Sadly, this is not a click bait. The temp licenses, which are provided by the California Department of Food and Agriculture (CDFA), expire in July and there are 6,924 farms under this situation, while only 9 farms have a permanent license to cultivate cannabis.
3,127 farms submitted applications for the license renovation, but the CDFA takes about four months to approve them. Therefore, there is not enough time to plant more cannabis before summer.
Jenn Price, the Director of State Compliance at Golden State Government Relations, declared in an interview for Leafly that CDFA is trying hard to speed up the submissions approvement process, although the main issue is whether the applications are even eligible for approval.
Each of these applications has about 44 pages, which is a considerable amount of content for who is asking for permission as well as for the people who approve them. In addition to that, the farms also need to adjust their structure and methods of cultivation accordingly to the environmental regulations, which might add some time in the license approvement process.
Considering all the statistics and facts involving the licenses, it is estimated by specialists that only 144 cannabis farms will be licensed by July, which is extremely worrisome because it may lead the cannabis market to a serious crisis.
The Industry expert and cannabis attorney Omar Figueroa said if California runs out of regulated cannabis, consumers will turn to the unregulated market, making it even more difficult for the few remaining licensed cannabis businesses to eke out a living.
As a way to avoid this crisis, Senator Mike McGuire published Senate Bill 67, which aims to extend the license’s expiration while the farms submit their applications for a new one. According to Hezekiah Allen, former executive director of the California Grower’s Association, the SB 67 would be the first step to avoid the crisis and, as though it wouldn’t be a solution, it’s critical if the fledgling market is going to survive the next year.
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The cannabis market is in a high risk of a serious crisis, which, if happens, will negatively affect not only the companies but also the consumers since the market would be vulnerable unregulated cannabis which in turn, can offer risks to the health of buyers.
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