back porch and say, “Oh, man, I think we can do this. We could throw our money together.” And the reason you’re a hybrid is because most of the like, brother in law investment type packages start off real small, and they don’t have this bigger picture, solving problems, this experience in business. It’s often their first business, they may be successful as dentists, or attorneys, or real estate, or something other like other, but haven’t had a vast entrepreneurial industry. And you’re a hybrid of the VC investment plan, but the brother in law, family investor, type of investment package.

 

Joe: I think that’s probably a fair assessment. And you know, I have my own personal journey with cannabis, I mean, I’ve played sports my whole life. And I knew early on that I wasn’t going to go to college unless somebody gave me money to go. So I worked really hard in school and played football and I went to college, and injured myself very severely in my freshman year and had my very first back surgery when I was 18 years old. I’m aging myself, Chip, this is back in 1988. And, I had my first back surgery, I got surgery, and I felt great afterwards, went right back to playing football. And I ended up re-injuring myself the following year. And then the year after that having a second surgery, and now this is 1990. I’m in New York City in college I go into Columbia University, and I’m in chronic pain. So what are these doctors doing? Well, this is the beginning of the opiate period, right?

 

Chip: No, you need the chronic, you need the chronic.

 

Joe: Right? So they’re feeding me opiates like they’re going out of style, and I’m really not feeling well. So I personally just stopped taking them, but I’m in chronic pain. And as I, I hate to say this about the Ivy League, but cannabis was available to me back in the 90s. And I started experimenting with it, and noticing that I was getting certain levels of pain relief that I said, “This is better than anything I’ve taken.” And alcohol only made your symptoms worse the next day because you were dehydrated, and you felt like shit. So I had my personal journey. And then as I grew,  I’ve looked at the NFL, I’ve looked at the sports leagues, I’ve got tons of friends who were former NFL players. And I have friends who work for the NFL, and I battled them all the time. I said, “How could you guys be especially after they got exposed? How could you guys be suspending these players for testing positive for cannabis? But yet the back door,  the back room and the athletic room, you guys are pounding opioids down these guys throats? They’re all ruining their careers, their lives are going under. And yet the hypocrisy continues.” So I had a personal pursuit when I, when cannabis wasn’t medically viable. I said,  “This is, this is, I want to get into this. I want to change the way the world perceives this.” Because it’s not what you know, I’m 50, I was raised by immigrant parents. They told me everything was dope, right? You know, everything was bad. 

 

Chip: Yeah. 

 

Joe: And so you grow up. And they’re like, so you grow up in this mentality where everybody who smokes cannabis in Michigan, or does anything, you’re all put in together, heroin users and cannabis users in my family were blocked the same, right? So I had a personal pursuit about this. And so it’s not just smoking a joint in the back room, but we did definitely look at it and say, “Okay, if we’re going to do this, we’re going to do it right. And the only way to do it right, at this stage in the game, how do we become different is to solve problems that are out there.” So that’s what we’re doing. 

 

Chip: Man, I’m real interested in that. Because that’s, one of my business philosophies is answer questions, solve problems. How did you identify the initial problem? And what were some of the first ones that you realized, that you’d want to share with us?

 

Joe: In doing our R&D, we did exhaustive R&D. Everyone in the company was given specific tasks to figure out. And that went from the actual cannabis products that were out there, and from labeling, and how many were out there, what the users were feeling, how the medical patients were responding to certain, going to a dispensary, what their experiences were. All the way to the facility, and what kind of equipment you were using and what kind of logistics you had in place. So we said, we came up with a list. And the list started with like I said, the product, confusion and intimidation. I mean, so many products out there and you’re relying on a bud tender, right? And some of these bud tenders are awesome. And I’ve experienced them.

 

Chip: Yeah, most are just Burger King weed.

 

Joe: Correct. And so when you look at it like this, you’re saying, “Okay most of the states are medical,” right, Chip? And then some what, 11 or 12 are online is rec, but back then it was all medical. So you’re saying to yourself, “Okay, so not only you’re not getting a doctor script, but you’re actually going to the pharmacy and you’re not getting a pharmacist tell you what you should take, you’re getting a bud tender.” So we saw that that’s a problem inherent in the industry, and we’re aiming to solve that problem. We can’t require a curriculum for a bud tender just yet. But what we’re going to do, is we’re going to put everything on our label, we’re going to let everybody know what goes into it. We’re going to try as best we can with limited research and science that we have available to us to pinpoint what these particular products are expected to do for you. We’re going to try to control the dosage, and give a control,  product quality control, which leads into that issue. I mean, when you look at these states, Chip, and you see how it’s different. So many of the testing regulations are. 

 

Chip: Oh, yeah, man. [inaudible 16:10].

 

Joe: You know, and look at it. Come on, I mean, and you’re looking at it, and you’re saying, “Okay, these are mostly put in by lobbyists.” And cannabis, these acceptable levels of toxicity should not be being decided by lobbyists, they should be being decided by science.

 

Chip: Oh yeah, absolutely. Oh, in Oklahoma, the pesticide levels just changed the acceptable levels increased went from 0.5 to 0.25.

 

Joe: So that’s a perfect example. So it’s been, it’s more, it’s been 0.5 for all that time. Now, it’s 0.25, and you know, what level is acceptable? And then you start to think this crazy thing, which is, especially for people who’ve been using cannabis for a long time well before legalization. You look and you see how challenging it is to get your cannabis in a controlled environment with experts and all the greatest equipment money can buy, to be as clean as it possibly can, and you still see levels of infiltrates, that you’re just like, “How the hell did this happen,” right? Well think about what’s in the black market products. And when you start to think about what’s in the products where people really have no concern or care, there’s no testing, you start to say to yourself, “What have I been ingesting for all these years? What is the cannabis user who still goes down the street to buy illegal cannabis or God forbid, buy an illegal vape cartridge? What are they getting?” So we’re trying to get a –

 

Chip: Totally unregulated, totally unregulated man. I think people use Raid for spider mites, and also the worst contaminants, mold, mildew, smoke, diesel fuel.

 

Joe: Jesus, I never heard that one, Chip. I gotta be honest with you. That’s crazy.

 

Chip: I’ve heard all kinds of stories, man.

 

Joe: Yeah, so I mean, and they’re real. So and then obviously, you got lack of consistency. You want to go into the store, and if you have, and you’re lucky enough to be in a state that has legalization, and you have a consistent provider through from seed to sale that you trust. You could go in there one day, though, and when you start getting into edibles, and you start getting into the levels of THC, and what’s actually, you’re being provided, you want to know, and rely on it in the sense of saying, “If I go to the pharmacy, and I get Tylenol, I know what I expect from Tylenol. It’s going to give me the same reaction every single time.” Well, we need to get to that place. There needs to be that kind of consistency. So we think that with all of these variables that are in place, we’re trying to do our own in house R&D, and trying to test and research what other entities, and what other countries for that matter, have done. And, we’re looking at it this way, Chip. I don’t know what your feeling is about this, and I’d be interested to hear it,  because I know you’re in the business, I know you’re a really bright guy. It’s like the United States is allowing all these other markets in other countries to take off. And it’s great that they’ve allowed the states to do this and bypass federal regulation. But really, what we’ve allowed to happen is we’ve allowed other countries to get behind the science first. And they’re way further along in getting to products that will actually be consistent and solve these, many of these issues that I brought to the table today. And I think that we are losing out. And, I don’t know what the trade agreements are going to be once this all becomes legalized, and whether they’re going to open up the floodgates to California and whatever they got going down in Mexico and other countries, but there’s going to be a drastic competition. I mean, if you don’t agree with this, I think cannabis is eventually going to be an ingredient rather than a product. I think it’s going to [inaudible 20:03]. Cannabis in Michigan.

