In a recent assembly committee meeting in Sacramento, local cannabis cultivators voiced their concerns regarding the financial struggles faced by the industry since the suspension of Measure S tax in November 2022. The discussions highlighted the significant economic impact of cannabis farming in Humboldt County, where cultivators reported a drastic drop in prices and profitability.
Ross Gordon from the Humboldt County Growers Alliance presented survey data indicating that 85% of cultivators felt their situation worsened after the tax suspension, with average prices per pound plummeting from $400 to $350. He emphasized that nearly all businesses are struggling, with only 2% of respondents claiming to be doing well. Gordon urged for a two-year extension of the tax suspension, arguing that the cannabis industry should be treated like any other agricultural sector.
Craig Johnson, a local farmer, echoed these sentiments, reflecting on the $55 million paid in taxes since the program's inception. He criticized the county's financial management and called for normalization of cannabis farming, suggesting that the county should support the industry rather than impose additional financial burdens.
Other speakers, including Hannah White and Ed Janicki, reinforced the need for a zero percent tax rate, comparing the cannabis industry's contributions to those of other agricultural sectors. They argued that the current taxation model is unsustainable and detrimental to the local economy, which relies heavily on cannabis revenue.
Natalie DeLap from the Humboldt County Growers Alliance pointed out the alarming trend of declining licenses and the potential for further business closures if the tax structure remains unchanged. She urged the board to reconsider its approach to taxation, emphasizing that taxing a struggling industry could lead to its collapse.
The meeting concluded with a call for the county to develop a sensible tax policy that supports the cannabis industry, allowing it to thrive and continue contributing to the local economy. The cultivators' unified message was clear: without immediate action to alleviate financial pressures, many local farms may not survive the ongoing economic challenges.