Study Aims to Set Baseline to Measure the Economic Health of the Cannabis Industry in Northern California

Press release from the Humboldt County Growers Alliance: 

[Stock photo from CDFW]

Northern California’s cannabis industry is the subject of a study that began in 2022 examining the economic impact of industry upon the region.  Cal Poly Humboldt and Sonoma State University are examining the economic impact of cannabis farming, manufacturing, distribution and retail sales on the county economies in Humboldt, Sonoma, Lake, Mendocino, Trinity, and Del Norte counties).

“Cannabis remains a major economic force in rural northern California. The industry’s struggles are also struggles for industries that support cannabis farmers, manufacturers, distributors and retailers throughout this region. We are seeking survey data from cannabis businesses to help provide a foundation for the analysis of the breadth and depth of this industry in affecting the countywide economy and communities.” – Jim Roberts, owner of The Madrones, The Brambles and The Bohemian Chemist in Mendocino County.

This study comes from efforts by all regional cannabis alliances to generate data and conclusions that help recognize community needs for operators in this industry.  Origins Council and Humboldt County Growers Alliance (HCGA) are key intermediary team members for Cal Poly Humboldt and SSU to help and protect cannabis operators.

“In these challenging times for rural northern California cannabis communities, it is imperative to gather and present actionable evidence to inform urgently needed policy shifts. The public, and many policymakers, do not grasp how difficult your path has been. Your participation will help us faithfully represent what you are going through by painting a clear picture of the challenges you have faced over the last few years. This is an opportunity to have your voice be heard in order to shift the market towards economic and community stability through evidence-based policy reform.” – Dominic Corva, Cannabis Studies Program Lead and Cannabis Specialist for the California Center for Rural Policy at Cal Poly Humboldt.

This project establishes a baseline to measure the economic health of the cannabis industry, and by which public policies can be evaluated for efficacy for years to come.  There has never been a thorough analysis of the role of cannabis to the local economy of rural Northern California. The study considers such issues as the economic impact of cannabis on the private and public sectors, cannabis incomes and expenses for regulated and unregulated businesses, job creation, 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 economic and business aspects of this industry and the cannabis community needs in terms of vendor relationships and government partnerships from the local to state level”, says economics professor Robert Eyler, who leads the study.  “The framing is that cannabis is an agricultural crop that is processed, converted to other goods in manufacturing, distributed and sold.  We are trying to measure what that means in these six counties in terms of economic and fiscal effects.”

We are seeking help from cannabis businesses.  The survey can be found at:

LINK HERE