Wells Fargo Securities, LLC and Cannabiz Media released the Cannabis Cultivator Survey Edition 2 that reveals licensed grower sentiment, challenges, plans for the future, and more. The new Fall 2022 report includes comparisons to the survey data collected in the Spring 2022 report that was released in June 2022.

The findings in the second edition of the report, Cannabis Cultivator Survey Edition 2 – No Recovery in Sight, were developed using data collected from cultivators in key states that the researchers deemed to be representative of the largest markets in the United States. Data was collected via phone and email surveys between October and December of 2022.

Cannabis Cultivator Production Plans for the Next 12 Months

Wells Fargo’s researchers found that cannabis cultivators continue to operate in challenging markets, but just 18% plan to decrease production in the next 12 months, which is a slight drop from 17% in the Spring 2022 report.

Despite the challenges of operations and profitability, 39% of growers who responded to the survey indicated they plan to increase production during the next 12 months – up from 32% in Spring 2022. The percentage of growers who plan to keep production the same held steady at 32% from the Spring 2022 report.

Increase Production a Lot: 18% (up from 15% in Spring 2022)
Increase Production Slightly: 21% (up from 20% in Spring 2022)
Keep Production the Same: 32% (no change from 32% in Spring 2022)
Decrease Production Slightly: 8% (no change from 8% in Spring 2022)
Decrease Production a Lot: 8% (down from 11% in Spring 2022)
Not Sure: 14% (same as 14% in Spring 2022)

It’s important to note that production plans for the next 12 months vary from one state to another.

In California, 25% of growers expect to decrease production (down from 26% in Spring 2022) compared to 60% with plans to either maintain or increase production (up from 58%).

In Colorado, 18% of growers plan to decrease production in the next 12 months, which is significantly down from 36% in Spring 2022. On the other hand, 54% plan to maintain or increase production (down from 60%).

In Michigan, no growers plan to decrease production, which shows no change from the Spring 2022 report. However, 20% plan to maintain production (down from 50% in Spring 2022) and 60% plan to increase production (up from 41%).

In Oklahoma, only 8% of growers plan to decrease production in the next 12 months (down from 12% in Spring 2022), and 79% plan to maintain or increase production (up from 74%).

In Oregon, 20% of growers expect to decrease production, which is the same as the percentage reported in the Spring 2022 report. A total of 68% expect to maintain or increase production (down from 73%).

In Washington, 18% of growers plan to decrease production (down from 24% in Spring 2022) while 67% plan to maintain or increase production (up from 59%).

Key Finding About Cannabis Grower Production Plans for the Next 12 Months

As Wells Fargo’s researchers point out in the new report, “Despite negative sentiment continuing over the course of 2022, there was little change in cultivators’ plans regarding exiting the industry or next year's production.”

Stay tuned to the bio365 blog in the coming weeks because I’ll be digging into more of the data in the Cannabis Cultivator Survey Edition 2. Next week’s post will discuss cultivators’ biggest frustrations, and a week later, I’ll tackle sentiment and exit plans.