 

Chip: I think it’s already started. Hemp industry already, already started that one for sure. It’s an interesting question, man. Interesting. You know, one of the many things that makes America great is pretty much anybody can come here. And in a brief period of time, overnight, in some states and cities, and sometimes a week, or 10 days, or maybe 30 days, you can set up any business in the United States. No matter if you live here, if you’re a resident here, if you own property here, all you have to do is have a passport, and some corporate documents, and anybody can open up the business here. So places like former Soviet Union, Russia, Israel, Amsterdam, England, all of these places have had these university sponsored researches for a long time.

 

Joe: Oh, I know.

 

Chip: GW Pharmaceuticals, they’ve been working out of Great Britain for 25, 30 years now. And man, the stuff coming out of Israel, and technology and gene development –

 

Joe: It’s incredible.

 

Chip: It is just incredible. And all those people are just going to come to the US and do business. And that’s what’s happened with GW Pharmaceuticals, is they just opened up patents in the US, or attempted to. So, yeah, we’re absolutely behind on the research, and the opportunity for a lot of American people. But the other opportunity is just this influx of new technology and ideas, and coming from the international research place, marketplace.

 

Joe: Yeah. I mean, listen, that’s something that nobody talks about enough. And I’m glad you touched on it, because not only is the United States passing up on the opportunity for this commodity, but they’re actually ignoring, the potential massive manufacturing opportunity that this product presents. AAnd the type of quality engineering that the United States could provide, if in fact, this was accepted nationally. And we were able to look at this as a completely separate industry of technology. I mean, you’re talking about the possibility of creating completely new, advanced machinery, advanced testing machines, all kinds of different products that would stimulate our economy in a significant enough way to matter. I look at all the loss opportunity, and I say where, you know, it’s almost amazing to just be in something where you’re literally like, “Okay, where’s this going to be in 10 years? And I’m going to be in it.” And that’s the other thing, too, is, I’ve had enough experience as an entrepreneur to know, listen, this isn’t going to be, we didn’t we didn’t get into this to pump and dump. You know, we got into this to do it the right way, 7 to 10 years is usually the amount of time that it takes to get this business to where we want it to be, to whether we actually say, “Are we, do we have a strong footprint in it? Or is it time to potentially exit?” But so we’re in it, we’re not, we have no plans of going anywhere, we’re going to grow the company. We have a lot, and you know one of the, I tell all of my partners all the time, one of the beautiful things about being in our 40s when we started this is that we know a lot of people, and we have a lot of contacts with business. And it was relatively, I hate to say this, relatively easy to raise. We raised  close to $14 or $15 million [inaudible 23:36], in both equity and financing, and it was relatively easy. But the problem is, is that we all had to step away to a certain degree from our other careers, and jump all in. And all of us are all in now. And things have changed since that happened, where now we’re all kind of getting in our lanes, and everybody is functioning like a company, rather than six guys who had a great idea and enough money to start it. So, those those types of changes can be can be cathartic at times, because some of us are friends with each other. And I see myself not talking to my friends that much, not because we have problems, but because we’re working together now. And socially, you just don’t want to go out with the same guy who you’re dealing with on a regular basis every day about trying to get a company off the ground. So – 

 

Chip: Yeah, my feelings used to get hurt over that. But I realized that exact same thing. These people hear me all day long, they don’t want to hear me later on.

 

Joe: Yeah, well, you know, that’s true. It’s totally true. And my feelings have been hurt at times because a couple of my, the guys in it, one particular is a very close friend of mine. And you know, he and I really used play golf together. We don’t, of course we don’t play golf anymore at all, but we don’t really have our times together. And but I will say this, that part of entrepreneurship, and I know we’re gonna touch on some of that stuff, is that this particular venture was one that I have the most confidence in I’ve ever done for one reason, and one reason only is that the partners that you choose, sometimes they’re not the right people. For one reason is that they don’t have the same will, they don’t have the same [inaudible 24:18], 

 

Chip: Right. You’re right.

 

Joe: I won’t, I will not, you know, the ability to pivot, the ability to take care of a problem. And when you say, I’ve got it covered, you don’t have to worry about it, that that guy’s got it covered. And my partners are incredible. I can’t say enough about them. They are salt of the earth guys who have an immense amount of success in other industries, and they literally dropped everything. And now they’re submerged in this, and they are just the type of guys who you never have to worry are going to get done what they say they’re going to get done. And that in and of itself, that could probably –

 

Chip: Oh, that’s great.

 

Joe: Yeah, that could turn a halfway good idea into something big. And we have what I believe to be much more than a halfway good idea.

 

Chip: Does everybody have a previous background of your six partners?

 

Joe: I’m gonna be honest with you, three of the six did and three of the six they had really no opinion one way or the other. But to be honest with you, those are the three guys who had no previous experience, Chip, they’re more over the top about their passion for it now than probably the other three. 

 

Chip: Oh yeah, they’re new to it. It’s all new and exciting. It’s such an exciting plant business. 

 

Joe: Correct, Chip.

Cannabis in Michigan.

Chip: There’s so many opportunities in it. And you mentioned this in the beginning that we were, this is all just starting, it’s all just fresh. And so many people think that cannabis industry is over. But man, it’s not. And you don’t have to have $12 million. I know people in Michigan that have started on $12,000, or $20,000. And they’re gonna do good. But this is a, it’s a great, I’m not going to call it a corporate strategy even though that’s exactly what it is. It’s just that you know, often has such bad connotations, but a really great strategy to come into the market strong, guy with a multi-year game plan not just to get rich quick. If you think you’re gonna get rich quick in the weed industry, it’s just not going to happen. My buddy Stacy Johnson over there at Harvest House in Colorado, and if you ever up in Colorado, you should really go check his place out in Crested Butte, and in Crested Butte, and in Nederland Harvest House. It’s all boutique quality cannabis. But he’s got a great phrase that’s, “getting rich quick since 1989.” 

 

Joe: Well, if he started in 1989, then it’s a sort of an oxymoron, because it’s really, he’s not getting rich quick, but he probably made a couple of shekels. It’s funny, I made the statement not so long ago to I don’t remember who, but it might have been on a podcast, or might have been to one of our investors. And I said, “We aim to be the largest craft grow company in the United States, because we want to, we want to maintain that same boutique type of mentality and boutique approach to the quality. But we also recognize that in order to grow, you have to expand.” So rather than have 100,000, 200,000 square foot grow and just make what we deem to be Walmart weed. We and I hate to call it weed, but you know what I’m saying it doesn’t sound great calling it Walmart cannabis.

 

Chip: No, no, yeah, exactly. That’s such a good term for it.

 

Joe: Okay. So we yeah, so we want to create a craft boutique environment. And frankly, we want our consumer brand to be a lifestyle brand. We want to try, and branding is so difficult, because of the fact that you’re so limited on your commercialization of it. You can’t do it outside your state. There’s no national brands now. So trying to put your footprint in the ground in your state is hard enough. And then when you start to say, “Okay, once the floodgates are open, and this is allowed for interstate commerce,” because that looks like it might be happening out west. I don’t know if you’ve been reading but you know – 

 

Chip: Oh yeah, I’ve got I’ve got some great friends involved with that. Justin Jones over there. He’s involved with it in Oregon, and we’ll see it happen there first.

