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US (CA): Grower to convert hemp facility to cannabis production

The Oceanside Planning Commission has unanimously recommended approval for a proposal to convert a hemp-growing operation to cannabis cultivation in 25 existing "hoop houses" in South Morro Hills.

The agricultural region in the hills of northeast Oceanside has long been known for its commercial production of flowers, tomatoes, avocadoes, citrus and other crops. However, in recent years the farmers have been fighting increasing costs for water and labor, greater competition from foreign countries, and pressure from sprawling urbanization.

Cannabis could be the answer, some residents said, not just for the farmers, but for a city that could use the tax revenue expected from legal cultivation.

In addition to thousands of dollars in licensing fees, Oceanside will collect a 1.5% tax on gross receipts from cannabis growers under Measure M, passed by the city's voters in 2020. Rates for other cannabis-related business such as manufacturing, nurseries, distribution and retail go up to 5% of gross receipts.

Read more at The San Diego Union-Tribune

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