By Joseph Pimentel
Ingrid Tsong’s cannabis business is on the verge of bankruptcy.
As an independent farmer and co-founder of Beija Flor Farms in Mendocino, Tsong had to pull out money from her 401K to make it through the cannabis harvest season.
“We have been scraping by,” said Tsong. “Given market prices, I’m looking at a loss per unit when I pay my cultivation tax. We are on the verge of bankruptcy and maybe, seeing ourselves out of business.”
Tsong is not alone in her plight.
Once thought of as a modern gold or green rush with immense potential and profitability when voters approved the adult use of recreational marijuana four years ago, California’s legal cannabis industry has been anything but due to strict regulations and heavy taxation.
During a conference call with reporters Friday, cannabis industry officials said it’s only getting worse.
This January, California is increasing cannabis cultivation tax by about 4.4%.
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