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Everyone is running after gold, Voge said. I am afraid that in three or four years a lot of people will go belly up. Maximillian Mikalonis, a former legislative aide in Sacramento who helped write Californias medical cannabis regulations, said lawmakers must decide in the coming weeks whether to curb the move toward industrialization. It is a critical moment, a defining moment for the future of the industry in California, Mikalonis said. The choice, he said, is between a marketplace for small and boutique operators who have been doing this for generations or domination by the forces of agribusiness. Some believe the consolidation of the industry, as has happened across the food industry, is inevitable. The effort to protect the little guy is ultimately doomed, said Tom Adams of BDS Analytics. The retailers are going to have to get big or get out. Overproduction is also a concern in the industry because it could push down prices and because California cannabis could flood the markets of other states. California produces more cannabis than it consumes three times as much, by conservative estimates. The entire experiment will fail if Californias continues to sell out of state, said Hezekiah Allen, executive director of the California Growers Association. The more product that leaves the state, the more the federal authorities will intervene. The owners of Harborside Farms say they are acting on the imperatives of the market.

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