In the wake of legal cannabis becoming a reality in California, the industry that once thrived on small family farms is now on the brink of collapse. What was meant to be a path to prosperity for legacy cannabis growers has, instead, turned into a nightmare of broken promises and economic devastation. Small farmers in the state’s historic cannabis-growing regions, like Humboldt County and Mendocino, are asking one question: how did this happen?
When Gavin Newsom made his case for legalising cannabis in 2015, he assured small-scale growers that their interests would be protected. But nearly a decade later, his promises have become hollow, and California’s cannabis industry has been overtaken by corporate giants. The state’s once-vibrant cannabis culture is being decimated, with small farms giving way to sprawling industrial farms backed by massive corporations. What was intended to be a victory for small businesses has led to a crisis of oversupply, plummeting prices, and a loss of heritage farms that once symbolised California’s cannabis culture.
The Promise of Legalisation: What Went Wrong?
In 2015, when Gavin Newsom visited Humboldt County to rally support for cannabis legalisation, small cannabis farmers were deeply sceptical. They feared that big corporations would monopolise the market, squeezing out the small, family-run farms that had been the backbone of the state’s cannabis industry for decades. At the time, Newsom promised that he would fight for these small farms and protect them from the interests of corporate growers.
But today, Newsom’s promises have all but vanished, and small farmers are left wondering if the state’s plan all along was to eliminate the legacy farms of Northern California in favour of massive commercial operations.
The Monumental Shift: Breaking the 1-Acre Cap
The turning point for small farmers came in November 2017, just two months before legal cannabis sales were set to begin in California. The California Department of Food and Agriculture (CDFA) released new regulations that would allow legal cannabis farms to grow as large as they wanted. This sudden policy shift shattered the expectations of farmers who had been told that the initial legalisation framework would cap farms at 1 acre for the first five years.
- The 1-acre cap was meant to provide small growers with a head start in the new legal market.
- This was a promise that Newsom himself had made when he visited Humboldt County and addressed local farmers.
- However, when the cap was lifted, corporations with deep pockets and resources immediately began investing in massive growing operations, undermining the smaller farmers.
The lifting of the 1-acre cap led to the rapid expansion of mega farms across California. Massive facilities began popping up in regions like Santa Barbara and Salinas Valley, where farms could span millions of square feet. The result? The small, family-run farms that had long been part of California’s cannabis identity were suddenly left in the dust.
The Impact of Mega Farms on Small Cannabis Growers
The rise of industrial-scale cannabis operations has had devastating effects on small farmers in California. The average farm size in Humboldt County is still under 10,000 square feet, compared to the enormous 4.1 million-square-foot facilities that are now common in other parts of the state.
- Mega farms can produce cannabis at a fraction of the cost of small farms. Large operations benefit from economies of scale, robotic harvesting, and automation that small farms simply can’t afford.
- Companies like Glass House Farms have raised millions in investment to expand their operations and are now harvesting hundreds of thousands of pounds of cannabis—more than every farm in Humboldt County combined.
- Small farms can’t compete with this kind of scale. The market has become flooded with cheap cannabis, driving prices down and leaving little room for smaller producers to survive.
In 2016, around 2,000 farmers applied for cultivation licenses in Humboldt County. Today, that number is closer to 1,000, with many of the remaining farms on the brink of closure. As prices for wholesale cannabis have plummeted—from $2,000 per pound to as low as $100—more farmers are being forced to shut down.
The Price of Legalisation: A Freefall in Cannabis Prices
The sudden shift from an illegal market to a legal one, combined with the influx of corporate interests, has led to a freefall in cannabis prices. While legalisation was supposed to benefit small farmers by providing a regulated market, it has instead created an oversupply problem.
- Wholesale prices have dropped drastically, causing farmers to sell their product for a fraction of what it once fetched.
- Large operations with the ability to scale up production have flooded the market, pushing out smaller growers who lack the financial backing to compete.
As Brad Rowe, a researcher at UCLA, explains, “Half of the people who had [farming] licenses in California last year didn’t renew them. They’re throwing in the towel.”
Newsom’s Recent Veto: Another Blow to Small Farmers
This autumn, Governor Newsom made headlines again when he vetoed a bill that would have allowed small cannabis farmers to sell their products directly to consumers at farmers markets. This decision infuriated farmers who saw this as one of the few remaining ways to keep their businesses afloat.
- Direct sales to consumers would have allowed small farmers to increase their profit margins by cutting out the middlemen.
- Currently, cannabis farmers in California are forced to sell their products to distributors and retailers, which significantly reduces their ability to make a profit.
Newsom’s veto sparked outrage in the farming community, with many wondering if the governor was truly committed to protecting the small farms he had promised to support.
The Bigger Picture: What’s at Stake?
For many, the collapse of California’s small cannabis farms represents more than just an economic crisis—it’s a cultural loss. The state’s legacy cannabis growers have deep roots in the community, and their small, family-run operations were a symbol of California’s pioneering cannabis culture.
- Small farms were responsible for cultivating some of the finest cannabis in the world.
- The state’s emphasis on corporate cannabis threatens the artisanal, craft cultivation that has defined California’s cannabis culture for decades.
- If the trend continues, California could lose its status as a leader in the cannabis industry, with smaller players being squeezed out by large corporations focused on profits rather than quality.
Conclusion: California’s Cannabis Industry—A Cautionary Tale
As California’s cannabis market continues to evolve, one thing is clear: the promises made to small farmers in 2015 have largely gone unfulfilled. Gavin Newsom’s failure to protect the state’s small farms has led to the decline of a once-thriving industry, and many are left asking whether the state was ever truly interested in supporting its legacy growers.
For the small farmers still struggling to survive in the Emerald Triangle, the future is uncertain. Whether California can preserve its roots in craft cannabis remains to be seen. But as the state grapples with its new reality, it’s hard to ignore the damage that has already been done.
