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Grower to Grower with Little Hill Cultivators

Grower to Grower with Little Hill Cultivators

The Real Dirt is known for interviewing some pretty great cannabis growers. But this episode isn’t really an interview.

Jeff from Little Hill Cultivators has been an almost regular guest on The Real Dirt, and one of our most reliable sources of insight into the current California cannabis industry. As a long time medical cultivator, Jeff transitioned into the recreational industry as well after legalization in California.

With any new legal cannabis industry there is bound to be some red tape, but California just about takes the cake, and wraps it up in red tape. Comparatively, Oklahoma has just about none.

Barriers to entry for cannabis growers

We can all agree that there needs to be some barriers to entry for cannabis growers in a legal industry. But each state varies on how many barriers they set up.

Oklahoma legalized medical cannabis in 2018, with sales taking off without a hitch in 2019, faster and with more growth than any other state. This is because they had almost no barriers to entry, and even made it easier for out of state cannabis growers to come in and get started.

Up until the end of August 2019, any potential cannabis entrepreneur could move to Oklahoma, live there for 30 days, get residency and pursue state licensing. Now (post August) anybody trying to enter the Oklahoma medical cannabis industry from out of state must live in-state for two years before getting residency.

California on the other hand restricted anybody from getting a recreational cannabis license that didn’t already have a medical cannabis license and operation. On top of that, the application fees were insanely high, with additional charges for obtaining the license after approval.

Talking grower to grower

Talking about growing cannabis with somebody who just started or even has been doing it for a few years is nothing like two veteran Northern California cannabis growers getting together. There’s no beating around the bush, just Chip and Jeff talking about each others’ grows, what they each do differently and why.

We all know some growers that think they got the best set up, grow the best ganja and won’t hear a word that says otherwise. It takes years of learning, seeing other grows and assessing your own problems that you can really sit down and talk, grower to grower.

And this episode is just part one.

Stay tuned for part two

In part two of Grower on Grower with Little Hill Cultivators, Chip and Jeff continue their conversation about California’s strict regulations, Oklahoma’s growing industry, drip irrigation, industry predictions and more.

Follow us on Instagram (@therealdirtpodcast) and Facebook (@therealdirt) to stay updated on the next episode’s release and get fun cannabis content in the meantime.

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Los Angeles cannabis permit problems

Los Angeles cannabis permit problems

California had the right idea when they legalized cannabis in 2017. But with incredible delays, lack of resources and a surplus of entrepreneurs hoping to make a name for themselves in the industry, the state and cities like Los Angeles are struggling.

Over four million people live in the city of Los Angeles. It’s no surprise then, that the inhabitants would try to work in the new legal system. But it hasn’t been as simple, or profitable, as originally projected.

California is the biggest state in the country, as well as the largest supplier of cannabis. When the state legalized, it virtually leveled the main supplier in the state; the private market.

Unprepared, Understaffed, Overwhelmed

While strict requirements, exorbitant application fees and an originally-one-man advisory board made the legal industry all but unattainable for smaller growers and farms in the state, the process was made much simpler for retailers. Medical retailers, that is.

In Los Angeles, priority was given to owners of retail medical dispensaries in the application process. Since they already had the location, the storefront and the brand, all that was needed was a transition to the new regulatory requirements for recreational cannabis.

Second in line for application review came those that legally supplied the medical cannabis to the dispensaries in Los Angeles. It makes sense because once the retail locations are transitioned to recreational, they can continue to use the same growers and suppliers, maintaining their business relationships in the new, legal industry, with minimal delay. At least, that’s how it went on paper.

In reality, the situation isn’t going so smoothly. In February of 2018, the city gave out about 180 temporary permits to allow medical dispensaries to operate recreationally. For the growers and suppliers, the same was to be done by April. Those temporary permits weren’t issued until the end of August.

This shouldn’t be surprising considering the total lack of manpower the Department of Cannabis Regulation had then and now. The directory board of the department started with just one member. Now, over a year since legalization, there are only 13 members on the board. Now imagine those 13 people handling every single application process for the hundreds of retailers, growers and processors.

The picture starts to become pretty clear. As if the city didn’t have enough on its plate, it also included a social equity program in its local laws, aimed at helping repair some of the damage done by the war on drugs.

