Economics of the California Cut Flower Industry and Potential Impacts of Legal Cannabis
August 30,2017

A new study to understand the potential impact of cut-flower agribusiness land usage with the January 2018 legalization of cannabis production in California concludes there is no evidence it will affect the state’s ability to produce nearly 80 percent of the nation's cut flower production. The study by Dr. Daniel Sumner of the University of California Agricultural Issues Center (AIC) at UC Davis points out that economic barriers will continue to limit how much greenhouse space is actually converted into legal cannabis production and concludes the state’s cut-flower output should generally remain stable.  

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Table of Contents

        Table of Contents 

i

        List of Figures 

ii

        List of Tables 

iii

        Executive Summary 

iv

1.     Introduction 

1

2.     Legal Cannabis in California

3

2.1.  California Cannabis market 

4

2.2.  Cannabis production in California 

4

2.2.1.     Outdoor cultivation 

4

2.2.2.     Indoor cultivation 

5

2.2.3.     Greenhouse cultivation

6

2.3.  Taxes and Regulations on Cannabis Cultivation 

7

3.     The California cut flower industry 

19

3.1.  US and California Cut Flower Market 

19

3.2.  The California Cut Flower Industry 

20

3.2.1.     State production 

20

3.2.2.     Regional production

21

3.3.  California Cut Flower Industry Impact Economy 

22

3.3.1.     California economy 

23

3.3.2.     Central and South Coast regional economies 

26

4.     Implications of Legal Cannabis Cultivation on the Cut Flower Industry 

42

4.1.  Competition for Greenhouse Space 

42

4.2.  Competition for Labor 

45

5.     Conclusions

52

References 

54

Appendix A: Flower Growers Questionnaire 

55