Cannabis production in Shasta County topped nearly every agricultural crop in the county in 2022, even though pot is only grown legally in Redding and Shasta Lake.
The wholesale value of legal cannabis produced in Redding and Shasta Lake was worth $22.5 million last year, outpacing all other agricultural products except livestock, according to the county Department of Agriculture/Weights and Measures.
Sales of cannabis has been a growing business in Redding and Shasta Lake since retail sales were legalized in California in 2016.
Retail sales of marijuana in the county rose from $10.9 million in 2018 to $52.6 million in 2021, according to the California Department of Tax and Fee Administration. However, sales of retail cannabis in the county dropped to $42.5 million in 2022, a 9% decline compared to 2018, according to department statistics.
Derek Yorton, assistant manager at Vibe by California, a cannabis dispensary in Redding, said retail shops were considered essential businesses during the COVID-19 pandemic, so sales did well during that period.
“We’re seeing a little bit of a dip from 2019 and 2020 in sales. But I believe it’s more of an equalization, you know. It’s kind of more getting down to what is considered a natural baseline of what it’s going to be,” Yorton said.
Aaron C. Lachant, a Southern California attorney who represents cannabis businesses, said there is a similar trend statewide. Sales have gone down around California due to a glut of cannabis on the market and cheaper marijuana available illegally, he said.
Rick Gurrola, the county’s agricultural commissioner, said the statewide trend also has been felt among legal cultivators in the North State.
“A number of businesses are going out of business for the legally produced cannabis because the price has dropped so much that they are not able to make a profit. We’ve actually had a couple of businesses in Shasta County go out of business because they they’re not able to turn a profit. In fact, one lady told me that she had quite a bit of product that she wasn’t able to sell,” Gurrola said.
Yorton said taxes on retail sales of cannabis cut into profits significantly and cultivators are highly regulated by the state.
There are six licensed cannabis cultivators listed in the city of Redding, according to the City Clerk’s Office. There is also one cannabis “microbusiness,” which is allowed to cultivate marijuana in an area up to 10,000 square feet and operate a retail sales shop.
There are five retail cannabis sales stores in Redding, according to the city’s Code Enforcement Department.
The amount of cannabis grown in Shasta County is not reflected in the county’s annual crop report because it is not considered an agricultural crop, Gurrola said.
But for the past two years, the agriculture department has produced a separate report on legal cannabis production in the county. Cannabis cannot legally be grown or processed for sale outside the cities of Redding and Shasta Lake. Marijuana in any form also cannot be purchased legally in the county outside of those two cities.
The wholesale value of cannabis grown in Redding and Shasta Lake in 2021 was valued at $8.8 million, according to the county agriculture department.
While cannabis production hit $22.5 million in 2022, livestock was valued at $24.3 million. Coming in behind cannabis, the value of timber harvested in the county was just under $14 million, according to the agriculture report.
The individual value of field crops, such as hay, garlic, rice, grains, vegetables, seeds, rangeland and pasture, was less than cannabis, but all together they totaled $46.5 million.
The value of illegally grown marijuana isn’t clear. Law enforcement has worked to stop the illicit growth and sales of cannabis. Earlier this month, local and state officials raided marijuana growing operations on 42 separate parcels of land in the county.
All told, 18,446 marijuana plants were eradicated, 1,492 pounds of processed marijuana and six firearms were found, authorities said.
“Illegal grows such as these are detrimental to those who are following all laws to legally grow, are extremely harmful to the environment, and attract a criminal element to our county,” the sheriff’s office said in a news release about the raid.
Reporter Damon Arthur welcomes story tips at 530-338-8834, by email at damon.arthur@redding.com and on Twitter at @damonarthur_RS. Help local journalism thrive by subscribing today!
This article originally appeared on Redding Record Searchlight: What is one of Shasta County’s top crops? Cannabis.
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