Economic pressures are causing disruptions across the country, leaving no industry untouched. More recently, Humboldt County’s cannabis industry in California has been struggling, with many small farms on the brink of failure and not planting again in 2025.
Humboldt County’s cannabis industry has been struggling under the weight of economic pressures since the implementation of Proposition 64: The Adult Use of Marijuana Act.
“The transition to legalization introduced high regulatory costs, including hefty taxes on cultivation space, regardless of whether a grower had a profitable year,” explains Nasha Hash Cannabis Brands‘ CEO Barron Lutz. “Although those taxes have since been reduced by 90%, many farms couldn’t sustain the financial burden and were forced to shut down.”
Additionally, “record inflation has driven up the cost of cultivation while wholesale cannabis prices have plummeted. Building and maintaining compliant grow sites has also become more difficult due to stringent regulations, expensive infrastructure requirements and limited access to affordable land,” Lutz continues.
These factors have created a perfect storm, making it increasingly difficult for Humboldt’s small and legacy farms to survive.
Revitalizing Humboldt County
Many farms that are unable to continue cultivating cannabis will either become homesteads or be repurposed for timberland.
According to Lutz, some landowners might attempt to convert their properties into Airbnb rentals, “but that requires significant infrastructure investment, which is a challenge after several difficult business years.” This is resulting in many of these once-thriving farms to remain unused, a stark reminder of the struggles the industry faces.
To prevent further destruction to Humboldt County, Nasha Hash is is currently working to expand its product line in the area and create more opportunities for growers.
“Each farm we work with contributes to multiple Nasha products, helping them tap into different markets and sustain their businesses,” Lutz says. “Additionally, we prioritize paying fair prices for top-tier cannabis, ensuring that farmers can continue their craft without being forced out by unsustainable pricing. By bridging the gap between small farms and consumers, we’re doing our part to keep Humboldt’s legacy growers in business.”
How You Can Help
The best way to support Humboldt’s small and legacy farms is to be a conscious consumer.
“Take the time to research where your cannabis products come from and choose brands that source from independent, small-scale growers,” advises Lutz. “Many Humboldt-based companies make it easy to verify product origins—check the website, scan the QR code and learn about the farm behind the product.”
By actively supporting small farmers, consumers can help preserve the region’s cannabis heritage and ensure that these dedicated cultivators can continue producing some of the best cannabis in the world.
