[[“value”:”The economic development meeting brought together members of Mendocino County’s legal cannabis industry to discuss the viability of the current business climate [Photos by Monica Huetll]
Mendocino County’s licensed cannabis growers voiced their frustrations at the county’s Economic Development meeting in Willits on March 27, highlighting the challenges of operating within a heavily regulated industry. Representatives from the Mendocino County Producers Guild, the Mendocino Cannabis Alliance, and other stakeholders discussed the obstacles they face, including overregulation, zoning restrictions, and the inability to sell directly to consumers. As small farmers struggle to compete against larger operations and the unlicensed market, they urged the county to take action to support the local cannabis industry.
Cannabis license holders are regulated by numerous state and county agencies: the Department of Cannabis Control, Department of Fish and Wildlife, State Water Resources Control Board, California Department of Public Health, Cannabis Track and Trace System, County Departments of Cannabis and Building and Planning, and others. The growers must track and report their use of water, pesticides, and air quality to various agencies. Meeting participants say these agencies do not communicate with each other. One person remarked, “It’s not the farmers’ responsibility to educate the agencies.”
The County’s ordinance should mirror the State’s regulations, but in some instances, such as for a cannabis micro business license, they do not. Cannabis is taxed by the state and county at higher rates than for other businesses.
While license holders are under a microscope by regulatory agencies, unlicensed cannabis sold on the black market is readily available. Unlicensed cannabis is not regulated and brings down the price of licensed cannabis. Licensees are only allowed to sell within California, while unlicensed growers sell illegally across state lines, tax-free. Licensed cannabis is stringently tested, while unlicensed cannabis can contain pesticides and mold.
The average price for licensed cannabis dropped from $1,377 per pound in 2020 to only $721 per pound in 2024, according to the January 2025 California Cannabis Market Outlook Report, commissioned by the California Department of Cannabis Control.
Mendo’s cannabis farmers are frustrated over community resentment and misperception. “We are billed as criminals,” said one attendee. The attempt to use zoning laws to prohibit cannabis grows in Redwood Valley two years ago left both the growers and those wanting to exclude cannabis from their neighborhood feeling blindsided. The growers spent a lot of money and effort to obtain a license. Meanwhile, a group of residents opposed to cannabis was meeting with and urging county planners to create a cannabis prohibition zone. Neither side realized what the other was doing. Advance notice by the county to all parties would have prevented frustration on both sides, by providing a chance to communicate with each other prior to a license being granted.
Attendees express frustration with overregulation, zoning restrictions, and the inability to sell directly to customers as barriers to success for cannabis businesses in Mendocino.
Attorney E. D. Lerman would like the County to assist the applicants who have obtained the County Cannabis Cultivation Business License, but are in a holding pattern awaiting State Department of Cannabis Control approval. Lerman urged the County to work with the State to fast-track these applications that have been in limbo, in some cases for two years. Applicants cannot cultivate cannabis until they are approved by the DCC. The County Cannabis Department issues monthly reports showing new applications, applications approved by the county, and those approved annually or provisionally by the state. As of the latest report there are 118 applicants approved by the county still awaiting state license.
The farmers expressed frustration over the County Cannabis Ordinance limit on cultivation to 10,000 square feet, when other counties have a larger size limit. Mendocino County’s small craft farms have a hard time competing against larger brands from other counties.
Unlike winery owners, cannabis farmers cannot sell directly to consumers. They are legally required to go through a distributor, a middleman that adds an extra layer of cost. Numerous voices at the meeting called for the County to allow farm tours with retail sales at the farm and at farmers’ markets.
The small craft farmers are dedicated to the concept of sustainable, regenerative agriculture. Sun-grown and carefully nurtured. They say true cannabis aficionados prefer sun-grown cannabis over that grown in indoor warehouses. Many of the farmers grow vegetables, herbs, and flowers in addition to cannabis.
The talk turned to solutions and opportunities for economic growth.
Fewer or streamlined regulations, fees, and taxes were number one on the growers’ wish list of solutions for economic development. There were calls for enforcement against unlicensed cannabis growers. The amount of regulation, recordkeeping, and fees required in the legal cannabis business seems to leave them with little sympathy for their former outlaw brethren.
Mendocino County’s unique microclimate produces world-class wines and world-famous craft cannabis. The small farm craft cultivators find it ironic that their decades of experience (some of them are third-generation farmers), growing world-famous Emerald Triangle Cannabis, are not getting recognition from the County. An attendee remarked that at the start of the regulation process 8 years ago, the County promised to help with branding and marketing. Growers asked that the County include promotion of sun-grown craft cannabis and cannabis tourism along with wine in the Visit Mendocino program.
Jake Lawrence, who goes by Big Jake, is the founder of MedVets.org, a community development non-profit that focuses on veteran wellness and youth empowerment programs. MedVets provides cannabis oil used by cancer patients at St. Jude’s Hospital, and Duke and Stanford University Hospitals. After the meeting, Jake remarked “Mendocino County has a unique opportunity to bring substantial economic opportunity to their community as a whole.” Those in the industry expect cannabis to go legal at the federal level, and the County can allow their community to prosper. When farmers are at work, many other local supporting businesses see direct positive impact. . . . I’m not speaking to cannabis alone, I’m speaking to agriculture as a whole.”
The Economic Development Department plans to incorporate the suggestions gathered at the meeting into a report that should be ready by May. Suggested solutions for economic development may possibly be implemented over the next 12 to 24 months. The financially strapped cannabis licensees say they cannot wait that long to get help for their businesses.
The County’s Economic Development department is holding a series of meetings on different industry sectors. Here are the dates and topics of the next meetings:
May 21 – Home Hardening & Construction
July 17 – Agriculture
Dates to be announced for meetings on Forest Health and Sustainability and Arts and Recreational Tourism.
“]] Mendo’s cannabis farmers are frustrated over community resentment and misperception. “We are billed as criminals, Read More
