Ranting about the cannabis industry is part of working in the cannabis industry- its one of the defining qualities. However, every good rant is hollow without some practical call to action. Here are a few regulatory changes that we would love to see happen in our industry.&nbsp;<h2>Trim METRC Requirements for Farms</h2>I have to be pretty blunt here: METRC provides next to no value to farms, and in fact is a major resource drain on any operation. While the idea of safe track and trace has good intentions, METRC’s process for accomplishing this is barely viable. Massive time waste, system unreliability, and thousands of non-recyclable plastic plant tags are all a by-product of this poorly implemented government contract software.&nbsp;The problem with such draconian tracking for farms is that much of it does nothing to contribute to more accurate supply chain monitoring. In reality, all it provides is another set of hoops and pitfalls for compliant farms to deal with, and another rule to ignore for farms running gray market operations. Limited in-person farm inspections may catch one-off offenses and generate revenue through fines, but they do next to nothing to secure the supply chain against people who are willfully ignoring rules. Scanning a plastic tag isn’t going to make cannabis safer for the consumer, or tax collecting easier for the bureaucrats at any level of government.&nbsp;	We would like to see the requirements for in-depth METRC tracking scaled back significantly at the farm level. While we understand that some larger operators have integrated METRC pretty deeply into their operation, there’s no reason that everyone should be mandated to tolerate this level of waste. METRC should only be needed at a few steps in the process:<ol><li>Planting: Farmers would enter some basic information about their batches so the state knows what they intend to grow. No tags needed.&nbsp;</li><li>Harvesting: Plants are harvested and bulk weighed to determine yield. Weighing plants individually provides no regulatory benefit. Likewise bulk destruction and disposal should be allowed.</li><li>Packaging: This is where tags become actually useful as normal package labels. Just weigh it, pack it, tag it, record it. Repackaging works the same way.&nbsp;</li><li>Testing: Test results should be associated with the packages. This is one of the few reasonable functions of the regulatory system: to make sure that product can be associated with accurate test results for recall, safety, and responsibility reasons.</li><li>Transfers: The transfer process can remain fairly unchanged, since chain-of-custody between licensed operators is key to track and trace. (Also a personal request: let 3rd party integration software initiate transfers, please, for our founder’s sanity!)</li></ol><h2>Eliminate Minimum Taxes</h2>Taxes are a pain, we get it, but let’s be clear: they’re a part of business. The problem is when they go from being a reasonable portion of profits to a blatant cash grab. The worst of these is the minimum tax on farms. Depending on their jurisdiction, farmers who make zero income can still be required to pay thousands in taxes, generally determined by their license type and square footage. This amounts to a fine for not making any money. On top of licensing fees and everything else that bleeds away operators income, minimum taxes just add insult to injury. Get rid of them.&nbsp;<h2>Legal Definition of Marketing Terms</h2>What is Craft anyway? How small is a Small Batch? How much sun does a plant need to get to be considered Sun Grown? These terms matter, and they are being abused. Companies that have massive new operations can easily claim to be small batch craft, without any repercussions. We want to see California take a page from the <a href="https://usopenwhiskey.com/whiskey-and-spirits-definitions/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">world of whiskey</a> and introduce a standardized (and enforced!) set of terms for who can use certain terms and for what products. Appellations enforcing regional labeling to protect terroir were a good start, but regional name is only one aspect of what makes an operation and its product unique. Here is a list of terms and definitions that we would like to see adopted.&nbsp;<ul><li>Craft: Reserved for small farms at a scale where each plant can receive attention from a skilled grower with a proven history of cultivation. The licensee must have been operating for several years, and have held a license for an extended period. Priority should be given to operators who were involved in prop 215 operations or other previous legal cannabis programs.&nbsp;</li><li>Small Batch: Reserved for product from a single planting of the same strain at a limited scale, with a very limited number of batches per year. This is just one way to do it however, and the exact definitions of weights, plant counts, license types, and strain differentiation would need to be clarified with significant industry input.</li></ul>The goal here is obvious and simple: create market definitions for products and producers to protect small legacy farms. We want to see specific sections in dispensaries for verified small batch craft cannabis, complete with premium pricing. This is already the standard in grocery stores for organic food, let’s adopt it. Likewise, the consumer education from this market segmentation would make buyers more selective in what they purchase. Large newly founded farms can compete via economies of scale and defend their market niches through capital and market flooding, whereas the small farms that started this industry (and are most prone to being driven back under the table) need a defensible way to define their product.As a consumer, I know I would be happy to pay more for small batch craft cannabis, especially if there was a legal framework in place to make sure that's what I was getting, not just another mega-farms misleadingly labeled mids.<h2>Clear Provenance- a Question of Scale and Potency</h2>	It’s still pretty hard for the average consumer to know where their cannabis comes from. Just a farm or manufacturer name on the packaging doesn’t clearly explain anything to your average person buying a jar. Clarity of sourcing is a major advertised goal of the regulators, so in order to achieve that we would support the following label requirements. The question is, how exactly should this be defined in order to accurately and fairly represent the source of the cannabis?From our perspective the most important fact that a consumer should know is the size of the operation that produced the product. Adding a labeling requirement for total square footage of the producing farm would inform the consumer of who they were buying from. This prevents brands from passing their product off as coming from small farms when it is actually coming from a large operation. In general, the cultural expectation for California cannabis is that it comes from a small farm with an emphasis on quality and skilled cultivation. Consumers should know if their product lives up to this expectation or not.&nbsp;Likewise, testing labs are part of this. As we have previously mentioned, testing labs provide inconsistent results on terpene and cannabinoid levels, and operations will shop for labs that will give them more favorable results. Since new legislation is standardizing testing and cracking down on lab shopping, clearly labeling the certifying lab on the final product will provide another layer of accountability.&nbsp;Ultimately, regulators are gonna regulate, but that doesn’t mean they always need to do it in wasteful and unproductive ways- there are real changes that can be made today that help out the most vulnerable members of the cannabis industry and still satisfy the bureaucrats in Sacramento.-Here’s hoping you only smell weed smoke and not wood smoke, keep growing!&nbsp;

