Cultivation Operating Plan – Stop By The Team ASAP To Uncover Further Information..

Cultivation Operating Plan – Stop By The Team ASAP To Uncover Further Information..

The present “green rush” has brought along with it an intense focus on large-scale cannabis cultivation. Across america and around the globe, we routinely hear stories of companies building larger and larger cannabis farms. In Arizona, Colorado, California, and Oregon, cannabis is being cultivated in greenhouses greater than 250,000 sq. ft. that are designed for yielding greater than 50,000 pounds of flower. While large-scale Canadian producers are building greenhouses within the countless square feet and building similar-sized facilities in Europe, Australia, and elsewhere.

In america, cultivation licenses tend to be thought of as the most valuable in the highly competitive application processes that most states use to determine who may be able to cultivate and dispense inside their states. This value is partly derived from the actual fact many populous states initially only grant a small quantity of cultivation operating plan. For example, Pennsylvania, with nearly 13 million people, only granted 13 licenses; Florida, with a population over 20 million, granted 7; while Ohio, with more than 11 million people, granted 12; and Ny, with a population of nearly 20 million people, granted only 5 before recently expanding to 10. For context, Colorado has roughly 1,400 licensed cultivators for a population of just 5.5 million people. Competition for these limited permits is fierce, and the ones companies lucky enough to win one see sky-high values connected to these licenses before they become operational. In Florida, a coveted cultivation/dispensary license sold for $40 million prior to the company had seen a dime in revenue. Similarly, a pre-revenue New York City license sold for $26 million.

Indeed, in states with limited cultivation licenses, those businesses that hold them can easily see large returns on the investments inside the near term. With artificially limited competition as a result of restricted license classes, cultivators in lots of states are able to control pricing and sell their product in large volume. Most of these cultivators grow their product in state-of-the-art indoor warehouses with clean-room environments that resemble pharmaceutical production facilities more than traditional commercial agriculture.

But is that this trend sustainable? Or are these companies setting themselves up for long-term failure? As stated in my previous column “Are Canada’s Cannabis Companies Overextended?”, we’re already going to a khhhfj towards large-scale greenhouse and outdoor production, which can be driving prices down in states that do not have strict limits on the number of licenses they grant. As an example, the average wholesale cost of cannabis in Colorado has dropped from nearly $3,500 per pound at the start of legalization in 2013 to roughly $1,012 a pound on April 1, in accordance with the Colorado Department of Revenue. In Oregon, where state ramped up licensing after early product shortages, wholesale marijuana trim (after harvest, the cannabis is trimmed of their leaves; those leftover leaves are known as the “trim” and may be used to produce cannabis products) has become selling for only $50 per pound, which can be reportedly driving some cultivators in the state away from business.