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The Real Dirt with Chip Baker

157 Episodes

57 minutes | 20 days ago
The Real Dirt on Controlling pH
Cannabis pH is important. Everybody knows that. Knowing the importance of pH and how to keep it under control however, are two sides of the same coin. In order to stay on top of your pH, you need to understand how it works. From how acidic or basic your medium is, to the water you add in, it all needs to be measured and monitored constantly. What happens if you don’t pay attention to pH? You might notice a range of issues that resemble your average nutrient deficiency. But you can supplement every nutrient under the sun and never solve the issue if it has to do with pH. “Well, you know, it depends whether you’re feeding the plant, or whether you’re just, you’re adding amendments in the soil. And growing in the soil, in the ground, or whether you’re growing and saving your soil mix, and you’re adding amendments to that, and you’re just watering. Because if you’re using liquid fertilizers, it’s naturally going to go be pulled down temporarily. The plant itself adjusts pH, you know?” – Uncle John pH means potential hydrogen. Plants will pull up water, they make their own sugar, and are able to have enough energy to split water. So they split water off from hydrogen and oxygen. With that situation, you get extra oxygen. And that’s why plants emit oxygen, we can breathe. But the hydrogen and some of the oxygen are used with carbon in order to make the plant’s body. There’s additional hydrogen ions that are emitted out the roots of the plant as well. The plant does that to break down minerals in order to suck the nutrients or minerals back up. So when you’re measuring pH, pH means potential hydrogen ions. So there’s already hydrogen ions in the soil. And that reading that you get where seven is absolutely neutral means that that’s the difference between hydroxyl ions, which would be a buffer and give you high pH, and hydrogen ions, which would give you low pH. So really, what you’re looking at when you look at pH, you’re looking at what the plant can feed itself right away. And if it’s too high, you know, it’s not going to get certain minerals. And if it’s too low, then only, then it’s not going to get other minerals. More Scale, More pH Problems “We pH-ed every single, you know, gallon of water that went into the plants. And I mean, it is incredible at how vigorous like when you, when the whole combination comes together. Right? It is just incredible how vigorous the plants grow, how much better they are.” – Chip Baker One of the benefits of growing on a smaller scale is that pH is much easier to control. Some growers may never even look at their pH and grow perfect plants. The issues start to arise when you scale up. Managing an outdoor operation with plants in the ground takes a new level of commitment, and a lot more consideration for your pH levels. Through his years of farm visits and seeing what growers are doing right, John noticed that most growers who have a large scale operation use a Dosatron to control their nutrients and pH. “Dosatrons aren’t really that expensive, but some people want to use one doser. And I had a customer in an heirloom tomato greenhouse in the central coast in California, and they wanted to be able to use one doser, that was it. And so you can mix our fertilizer line times 13 in that heavy concentration. And it will all go through, and you could set one D40 Dosatron to that. They make a D3000 now, and that can take one ml per gallon. So you can dial it in, say for 10 mLs per gallon really accurately. So you get one of those, and you get a maybe a D15 or a D40. And then you can put the others stock nutrient in through that.” – Uncle John In This Episode If you haven’t already guessed, this episode is all about pH! From what it is and how to monitor it, to the most common pH problems and the most complex, and how to solve them. Get the real dirt on pH and why it’s important in another awesome, educational episode of The Real Dirt with Chip Baker! Transcript Chip: Alright, look at who joined us, man.I tell you, I got two of my favorite people in here. I’ve got the famous Jessica Baker of Baker’s Genetics, Baker’s extract. How are you doing, Jessica?   Jessica: I’m doing well. How about you?   Chip: Oh, I’m doing excellent. I’ve also got a John Piccirilli here of Cutting Edge Nutrients. How are you doing, John?   John: I’m doing very well.   Chip: Well, I’ve gathered both you guys here today, because I want to show you something.    