This article covers changes we would like to see in how METRC is applied to California cannabis farms, as well as the elimination of minimum taxes, the legal definition of marketing terms, and clearer labels to clarify farm size and lab accountability

3 Changes We Want To See In The Cannabis Industry

<h2>Introduction&nbsp;</h2>Earlier this year we launched Higher Origins to serve the California Cannabis industry. And what a year it has been! Over the course of the last 9 months, our community/compliance platform has grown to serve 181 licensed facilities, track nearly 1.5 million plants, over 6,000 harvests, and over 40,000 packages of cannabis. This growth, coupled with thousands of hours of development, networking, and analytics has put us in a great position to achieve our goals for the coming year. None of this would have been possible without the support and contributions of the Higher Origins community. We are a team of two, helped by several part time collaborators. We are not funded or influenced by any large interests like Barclays, Casa Verde, or Y Combinator, so every decision we make is driven by the small license holders we work with.&nbsp;<h2>Mendo Mystic Farms</h2>Over the past year, our relationship with Mendo Mystic Farms has proven invaluable in building and testing out our compliance and marketplace features. For full disclosure, Mendo Mystic is owned and operated by our developer’s family. The ability to test our features on a legacy farm has allowed us to quickly iterate and figure out what works and what doesn’t. While other cannabis software companies rely on consultants or large-scale farms, we can field test our products right on the mountain. The pounds we’re tracking aren’t theoretical, they’re real, and we know the people who grew them- we even grew some of them ourselves. Thanks to Mendo Mystic and our other neighbors, we have concrete proof that our product and business model works and directly benefits legacy farms and their business partners.&nbsp;<h2>Higher Origins Marketplace</h2>The main development goal of 2022 has been to establish the Higher Origins Marketplace. This marketplace is designed to provide a central location to connect cultivation sellers and wholesale/retail buyers. Our core focus within the marketplace is to establish a template of partnerships which cultivators on Higher Origins can use to easily and affordably self-brand and prepare their product for retail. This process involves bringing together multiple partners and options to help with packaging, manufacturing, transport, and fulfilling the state distributor-as-middleman requirement. Ultimately, we have curated a path of least resistance through which small cultivators can sell their cannabis at a sustainable price level.This supply chain has now been established, and we are in the final stages of wrapping up our proof of concept transactions. Once we clear these first deals, we will be ready to scale the marketplace and begin to put the power to dictate price back in the hands of farmers. To get this far has taken thousands of hours of software development, hundreds of calls to farms and retailers, and dozens of drives the length of the state. And we’re only getting started.<h2>Forward Looking Statements for 2023:</h2><h3>Analytics</h3>In the coming year, data sharing and analytics will become a major focus. Using information sourced from State DCC data and our user base, we will be sharing insights and trends from throughout the California industry. Analytics will be both publicly accessible through our website and articles for large industry wide trends, and private for members only for more localized market trends. The more information that we can share to educate the market, the better. Keep an eye out for our 2022 market year in review analysis, dropping mid-January!<h3>Marketplace</h3>2023 will be the first year of growth for the marketplace user base. Our goal is to ensure steady growth and deal flow through the marketplace for all users. We will start the year with a solid base of Higher Origins users, and a network of fantastic industry partners and collaborators on our side. Practically, what we must do is expand and onboard the number of buyers and sellers on our marketplace in order to establish a healthy market volume. To date, our user base has mainly consisted of cultivators, but to balance the marketplace we must also attract a significant amount of retailers and distributors. Naturally, this means extensive networking and direct outreach to license holders throughout California.&nbsp;To be clear, development will not take a backseat to growth, as we will continue to provide support, bug fixes, and user-requested features during this growth phase. The official details of pricing, features, terms, and onboarding will be released in an announcement in early January.<h3>User Representation</h3>We will be expanding the ways in which we promote and platform our users. To start, all users will be given a free profile where they can upload an image or logo, describe their business, author articles, and display their products. This profile will function as an online presence which users can use to represent their business, as well as how they can be found on the marketplace. User created articles will be displayed on the Higher Origins homepage for visibility. This gives users a chance to share their stories, experiences, and expertise with the Higher Origins community and beyond.&nbsp;<h2>In Conclusion</h2>If you are reading this, Thank You! Community members like you are why we do what we do, and we are very excited for what the new year will bring. Cannabis is a hard industry, and we’re very glad you’ve been sticking with it. Happy Holidays, and we’ll see you next year!(Don’t forget to pack a bowl for Santa!)-The Higher Origins Team

In this article we share the progress of Higher Origins through 2022, including marketplace information, growth statistics, small farm collaborations, and our forward looking statements for our 2023 goals. 

