The number of indoor cannabis cultivation operations has grown dramatically in recent years. Fueled by both acceptance for medical purposes and increasing state legalization for recreational use, the U.S. cannabis market is estimated to exceed 40 billion dollars.
Modern controlled environment agriculture (CEA) practices have allowed growers to meet the increased demand by pharmaceutical and cosmetic companies, food and beverage industries, and for consumer personal use. This demand is balanced by financial and economic challenges that remain to be navigated and solved.
Excessive Energy Consumption
High energy usage, and its associated costs, is one of the biggest factors impacting cannabis growers’ bottom line.
The amount of electricity used to power the intense lighting and air conditioning/ventilation systems used by indoor cannabis cultivators is staggering.
According to an analysis, Electricity Use In Marijuana Production, on the National Conference of State Legislatures (NCSL) website –
“An indoor facility can have lighting intensities similar to hospital operating rooms, which are 500 times greater than recommended reading light levels. These facilities can also have 30 hourly temperature or fan speed air changes, which is 60 times the rate in a normal home. Put another way, a four-plant lighting module uses as much electricity as 29 refrigerators.”
Cannabis growers utilize a significant portion of state energy resources. When cannabis was legalized in Colorado, marijuana production caused a 45% increase in electricity demand in the city of Denver, and in Massachusetts, indoor cannabis growers are responsible for 10% of the state’s industrial electrical consumption.
As energy costs continue to rise, the financial burden of this vital component of their business will squeeze growers even further.
Increased Competition, Regulations and Taxes
Next to energy costs, the biggest financial punch to cannabis growers is the combination of decreased sales due to ever-increasing competition, especially illegal channels, and high regulatory pressure and taxation.
High taxation rates in many states push the retail price of cannabis products to a point that drives away consumers, who find it just as easy, and more cost-effective, to procure product through black-market sources.
Another roadblock to sales is that even in states where cannabis is legalized for personal use, it does not mean that it is legal to sell state-wide. For example, in California, over 50% of cities and counties do not permit the sale of cannabis.
To further compound the problem for growers, unlike any other agriculture products produced, cannabis cannot be sold and exported across state lines, as this violates federal laws.
Taken together, these factors are having a huge financial impact on growers and retailers alike, and could put smaller operations out of business.
Disease and Pests
Another concern that cannabis growers face, like any CEA operation, is the constant threat of disease and pest infestation. Even with meticulous attention paid to staff hygiene, proper ventilation, and air filtration, indoor agriculture facilities are not immune to infection or infestation, due to the ubiquitous nature of the various causative agents.
For example, powdery mildew and spider mites are two of the most destructive enemies of the cannabis grower, requiring constant vigilance and implementation of mitigation strategies. Failure to do so can cost a grower their entire crop.
Compliance Testing
Consumer demand for a safe, non-toxic world has left no industry untouched, and that includes cannabis cultivation and sales. From the air we breathe and water we drink, to the food we eat and the products we use, the people have spoken and legislators have listened.
As the number of states that have legalized cannabis has grown, so has the concern over contaminated product. As such, many states now require all cannabis products to be tested for pesticide residue, heavy metals, and solvents.
California, for example, requires testing and certification for over 100 contaminants, including heavy metals and 66 pesticides. California’s tolerance levels for compliance are more stringent for cannabis than any other agricultural product. While these strict compliance rules help protect consumers, they increase the cost and time burden for growers.
How Bio520 Can Help
There is no doubt that indoor cannabis growers are feeling expanding financial and economic pressure. Fortunately, there are things that can be done to help mitigate these issues, and one of the things at the top of the list is Bio520.
From higher yields and increased profits, to shorter growth cycles that cut costs and save precious resources, Bio520 is the solution that growers are looking for. There is even some evidence that Bio520 can actually reduce the uptake of some harmful substances, such as heavy metals. And if that wasn’t enough, Bio520 makes plants more resistant to pests, and stops powdery mildew in its tracks.
Growers today simply can’t afford NOT to use Bio520! To start making a difference in your indoor agriculture operation, please reach out to set up a free product test and discuss wholesale/commercial pricing!
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