Interviews with Cannabis Licensees in Washington State: A Report for the Washington State Liquor & Cannabis Board

With the passage of I-502 in 2012, Washington became (with Colorado) one of the first two US states to legalize the production, sale and use of recreational cannabis. As of June, 2018, the Washington State Liquor and Cannabis Board (LCB) has issued 1947 licenses. However, despite efforts to "right-size" the licensed production to the demand for recreational cannabis, cannabis is abundant and growers are having trouble finding retail outlets. Regulatory limits on growing area ("canopy") that were expected to constrain production have turned out to be non-binding; many licensees report using less than half their licensed canopy. The resulting sharp drop in cannabis prices has implications for the stability of the industry and, potentially, for public health.

The LCB commissioned BOTEC Analysis, LLC, and the RAND Corporation to investigate the on-the-ground realities of the cannabis industry in Washington 6 years after it was created. Of particular interest to the LCB were trends in cannabis consumption, production, supply and demand, pricing, and unused licensed canopy. BOTEC undertook a set of producer and processor interviews as a complement to the statistical investigation and policy analysis at the center of the project. The interviews conducted, which are the subject of this report, are intended to illustrate the experiences of cannabis producers and processors, large and small alike, operating in Washington.