Higher Origins 2022 Year End Review

After months of development, networking, and testing, we are proud to launch the Higher Origins Marketplace for the California industry. Our marketplace is an accessible, METRC-integrated platform where licensed wholesalers, retailers, and cultivators can buy and sell cannabis products. Sellers will be able to list packages for sale, and buyers will be able to browse, learn about, and order these packages. We have designed this marketplace with direct feedback from retailers, wholesalers, and legacy farms in the Emerald Triangle and beyond. Since this platform will evolve based upon the needs and feedback of its users, the features listed below are subject to change and improvements over time.<img src="https://higherorigins180721-prod.s3.us-west-1.amazonaws.com/public/images/7ca3af30-a045-4112-8e5a-98aed8d8373a.png">The main Marketplace interface, showing product listings and sorting toolGoalsThis marketplace was created with the following goals in mind:<ul><li>For Cultivators: Give cultivators a more transparent, stable, and fairly priced path to market for self-branded products, thereby reducing the likelihood that they get lowballed or robbed by middlemen who take a disproportionate markup.</li><li>For Retailers: Give retailers more direct access to a wider array of products. Through this Marketplace, retailers can get in direct contact with the product source and be sure they are getting exactly what they are looking for through our transparent supply chain.</li><li>For Wholesalers: Reduce the difficulty and cost of sourcing products for wholesalers, by giving them a compliance-backed environment in which they can look for exactly what they want.</li></ul><img src="https://higherorigins180721-prod.s3.us-west-1.amazonaws.com/public/images/3793dae0-f081-449d-bcdd-aeab4e4f5b84.png">The detailed product listing showing order tools, related products, and seller informationInitial Launch Features:<ul><li>Product Listings: Products can only be listed if they are associated with valid METRC entries. Each listing will include available inventory, base price, minimum price, images, description, and testing information.</li><li>Search and Filtering: Listings are displayed in a familiar marketplace layout, and can be sorted by county, type, cost, and other key criteria.</li><li>Minimum Orders and Pricing: Minimum orders can be set by the seller in order to make sure the order is large enough to be economical to manufacture and ship. Likewise a floor price can be set by the seller to auto-reject low offers.</li><li>Business Pages: Every buyer and seller has a searchable page, which they can add information, images, and links to in order to represent their business.</li><li>Make Offers: Any buyer can make an offer on a product or request more information, which the seller can respond to, accept, or reject.﻿</li></ul><img src="https://higherorigins180721-prod.s3.us-west-1.amazonaws.com/public/images/3e63c863-d03f-4599-9b94-0b361ecd34f9.png">The Business Page, where Marketplace users can share their story to potential customersFeatures to be Added in the Coming Weeks:<ul><li>Invoices: The marketplace can generate invoices for orders as they are placed.</li><li>Automated Notifications: Get notified of order status, new product drops from sellers you follow, and more via email.</li><li>Marketplace Analytics: See overviews of product price and volume on the marketplace and the industry beyond.</li><li>Package Tracking: View the path that packages you are buying or have sold take through the supply chain, even when they leave your facility.</li></ul>Pricing<ul><li>35$/mo+10$ for each additional license for seller accounts (Cultivation and Distribution, with Compliance)</li><li>Licenses under 5000 sqft are free, so are Buyer accounts and transport-only distribution.</li><li>Transaction fee of 5% charged from the seller for orders on terms.</li><li>Transaction fee of 3% charged from the seller for Cash on Delivery orders.</li><li>14 day full-featured free trial.&nbsp;</li></ul>ConclusionOther marketplace attempts have relied on exorbitant fees, weren’t designed by people who know how the cannabis industry works, or only focused on the retail end of the market. We are confident that our transparent and fairly priced marketplace, designed on the mountain from the perspective of the legacy grower, will provide the most direct and profitable path to market for self branded farms, and for buyers to source quality product. As this marketplace grows we will be able to generate accurate market-based insights to clearly explain what is happening in the industry. We invite any California licensed cannabis farm or buyer to <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.higherorigins.com/pricing">check it out</a>- all you need to create an account is your basic info and METRC API key. And tell your friends! We’d love to have you as a part of the Higher Origins community.﻿Keep Growing, and we’ll keep helping you get to market!

Announcing the Higher Origins Marketplace: an accessible, METRC-integrated platform where licensed wholesalers, retailers, and cultivators can buy and sell cannabis products.  Designed on the mountain with the cultivator in mind.

Announcing the Higher Origins Marketplace

In this article we deliver cannabis cultivation industry insights pulled from our current Higher Origins community. We share planting and harvest data since 2019 and explain what the data means. 


Industry Insights: How Much Cannabis Was Planted And Harvested?

In this article we introduce our new distribution partner, Maui Ben, explain the advantages of this partnership for our community cannabis platform, and share an interview with Ben about his experience in cultivation over the decades.