 

Joe: Yeah. So I mean, one way or another, I was telling my partner’s the other day. I said, we applied for our recreational craft grow license in Illinois, which is an incredibly difficult license to obtain we’re actually going to –

 

Chip: Oh yeah. I lost 14 of those so far.

 

Joe: Well, yeah, that’s the other thing. You got to deal with losing, failing the test. And it’s tough for me because, I am somewhat of an academic and I’ve taken a lot of tests in my life. And as a trial attorney in my background, I don’t like to fail. You do all the things you can do, and it’s costly, man. I’ll tell you, the barrier century are incredible. I mean, you can spend, 100, 200, 300. I’ve got friends who spent $400,000 on their craft grow license in Illinois. 

 

Chip: Oh yeah. I know.

 

Joe: And so, you look at a guy who says, “Hey, man, I’ve got, 6000 bucks for the filing fee,” or 2500 I guess for the social equity it was this time. “I’ve got $2500 for my license application, but who’s going to do it? How am I going to do it? Where am I getting the information? Where are the SOPs coming from?” And you’ve got, months and months of work with 20 people just to compete. So,  but I told my partners, I said, “If the interstate commerce pack flies up in Oregon to California, then I wonder if we can take a boat from Chicago’s Navy Pier, across the lake in Michigan, so that we can transport product back and forth, because we’re not contiguous with Michigan.” That’s the funny thing about Illinois is that you got to go through Indiana to get to Michigan, and Indiana will, hell will freeze over before Indiana becomes –

 

Chip: That’s what they’ve said about Georgia, but I’m applying for a license down there right now.

 

Joe: Yeah, that’s a good point, Chip. That’s a good point.

 

Chip: And Oklahoma used to be the worst place in the country to get caught. And now, I mean, oh man, Oklahoma is changing fast. They’ve got, it’s really kind of got a bad rap. Because the way that you perceived it from the outside, but the inner workings of it, and it’s got it. It has all the makings for progressive state man.

 

Joe: That’s really cool.

 

Chip: The social stuff that goes on here, the like, the multiple ethnicities that are here. I mean, you know, the LBGT community here, like, it’s just, you would not expect all of that.

 

Joe: Well, you got a lot of big college towns, too. I mean, people fail to realize that most college towns really do help. I mean, you know, as far –

 

Chip: Yeah, absolutely.

 

Joe: As far as, I think that that’s a big factor. I mean, you guys got two major universities out there with, couple tens of thousands of students, and those are, and then all the other universities in the various cities, and that really helps. I mean, I thought Oklahoma was underrated, in the sense of where it might be someday. And as I understand it, I mean, isn’t it like most of the people who have, everybody says, “Oh, Oklahoma saturated with growers,” and blah, blah, blah. But aren’t those a lot of small growers, you know? It’s not, you guys don’t have thousands of huge 50,000 square foot grow facilities, am I correct in that?

 

Chip: You know, you mentioned the, we call it the backpack laws, right? That they used to have in Michigan or California, where almost anybody could have a small grow with just a little bit of investment or a letter from their doctor, kind of the same things going on here in Oklahoma, but they just took they just took the veil off, right? Instead of saying, “Okay, it can be medical marijuana, and we’re not going to like, regulate the growing and the selling of it,” as most states have, it doesn’t introduce it, right? They used to jump right in. And that not allowed, because, I mean, it’s the exact same mechanism that happened in Michigan, Colorado, in California. It just started a little differently. You know, and yeah, bunch of out of state people would come here. I mean, I’m from around the state. You can still invest here being out of state, the number of people applying for licenses has slowed down. But yeah, man, they’re gonna have recreational cannabis here, Texas is right next door with 8 million people. I mean, this is really a great, great, great place to be for cannabusinesses.

 

Joe: Don’t you guys have something like 1500 dispensaries already? Is that true?

 

Chip: Man, I think it’s even more than that. In the cities, the interesting thing about it here is in Tulsa, Norman and Oklahoma City, there’s building and planting departments. So and that’s also where the concentration of the dispensaries are.

 

Joe: Gotcha.

 

Chip: So you see a lot of them that have signs that they haven’t been opened up because the city has just been so inundated with building and zoning issues.

 

Joe: And how are they taxing it?

 

Chip: Taxation’s great here, it’s just taxed half the retail sale.

 

Joe: And how high is that?

 

Chip: I think it’s 15%.

 

Joe: That’s great. Yeah, we’re, I think Michigan, we’re about 16%. You know, which then, you look at Illinois and Illinois is gonna, Illinois is one of the first states if not the only state that passed legalization by legislation rather than referendum. So, it was great because the law’s already written, they’re gonna have 500 maximum dispensaries, they’re gonna have x amount of grows, they’ve done the calculations. So in Illinois, you don’t have to be, you’re not going to have to be vertically integrated to survive.  Whereas many other states, you always want that. You always want your grow with the processing facility in five, six major dispensaries. In Illinois, you’re not really going to need that because there’s going to be a need for you no matter what, because they’ve already calculated it. And there’s only so many licenses that are going to be, they’re going to be awarded. But, on the flip side of that is the fact that like I said, the barriers to entry are ridiculous. The application process was ridiculous. And they came out with their dispensary awards last week that were supposed to come out in June, but because of the Coronavirus, that got delayed. There’s lawsuits alleging that the applications were not read fairly, there was supposed to be a social equity component to it. So you got a lot of points for social equity, so almost everybody has social equity. And then they had an additional five points for adding a veteran. Well, what some companies did, was went out and got a veteran. And here’s the caveat, they had to be 51% owners of the company. So there were, it turns out there were over 4000 applications for dispensaries in Illinois, over 4000 applications for 75 licenses. But you could apply an unlimited amount of licenses, one entity if you had the money. So 26 license applications, or applicants, I should say, tied for first place. But they had, they covered all 75 licenses because they applied for multiple license. It turns out that there were a bunch of other people who didn’t have a veteran who also got a perfect score. So they sued, because they basically said, spirit of this application process was for social equity. It wasn’t for veterans, it just got tagged on at the end. And someone figured out well, “Well, if I have a social equity who is a veteran, I’m going to get all 55 points.” And so they filed the lawsuit in federal court, I’m sorry, I think it’s actually in state court and file an injunction the state has holding off the lottery. Because they’re basically going to take the 26 ties, put them into a hat and all those 26 entities are going to get all 75 licenses. So point being those, people look at it and say, you know, it’s like playing lottery, because if you get this grow, and people are talking about the grow license, which is a craft grow 15,000 square foot under canopy maximum. And they’re saying those licenses alone are worth $10 million. So you know, yeah.

 

Chip: Oh my god, I got a 10,000 square foot California one that I feel like I’ve had $10 million in it.

 

Joe: That’s funny.

 

Chip: Oh, it did not really, but like, I gotta make the best of it. Thanks again for joining me with another fine episode of The Real Dirt podcast. If you enjoyed this episode and want to hear others, please download and subscribe The Real Dirt podcast on iTunes or Spotify. Please, please, please, please, please subscribe. Check us out on Instagram and comment on some of our posts so we can move forward there. And hey, man, thanks for lending me your time. I really appreciate it. Have an incredible rest of your day, this has been The Real Dirt.

