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• Maybe investors should be careful about having too much confidence in the degree to which marijuana could be a cash cow.

The Sacramento Bee reports that “California has too many marijuana farms — growing too much product — and if nothing is done it will devastate the industry, according to a 2019 cannabis harvest projection.

“Vessel Logistics, a San Francisco-based cannabis distribution company, found that more than 1,142 acres of cannabis farms hold state permits. They can produce up to 9 million pounds of crop every year, but the permitted wholesale market can realistically support 1.8 million to 2.2 million pounds.”

And California isn’t alone. “Oregon growers are producing twice as much cannabis as the state market can support, and that there is ‘more than six year’s worth of supply sitting on shelves and farms,’ according to Oregon Public Broadcasting.”
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