Interviewing Maui Ben: Our New Distribution Partner

On September 18th, Governor Gavin Newsom signed 10 cannabis related bills into law. We dug through the lawyer-speak to summarize these bills below, as well as added our own take on them. If cannabis is going to be legal, it pays to keep an eye on the laws!NOTE: The name of each legislator is linked to CalMatters, a site which provides detailed information on their political career including voting history, legislation, and industry overlords. Do your own research, and never take what politicians say for granted. &nbsp;<a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1706" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">AB-1706</a> by <a href="https://calmatters.org/legislator-tracker/mia-bonta-1972/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Mia Bonta</a>, Democrat, OaklandCreates a clear path towards expunging cannabis legal records. Earlier laws already directed the California DOJ to review the cannabis criminal records and identify cases for expungement. The DOJ can challenge these expungements on a case by case basis.&nbsp;This law lays out the next steps in the process. For anyone with an expungement eligible charge, so long as the DOJ did not challenge the case before July 1 2020, the DOJ must clear that charge from the suspect's record. Additionally, the bill requires the state to inform and educate those who the bill applies to, as well as commit to reporting on their progress.In our opinion, this is a baby step in the right direction. Obviously, expungement of any kind is progress, and commitment (on paper at least) to moving the process forward is good. However, it’s still too slow, and it does nothing to offset the years of damage that has been done to people’s lives due to their criminal status. We would like to see the state actively do more to compensate the victims of its drug war.&nbsp; <a href="https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB1646" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">AB-1646</a> by <a href="https://calmatters.org/legislator-tracker/phillip-chen-1978/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Phillip Chen</a>, Republican, Yorba LindaClarifies that beverages can be sold in any kind of container, whether clear or colored.As far as we can tell this really only affects beverage manufacturers by giving them a wider array of packaging options. Unfortunately, this may have the effect that beverage makers opt for single-use plastic containers instead of more environmentally friendly options like aluminum cans or glass bottles.&nbsp; <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1885" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">AB-1885</a> by <a href="https://calmatters.org/legislator-tracker/ash-kalra-1972/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Ash Kalra</a>, Democrat, San JosePaves the way for use of cannabis in veterinary applications. Essentially, it expands current medical cannabis rules to include animals, defines key terms, and clarifies the responsible organizations.&nbsp;While the exact scope of cannabis’s healing capabilities are still a topic for research and debate, it’s clear that it has plenty of benefits. It’s a no-brainer to extend cannabis into animal medicine, and we’re honestly surprised it took this long. This provides another market outlet for cannabis growers.&nbsp; <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1894" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">AB-1894</a> by <a href="https://calmatters.org/legislator-tracker/luz-rivas-1974/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Luz Rivas</a>, Democrat, ArletaRequires cannabis vape cartridges and vapes with built-in cartridges to be labeled as hazardous waste, and prohibits them from being marketed as disposable in the trash or recycling. The bill proposes no further clarifications on penalties for violating this policy, nor earmarks any funds for expanded hazardous materials infrastructure or access.&nbsp;This is a head scratcher. Single use electric vapes should be considered as E-waste, due to their batteries and circuitry. However, the traces of extracts leftover in old cartridges are of negligible risk. Furthermore, disposing of anything at a hazmat facility is a massive headache, considering that they aren’t always conveniently located, sometimes charge for disposal, and are not always open. This bill does nothing to solve the problem, and just creates another rule with little to no context or forethought. People will still throw them in the trash.What SHOULD happen is an across the board ban on single use electronic vapes. Vaping is an acceptable alternative to smoking and is a controllable way to deliver heat-sensitive terpenes from concentrates. That said, we find the idea of throwing the whole vape away when the cartridge runs out to be environmentally irresponsible. Lithium ion batteries and their charging circuitry can be cycled dozens of times before they begin to wear out.Ban single use electronic vapes, remove the hazardous material designation from empty vape cartridges, and ask Assemblyman Rivas to rethink this myopic and performative bill. Furthermore, this reflects poorly on Newsom, who frequently espouses environmental regulations. Mr Governor, if this is the kind of half-baked regulation you’re willing to sign, then it makes us doubt you even read it. <a href="https://legiscan.com/CA/text/AB2210/id/2595552" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">AB-2210</a> by <a href="https://calmatters.org/legislator-tracker/bill-quirk-1945/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Bill Quirk</a>, Democrat, HaywardAllows temporary cannabis consumption event licenses to be issued to premises that also hold an alcohol license, and prevents ABC from penalizing alcohol license holders from having cannabis consumption events. The bill stops short of allowing co-consumption however, as the venue must cease alcohol sales and consumption during and for some hours after the end of the cannabis consumption event.While we’re glad to see more venues allowed to serve cannabis on special occasions, the prohibition of co-consumption is frankly ridiculous. It seems like Assemblyman Quirk has never been invited to a good party.