The Secrets of the Country’s Largest Cannabis Operations with Nick Morin

The Secrets of the Country’s Largest Cannabis Operations with Nick Morin

commercial cannabis grow

Remember that show Cribs?

You know, that show where we got to take tours through the mansions of the rich and famous and feel bad about ourselves. While it’s been a long time since we watched Master P show off his gold ceiling, there’s a new, better, completely unrelated Cribs that is all about cannabis.

CannaCribs was started by Nick Morin through his company the Grower’s Network to show us all what it’s really like inside some of the largest and technologically advanced cannabis cultivation operations across the country. But it isn’t all green ganja and piles of cash in these operations.

What you don’t see on CannaCribs is the behind the scenes details that Nick gets from the head growers and owners of these operations. From the shady investment dealings that growers fall into like overfunding and inexperienced fund managers to the stressful work that goes into maintaining a large scale cannabis operation, Chip and Nick dive into it all in this episode of The Real Dirt Podcast.

More about Nick

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Transcript:

Chip: Once again you have reached “The Real Dirt.” And on today’s dirt, it’s a very special episode. Today, I’ve got Nick Morin from Canna Cribs. Now, if you haven’t seen Canna Cribs, you’ve got to check it out, great YouTube channel. It’s absolutely one of my favorites, it’s one of the best production in our whole industry. And if you haven’t seen Canna Cribs yet, you’re missing out. Thank you so much Nick for joining me.

Nick: Chip, thanks for having me. I really appreciate your time.

Chip: Nick called me up a couple, a month or two ago, and said he was going to start a podcast. And we’ve exchanged a bunch of information and talked back and forth and you know, I’m really excited to hear about your podcast. You’ve just launched a new podcast and you know, we just immediately got along on the phone. ‘Cause like, we do the same thing. You know in some manner, is we get to go talk to ganja people all over the country and world and find out, you know, what they’re all about. And get to go into gardens that we may, people just dream about. What’s it like having this dream job, Nick?

Nick: I just would say I’m extremely grateful to be working with my team, you know, my bestfriends and going out and filming these stories, telling these stories now on the podcast. It’s a dream job and it’s something that you know, as a little kid I never would have imagined I’d be here today, but it’s pretty special at this point in time in this industry, as we’re evolving rapidly.

Chip: I know we have a lot talk about. But like, let’s talk about Canna Cribs. How did it start, when did it start, like tell me about it.

Nick: I’ll take you to the exact point in time. CannaCon Seattle, I was talking with my friends that own uh, Glass House Farms in uh, Carpinteria, California. You know, it was dinner, it’s after the trade show. As many people do after a trade show, you go out for dinner and drinks and we’re just brainstorming. And when you get those energies, you know, across the table going and some good ideas, Canna Cribs was born. You know, I wanted to create a Youtube series. And I was really inspired by Marijuana Mania by Berner, and Strain Hunters and their team, and I wanted to come up with uh, kind of my own version of garden tours. I think Growing Exposed was coming up around the same time as well. So you know, I was chatting with, you know, Graham and their whole team over there. And we came up that – it sounds like you got the intro going, so yeah, that’s, that’s it right there, man. So we flew out there shortly after, actually flew to Tucson and picked this up which was a surreal experience in itself right there. I put together my team from University of Arizona, you know, some friends from college, some friends that I’ve worked with, and then some acquaintances kind of one degree away in Tucson. And we flew out there, filmed our pilot and as they say, the rest is history.

Chip: I’ve actually got it on right now, “Glass House Greenhouse Commercial Cannabis Growing Operation in California,” Canna Cribs. I really love this episode, I love everything about it. Like it’s so like, highly produced. I’m a TV junkie, I love format. And like, just the way that you guys have produced this whole series, it like, mimics you know, several other of my favorite type of genres. The like, you know, fix and flip style genre, where they’re either it’s an old junk car they find, the barn find, and turn it into —

Nick: Right.

Chip: You know, something. Something great. Or like, you know, a house, where like they buy it, and they like, fix it and flip it. You’ve got a lot of the like, elements in the editing with that. It really like, draws people in. Man, I also love all of the, the product placement that occurs in this episode and other episodes. It shows the products that people are using, but it’s not like an over the top infomercial advertisement. ‘Cause we all know it’s like, advertising helps pay for it all. It’s very discreetly done, it’s done well.

Nick: Yeah. You’re exactly right. The product placement and advertising, it allows for us to go out there and film. And you know, a lot of people don’t know this, but it’s not like we’re charging farms tens and thousands or you know, a hundred thousand dollars to go out to film. It’s actually no cost, vast majority of the time. So the farm doesn’t pay anything, and we of course have to pay our crew and get out there. And you know, you know this very well, Chip. Youtube gives us zero dollars in advertising. I can’t even spend money on Youtube to promote our show so, it creates an environment where you have to be very scrappy. You have to be wise and extend your dollars through organic content. And the thought leadership behind the brands, the products, the services that these growers are using, it’s a pretty straightforward model where these are the products that their success is built on. Those companies you know like, let’s say soil companies. You know, your background and growing media, and every episode there’s a different growing media. And these growers rely on that product for their success so it’s a really natural fit where we get to educate fans all around the world. We get to help promote the grower through the episode. And then the vendor has an opportunity to promote their products naturally, because we don’t place products that aren’t naturally used at the farm.

Chip: And you can tell the authenticity of it due to that. What was your background in cannabis previous to this?

Nick: So I just say, a lover of the plant. I’m relatively —

Chip: You’re an enthusiast. You’re a cannabis enthusiast. Excellent.

Nick: That’s exactly right. So I started consuming young and you know, I have two older brothers and that probably helped a little bit. Yeah, I actually started Growers Network and Canna Cribs shortly after, during my senior year in college. So, this is my first foray into the, into any professional industry, really. I started a couple communities while I was at the University of Arizona. So I guess I do have a background in kind of grassroots community building from the ground up. And then you know, I have a passion for both cannabis and also technology, and the marriage of the two of those things, as well as marketing and community building, it’s kind of where I live today. And what I’m super passionate about you know, when it comes to sharing very special stories that will impact the history and our future, everyone in this industry with the rest of the world. And just kind of showing and proving that there is a way to have you know, legal, compliant, and really good cannabis at the end of the day that saves lives and builds businesses.

Chip: You came to this as just an enthusiast. You had a surface knowledge of how cannabis operated, how it grew, the production of it all. Did you have some misconceptions that were immediately proven inaccurate when you started doing Canna Cribs?

Nick: I would say that like, everyone on our crew including myself, we didn’t really know, we didn’t really know what went into a commercial sized grow operation. You know, we might have had friends growing here and there, more you know, underground and maybe at the hobbyist or kind of that caregiver scale. But, to walk into a commercial grow operation and see that scale, it was incredible. So I’d say, maybe less misconceptions but more just, you know, kind of what’s behind the curtain. Having the opportunity to share that with the world is really special.

Chip: You talked about the stories, you’ve mentioned that a couple of times. Do you have a favorite cannabis story, or favorite episode that you made?

Nick: Oh my gosh, that’s a tough one. Choosing between your babies —

Chip: Oh I just keep pressing the memo, hey I just started man, I just started.

