The Big Idea - Cannabis

Last night, I went to an event held by the Oregonian with a panel who discussed the current state of Cannabis in Oregon. It ended up being interesting and informative, with some insights that I hadn't really considered.

Noah Stokes of Cannaguard argued the end of prohibition has lead us not to legalization, but to regulation. And that, Noah argued, is a good thing! Regulation makes product quality, consumer protections and other benefits possible. It also legitimizes the industry, which will eventually help resolve some of the biggest problems facing the industry.

One of the most visible and obvious problems is banking. Forcing marijuana businesses to deal only in cash may be good for Noah's business, but not for the health of the industry. And though there are now a few options, the majority of banks will not work with Cannabis businesses. The panel confirmed many licensees are paying their taxes in cash.

The stigma of pot makes finding space a huge barrier to entry for new licensees. Mortgages are not compatible with weed. The pool of potential landlords is limited to those who own their property free and clear, leaving few opportunities to lease space. Of course, there's always an option to buy . . . but again, the property would need to be bought in full. A couple of questions from the audience made it clear: if you own property outright and are willing to allow your tenants to run a Cannabis business, you'll have a lot of potential renters lining up to talk to you.

Another topic of frustration are the new testing requirements. An audience member explained how his $20 per ounce product is now saddled with an added $14 testing expense, causing him to cease sales. The panel reassured him the entire industry is struggling to absorb the cost of ensuring quality and safety.

Earl Blumenauer, our Oregon congressman and one of the panelists, talked about the "C-change" occurring at the federal level. Recently, a friend and I pondered what changes the end of federal prohibition could bring. While we could forsee several downsides (like Monsanto deciding to get involved), we hadn't considered some of the potential positives. The same friend shared a conversation with a grower concerned Oregon farmers would eventually produce more product than demand could consume. However, the panel suggested the end of federal prohibition will likely make interstate commerce possible. In this scenario, Oregon would be poised to be a major exporter.

While there wasn't any real talk about technological challenges faced by Cannabis businesses, Rob Patridge of OLCC talked about a variety of ways the state is planning to leverage CTS (Cannabis Tracking System) data. The term "seed-to-sale system" came up a number of times.

If there was one message Rob seemed most keen on getting across, it is to visit http://marijuana.oregon.gov for clarification of any of the current, or future, regulations. There was concern by some audience members that several strain names, including some very popular and well known strains, are no longer allowed. While some people might still disagree with the decision, the rational and disallowed strain names are published on the states website.

Though I didn't come away with any major revelations or ideas for "the next big thing", it was a well spent evening. I may not have any additional insight into problems that can be solved by computers, but I definitely have a better understanding of common challenges faced by everyone in the industry.

It's official! I'm authorized to build software that leverages the Oregon Metrc API!!

Got my Production Key today! I am a "validated integrator" for Plants, Harvests, Packages, Sales, Locations, Strains, Items and should be listed in their directory soon! Hmmm. I guess it's time to set another goal . . .