&nbsp; <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB2188" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">AB-2188</a> by <a href="https://calmatters.org/legislator-tracker/bill-quirk-1945/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Bill Quirk</a>, Democrat, HaywardMakes it illegal for businesses to discriminate against employees based on positive cannabis results in a drug test. This is exempt in the case of informed pre-employment testing (they have to specifically tell you before they hire you that it’s a condition of hiring), construction/building workers, and jobs that require federal background checks or use federal funding.This is a step in the right direction. Obviously where this interferes with Federal prohibition, the State rule has no jurisdiction. And while cannabis is pretty mild, it can affect some people more than others- if there’s a chance that someone doing a dangerous job is mentally fuzzy from their wake and bake, testing makes sense from a health and safety perspective. I wouldn’t trust myself to drive a forklift if I was high!&nbsp;Of course, there will be gray areas where jobs unaffected by off-the-clock cannabis use will still require pre-employment testing, but at least those employees won’t be able to be fired after they test clear and get hired. To companies that still want to pre-test cannabis as a condition of employment for low risk jobs, we say: Good luck hiring people, may the odds of the free labor market be ever in your favor! <a href="https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2568" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">AB-2568</a> by <a href="https://calmatters.org/legislator-tracker/ken-cooley-1953/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Ken Cooley</a>, Democrat, Rancho CordovaMakes it legal to provide insurance to people engaged in commercial cannabis activity.That’s it actually, that’s what the bill does. I’d like to congratulate Assemblyman Cooley for the clearest piece of legislation I’ve ever read. This is clearly a good thing, although it does nothing to prevent insurers from charging predatory rates. Also, since insurance is a massive financial industry, there are likely federal regulations that insurers will still wait to be lifted before the average insurer will cover your operation. <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB2925" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">AB-2925</a> by <a href="https://calmatters.org/legislator-tracker/jim-cooper-1964/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Jim Cooper</a>, Democrat, Elk GroveRequires the Department of Healthcare Services to file a financial report on how much cannabis tax revenue it spent on certain youth health programs and services.	More financial oversight on spending is always a good thing. This bill ties into the confusing mess that is the California Cannabis Tax Fund, and all of its spending initiatives, both reasonable and ridiculous. Overall this seems like a routine reporting clarification rather than a substantive change.&nbsp; <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB1186" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">SB-1186</a> by <a href="https://calmatters.org/legislator-tracker/scott-wiener-1970/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Scott Weiner</a>, Democrat, San FranciscoPrevents local governments from prohibiting the delivery of medical cannabis. This bill ONLY applies to medical cannabis, not recreational.&nbsp;This is a step in the right direction for patients living in prohibitive localities. Unfortunately, it does nothing to address the serious issue of local governments impeding the will of the voters and prohibiting recreational sales, something recently shown to actually <a href="https://calmatters.org/commentary/2022/02/banning-retail-cannabis-outlets-fuels-the-illicit-market/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">support the illicit market.</a>&nbsp;Additionally, this may motivate more people to get medical cards, which would classify their purchases as tax free and deliverable under this new law. Obtaining a medical card recommendation is just as easy as it ever was from your nearest compassionate cannabis doctor. The <a href="https://cannabis.ca.gov/consumers/medicinal-cannabis/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">application</a> fee is under 100$, and is 50% off for MediCal recipients. As far as we can tell, this law basically motivates people in prohibited areas to just go use that sore back as a way to get tax free legal delivery. Wouldn’t it just be easier if localities weren't allowed to prohibit sales?&nbsp; <a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB1326" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">SB-1326</a> by <a href="https://calmatters.org/legislator-tracker/anna-caballero-1955/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Anna Caballero</a>, Democrat, MercedLays out a framework of responsibility and accountability for establishing interstate cannabis commerce, in the event that such commerce becomes Federally legal.While this is an exciting prospect, and it’s a proactive move for California to have trigger legislation in place to prepare for such an eventuality, it’s still based on the eternal “What If?” of Federal legalization. Given the current tightrope of legislative polarization at the Federal level, cannabis legalization at best seems like a carrot to be dangled by partisan figureheads to promote voting, while at worst it seems like another wedge issue that will be kept in no-progress purgatory, regardless of public opinion.&nbsp;We’ll believe it when we see it, and if we see it, we’ll look back on Senator Caballero’s bill to see if it hinders or helps California’s entry to the mythical National Cannabis Market. That's all for now, happy Harvest, and don't forget to <a href="https://registertovote.ca.gov/?t=s" rel="noopener noreferrer" target="_blank" style="background-color: transparent;">VOTE!</a>

