Cannabis values in 2022 drop by more than half of previous year in Monterey County

SALINAS, Calif. (KION-TV)- The ag industry in Monterey County continues to recover from the pandemic. While the 2022 crop report shows some areas of growth, cannabis value dropped significantly.

California is the number one agricultural state. It brings in $51.2 billion. With farmers producing over a third of the country's fruits and vegetables.

"Overall we have a healthy agricultural production in Monterey County," said Juan Hidalgo, Monterey County Agricultural Commissioner.

But while the state is one of the top suppliers: Monterey County ag leaders say weather, inflation and disease are just some of the issues that can impact the crop yield.​

"For lettuce production, impatiens necrotic spot virus continues to be a serious problem for our growers," said Hidalgo

"Recalibration post Covid, post-2020 fires. Figuring out how throughout this day, how our figures deal with the changing climate patterns that are happening," said Kim Stemler, Monterey County Vintners and Growers Association Executive Director.

Some of the trends and challenges the report showed include cannabis values dropping by 54%, and grape production seeing a 20% decrease.

Mike Bitar, Group Flor CEO, attributes the drop in cannabis values to high taxation in the county. "

While the high tax rates are certainly a challenge, we are also facing obstacles related to the land use regulations and the requirements for properties to be approved for use regulations and the requirements for properties to be approved for cannabis cultivation. The permitting process remains lengthy and costly. For example, the restrictions around water usage, energy sources, buffer zones from schools and neighborhoods, security measures and more make it difficult to find and develop compliant sites. Many growers are deterred by the time and capital required to bring old agricultural sites up to regulations.

Our hope is that the county collaborates with the industry to streamline the approval process so more growers can operate legally. We believe there is room to develop balanced regulations that allow reasonable access to cultivation permits, while still maintaining high standards.  The goal should be transitioning as much of the historical cannabis growing into lawful and regulated operations. But the barriers today are hampering that transition. We hope to work cooperatively with the County on economically sustainable rules that encourage legal participation.

Mike Bitar, Group Flor CEO

"I think this is short term, I do not think that this is our long term perspective. In terms of reduction of acres, why are we losing acres? Several things, we got aging vines. They're 20 to 30 years old. They're less productive. They're going to need to be pulled," said Kim Stemler.

Meanwhile, strawberries remained Monterey County's top crop in 2022.

"For strawberry growers is all about being sustainable. Wanting to make sure that they're growing that's not only stewards of the land, but stewards of the land they serve," said Jeff Cardinale, with the California Strawberry Commission.

The report also revealed gross production value saw a 13.1% increase.

"Right now, everyone is looking for moderate growing weather. With water, we are an ideal area for anyone to grow in the future," said Kim Stemler.

We also asked local ag leaders about the impacts of this year's winter storms. And how that would affect their crops. Crops like strawberries, lettuce, and grapes had a delayed start.