Nick: I love it. I love it. Yeah, no, I love the question, Chip. So I’d say you know, one of the stories that I probably enjoyed the most telling and also was the most moved by, was Scott Reach of Rare Dankness. He’s gone through a lot of personal turmoil and you can listen to his story with his health, and how cannabis really healed him and gave him an opportunity to you know, run a business and support his family. So, a lot of that comes up in you know, throughout the episode and you know, it’s not every single episode that that story is going to be exactly the same. You know, each episode kind of has a unique, I guess unique story to tell. But with Scott and Rare Dankness, before we went out there you know, we did some research. We always like to do some pre-production research to come up with some story points and kind of build out what the episode’s going to look like before we set foot on set to film. You know, his personal fight with cancer and how cannabis really helped him personally with his fight with cancer, but also his background with breeding and as a geneticist. And through his other companies, he’s building, in my words, he’s building a cannabis empire. It doesn’t stop with just House of Dankness, it doesn’t stop with just Rare Dankness, he has a seed company around the world, he has a new nutrient line. So, one thing that I really resonate with and connect with is the entrepreneurial spirit of these cannabis grow operation owners. And there’s a lot of different types of commercial grow operations, but that episode with Scott, it really shined through, all the different things he had going on, and I loved it.

Chip: He’s really built an incredible room. If anybody’s out there who wants to see great, great, great cultivation grow room, look up that episode. Which episode is it? I’m looking for it now.

Nick: Episode six, it was right after Honeydew Farms in Humboldt.

Chip: Episode six, man, totally. Episode six, Honeydew Farm. The first Canna Cribs was the Honeydew Farms one.

Nick: Oh really?

Chip: And I’ve spent most of my life in Humboldt. I moved there ’97, and still have a property, and farm, and business there today. I heard that there was some, you know, because it’s a small community, so I’d heard that there was some like, thing being filmed, Honeydew Farms. And it was out, so yeah I went and checked it out. That was my first exposure to you. And then of course, I watched all the rest of the episodes.

Nick: Yeah. Yeah, it’s bingeful content. You know, it takes you about a weekend to watch all the Canna Cribs and Deep Roots, and we have a couple you know, new projects on the horizon. But, you know, if you ask me the favorite episode to film as far as where I was, it’s hands down, Alex Moore’s Honeydew Farms in Humboldt. It was my first time travelling there. And I mean, honestly Chip, I felt like the time froze. You know, our cellphones weren’t working. You know, we just had our cameras and we were kind of like, paused in this beautiful forest and his property is pretty amazing as well, you know, on a river basin. It was, it was magical. And we stayed in Arcadia?

Chip: Arcata.

Nick: Arcata, Arcata. So we stayed in Arcata and you know – or no sorry, I apologize. We stayed in Eureka.

Chip: Eureka.

Nick: Yeah, we drove up about an hour and a half up the hill and then an hour and a half back down to our hotel each day. So, we had to wake up super early and we went to bed pretty late each night, because we were battling sunlight. You know, most the farm’s outdoors so we had to film very efficiently with the daylight there. So, part of that was probably some lack of sleep that added to the effect. But, it was amazing. We went out to the waterside as well at the end of the episode. We went to the Redwoods. Everywhere we go, Chip, we try to characterize the region. We try to give the audience a glimpse into what it’s really like. Not just in the farm, but the surrounding area. Because we have around 150 countries around the world watching our Youtube channel, right? So, if someone’s in let’s say, Russia, and they’ve never been to Humboldt, I kind of put it on our shoulders like as a responsibility, to tell them what it’s really like, and to show them that glimpse of the world. And Humboldt is such a beautiful place, and I, I’m actually going to be, right after this interview, I’m actually interviewing two brothers that cofounded Lit House Farms in Humboldt, Big Al and Chris. And then last week, I interviewed Nat at Humboldt Seed Company for the Canna Cribs podcast. So, I love Humboldt —

Chip: Yeah, I know Nat. I’m actually like, growing his seeds right now, Auto OGs.

Nick: Oh nice. Okay.

Chip: Totally, totally. Yeah we got like ten thousand Auto OGs we’ve planted in the past like, two weeks.

Nick: Wow.

Chip: They’ll come out some time in October.

Nick: Well, I’m always finding a reason you know, trying to find a reason to go back so if you still have property, if you have friends up in Humboldt, I’d love to film them some time.

Chip: Ah man. I love it out there. We’ve got so much stuff going on up there, you know. It’s an incredible, geographical environment, you know. It’s a really rough political environment, you know. There’s just a lot of people that do not support legal cannabis and try to stand in your way at every point. It’s really unfortunate because there’s so many small farmers over there that can really bring and grow the best cannabis in the world. They’ve got like, the experience and the time, and the understanding, and the desire, and the heart to do it. But you know the, so many you know, at so many levels, the county and the bureaucracy, and the county is against what they’re doing. How many people in the county, they totally accept it. Right, many of the board of supervisors totally accept it. But, it’s just a fight you know, for anybody trying to get a legal cannabis operation there. And absolutely anybody who has gone through the worst to get one because, it’s not at all, easy there. It’s not at all easy there. So yeah, let’s hope that the industry survives. But yeah, I’ve got tons of connections up there. I’d totally hook you up with anybody you want to, if you can’t figure out who to talk to. You know, I started a potting soil company up there years ago, Royal Gold Soils. I sold soil to everybody up there for years. And currently, my new soil company, Grower Soil, I’m not in California yet. I’m mostly just focusing on you know, the midwest and the east coast. Yeah, I’ve got tons of connections all over man. If you ever want to go see anybody, just ask. I might know them.

Nick: Thank you. And that’s what I love about this industry when I first started out you know, I was working with my bestfriend and roommate at the time, and current business partner, Nate Lipton of Growers House. And he had a spreadsheet of growers, right, that are commercial growers that buy from Growers House. And I was originally, and I still run Growers Network today, all the work you know, a lot of the conversations around Canna Cribs up to this point. But the first company, and it is the production company of Canna Cribs, it’s called Growers Network. And it’s an online forum. We have about 11,000 members all over the world. And just people where they can go, and connect, and learn from each other. And I was just originally handed a spreadsheet of the top contacts from Growers House, and I just interviewed for ten months. You know, I picked up the phone, and the Lean Canvas methodology in the startup world, it’s called Customer Segment Testing.

Chip: Sure.

Nick: So, I just picked up the phone and called the you know, a hundred growers and listened to their paying points and you know, how they learned how to grow cannabis, where they were at in their career you know, super seasoned or new, what hurdles they were jumping over to become a legal professional grow operation. And at no point did I say, “Oh, join Growers Network,” or, “Oh,” like, Canna Cribs didn’t start at that point. So in the very beginning, my first ten months in this industry was just network building and acceptance amongst growers that were complete strangers. And what you just shared with me right now has been my experience up to this point, just generosity and open arms and

welcoming into the industry. So thank you, and thank everyone out there that helps to you know, nurture this industry.

Chip: You know, it’s interesting you say that. ‘Cause there’s really two sides to the cannabis coin. And well, you know, it depends on which coin you’re talking about. But the knowledge coin that we’re talking about, there’s two sides of it. There are the guarded people that won’t let you in, and are closed off, they don’t really want to talk about it so much. A lot of it’s leftover from prohibitionary you know, thinking. Some of it is you know, the propriety knowledge, they think what they have is like, the best. There’s often ego associated with all of that, but that’s one portion of the community. And then the whole other portion of the community, like 75% open. Talks about it, invites you over, wants to know what you’re doing, ‘cause they want to know if they’re doing it right or wrong, right? Are absolutely like, enthusiastic about what they’re growing and want to make it better. So it’s real interesting, it’s not an even coin flip that most people in the cannabis industry that I come across, and I’m a, you know, both us are kind of a unique pawn in the pyramid, but you know, but they openly want to tell us what we’re doing. And tell other people, and talk to other people openly.