In this article we summarize ten recent pieces of legislation Gavin Newsom signed into law, and give our perspective on how they will impact the California Cannabis industry. 

Newsom's 10 New Cannabis Laws: What They Are and What We Think About Them

In our work with small cannabis farms, we’ve realized that there is a disconnect between the people growing the plants and the consumers buying the flower. While jar labels sometimes include information on who grew the product, that small paragraph squeezed in between the logo and legal warnings really doesn’t convey the connection to plant, community, and craft that is unique to each farmer and their signature crop. Add to this the prevalence of white labeling, repackaging, and the generally poor state of communication down the cannabis supply chain, and the consumer often only learns the strain name, brand name, THC content, and whatever the supposed Sativa/Indica genes are. Since most of those data points are flexible at best and lazy marketing at worst, there’s basically no connection back to the farm. Other industries have managed to solve this problem, so here we discuss a few examples of producer/consumer connection that we would love to see grow in our industry.&nbsp;<h3>Grower Guided Tastings</h3>The South end of the Emerald Triangle with the world’s best cannabis gives way to the Napa Valley/Sonoma area, which makes some of the world’s best wines. A good wine tasting guided by a sommelier with knowledge of the growth and terroir of the grapes- or even the vintner themselves- is a fantastic experience. Tastings like this represent one of the more intimate connections that a producer can have with their customers. Beyond wine, tastings for whiskey, tea, beer, cheese, and any other delicious craft consumable all share this intimate and educational theme which greatly improves the consumer experience.&nbsp;What if this was a thing with craft cannabis? Imagine, you go to a dispensary or consumption lounge, and instead of the budtender just telling you “oh yeah this one’s got a lot of THC and will make you feel creative,” the farmer who grew it is running a tasting that day and can actually explain WHY the cannabis tastes and hits the way it does. Someone who has been growing and refining genetics for a while can tell you the story of how this strain got to where it is now, and the decisions they made along the way. This could be even more interesting with different kinds of products from the same strain- comparing concentrate, flower, and hashish side by side would open up the spectrum of experience to a whole new level. This kind of connection is virtually nonexistent in the legal industry today, and would allow farmers and consumers to form lasting bonds. As consumption lounges become more common we would love to see this become the norm.&nbsp;<h3>Growers Educating Budtenders</h3>Obviously, growers can’t be at every point of sale to show off their product, and consumption lounges are still rare. Since budtenders are one of the primary sales faces of the industry, what if farmers could educate the budtenders to answer consumer questions and represent their product accurately? This is already a standard for alcohol and specialty food ingredients in the gourmet bar and restaurant industry. Bartenders and restaurateurs receive samples, training, educational materials, and recipes from the brand distributor for those products. In more craft production or farm-to-table arrangements, it’s the producer representing their own product.&nbsp;	What if farmers could craft a variety of training and education materials for budtenders who will sell their product, and know that it would be accurately and clearly represented to the customer? These materials could be delivered in person by the farmer, or with the product to the retailer, and include everything from tasting notes to the details of how it was grown. Ultimately, the success of this model depends on the quality of the dispensary, and the reliability of the middlemen to make sure that the connection is made and maintained. There are just a few farms and retailers out there doing this currently, but we would love to see this become the standard rather than a rarity.&nbsp;<h3>Farmer-Curated Subscription Boxes</h3>	You can get a subscription box for everything now. Clothes, watches, spices, wine, coffee, music, beer, even sex toys. You can tune your box contents by filling out questionnaires and sizing charts to get products and samples that match your tastes, intentions, and body. This allows consumers to explore a hobby or passion at their own convenience without the initial effort of going out and locating an expert and community.&nbsp;	This idea has already seen limited success in the cannabis industry, with companies like <a href="https://luckyboxclub.com/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Lucky Box</a> and <a href="https://nuggclub.com/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Nugg Club</a> leading the (still small) pack. While these offerings get good reviews, they don’t seem to prioritize farm-to-consumer connection and largely work with the bigger brands. What if there was a farmer-centric option, showcasing a variety of farms and their signature product in every box? Consumers would be able to pick boxes focused on certain appellations or product types, curated to the farmers choice. These boxes could come complete with material explaining the story of the plant and people behind it, farmer-specific merch, and any other goodies that the curators believe would enhance the experience. Imagine, you’re in San Diego and want the best Humboldt has to offer so you sign up for a box, and get samples from the most recent harvest delivered to your door, prepared for your enjoyment exactly as the farmer intended.&nbsp;<h3>Getting There</h3>These are all fairly realistic offerings, but the main reason they’re not prevalent at the moment is simply due to poor supply chain management and a regulatory system that places multiple financial and licensing roadblocks between the farmer and the consumer. You can walk into a distillery and have the distiller give you samples straight from the barrel, or get fresh-laid eggs straight from the farm, but you can barely find cannabis with the actual grower’s name and story attached, much less spark up with them on their farm. Supply chains are all about getting stuff from point A to point B, but in cannabis one supply chain is seriously underdeveloped: the one that brings the cultural craft reality from the farm to the consumer.&nbsp;Stay cool, water your plants, and keep Growing!

In our work with cannabis cultivators we've notice they lack a connection to their consumers. Here we discuss three ways to bridge the gap, including guided tastings, budtender education, and curated subscription boxes. 

Three Ways for Cannabis Cultivators to Connect With Consumers

In this article we explain how METRC's track and trace tags work in California. discuss their usefulness to consumer safety, and question the sustainability of the newly announced environmentally friendly tags. 

METRC Plant Tags: Useful Tracking System or Wasteful Scam?

