Cannabis Greenhouse vs Marijuana Warehouse Growing
5 Essential factors to be considered before deciding the best growing environment for your Cannabis crop, and they are probably not what you think.
1. Location Location Location
This is one case where the famous retail saying has nothing to do with customers finding you, but everything to do with the climate and regulatory environment. Canada for instance is not a particularly friendly marijuana greenhouse country, where the odour restrictions eliminate all forms of traditional greenhouse ventilation. Colorado, and Washington however are very accepting of greenhouse growops. Florida’s regulations are written to favour greenhouse grower; however being a temperate crop, it is easier to produce a more consistent medical marijuana product year round in a totally controlled warehouse environment.
2. Security
While our first essential factor borrows a famous retail saying, our second highlights that growing cannabis on a commercial scale is not usually intended to be a retail outlet. You do not always want the general public aware of exactly where you are growing. Industrial warehouse complexes provide a certain amount of anonymity, particularly in the early start up phases. Most countries and states who have a legalized program do not offer farm tax advantages to cannabis growers, so locating in a rural setting where police, fire, mail delivery and other services are not as readily available does have its disadvantages.
Outside of how location plays a role in the security of a cannabis facility, greenhouses are also not typically designed to be high security buildings. Glass, polycarbonate, and poly walls can be penetrated much easier than a concrete block warehouse wall. All cannabis growing sites need top of the line security cameras, vaults, alarm systems, etc. Greenhouses need to add perimeter fencing and while this helps keeping thieves out, it also identifies the contents of the greenhouse.
3. Cash Flow is King
This point is critically important for US growers where the federal government’s reservations regarding the legality of cannabis means standard banking is not an option. No loans, no bonds available. In Canada, where the Licenses are awarded by a branch of the federal government banking is in theory possible, however a brand new company in a brand new industry with no historical profitability measures places marijuana growers at best as a very high risk banking loan. You need Cash! You need lots of CASH! A typical License holder in Canada will spend $5,000,000 plus to build their initial facility before production begins, this includes renting warehouse space, HVAC systems, outfitting the growing rooms, security systems, the vault, the cost of application, governmental fees, permits, offices, etc. In the US states where greenhouses have received better chances of being awarded a marijuana growing license, and regulations regarding odour control are not as onerous as in Canada, the start-up facility costs are lower, however many states, like Illinois require bonds ( remember there are no bonds available for marijuana growers ) so in Illinois you need an additional $2,000,000 in cash sitting in escrow for your security deposit. Now of course you also need money to staff your business, market to your customers, and doctors, buy your consumables, pay your utility bills, and the assorted other expenses requiring operating capital for at least one year.
4. You are not in the Marijuana Business… You are in the “Get a License” Business
Unless you are already one of the few growers licensed in a marijuana legal state, the advantages and disadvantages of growing the crop in a greenhouse are not your number one consideration. Your primary and all-encompassing concern needs to remain focused on what you need to say, do, and show to get a cannabis growing license.
Massachusetts was the first state to have a merit based application process and there are only 35 spots. After thousands of hopefuls, it boiled down to 181 applications, and 2 years after voters said yes to medical marijuana, there are still no cannabis plants, and Governor Deval Patrick said his administration was still seeking to balance the law's implementation with the proper vetting of applicants for medical marijuana dispensaries.1 There were all kinds of issues regarding conflict of interest, so Nevada, Illinois, Minnesota, all are working on programs to do it better.
Florida was hoping to avoid the contentious problems of a poorly run merit based system, and so they installed a lottery program. Now several growers are suing the state on the grounds that a lottery is no way to determine who is the best producer of medicine. I will put my money on the growers succeeding in changing Florida’s application process to a merit based system.
Illinois is planning on 81 licenses, Minnesota only 2. Canada has no limit, yet with over 1000 applications sent in only 14 facilities have been granted full licenses to produce and sell. And two of those facilities belong to one group.
You are in the “Get a Cannabis License” Business, and your competition is stiff. A couple of our customers filled a transport truck with their applications. Lawyers, lobbyists, grant writers, these are all expensive people you need on your application team. Plan on having filing cabinets full of binders for one application, and plan on spending several hundred thousand dollars before you even know if you are on the short list.
5. Build to the Strengths of Your Team
The successful marijuana license winners who have worked with GGS have understood that they need a diverse team of experts. Key team members come with a variety of skills and talents as well as weaknesses. Marijuana is a different industry than any other horticultural crop, and successful growers take the time to learn what they know and what they don’t know about the marijuana business. We are happy to provide our expertise to any greenhouse grower looking to get into this new and challenging industry. Learn more about GGS Marijuana Growing Systems
Footnote Source:
1. Capecodtoday