Nick: Yeah.

Chip: It’s just a great place to learn, that’s for sure.

Nick: Yeah and right now, you know, I like that you said it’s a great place to learn. Right now, trade shows up to this point were kind of like, the in-person exchange of like, information, and knowledge, and contacts and products, and services. And now that they’re all shut down, what I’ve seen is a huge influx of traffic to our Youtube channel. And to our, you know, Growers Network Grower Forum because people can’t meet in person anymore. So I mean obviously, no one planned for this. But for the content creators out there such as yourself and you know, my team, we’re really in a pivotal point right now where, and that’s why I started this podcast is, we need to kind of ramp up, you know. We need to, you know, create more content and share more stories because there’s not a whole lot of in-person outlets right now. We’re kind of leading that charge and I kind of take it upon us to provide, and kind of have that responsibility to provide that knowledge and information exchange.

Chip: You know, cannabis, the way you learn about it and the way people learn about it now is through this open source. It’s through Youtube, it’s through Google, it’s through this open network of people like, bragging, or people just completely enthusiastic about cannabis. You know, it’s so much different than say, let’s take a trade like, photography. Or marketing, right? With marketing, if you’re interested in marketing , you can go online, and you can buy like, you know, two dozen Frank Curran courses, you can buy like, you know any type of how-to Youtube advertisement, or how-to Facebook advertise or how-to content. But the cannabis industry isn’t like that. Can you shed some light on why you think that is?

Nick: Well, I think you said it a little bit earlier Chip. You know, a lot of people, I’ve heard it on your show as well, there’s a lot of growers out there that in their mindset, and in their belief, they’re growing the best way, right? There are so many processes that go into

growing cannabis. I’m not a grower myself, you know, but in filming these large scale grow operations and then telling these stories, I’ve learned a whole lot about you know, growing cannabis organically. Growing cannabis you know, kind of boutique indoor. Growing cannabis outdoors, you know. 36,000 plants at Los Sueños Farms. So, what I have found is it’s extremely fragmenting on how to grow cannabis. There are so many unique ways and the beautiful part to me, is there’s not one right way, you know? Like, you can grow soil, you can grow soilless. You can grow you know, indoor with LEDs, or indoor with HPS. And there’s all these, right path, left path that you can take throughout the entire grow cycle. And I want to educate the world on all those different options. And in each scene in Canna Cribs, if someone’s listening to this and have not seen a Canna Cribs episode, we always start with genetics. We go through propagation, and we follow lifecycle of the plant all the way through kind of seed to sale, if you will. So throughout each scene, you know, I have not filmed an episode that has completely replicated a previous episode. You know, everyone’s doing propagation a little bit differently. You know, they’re doing veg a little bit differently. So to your question, I think it’s fragmented. You know, email marketing is email marketing, right? There’s some tricks to the trade, but it’s an email at the end of the day. But you know, growing a plant, there are so many different unique ways to do that, and furthermore, there’s always new ideas, right? There’s always someone with an innovative idea and when they share, it’s the rising tide for every grower in the world. And then, kind of you know, fuel to the fire here, new products, right? You are a product inventor. You are a product genius and innovator, and when you, Chip, bring a new product to the market, it opens up a Pandora box of all these new types of cultivation methodologies. So, I think it’s fragmented because there are so many different ways to grow the plant.

Chip: Man, you really hit the nail on the head there. There’s absolutely no one way and that’s just the beauty of ganja, of cannabis, THC or hemp, right? It can grow in a million different spots.

Nick: That’s the resiliency to the plant itself, right? I mean, it’s pure for a reason. I love your saying, plants grow us. You know, we don’t grow plants. And I got to pinch myself right now, ’cause it’s so surreal to actually be on your show, talking to you about that. But, I completely agree. This plant’s here for a reason, it’s extremely resilient. And the fact that it can be grown in all these different, you know, unique ways to the region, to the grower, you know, to the product. It’s here for a reason.

Chip: You started Growers Network 2017, 2018, something like that?

Nick: Yeah, so the end of 2016 going into 2017, I’m a senior at University of Arizona, I did about ten months of research, just trying out what business model to start. You know, I had my hypothesis that I wanted to do something in the community space, get my background, and I thought there was a model there to build a new breed of online growing forums, which is Growers Network today. A little bit more of you know, I pay all my respects of course to the forums that got us here today, like the Grass City and Overgrow and all those amazing forums. But I wanted to do it a little bit differently and provide a safe place for the professional growers that were trying to transcend out of let’s say, a house grow into a you know, 300,000 square foot greenhouse. Like, how do you do that, you know? Who do you talk to, you know, where do you go to learn? Those are the kind of questions that

I was trying to ask these growers and that was what Growers Network was born out of, was that research.

Chip: Man, it has changed since 2016. I mean compared to 2020, right now as we record this episode, it’s August 2020 here in Arizona. I’m in Oklahoma, we have seen cannabis become legal all over the country in the past four years. We have seen, like you know, trends in cannabis happen. We’ve seen governments legalize it, we’ve seen Ponzi schemes associated with it. When you started this, at some point you started to get like, a vision of what was happening. Your perceptions of it in 2016, how did they change from your perceptions of it today, knowing all that change has happened?

Nick: Let’s just start with vendors, for example. Equipment suppliers, manufacturers. So in the beginning days, let’s say 2016. You know I went to my first trade show was a maximum yield show with Nate and his father, my mentor, Pauly. And they’re with you know, Growers House, and we went there to talk to vendors and walk the shows in San Francisco. And, it was all new to me. This professional side of the industry that I just didn’t know existed, you know. You know, as a connoisseur, or a consumer, or advocate in high school and college, I just didn’t know that this whole professional industry existed. You know, I was kind of naive to that. So, since then, I have seen a lot of new products hit the market. I’ve seen consolidation of different companies. Like, take Fluence for example, with you know, OSRAM coming in, and take Hawthorne, for example, and Scotts Group coming in and acquiring Davita. And you know, I listened to that episode on your show, and I loved that one, by the way. And I’ve seen that consolidation happen in a short amount of time you know, past five years on the equipment side alone. On the grower side, you know I’m always trying to pick the next market to go out and film. And I definitely will reach out with you about Oklahoma you know, once it’s a little bit safer to start flying. I definitely want to bring the Canna Cribs crew over to Oklahoma and film some farms out there. But what I’ve seen is, you know, a lot of expansion, you know. It expands into a new region, new state, and then, it kind of restricts down. You know, it’s a period of time where it grows, grows, grows, hits that apex and then, consolidation starts to happen. And kind of that market equilibrium starts to happen, right? The supply and demand starts to balance out. So I’ve seen that happen over the past five years which is pretty incredible. I’ve seen you know, Canada come online and some other parts around the world, Colombia for one, that’s really you know, kind of blowing up and they’re part of the world. So, it’s exciting, and at the same time I’m honored to be able to help document that history.

Chip: Who could have predicted cannabis at Canada would have just skyrocketed and plummeted so quickly?

Nick: Right.

Chip: You know, who could have predicted that Oklahoma, once one of the most conservative places about cannabis in the country would become the best and most premier place you know, to cultivate cannabis in the country? Nobody thought that was going to happen.

Nick: Right. So let me —

Chip: It’s incredible where it’s turning.