At Higher Origins we make no secret about being on the cultivator's side of the market- one of our founders still lives on the farm. As a result, we've been thinking a lot about what challenges and changes other cultivators in the community have been dealing with recently, and made this write-up to cover three of them.<h2>Testing</h2>Testing for potency, toxins, and terpenes is a key part of achieving safety and stability in the industry. Really, as far as the strict requirements of the regulatory regime go, it's probably the most reasonable and defensible action. After all, who wants to smoke polluted cannabis, or buy something less potent than what they were told? Overall, testing is a net good, but like all regulations it comes with some problems.One of the most important things when it comes to testing is good ol' THC. The more your crop has, the more you can sell it for, almost as a rule unless you're growing CBD dominants, or an exotic that gets sales based on name value alone. While pricing revolves around THC, <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.colorado.edu/today/2020/06/10/marijuana-concentrates-sharply-spike-thc-levels-dont-necessarily-get-users-higher">scientists have discovered that higher THC is actually a poor indicator of potency</a>, and the effect a consumer gets from their cannabis is more determined by the combination of terpenes and their bodies own unique ability to process cannabinoids. Nevertheless, in an industry where most farms are operating with slim margins, a crop that tests lower for THC than expected can do real financial damage.Another piece of the testing puzzle is consistency. There's no clear rule for what kind of chemical processes labs should do to test cannabis samples. This means that identical samples sent to different labs around California will vary by several percent, even on high-priority chemicals like THC and CBD. Cannabis testing is usually done with a science called chromatography, where the chemical compounds in the plant can be measured based on the kind of light they reflect. The machines for this process are very sensitive to tiny changes in cleanliness, sample preparation, and testing chemicals.What all this THC-hype and testing inconsistency means is that people end up choosing certain labs over others due to that lab's tendency, either purposeful or accidental, to inflate THC percentage results. This is known as "Lab Shopping" and has been a poorly kept secret for a while. Lab shopping exists in a gray area of financial desperation and moral debate. On one hand, it gets industry players more money and since THC is less important than its dollar value reflects, it doesn't impact the consumer much, especially since labs are still (hopefully!) responsibly testing for harmful toxins. On the other hand, it's directly exploiting a failure in the regulatory standards for gain, and results in bad data for the entire industry. Luckily, further moral debate on this is being ended at the stroke of the Governor's pen.A new piece of legislation- <a target="_blank" rel="noopener noreferrer nofollow" href="https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB544">Bill SB-544 </a>will standardize testing methods, rules, and enforcement statewide, with standards being enacted starting at the beginning of 2023. The changes will not take place overnight, as there is a rollout period and the bill does give labs some flexibility due to the costs of standardization. From the industry point of view, there will be a lot of people getting lower test results than they're used to, and as a result less money. This will undoubtedly hurt some businesses but will help level the playing field for everyone going forward.<h2>Labeling</h2>We're all familiar with the labels on our favorite products, and for many of us the little "Caution: Cannabis!" triangle on a jar or bag is just another sign of a good time or relaxing session. However, for some groups with ideological or financial interests in the consumer health sector, those labels may not be enough. The scientific reality is that cannabis can have side effects, either from consuming too much, or in people with medical or psychological sensitivities to the active ingredients. Another new piece of legislation, <a target="_blank" rel="noopener noreferrer nofollow" href="https://openstates.org/ca/bills/20212022/SB1097/">SB 1097 (AKA The Cannabis Right To Know Act</a><a target="_blank" rel="noopener noreferrer nofollow" href="SB 1097 (AKA The Cannabis Right To Know Act)">)</a> advanced by 6th District Senator (and medical doctor) <a target="_blank" rel="noopener noreferrer nofollow" href="https://sd06.senate.ca.gov/Richard Pan">Richard Pan</a>, aims to expand the warning labels on cannabis products. These new labeling rules would include mandatory sizing and placement of the warnings which would contain a variety of science-based warning messages. Likewise, the bill would add "buy legal" statements to motivate consumers to only buy licensed and tested products, and require retailers to supply first time buyers with informative pamphlets at point of sale. Realistically, the practical effect for industry players will be having to double check, re-design, and re-order their labels or face the usual fines and punishments, as well as keep a stack of pamphlets by their POS.Regardless of how compelling (or not) the current research on cannabis may be for you, it's fairly clear that moderation and responsible consumption can keep our customers happy and returning, and if informative labels can help that, there's a strong argument for their adoption. However, we also have to look at this from the perspective of history, where government regulation of cannabis has largely been based in propagandist fear mongering, racism, industrial protectionism, and keeping prisons full. The arguments for these labels seem to have good intentions and are moderated with scientific research, however, healthy skepticism of cannabis regulation is mandatory given the bad faith actions of the past. As always, follow the money- this bill's main lobbying group is <a target="_blank" rel="noopener noreferrer nofollow" href="https://gettingitrightfromthestart.org/about/">Getting it Right From The Start</a> and you can investigate Congressman Pan's political sponsors <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.followthemoney.org/entity-details?eid=13008437">here</a>.<h2>Branding</h2>Branding is the name of the industry game now, and has influenced how we form our opinions on what we like, what we don't like, and what gets us to buy. Overall, a strong brand really is a make or break factor in today's industry. So, if branding is king, and farms are struggling, why don't farms just build a strong brand and reap the benefits to close the financial gap? Well, some are, but it's not just as simple as slapping a logo on your packaging and starting an Instagram. Here's a few obstacles that farms have to deal with on their way to brand land.<h3>Retail Packaging</h3>From the consumer side, a doob tube or a mylar bag might seem like a trivial expense when compared to the green gold inside, but at scaled production, these materials can cost thousands. Farms who want to fully self-brand have to figure out the sourcing and supply chain of thousands of containers, make sure they arrive when needed, label them, and finally pack them with the correct weight of product. This is a lot of moving parts, and can seem like a nightmarish obstacle to cultivators who are already preoccupied with their crop. Third party manufacturers are available to outsource to, but paying someone else to do it may not be in the slim budgets of most cultivators.<h3>Cost/Volume</h3>Economies scale, and for small scale growers, branding may not be as economical. The added cost of setting up a brand may just be too much to offset with the limited weight of product that smaller farms produce. There's simply not enough weed to sell to make the math work in the farms favor.<h3>Distributor Access</h3>It's 2022 and retailers and farmers are still leaving each other voicemails to source and sell cannabis. This problem for some reason still exists, and it makes normal operations inconsistent and hard enough as it is. Trying to establish a mutually beneficial, trustworthy, and reliable partnership with a distributor to bring a brand to market is a difficult task that requires a fair amount of luck and legwork. Since farms cannot technically work with a retailer without a licensed distributor performing the function of legal middleman, this limitation can stop a farm from selling their product entirely. Additionally, the COA labeling costs that some distributors charge can run as high as 30% of retail revenue, effectively slashing the profit margins of a self branded farm.<h3>Connections to Retail</h3>Imagine: you grow the best cannabis in the world, but when it gets to the retailer, it's put on the bottom shelf and the budtender doesn't know anything about it to sell it effectively. Or, you have the best dispensary in town and customers are telling you that the new eighths you're selling aren't very good. Without a solid connection and open communication between retail and cultivation, these problems can't be solved. To establish and maintain this connection, massive amounts of networking and sales effort is needed, which busy cultivators often can't fit into their schedule. If only there was a solution to this problem...<h3>That's all for now- Stay cool and keep growing!</h3>

The market is always changing for cannabis cultivators. In this article we focus on changes to laboratory testing, health and safety labeling, and the challenges faced by farms attempting to start their own brand.

