Senate Bill 94 enables farmers to form legal corporations that are “Cannabis Cooperative Associations.” The benefits are multiple. Economies of scale will be created to streamline and increase profits for operations, purchasing and distribution. Opportunities for strong marketing and branding emerge. Potential exists to control more of the supply chain through strategically recruiting members. Finally, the unique governance and membership structure of Cooperatives is aligned with the cultural values and practices of many in the legacy cannabis community: to produce premium, environmentally beneficial products while giving back to the community.
“For legacy growers in small northern California villages, forming a coop is a matter of learning the legalese; we already have the capacity to work together. That is how we live in our communities."