Nick: Yeah. Let me ask you this, Chip. So what can we learn, as a country, what can we learn from Canada’s missteps so we don’t follow in the same footsteps?

Chip: Well you know I think we’re already doing the exact same thing. We just weren’t able to have publicly traded companies that could directly trade cannabis on the NASDAQ, right? And any like, insulary type businesses that were allowed to be publicly traded, those were all you know, over the counter, OTC trading stocks. So I think that is really what kept the US investment schema from exploding. But essentially, we still have the same exact elements that were going on in Canada, that are going on here, going on here today. Which are just like, some incredibly savvy people that know how to manipulate the market. That know how to manipulate venture capital groups or family offices. And you know, for instance, the typical cannabis “investment.” There’s two types. There’s one, it’s just like, me, you, and my brother all get together and we decide we want to do a cannabis operation so we throw in our money and make it.

Nick: Kind of the friends thing —

Chip: Friends and family thing. The bootstrap. And man, sometimes like, you come up with millions of dollars that way to start your operation, people call you corporate cannabis. But it’s not, it’s just you, me, and your brother putting it together. And then there’s the venture capital model or the investor model, we’ll call it. And it stems on you know, somebody like you who wants to put in a cannabis operation. Or somebody like me, who wants to put in a cannabis operation. And we develop a business plan, we develop a proforma that’s you know, fictional that we decide, “Yeah we think it should be this way. And we’re going to make this much money over this period of time.” We develop an operational cost, and schedule you know, points of time where we make profit, and investors can get paid back. And people can paint incredibly accurate pictures like that, but then they also create these you know, inaccurate portrayal of what’s happened. And that’s what went on in Canada. Right, it was an inaccurate portrayal of how big the market was.

Nick: Right.

Chip: And so many people went into the marketplace and estimated it to be like, ten times bigger than it actually was and just drove that whole investment strategy. Right, so like that happens here in the US, but it usually happens in two different ways. It happens from the person that’s actually trying to like, get financed or get investors. And they over-exaggerate but you know, knowingly over promise, you know, they don’t either know they can do it or they’re being promised by other people who don’t fulfill their promises. Or you know, however that pans out. And so then, it collapses, right? And then the other way it collapses is when a venture capital group comes in and they you know, the way that venture capital groups work or many of them work, is their funds and they’re someone who like, who’s running the fund and they’re getting paid a percent of the fund that’s spent annually. And they’re constantly going out, like, searching for more capital. And they’ll do stuff like this, so like go` to you Nick like, “Hey Nick, are you interested in cannabis?” Just say yes, just, you know, say yes.

Nick: Yes.

Chip: “Okay, yes you’re interested in cannabis! And you’ve got ten million dollars that you want to invest in cannabis this year?” Just say yes.

Nick: Yes.

Chip: “Well, I’m not going to get you to sign any [inaudible] right now. But, we’ve got all these cannabis operations that come to us. We’ve built a hundred million dollar fund, and if you want to contribute to it then you know, then you can contribute to it. Just deal by deal, you know, basis. You interested in that, Nick?”

Nick: Sounds good to me.

Chip: “Sounds great.” Okay so now, they go to the next guy and they say the same thing and they’re like, “Oh hey man, we’ve already got ten million dollars,” right? You know, “don’t be left behind.” And they hustle all of these people for the investment. Which you shouldn’t say hustle, because everybody’s willing to participate, ‘cause you love cannabis, you’ve got a lot of money and you want to invest in it, right? Like, nothing wrong with that at all. But, the person managing the fund is where it comes into play. ‘Cause now, they’re pressured to spend your money, because that’s how they get paid, right? They only get paid from your investment, is if they find an investment for you and you’ll go through ten before you say yes on one.

Nick: They’re pressured to –

Chip: And then they invest your money, yup.

Nick: And that kind of, it hurts the companies that might be overfunded because then that ties to unrealistic expectations that they have to deliver upon. And that could lead to the demise of their company, and also, the fund. But at the end of the day, the managing partner of said funds has already you know, received their —

Chip: They’ve already been paid.

Nick: Yeah.

Chip: They’ve already been paid. And you know –

Nick: Seems like a flawed model.

Chip: It’s a totally flawed model, but the reality is that you’re so rich, Nick, that you’ve got these ten million dollars that you need to like invest annually. So like, it’s you know, the Canna Cribs is a multi-billion dollar operation now, and you have to lose these ten million dollars every year, right? It’s an oversimplification of how it’s going down. But like, you spend the money and then you move on to the next project, right? And you are, you’re DC manager moves on to the next project, ’cause they got another bunch of people like yourself that got ten million dollars that they want to invest, or have an annual amount every year that they need to invest. So they keep up their legion, and man, that just pumps a bunch of like, a bunch of crap out there, you know. Projects that should be a million dollars turn out to be twelve million dollars. Greenhouses that should be three, four million dollars turn out to be ten million dollars. Indoor rooms that are two million are ten million. And they overspent and I know several of these people that have gotten caught up in this, and they’re my friends. And like, they thought they were doing the right thing ’cause it’s, you know what sounds great? It’s when you say something like this, “We’re building the most highly technical, advanced environmental control system in the whole cannabis industry. I’m going to be able to control my environment and the microcosm. I can control every square inch and I’ve got the data that’s going to be able to back it up.” And you know, that sounds great, right? Well, you know, it’s also like, cost you like millions and millions of dollars to do it. And you may end up you know, growing slightly better or more weed over it but the ROI, I’m spending twelve million dollars on a greenhouse that should cost a million dollars. It’s just you know, it’s not there. It’s not going to be there. And that’s how these things collapse. They’re not built on business, they’re built on investment. And now they’ve got all this operational cost, because it takes two people a hundred thousand dollars a year to run the software that gets all this great data, that they have to pay another whole accounting firm to read it, right?

Nick: Right.

Chip: Right, well.

Nick: You have, having gone through all these examples with your friends and people you know, what you know, cautionary advice could you give?

Chip: Man, the big pang is don’t really believe this investment business plan. I’ve got an investor like, you know, I’m an investor. Like, don’t think that the old way of doing it, the way that you probably thought that was the best way, the way that’s mostly used is the best way. And now, things have changed. And I believe that the investors want to be involved in cannabis right now, it is an essential business. And the opportunity, the advantage is on our side. And it is, an investment where it’s a good, reasonable return, you know, based on profit margin and standard accounting practices. Like that’s a, you know, that’s a good investment.

Nick: Right.

Chip: Right? Like some of the investments I hear about, like the return rates are just so high. The expectations are just so high, you know. It’s just, they fall apart, you know? And the best advice is to say, “Look if you’re going to have an investor, they should be an investor and you should think about it like you’re borrowing money.”

Nick: Right.

