Arcata Dave asks Yes on A — Cannabis Reform Initiative Proponents…

1 ^

Economic questions

  1. In your response to “Why Bother?” you list a series of bullet points that you say will support small farmers; what economic theory are you using to justify the specific restrictions on farmers? Who are the experts or business/farmer endorsements that agree with you (support your theory)?

 

— Arcata Dave

Response

Yes on A — Cannabis Reform Initiative Proponents

 

Supply and demand is a well-known economic concept: when supply is high the demand and price are low.  When the supply is low and/or risky the demand and price increase.

The farmers we consulted understood price drops but some chose to try to increase production to increase income. One of our endorsers is Robert “Woods” Sutherland, HUMMP (Humboldt-Mendocino Marijuana Advocacy Project ) wrote a My Word in the Time-Standard  addressing your question: https://www.times-standard.com/2023/11/16/my-word-we-must-curb-cannabis-greed/

 

Also, some members of HCGA presented arguments as to why they would benefit, including a) they would have a greater share of the market for the Humboldt brand, than if 2000 more permits were approved, b) they would be able to compete locally more efficiently for production inputs (fertilizer, soil, mulch, labor) than if there were 2000 more, mainly large, farms that would enjoy economies of scale, and c) by producing less ‘Humboldt’ weed than would otherwise be the case with 2000 more farms, the supply becomes limited–scarce, which ‘supply- and- demand’ dictates would increase price of Humboldt weed; they would enjoy a higher price for their product..