Los Angeles Social Equity Program

This is where the state of California and the city of Los Angeles could have set a great precedent for new and current legal industries. The city established a social equity program that would give priority to those most negatively affected by the drug war prior to legalization.

People of color in the city were disproportionately arrested for small drug crimes involving cannabis compared to their white counterparts, despite statistical data showing no difference in cannabis use between the two groups. This group and other minority groups negatively impacted by the drug war were meant to be some of the first allowed into the new, legal industry.

Unfortunately that isn’t how it has worked out for Los Angeles. While the social equity program gave priority to these minority groups, the Department of Cannabis Regulation gave higher priority to already-established medical retailers, growers and processors. And with the — to put it mildly — severe lag of the application process, these groups still haven’t had one single approval.

Mind you these are people who do not currently have a business, and want to open one in the recreational market. Many leapt for storefront dispensary locations, despite the low availability. Los Angeles put a cap on how many storefronts can be opened in a neighborhood, in addition to strict requirements for location (e.g. can’t be near schools, other dispensaries, public parks), greatly limiting the options for would-be entrepreneurs.

When it comes to timeframes, the city hasn’t been shy on the issue either;

“Bringing cannabis above ground is an incredibly complex process, and L.A. is doing it on an unprecedented scale,” Alex Comisar, a spokesman for Mayor Eric Garcetti, said in a statement. “Our goal is to do this the right way, not the quick way or the easy way — and we’ve always been very clear about that.”

It’s a rough road ahead

Los Angeles is way behind schedule. It’s a fact. And the local government isn’t doing much to speed up the process. The Department of Cannabis Regulation currently sits at 13 members. Multiple additional position have been filed, but due to the slow city hiring process, anyone new has yet to be hired.

The head of the city council Herb Wesson insists that everything will basically sort itself out. Even with reports of many potential entrepreneurs leaving the city to open up shop elsewhere, Wesson isn’t fazed. “I have no time for folks that want to go somewhere else. Let ’em.”

Instead, as months have passed, industry groups and consultants have complained that many cannabis entrepreneurs are stuck paying steep prices for multiyear leases, after landlords hiked prices on eligible storefronts. 

“You had a lot of people who followed the city’s guidance and signed leases,” paying upwards of $10,000 a month in rent, said Larry Mondragon, vice president of zoning and entitlements for Craig Fry & Associates, a consulting firm helping cannabis businesses. “People are holding onto leases, paying exorbitant checks, not even knowing when they’re able to turn in applications to the city.”

Equity applicants are supposed to get a helping hand from the city through “business, licensing and compliance assistance.” But more than a year after recreational cannabis sales became legal, there are no city programs providing such aid.

So far, the only funding the city has approved for social equity is $250,000 for a fee deferral program. Department officials say they now are seeking more than $4 million for the program, hoping to roll out support services, such as business development training, no sooner than July.

Los Angeles needs to step up. California needs to step up. There are a lot of problems in the state with little to no solutions. Something needs to be done at the city level to change that. How, and even if that will be done, is still unknown.

New Year, New Industry

New Year, New Industry

2018 was a big year for the cannabis industry. 2019 is poised to change the industry even more.

The cannabis industry grew on a global scale in 2018. Not just in the United States, but around the world. More places are starting to accept cannabis as medicine and recreation, with even more planning to get on board in 2019.

While there are plenty of small or local changes to cannabis in the US, here some of the biggest changes in the cannabis industry that came in 2018.

Canada Legalization

Canada legalization of cannabis was a major victory for the industry in 2018. The government of Canada legalized the recreational use of cannabis across the entire country, with local governments still being able to limit the law. 

However compared to legalization within some states of the United States, Canada legalization is run entirely by the government instead of private businesses. All licensed grows, manufacturers and retailers are government run. This has had a split impact on the industry as a whole in Canada.

While access to cannabis has become much easier — consumers can order cannabis online, for delivery, directly from a government website — supply currently cannot meet demand, causing backorders, long delays, moldy and stale product, and other problems.

The biggest problem Canada legalization has adversely caused is an increased use of the private market. If they government can’t supply its people but says it can be the only source, people will go to the private market to get the products they want without the long delay and risk of bad product.

