Survey Shows How Cannabis Cultivators Really Feel and if They Plan to Exit the Industry

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The future of the cannabis industry could look quite different if there is a mass exodus of unhappy licensed growers. Are we close to that point? How bad are things really, and is a mass exodos coming?

Data from the Inaugural Cannabis Cultivator Survey by Wells Fargo Securities, LLC and Cannabiz Media reveals what the future may look like for those cultivators who stick it out through these tough times.

RELATED READING: Research Reveals Cannabis Cultivator Production Plans for the Next 12 Months and Cannabis Cultivators Rank Their Biggest Frustrations in Revealing Study

How Do Licensed Cannabis Cultivators Really Feel?

If you watch the news, it’s all doom and gloom about the future for licensed cannabis growers, but if you dig a bit deeper, things may not be as bad as we’re led to believe. The Inaugural Cannabis Cultivator survey surveyed growers in six key states deemed to be representative of the largest cannabis markets in the United States today: California, Colorado, Michigan, Oklahoma, Oregon, and Washington. The results may surprise you when you look beyond the surface.

Based on the survey results of all six states, total grower sentiment about the markets they operate in is nearly split in half between positive and negative sentiment. Here’s the breakdown:

  • I feel great. Everything is wonderful: 1%

  • I feel good. Things aren’t perfect but they are fine: 7%

  • I feel okay. Things are manageable but could be better: 30%

  • I feel bad. Things don’t look good: 21%

  • I feel terrible. Things look awful: 41%

Sentiment varies significantly based on the states where licensed growers operate. Here’s the breakdown of how cultivators feel by state:

  • California – 86% feel bad or terrible

  • Colorado – 47% feel bad or terrible

  • Michigan – 50% feel bad or terrible

  • Oklahoma – 47% feel bad or terrible

  • Oregon – 62% feel bad or terrible

  • Washington – 63% feel bad or terrible

The data tells an interesting story. About half of licensed grower respondents in Colorado, Michigan, and Oklahoma feel bad or terrible about their markets. That number jumps to nearly two out of three growers in Oregon and Washington, but in California, nearly nine out of 10 growers feel bad or terrible about their market. Of course, California grower sentiment may change in the future since overly burdensome tax rules are changing.

On the flip side, half of licensed growers in Colorado, Michigan, and Oklahoma feel okay, good, or great about their markets. However, only 1% of growers across all six states feels great about their market. Let’s take a look at the breakdown:

  • California – 1% feel great

  • Colorado – 6% feel great

  • Michigan – 0% feel great

  • Oklahoma – 1% feel great

  • Oregon – 2% feel great

  • Washington – 5% feel great

Are Cannabis Cultivators Planning to Exit Their Markets?

Based on how unhappy so many cultivators are, the next logical question is whether or not they plan to leave the cannabis industry. Overall, 27% of growers across the six states surveyed in this study are planning a full or partial exit from the cannabis cultivation industry.

Here’s the breakdown of survey respondents’ answers when asked if they’ve considered leaving the industry in the past three months:

  • Yes, I’m planning a full exit: 15%

  • Yes, I’m planning a partial exit: 12%

  • I’ve thought about it but haven’t taken any steps to exit yet: 37%

  • I haven’t thought about exiting at all: 37%

cannabis cultivator survey sentiment and exit plans

Looking at the data by state, here’s the breakdown:

  • California – 32% planning a full or partial exit

  • Colorado – 38% planning a full or partial exit

  • Michigan – no responses

  • Oklahoma – 19% planning a full or partial exit

  • Oregon – 40% planning a full or partial exit

  • Washington – 23% planning a full or partial exit

What the Data Means for Cannabis Cultivators Who Plan to Stick It Out

If there is a silver lining to be found in all of the data revealed in the Inaugural Cannabis Cultivator Survey, it’s this – change is possible. For example, if California can recognize and change the undue tax burden cultivators faced in the state, then any market can change. In other words, there is hope on the horizon.

Furthermore, the legal cannabis industry is not all doom and gloom. When some cultivators leave the industry, there will be less competition in the future. Those cultivators who invest the time and money now to run efficiently, maximize ROI, and stand out in their markets are the ones that will win in the future.

With that said, for those cultivators who decide to stick it out in their markets despite the challenges and frustrations, there are steps you can take to address problems and position your business for future success. For example, you can switch to bio365 soil and take advantage of these three significant benefits that counter many of the frustrations growers are facing today:

  1. Reduce your total cost of growing to fight against declining wholesale prices. Learn more here.

  2. Improve the quality of your crops so you can sell on the higher end of market pricing. Stop cultivating mids and start making more premium flower that the market pays more for. Learn more here.

  3. Increase your yield while reducing costs. You can get more out of the same number of plants, so you can use fewer plants to get the same production output. Learn more here.

If you plan to stick it out in your market, then there is no better time than right now to test bio365’s growing media at your facility and measure how it improves your yields, quality, and long-term ROI. Contact us to start a free trial.