A case for cannabis

Kelli Rodda

Were you surprised to see a cannabis picture on the cover? It’s there because, like it or not, this is a crop that’s poised for skyrocketing growth. According to ProCon.org, 23 states and the District of Columbia have enacted laws to legalize medical marijuana. Nursery and greenhouse growers in those states have the potential to enter this billion-dollar industry.

My home state of Texas, which I thought would never consider a cannabis bill in my lifetime – even for medicinal use – is on board. In June, Texas Governor Greg Abbott signed SB 339, which allows the use of cannabis oil that is no more than 0.5 percent THC and at least 10 percent CBD for the treatment of intractable epilepsy. The bill requires patients to get approval from two certified specialists. THC is the compound that contributes to the high from marijuana. CBD is cannabidiol, the compound that is purported to provide medical benefits, but does not make people feel stoned.

This month’s cover story presents the risks and rewards of getting into the medical marijuana industry. Have you considered it? Have you applied for a license? Are you already growing it? I’d like to hear your side of the story – the good, the bad and the ugly. Our cannabis coverage in this month’s issue in part covers the experience of George Hackney and his foray into Florida’s new medical marijuana bill.

As you’ll learn in the story, he “didn’t just jump into this.” It takes a lot of history being in the nursery industry (at least 30 years), it takes a lot of plant sales (at least 400,000) and it takes a lot of money (a $5 million performance bond and a $60,000 application fee) just to apply to get a license to grow and dispense it in Florida. Obviously, there’s a lot of red tape. And for good reason. This industry needs to be closely regulated to make sure quality product is getting to patients who need it. Florida’s requirement for the patient base that has access to the product is quite restrictive at this point. Hackney says he understands the need for the tight restrictions at this early stage, but hopes the patient base is eventually opened to more medical needs.

Another issue to contend with is keeping your nursery business and your medical marijuana business separate. It’s a convoluted process because your application and eventually your license for the cannabis business, at least in the state of Florida, is tied to your nursery operation.

If Hackney and his business partners are awarded the cannabis license, they plan to grow in containers inside a warehouse. They may consider a greenhouse operation in the future, but for time’s sake, it made sense to lease a warehouse because in Florida, firms have 100 days to start producing once they get the license.

There’s a lot of solid and helpful information in the story for anyone considering the cannabis business. Hackney’s advice: Do some soul searching on how you personally feel about marijuana before taking the plunge. Also be prepared for some backlash from family, friends and business associates. But above all, do your homework and don’t get into it for the wrong reasons.