Testing, Labeling, and Branding- How They Affect Cannabis Cultivators

<h2>Shorter Supply Chains</h2>Currently, cannabis travels through a long series of middlemen, manufacturers, and transporters on the way to the customer. During this journey, the product is mixed and matched, repackaged, white labeled, and stored for extended periods. By the time it makes it to a dispensary shelf, in many cases it has lost any connection to where it was actually farmed. When the consumer actually makes a purchase, there is little to no information available regarding if the bud in the jar was grown in NorCal sun, a greenhouse in Central Cal, or indoor in SoCal.&nbsp;A major goal of Higher Origins is to build shorter, simpler supply chains so consumers can maintain a connection with the people who grew and processed their cannabis. We aim to create a collaborative community of industry partners who can work together to get products from farm to retail in as few steps as possible. We dream of an industry where the retailer can just pick up the phone and call the cultivator if they have a question about the product.&nbsp;<h2>Level the Playing Field for Cultivators</h2>As prices fall, smaller farms frequently find themselves outcompeted or forced to accept rock bottom prices for their product. Combine this price pressure with the ever-growing costs of cultivation, taxation, and regulation, and it’s no wonder that cultivators are struggling to stay afloat. At Higher Origins, WE are those cultivators, and we want to build any and every community oriented feature we can into our cannabis platform to help cultivators succeed. We call this our “Farm Forward” industry approach, and it forms the cornerstone of our work.&nbsp;When a farm joins the Higher Origins community, they’re not just getting superior software tools, they’re getting a responsive industry partner who will work directly with them to establish a beneficial relationship. In collaboration with our partnered farms, we’ve already rolled out community-requested features to our compliance platform, established buyer-seller relationships for above-market pricing, and signed on over 100 facilities statewide.&nbsp;&nbsp;<h2>Connect Cultivators and Consumers</h2>Despite years of retail availability, there is still a clear disconnect between the people who grow cannabis and the people who consume it. Due to a mix of secondary marketing, white labeling, repackaging, and good old misinformation, even the most well meaning budtender usually faces a challenge when asked “who grew this?” At Higher Origins, we know that cannabis cultivation is a deeply personal process, and we want to share that personal touch with every consumer who buys cannabis grown by our partners. Furthermore, once a farmer transfers their cannabis, they often never find out where it went, or who ultimately got to enjoy it.&nbsp;Through the Higher Origins community, consumers can provide feedback all the way up the supply chain, allowing cultivators to fine tune their crops to consumer taste. We want to bridge the gap between consumers and cultivators so they can understand each other’s relationship to the cannabis they have in common.<h2>Compliance Done Right</h2>Compliance is a universal hurdle for every business within the cannabis supply chain. Whether you’re a farmer required to painstakingly tag each plant or a distro who has to transfer test samples for every purchase, everyone has to log their activities at some point. While cannabis compliance’s original goal of ensuring safety for consumers is a noble one, the current reality is usually one of frustration, mindless repetition, and zero value added for the person filling in the online forms.&nbsp;The first and foundational offering of the Higher Origins platform is a free and streamlined compliance system, built by and for the people who have to use it every day. On top of saving you time and frustration, our system is built around the idea that compliance should offer direct value to users and the industry at large, not just to regulators in Sacramento.<h2>Straight to the Source</h2>Demand for cannabis is as strong as ever, and with strong demand comes a need for retailers to find a competitive variety of products to sell. This sourcing process is time consuming, with retailers asking brands and distros for products, while distros and brands are trying to buy products from farmers. Couple this with inconsistent supply, poor communication, and seasonal growing cycles, and it’s a wonder that retailers can keep any given SKU on shelves for very long, especially in competitive categories like flower.&nbsp;Higher Origins intends to simplify and streamline sourcing for our industry partners, enabling buyers and sellers along the supply chain to know what their customers want, where they can source it, and when it can be delivered. Cannabis has been a key part of the California economy for decades, so why does it seem like the supply chain has gotten worse instead of better?&nbsp;<h2>Data by Everyone, for Everyone</h2>There’s a lot going on in the industry, and often everyone is so focused on getting their plants harvested, product processed, and deliveries completed that important trends get missed. Being able to take a step back and look at the overall performance and direction of the industry is rarely possible in cannabis, and many important decisions are made with 4/20 hindsight.&nbsp;At Higher Origins, we believe that everyone should have the information they need to make the best informed decisions for their cannabis business and consumers. To aid these decisions, we are making data analytics, reporting, and trend recognition integral parts of our cannabis community platform. Higher Origins community members will both contribute to and benefit from our data analytics. Strong industries work together towards a common goal, and that is only possible if everyone involved can see where they are going, and where they have been.&nbsp;<h2>Respecting the Origins</h2>Everything starts with the seed. Every bustling distribution warehouse, friendly local dispensary,&nbsp;and compelling brand identity is a direct result of someone somewhere growing a plant. We grew up in the heartland of California cannabis culture, and personally know many of the people who work hard to grow those plants. And it’s more than a plant, it’s the origin of entire communities, jobs, and cultural movements. We owe it to our farming friends and neighbors in this industry to tell their stories, represent their interests, and preserve cannabis cultural values as the industry evolves.&nbsp;The most important goal of Higher Origins is to respect and promote the craft cultivation origins of our industry. Every farm partnered with Higher Origins will have a chance to tell their stories and grow their brand through our community driven services and industry partnerships. The success of the legal cannabis industry depends on farmers, and we aim to give them a voice.

Higher Origins is a cannabis community platform built for the legal industry. We shorten supply chains, connect farmers with retail and customers, ease sourcing and compliance, analyze trends, and respect the origins of the cannabis culture.

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