Articles Tagged with California marijuana lawyer blog

So much weed is being grown in California, it could create a bubble that will soon leave us set up for bust. There are too many marijuana farms, too much product and not enough demand. It has the potential, according to Vessel Logistics, to result in an an industry collapse. This is obviously something to which marijuana businesses and our Los Angeles marijuana business lawyers are paying close attention. cannabis lawyer L.A.

The research firm/marijuana distribution company, crunched the numbers to learn nearly 1,150 acres of cannabis farms have a permit by the state. Those farms can generate an estimated 9 million pounds of the crop annually, yet the wholesale marked for the drug in the state – just realistically at this point – is about 2.2 million pounds. That means even if cannabis farms cut their production by half – we would STILL have an overstock.

In a typical trade situation, we’d look to offload that excess to markets in other states selling less. But we’re forbidden to do that by federal and state law. The drug remains a Schedule I narcotic, which our Los Angeles marijuana lawyers know that neither farmers nor distributors can ship this product across state or international lines without breaking serious felony drug trafficking laws – even when those states allow the drug to be used and sold legally.

As we head into 2017, there is a great deal of uncertainty about what a Trump administration will mean for those in the marijuana industry in California and beyond. Cannabis advocates and industry players are struggling with attempting to formulate a strategy when no one knows exactly what the President-elect thinks about legalization.americanflag

There have been efforts to piece together an idea of what the strategy will be, based on off-hand remarks and Trump’s cabinet picks. Then there is the fact that conservatives have historically demonized marijuana use (including both the new attorney general, Sen. Jeff Sessions, as well as the new health and human services secretary, Rep.Tom Price). But then there is also the fact that Republicans have largely embraced the notion of empowering states’ rights. Plus, marijuana is no longer a red-blue issue, with many conservative Republicans favoring legalization, and there are also liberal Democrats who oppose it. Trump himself has said that he is in favor of medicinal marijuana access.

In light of all this, those in the industry have worked out some loose-level strategies and ideas that will likely need to be tailored as time goes on and the policies become more concrete.  Continue reading