The Emerald Triangle, Sonoma & Del Norte Participate In First-Ever Research Study Of Northern California’s Cannabis Economy

HUMBOLDT COMMUNITY BUSINESS DEVELOPMENT CENTER TO ESTABLISH ECONOMIC IMPACT STUDY

THROUGH GRANT FROM THE CALIFORNIA BUREAU OF CANNABIS CONTROL

ECONOMIST ROBERT EYLER OF SONOMA STATE UNIVERSITY TO LEAD RESEARCH IN PARTNERSHIP

WITH THE CALIFORNIA CENTER FOR RURAL POLICY AT HUMBOLDT STATE UNIVERSITY

 

CALIFORNIA:  Northern California’s cannabis industry will become the focus of a pioneering study examining the economic impact of industry upon the region.  The Humboldt Community Business Development Center (HCBDC), has partnered with the California Center for Rural Policy at Humboldt State University, and Sonoma State University for a comprehensive look into the impact of cannabis farming, manufacturing, distribution, and retail sales on the overall economy of a research area which includes the legendary Emerald Triangle (Humboldt, Trinity, and Mendocino counties).  The HCBDC will develop the study through a grant from the California Bureau of Cannabis Control.

“It is widely understood that cannabis is a significant economic driver in rural northern California, yet four years into the regulation, legalization, and taxation of California’s cannabis industry we still do not have real, data-driven research and analysis on what is the true economic impact of the cannabis industry,” says Natalynne DeLapp, HCBDC Executive Director.  “This grant will provide resources to answer long-standing questions, will help establish a baseline by which to measure the economic health of the cannabis industry, and by which public policies can be evaluated for efficacy for years to come.”

A chief cash crop in the area for decades, there has never been a thorough analysis of the role of cannabis to the local economy of rural Northern California. The study which also encompasses Del Norte and Sonoma counties will begin to harvest data in early 2021 on such issues as the impact of cannabis on the private and the public sectors, cannabis prices on the licensed and unlicensed markets, job creation, and taxes and government and administrative costs.  Some of the questions this  study will seek to address include:

  • How much cannabis is produced by the North Coast cannabis community?

  • How much is the region contributing to California’s GDP?

  • How long have businesses been in the community and how much do they contribute to state and local taxes?

  • How many people are employed; how much is paid in wages?

  • How much are cannabis businesses paying in licenses, permits, and fees?

“This proposal helps policymakers, advocates, private business, and local residents understand the economics and business aspects of the cannabis business as a combination of agriculture and manufacturing with supply-chain partners to deliver goods to retail and customers,” says economics professor Robert Eyler, Dean, Sonoma State University’s School of Extended and International Education, who will be leading the study.  “This framing gets us away from the conversation of illegality and about how these businesses (similar to the wine or craft brew industries) harvest a crop that becomes a manufactured product.”

“For decades, rural northern California counties have incorporated the cannabis economy as an unplanned economic development strategy. This research will help these jurisdictions formulate long-term strategies to incorporate a significant, previously illegible, sector of their economies into a more sustainable, resilient future for their communities,” says Dominic Corva, Co-Director, Humboldt Interdisciplinary Institute for Marijuana Research (HIIMR), Humboldt State University.

Sales Of Legal Cannabis Products Expected To Accelerate

NEW YORK: Medical cannabis sales are forecast to grow to $5.3 billion in 2017 and accounting for 67% of total cannabis sales, according to a new research report published by New Frontier Data.  By 2025, medical sales in currently legal states are forecast to grow to $13.2 billion, at which point medical sales will account for 55% of all sales. Comparatively, adult-use sales in 2017 are forecast to reach $2.6 billion and rising to $10.9 billion by 2025.

The report also indicates that in 2016 alone, adult-use consumers shopped once every 14 days and spent $49 per transaction. Medical consumers, by contrast, shop once every 10 days and outspend the adult-use customer by more than three-to-one or spending $136 per transaction.

“Cannabis stocks significantly outperformed major indexes in 2016, fueled by speculative investment based on anticipated expansion of new legal markets. In the run up to the election, stocks increased by 207.8% and continued to rise, even with an uncertain future under the new administration. While recent comments by the Trump administration did have an initial dampening effect on the market, we have seen continued growth relative to Q4 2016 whereby cannabis stocks are still outperforming other sectors,” said Giadha Aguirre De Carcer, CEO of New Frontier Data.

 

The Growth Of The Hemp CBD Markets

NEW YORK: According to a research conducted by Hemp Business Journal and Vote Hemp, the Hemp CBD is a market with $130 million in sales with growth at a 53% AGR (Adjusted Growth Revenue). This as a result contributed to the $688 million in total Hemp sales in 2016.

The Hemp CBD category was led by channel sales in natural and specialty products such as smoke shops and online verticals. As well in 2016, SPINS, the leading market research firm for natural products, has listed that $2,470,000 worth of products has used CBD as a primary ingredient. Currently CBD-based pet care products are a ‘growth category to watch’ in 2017.

Eric Steenstra, President of Vote Hemp has referenced, “To date, 31 states have passed legislation that allows hemp farming per provisions set forth in the 2014 Farm Bill, and the U.S. remains the largest consumer market for hemp products worldwide. We need Congress to pass federal legislation to allow commercial hemp farming nationally, to let our farmers and American businesses take advantage of the robust economic opportunity hemp provides.”