Chip: And otherwise, you have a partner. And if you’re going to get a partner, you need to bring in someone who has something other than just money. If they’re just a capital partner, and then don’t have operational stake in the business, man, there’s just so many details there over who gets paid, who does away, and there’s operational agreements that can

define all that stuff. But as soon as you have a silent partner that has invested all of the capital, like, things often go south, right? The paperwork’s not done appropriately, the investor becomes like, upset that you know, the cannabis isn’t performing appropriately. And you know, they’re hearing all these other ideas and they see Canna Cribs, and got all these ideas on how they should improve their scene. And it just often falls apart, right? So like, beware of your investor, is absolutely the best, the best advice. And man, form some solid partnerships. If you’re interested in growing world class weed, well you know what you’re going to need, is you need a world class extractor team. Because all of the weed that you grow, you’re not going to be able to produce into world class weed. So, go find an extractor that you can partner with. You know, hey, if you’re an extractor and you want to make world class weed, go find a grower and go partner with those people. And instead of bringing like this outside investment, like so much of it can be done with inside the community, and probably with like people that you know. But you know, it just takes, you got to get rid of the ego and solely think about the business. And think about the business that you can build together, as opposed to this get rich quick scheme that often comes through with this investor type platform. And I hope I’m not insulting any investors out there, and I mean, I’m one myself and I have other friends that are investors and I think they’d understand what I’m saying here, is you have to be savvy. You have to be savvy on the investment, and you have to be savvy on —

Nick: On both sides.

Chip: And hey, let’s take that on the other side. Just last week, a friend of mine called me up and he’s like, “Hey man. I’m thinking about putting money into this cannabis operation.” He threw out some rate of return, it seemed like a normal rate of return, you know, like a little bit better than bank money. But I looked it all up for them, and I look at their PLs, their BLs, I look at at the proforma, I looked at the location, you know. I checked them out with their state, and these guys were totally full of shit. And they just built this proforma to fool the unsavvy investor. And hey man, my friend he’s a savvy investor in the tech industry. But he doesn’t know anything about cannabis, right? And you know, we just went and looked at the guy’s like, proposed cost for growing a certain amount you know, a large amount of weed, and realized like, “Oh, he’s only spending 40,000 dollars a year growing weed. Like there’s no way he can grow 4,000 pounds,” you know. So like, also —

Nick: It goes on both sides, right?

Chip: It goes on both sides. Like —

Nick: It’s a booming industry right now, and I think with any booming industry it attracts so many apples. And some of them will be bad apples, right? So being cautious, savvy, and as you said, building a world-class community and network of people that can, you can rely now. Like, your buddy calling you whether it’s an investor investing into a cannabis grow operation or a grower calling you and saying like, “Hey, like, should I, should I take this money?” Um, I think that’s so vital to have people that you trust, you know, not part of the deal. It does not have [inaudible] that can you know, help mentor you.

Chip: Yeah, that’s true. And you know, I actually started a consulting group this year, kind of based on that exact principle. Is that you know, I have so many resources in the cannabis

industry and can easily like know or figure out a problem, someone’s already had it in just a matter of moments.

Nick: Yeah.

Chip: And, and we developed this, this, it’s called Greener Group, Greener Consulting Group. We developed this consulting group and you know, with the thought of like, “Oh we’re going to be able to like, help growers, retractors or owners like you know, solve some of their cultivation problems.” And for we immediately started getting calls for was from investors, from state and local governments. Because they need this information. From banks, they don’t know how to bank with cannabis people but want to, you know.

Nick: Interesting.

Chip: And you know, I actually have the connections to one of the guys. He works for us in one of our lead consultants at Greener Group and that’s exactly what he does. He helps banks integrate into accepting cannabis clients as clients, cannabis growers as clients. So there’s this interaction that can happen now that hasn’t happened in the past where you can ask experts. Where you can you know, talk to people that actually know the cannabis industry. And not just your great accountant who’s going to be leery, ‘cause he doesn’t know the cannabis industry or thinks it’s just a widget, you know. ‘Cause it’s not. It’s completely not a widget. So yeah, here’s my little rant, man. You got me talking today. It was supposed to be an interview for you, man.

Nick: Haha, well here’s the cool thing. I want to invite you onto the Canna Cribs podcast.

Chip: I want to come dude, yeah absolutely. Let’s schedule it up anytime, man. And absolutely, I’m going to promote your podcast. I’m stoked that we can be working within the same field and not have to feel that there’s a competitive nature going on.

Nick: Yeah. I’ve built Growers Network and Canna Cribs on collaboration over competition, right? When it comes to content, whether it’s you know, the Grow and Expose Youtube channel, or you know, your podcast. You know, fans around the world, they can listen to our podcast back to back. They can watch our Youtube videos back to back. So, it’s all about collaboration. And I want to say thank you again for you know, opening up your show for me today to join and share a little bit about what we’re doing. And being part of that, I believe you said 75% of the industry of being welcoming and accepting of newcomers like myself.

Chip: You’re no newcomer now, man. That’s for sure. Hey, Nick, I really want to thank you for joining me today. I really appreciate talking to you about all the stuff you’ve done and it’s been a great conversation. We’ll have to have you back on again.

Nick: Definitely, yeah. Thank you and for everyone on your team, keep working hard. I know it’s a really funky time right now, and it kind of sucks that we can’t go to trade shows and see each other and break bread over dinner afterwards. But, I’m looking forward to those days again and in the meantime, let’s podcast it up and you know, YouTube it up.

Chip: Sounds good man. And if you listened to this episode, enjoyed it, and would like to hear others, please download The Real Dirt at The Real Dirt podcast on iTunes. And absolutely subscribe, subscribe, that’s the only way we get to grow. You know, if you’re paranoid, or if you just want to listen to it on website, you can do that too. You can go to therealdirt.com and just stream it right there. But, uh, love you guys, thanks for listening, I appreciate each and every one of you. I always appreciate your comments on Facebook and Instagram. I feel like my growing network of friends just manages to expand every day. Just know, I’m a real person and you can always reach me. And this has been, The Real Dirt.

What is Green Greed?

What is Green Greed?

Green greed! It has plagued the cannabis industry for years. But today it doesn’t mean what it used to.

In our current legal cannabis industry, I have run across so many contractors and vendors that attempt to charge cannabis people more money than their “normal “clients. Maybe this is because they were overcharged for a not-so-great sack years ago. Maybe they’re just greedy.

I’ve been quoted $6,000 for a $1,000 job. I’ve been quoted $3,800 for a $900 job. Now, the joke is on both of those assholes because they didn’t get my money. But for someone not as skilled as me in construction and operating a business, you might get taken advantage of by some dubious contractors.

Here are signs that you might be dealing with a green greedy asshole.

Signs of Green Greed

1. If you tell a contractor you’re in the cannabis business and they clap their hands and say, “You guys must make really good money”…
2. Or they put on a greedy smile and say, “This is going to be expensive, but you can afford it”…
3. They tell you that working with cannabis businesses is too risky, and that they have to charge more to account for the risk.

The reality is that these people are probably all just jealous. We all choose our own lines of work, and they chose theirs. Remember, we’ll only work with them if we get fair rates and quality work.

Countering Green Greed

If you are in the cannabis industry and you get the slightest psychic vibe that you’re getting a high quote from a contractor, immediately tell them, “No, that’s too much, I can’t afford that.

Immediately asked them for a discount when they give you their quote. Upon meeting these contractors, call out other green greed that you have already had to deal with to show them you won’t be tricked into overpaying. Demand that you get the best price and the best service.

The cannabis industry makes a lot of money, but the people who try to take advantage from the outside don’t know where all that money actually goes. Operating costs, testing, licensing. There isn’t that much left over. Make that clear too.

It started as growers in the private market’s green greed driving up prices in tough times. Now that it’s legal, everybody can try and take a cut. Which is why it’s so important to be mindful as a cannabis business owner.

Next time you’re talking to a contractor and you hear a number that sounds a little high, don’t be afraid to call it out. As long as people get away with taking advantage of new cannabis businesses, they’ll keep taking advantage. Be cautious, be mindful and always get a second quote.