Farm Bill and Industrial Hemp

difference between hemp vs cannabis CBD

At the end of December 2018, Donald Trump surprisingly signed the Farm Bill of 2018, also known as the Agriculture Improvement Act of 2018. Among many other adjustments to the agricultural industries in the US, the farm bill also separated the definition of industrial hemp to be different from that of cannabis.

Before the bill was signed, hemp and cannabis were under the same definition, with a sub-definition of hemp being any part of the cannabis plant with less than .3% THC. However, as sub-definition, it was still considered a Schedule 1 narcotic under the Controlled Substances Act of 1970.

The farm bill separated industrial hemp from the traditional cannabis definition, and created a federal definition of industrial hemp, being the same definition as before, but off of the controlled substances list. This has opened up the possibility for a massive hemp and CBD industry to develop.

While it’s too soon to say where the industry is headed — it will most likely be a year before the new bill takes full effect — the Farm Bill and legalization of industrial hemp means big things for the future of the cannabis industry.

First Year of California Legalization

california legalization needs to be controlled by farmers

California has a population with over 10 million more people than the second place contender, Texas. It was expected for the legalization of cannabis in California to expand the already developed marketplace in the state to great new bounds. However the new laws in place have had almost the opposite effect.

The cannabis marketplace in California was already the biggest in the country, despite the majority of growth occurring in the private market. It was inevitable, then, that the new, legal market would work its hardest to eradicate this competition. 

Extremely limited licenses available to the highest bidder resulted in hundreds of farms and private operations having to shut down, simply by not being able to afford a legal license. This was the case for a large portion of the cannabis community in California, opening up the door for larger companies with more capital interests to enter the market.

With the biggest companies buying as many licenses as possible, the OGs of the industry are left with little options. Either continue to operate in the private market and hope to get a license before getting caught, or leave the industry in California. 

It’s been a tough year for a thousands of growers across California, and 2019 most likely won’t prove to be much different. Despite its flaws however, California will still be a huge legal cannabis marketplace, and most likely surpass all other states, with the end result being the eradication of the private market entirely in the state.

An Eventful Year

2018 was a year full of surprises. Colorado passing Amendment X, The Farm Bill, California’s industry revelations and more. This year had its ups and downs, it’s issues that split the community, but overall the industry is in a better place than it was a year ago.

More states have legalized both recreationally and medicinally, cannabis is more acceptable in social culture than ever before, and more people are learning about the lies they were told during the drug war movement. Some are already saying 2019 will be the year of weed, while others think the bubble is bound to burst any day now.

We’ll just wait and see what’s in store for cannabis in 2019!

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Refugee Squirrels Wreak Havoc on Cannabis Farmers

Refugee Squirrels Wreak Havoc on Cannabis Farmers

400,000 acres burned in California this year from wildfires. In those fires, squirrels lost their nuts.

Hundreds of thousands of refugee squirrels have made their way up north from Southern California to escape the fires, finding new homes in the many cannabis farms in the area. As funny as it sounds, it’s bad.

What these squirrels do is nothing short of murder…plant murder.

The refugee squirrels problem

While most are happy that the squirrels are safe from danger now, many aren’t so thrilled with where they have taken up. Mainly on cannabis farms.

Climbing on the plants, breaking off branches when they climb, and even chewing on the cannabis plants is making the  refugee squirrels a not-so-welcome guest in the Emerald Triangle. But this is a new problem, with no well-known solution.

This is where the problem comes in. Mites, aphids or other small critters are easy enough to deal with, every grower has to deal with them at some point. But no grower has ever really had to deal with squirrels, let alone so many.

Desperate times

Farmers in NorCal have resorted to pellet guns and small arms in so instances to eradicate the squirrels. There are still too many refugee squirrels to get rid of them all.

Compared to other small rodents growers might have to deal with, the sheer amount of squirrels sent there by the forest fires is too much for most to handle. Some have lost their entire crop to the influx of squirrels.

It’s rough in the Emerald Triangle right now. Nut-starved, weed-hungry squirrels are wreaking havoc on farmers all over, and a lot are still trying to figure out how to deal with them.

Will there be a war? Who knows. Maybe the squirrels will realize they like nugs more than nuts. Let’s hope not.

