US

California Struggles while the US Cannabis Industry Prospers

Published

5 years ago

September 23, 2019

California might be struggling with a black market problem but cannabis companies like GreenStar Biosciences Corp.’s (CSE: GSTR) are finding opportunities elsewhere in the US.

Since Donald Trump’s administration passed the Farm Bill at the end of 2018, the cannabis sector in the United States has continued to boom. The bill allows the cultivation of hemp plants for medicinal purposes across all states, whether or not some of them have already made them own legislation in that respect.

Several states have gone even further and made recreational cannabis legal. The first were Colorado and Washington State, and the states are already seeing great profits from the sector. In June this year, Colorado state reported a revenue of $1 billion since sales of recreational cannabis has become legal in 2014.

As the States bolster their tax returns private enterprise is also riding the green wave. Companies like GreenStar Biosciences Corp. (CSE: GSTR) have seen great success by focusing on innovative regional competitors. The company controls Cowlitz County Cannabis Cultivation Inc. in Washington State and things are going well. Cowlitz has generated a steady quarterly revenue of over $4 million and growing.

GreensStar’s strategy focuses on identifying promising regional competitors and providing them with the capital they need to grow rapidly. GreenStar has a management team with a wealth of experience in the Canadian cannabis market and uses this expertise to guide young companies towards success.

Despite the success of Washington State and Greenstar not everywhere is benefiting equally. Thanks to the multitude of medical cannabis users, California is the largest legal cannabis market in the world. But since the sale of marijuana was legalized for adults, the market has declined.

This may seem paradoxical because allowing the legal sale of the product is supposed to increase the size of the market. However, in California, the cannabis industry attributes this phenomenon to several obstacles it faces. On the one hand, producers and sellers are subject to heavy charges that make legal cannabis particularly expensive. Secondly, the regulations are extremely strict.

California was the first state in the United States to authorize the sale of cannabis for medical purposes twenty-three years ago. Since last January, the sale of marijuana for recreational purposes has also been authorized.

Expenses

Thanks to the large number of medical users, California is the largest legal cannabis market in the world, explains The Economist magazine. However, since the legalization the market has shrunk. In theory legal cannabis was supposed to increase the size of the market because it pushes illegal sellers into bankruptcy.

“This is what has happened in other states that have decided to legalize cannabis,” the magazine says. But according to bds Analytics and Arcview Market Research, legal sales in California amounted to $2.5 billion in 2018, compared to $3 billion in 2017.

Josh Drayton, spokesman for the California Cannabis Industry Association, says that the State of California has gone from being the least regulated place in the world for cannabis to one of the most regulated. Following legalization, the state now has regulations that go far beyond those for other products.

Several companies operating in the medical market consider that the new rules are complicated and that the costs of obtaining permits and licences are too high. In addition to regulation, the sector is subject to several taxes. There is a 15% excise tax on retail sales and a sales tax that starts at 7.25% depending on the county and city administrations. Taxes on culture are also multiple and inventive, says The Economist.

Baby boomers and cannabis

In addition to this, federal taxes still have to be paid, even if the product remains illegal under federal law. The federal government refuses to allow companies to deduct their operating costs from their tax returns. Cannabis companies are therefore taxed on their gross profits. As a result, legal cannabis is expensive. A seller can buy 30 grams of cannabis from illegal sellers for $150, compared to $400 for the same product purchased legally.

Another obstacle is that most cities in the State initially decided not to allow the sale of cannabis for recreational purposes on their territory. Some cities, such as Los Angeles, have allowed stores but have been slow to issue licenses.

While the Californian cannabis industry is trying to overcome all these obstacles, the product seems to be increasingly accepted at the national level. Lisa Hurwitz, production manager at Grassroots Cannabis Grower, says that purchases are increasing fastest among baby boomers and older generations. “These generations are rediscovering cannabis or using it for a variety of ailments they face in later life. The plant is useful for everything from pain to sleep and anxiety”.

US

Creating Safe Havens: Inside Genesis USA’s Vision for Inclusive Housing

Published

3 weeks ago

December 3, 2024

Jimmy Lerner

Photo Courtesy of GenesisUSA

GenesisUSA, a nonprofit based in Arlington, Texas, works to improve the lives of disabled veterans and children who have lost their parents. Led by Charles Ford, the organization goes beyond providing financial aid. It focuses on long-term solutions, like building wheelchair-accessible homes, to support independence and dignity for those in need. With rising housing costs and growing inequality, GenesisUSA’s mission addresses a critical gap.

Ford and his team create supportive environments that help promote self-reliance in underserved communities. As a smaller, community-based organization, it addresses challenges that can be difficult for larger organizations to manage. Its work shows how local initiatives can make a noticeable difference.

A Growing Crisis: The Need for Accessible Housing

The demand for affordable and accessible housing continues to grow. A 2023 report from the National Low Income Housing Coalition estimated that more than 11 million U.S. households need homes with accessibility features. This challenge is more pronounced for disabled veterans, with nearly four million living in homes that do not meet their physical needs.

“Our veterans have sacrificed a lot for this country, but many still face housing that doesn’t suit their needs,” Ford says. “Beyond merely providing them shelter, we’re creating a space where they can live comfortably.”

GenesisUSA is responding by building homes designed for accessibility. These houses include ramps, wider doorways, and modified kitchens and bathrooms to allow veterans to live more independently. The organization also plans to create supportive environments for children who have lost their parents, many of whom also face mobility challenges.

Ford’s Community-Driven Leadership at GenesisUSA

Ford’s years of experience in construction and his dedication to charitable work have shaped his leadership at GenesisUSA. He stays closely involved, often meeting veterans and families to learn about their needs firsthand. “For me, it’s about building personal connections,” Ford says. “Large charities sometimes miss the individual stories.”

The community focus defines Ford’s leadership. Although some wonder if a smaller nonprofit can make a meaningful impact, Ford is confident. “We don’t have celebrity endorsements or huge budgets, but we have real relationships with the people we help,” he says. His dedication to grassroots efforts sets GenesisUSA apart from larger, more structured organizations.

GenesisUSA has already helped over 100 people and aims to expand its impact with affordable, accessible housing solutions. One notable feature is the inclusion of a wheelchair-accessible swimming pool, which has received positive feedback. Ford says, “We’re creating spaces where people can enjoy life fully, just like everyone else,” which reflects the organization’s mission to support independence and inclusion.

Building More Than Homes: A Reflection of Hope

Ford looks back on GenesisUSA’s progress with a clear sense of purpose. “We’re not simply building homes, we’re offering hope and building opportunities for independence,” he says. “We’re here to support veterans who face mobility challenges and children who have lost their parents, offering them a chance at a more self-reliant life.”

As the organization’s reach expands, so does its ability to impact lives across the country. Its work embodies Ford’s dedication to ensuring that no one is overlooked. Ford envisions scaling their efforts while maintaining the personalized approach that defines their model.

“We’re still in the early stages,” he notes. “As we grow, we’ll continue to prioritize individual needs. Our success hinges on the improved quality of life for each person we help.”

As the demand for accessible, supportive housing rises, organizations like GenesisUSA play an important role in filling gaps left by larger institutions and government programs. Through its focus on tailored support and community-driven solutions, GenesisUSA is building a model for how smaller nonprofits can significantly impact and address pressing social needs.