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• THE CANNABIS CONVERSATION: Humboldt’s Big Play

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It is no mystery that I am concerned about the economy. Inflation, equity market multiples, GDP and the treasury yield curve all indicate that more challenging times are brewing. Here locally, vacant storefronts, declining business revenues and conversations with displaced pot farmers and employees from ancillary businesses paint a similar picture.

As I wrote months ago, Humboldt needs to attract investment and tourist dollars to maintain the economic vibrancy our area became accustomed to during the multi-decade cannabis bull market. Given Humboldt’s largely anti-business, anti-development bias that inhibits capital investment in the region, cannabis tourism stands out as the primary avenue to firm up the local economy.

As our friends from Humboldt State University noted in their 2021 study titled Cannabis Tourism in Humboldt County – Moving Forward, cannabis tourism is “the act of traveling to a destination with the intent to consume, purchase and learn about cannabis in a legal manner.” For those living in prohibitionist states or nations, this freedom is something to be admired and experienced.

And the economic impact of cannabis travel is immense.

A recent Forbes article noted that cannabis tourism is a $17 billion industry and is still in its infancy. HSU notes that post recreational legalization, Colorado saw a significant increase in hotel rooms rented, and prices for those rooms firmed as well. All told, Colorado has seen a significant increase in economic activity with increased cannabis-related tourism. Dispensaries in Illinois are thriving with out-of-state purchases and our neighbors to the south in Mendocino calculated that each kilo of cannabis produced generates significant total economic activity.

Humboldt could use the same, now!

Retail, dining, leisure and other establishments would welcome increased foot traffic and Humboldt is uniquely positioned to capitalize on this new and growing trend.

Brian Applegarth, founder of the Cannabis Travel Association International and Co-founder of Cultivar Brands agrees.

I had the distinct pleasure of talking cannabis travel with Brian recently and found his passion, sincerity and professionalism inspiring. Brian was born and raised in NorCal and returned to the area in 2013 where he experienced his first dispensary visit. He knew then that cannabis tourism would be a big draw and retired from corporate life the following year to enter the space.

Since then, he formed the Cannabis Travel Association, the voice of international cannabis travel, as well as The Cannabis Trail, which shares terroir, craft and cannabis culture with tourists. Through Cultivar Brands, Brian helps destination marketing organizations and others with strategic planning and hosts marketing events for the industry. He believes that cannabis improves the human condition and sees cannabis legalization as a human rights movement in some ways, focusing on sustainability, inclusion and personal freedom.

While areas like Colorado have a significant presence in the tourism space, and others like San Francisco, West Hollywood and Palm Springs have chic urban consumption lounges, Applegarth believes that Humboldt, like Mendocino, offers a unique historical experience that can cement our area as one of the go-to destinations for cannabis travel worldwide. With its back-to-the-land movement, genetics library and long-standing relationship with cultivation, Humboldt is a true place of source with cannabis in its DNA. Moreover, Humboldt’s authenticity, innovation and environmental stewardship are all attractive to global travelers in Brian’s view.

Given this history and the unique cultural experience Humboldt can offer, we should unify in one voice, proudly sharing our cannabis story and heritage with the world. With a coherent, cohesive and thoughtful cannabis marketing program we can attract millions of visitors and much-needed capital to the region.

As I shared in a previous article, I believe Humboldt’s lack of unity in this area is hamstringing our efforts. Fragmentation of the cannabis community, competing views and interests, multiple tourism organizations, and some entrenched anti-cannabis rhetoric are not serving us well.

We need one voice, one unified message that speaks to the diversity of Humboldt, the natural beauty of our region and our affinity for sun-grown cannabis. Pretending to be something we’re not, or ignoring this important component of our heritage is short-sighted and will only hasten the economic challenges we face.

Mendocino formally added cannabis as one of the pillars of its countywide marketing campaign for tourists and Humboldt needs to do the same.

On the policy front, change is also needed for the cannabis tourism industry to flourish. Right now, on-site consumption and sales are prohibited to travelers at the farm level. In other words, travelers can visit a farm and learn about products and processes, but they can’t sample or purchase anything – it’s ludicrous and unfair.

Applegarth advocates for a catering license, which is used in relation to alcohol to allow for compliant consumption at events and consumption spaces. While AB 2844 was unsuccessful in its first pass, Brian wants to get a cannabis catering license back on the ballot which would allow a “licensee to serve cannabis or cannabis products at a private event … that is not hosted, sponsored, or advertised by the caterer.” This could help farms get products in front of potential consumers and could enhance the consumption experience for those coming to our region

Two other issues threaten the success of a thriving cannabis tourism economy in Humboldt. The first is that many off-grid outdoor farms are at risk of going under. It’s a shame too as organic, regenerative farms could be a real attraction for tourists. As Matt Kurth, owner of Humboldt Cannabis Tours, notes: People want to touch the plant and put their hands in the dirt. They want to learn about Humboldt’s history and environmentally friendly cultivation practices. Let’s allow for on-site consumption & sales and give our family farms the ability to engage consumers directly.

Additionally, as noted in HSU’s work on the subject, many of Humboldt’s farms are tucked away in remote locations. Dilapidated mountain roads and lack of ADA compliance will prevent many farms from participating in this potentially explosive economic growth engine. Nonetheless, farms with better access and resources to invest in ADA compliance could serve as the anchors for tourism efforts and could proudly represent the history, heritage and sacrifice that embody cultivation in our region.

I just returned to town from SoCal where I had the privilege of touring the state’s premier greenhouse facility. The scale, ingenuity and resources being deployed throughout the Central and Southern regions of the Golden State should not be underestimated. Production costs in those facilities are a fraction of what they are up in the hills and the products I reviewed had good quality…perhaps not the same outer trichome level as our stress-grown mountain flower, but visually appealing and certainly viable for commercial sales.

Trying to compete with those operations in wholesale markets will be a losing proposition and will bankrupt small farms in the Emerald Triangle. Our best hope is to market love, history, craft and our unique cultivation approach to a growing consumer audience. A cohesive cannabis tourism strategy that highlights the unique and historic experience of farming behind the redwood curtain can help us preserve our heritage and maintain a foothold in a burgeoning global industry. More of the same will lead to widespread farm failure, a large and lasting disruption to the local economy, and a very displeasing change to Humboldt’s way of life.

For my dime, the county should engage a cannabis tourism expert and follow in Mendocino’s path of cementing cannabis in their formal outreach strategies. It would be a real shame to let this opportunity slip away and let other regions monopolize a storyline we were so instrumental in creating together. I applaud our friends in Mendo for their passion, conviction and ability to get things done. I hope we can do the same.

Humboldt has a small window of opportunity to act while our local operators navigate turbulent waters and try to hold on. Cultivation licenses are being surrendered, plots are laying fallow and soon, not much will be left of the local cannabis community. It is in every resident’s best interest to support and embrace the industry that has given us all so much. Failure to create a thriving cannabis tourism program will lead to further degradation of the local economy, declining property values and a sad departure from a heritage that so many admire.

Much love,

Jesse

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Jesse Duncan is a lifelong Humboldt County resident, a father of six, a retired financial advisor and a full-time commercial cannabis grower. He is also the creator of NorCal Financial and Cannabis Consulting, a no-cost platform that helps small farmers improve their cultivation, business and financial skills. Please check out his blog at, his Instagram at jesse_duncann, and connect with him on Linkedin.