Hear more on the new episode of The Real Dirt! Part 3 of the Harvest Special addresses the squirrel issue, talks trimming and more.

California Legalization: farmers stand up!

California Legalization: farmers stand up!

California cannabis farmers: We have been fighting for cannabis legalization for 80 years. On paper it is finally coming all over the country and the world.

Some of the most restrictive places in the country like Arkansas and Nevada have embraced legal cannabis. Colorado has pioneered the legalization and regulatory environment.

We have literally paved streets that haven’t been fixed in years, and millions and millions of dollars are going to the school systems in association with cannabis sales. On the surface, it appears that the tide is changing. We need to check the tide chart.

The fight is not over. Throughout every single legal state there are county representatives, the board of supervisors, mayors, sheriffs, parent groups and political organizations that are quietly applying pressure to the regulated cannabis movement. Just because the governor or your state representative or your voters change the laws on cannabis regulation does not mean that cannabis is legal commerce in your state or town.

California cannabis legalization

Specifically throughout California, the cannabis legalization movement is being challenged by regulatory agencies and special interest groups. While the good farmers of America are tending their crops, back room deals and political pressure will make it difficult to operate a regulated legal business.

On the surface the cannabis regulatory environment has been successful in Humboldt County. A common stat that is used is that we have 20% of the licensing in the state. These are all temporary licenses and not permanent ones. I believe many of these temporary license holders will not be able to gain a permanent license.

There are absolutely political forces against the cannabis grower to be successful.

Regulation roadblocks

One of the first struggles in legalization is between the policing agencies. The sheriff, the police and Fish and Wildlife have all been responsible for policing the cannabis industry in the past. Many of these people have embraced new cannabis regulations. But there is an old guard that does not agree with government and voter passed laws.

They are the ones who are out to get us.

It isn’t paranoia. These are just facts. We’re not playing cops and robbers anymore, however many people in the policing arena still want to play that game. Environmental and neighborhood groups that are in the minority are speaking up against cannabis legalization. In our current 2.0 designation for new cannabis operations, many outrageous restrictions have been inserted into these new laws.

Unrealistic zoning designation and industrial controls are currently being placed on the cannabis industry.

Is it discrimination?

I spoke recently with Steve Lazar of the Humboldt County Planning Department, and he feels that cannabis is not like other crops and should be treated totally different.

I’m pretty sure we all call this discrimination. To treat one group of people differently than you treat another people. Or in this case to treat one business differently than you treat another business. If a hog farm, chicken farm or dairy farm has certain regulations then those are the type regulations the cannabis industry should have. They should not be any easier or more restricted than any other agricultural product.

I’ve seen this type of attitude for years. While good cannabis folks are working hard, toiling away in their businesses and being successful, they were still judged by neighbors and peers for having an easy life. We’ve all heard, “I should just grow a ton of weed and everything will be OK.”

Those of us that have done this know how hard that statement is, and that you deserve any payment associated with your hard labor.

Time to take the reigns

I’m here to say if we want a legal, functioning cannabis system in Humboldt, the farmers are going to have to step up!

You are going to have to embrace your neighbors and talk to them. You have to bring up the conversations about what you’re doing and how you’re doing it, because many of them still have this projection that you’re a mega diesel grow dumping crank oil into the creek.

We have to come out of the dark and tell people what we’re doing.

Ganja farmers need to realize how to be political and call up your representatives at the local and state level. Whether it is a board of supervisors or the school board or the Waterboard it is time for us to come out of the darkness and be the leaders that we are. To all the outlaws out there who are bucking legalization, I want you to think back to how it used to be before 215. It will go back to that.

Without a 215 defense the whole cookie crumbles. In the past all you had to do was have your script and maybe some scripts of other patients and you could grow as much as you wanted. If interdiction showed up they would take everything and maybe you would receive three years probation. This is all going to change, and it’s going to change rapidly. I do not want to see my friends or family in jail again over cannabis regulations and laws.

The time is now. Your phone is already in your hand, so call up your local representative and express concerns. The Board of Supervisors knows the importance of cannabis farmers. They will listen.

The Profit bob Marley said it best, “get up stand up, stand up for your rights,” and now is the time to stop singing and start doing.