Jessica: Okay.   Chip: Yeah, I’ve got some weed over here.    Jessica: I see the weed.   Chip: Yeah, I’ve got some weed over here. This is all grown with Cutting Edge nutrients. These are Baker’s Genetics. What does that mean, Baker’s Genetics?   Jessica: I guess it means a lot of different things. For this purpose, this just means that you know, the cannabis that we have grown and are here, we’ve chosen the phenotypes from these seeds and decided which ones we want to keep.   Chip: So Jessica runs a clone nursery, and a dispensary, and extraction facility in Oklahoma City. Why don’t you pick out some weed and tell us about it over there, Jess?   Jessica: Okay, so this big jar is Lemon G 13 crossed with Do-Si-Doe. This is an archive seed that we have planted out and kind of chosen the ones that we liked the best.   Chip: Hey Pat, why don’t you pass the smaller jar over here? Here’s some Oklahoma greenhouse, John. What do you think? ‘Cause you’ve been all over the world, seen some of the finest weed in the world.   John: Whoa. I just, I picked out what I thought was gonna be a decent size, but it’s gigantic.    Chip: [inaudible 1:41].   John: Terpenes.   Chip: Terpene.   John: Love this stuff.   Chip: I mean, G13 Do-Si-Dos from archive seeds, as part of this moonboat collection, I believe.   John: Definitely has a lemon and crystal.   Chip: Yeah. Yeah.   John: So what, is this being passed off as indoor? Don’t say that on the radio.   Chip: Just don’t say that on the radio.   Jessica: We have some indoor late G13 and some greenhouse.   Chip: You know, you know, we get to do it all. Indoor, outdoor, light dep, greenhouse, right? But you can tell, you can tell. You can tell the difference. You know, and you know how you tell, is the greenhouse nuggets are huge.    John: Indeed.   Jessica: That’s mold resistant. The G13 was really mold resistant.   Chip: This was a really good strain for us here. Hit really well. Hey, could you pass over the –   Jessica: I’m rolling this one up as we pass.   Chip: Cookies and Cream? That’s the ball jar.   Jessica: Oh yeah, that’s right. This is the ball jar. This is a really good one, too. So this was Cookies and Cream, exotic genetic seeds. We planted a bunch of seeds. And then, we chose a couple phenotypes. Right now, there is, we’re in debate on which of the two top phenos we actually like the most. So to be determined on that one.   John: Has Ice Cream to it.   Chip: Yeah, yeah, absolutely.    John: I like that.   Chip: It’s very vanilla-like, almost.   John: Mhmm.   Chip: Right?   John: Smooth.   Chip: Mhmm.   John: And when you crush it, it’s got more of the Cookies.   Chip: More, yeah. More of the Cookies. These are a great, great, great strain. Yeah, these were all Cutting Edge Nutrients –    Jessica: Growers soil.   Chip: Growers soil. Hey dude, do we have any of our, the previous light dep crop, Jessica? The outdoor crop over there?   Jessica: I don’t think so.   Chip: I don’t think so either.   Jessica: Does not appear to be, we do at the dispensary, but –   Chip: Okay, too bad. Well, because of you know, one of the things we noticed, John is, we kind of got a large, fairly large operation. 30,000 square feet, you know, auto flower, 60,000 square feet of outdoor, then you know, another 8,000 square feet of this greenhouse, and 8,000 square feet of that greenhouse. And man, it’s a little overwhelming.   John: A lot of work.   Chip: It’s a lot of work, you know, we don’t have that many people that work out on the farm. And it’s also just, you know, we were talking about scale on one of the last episodes, it was hard to set the pH, right? And we worked on pH within the soil, and we tried to just balance it that way, and I think we did a pretty good job. Because our source water coming out of the well is 7.8 and that’s just straight well water here. And we’ve got a really kind of high parts per million. But, we were just adjusting the soil with enough acidity, where the pH would be balanced. And I feel like we did a pretty good job that way. And we did it in both like, the ground and in pots. But these crops right here, containers and we control the pH perfectly. The mold, the color, like, all of it improved, you know? It was dramatic. And you know, I’ve always seen what pH can do, but I’d like to talk to you about like, the importance of pH, and why we should think about it in our gardens, and how we should we should deal with it.   John: So, you took the pH of the water, but did you do a soil test to take the pH of the soil?   Chip: Sure, sure.    John: What was that?    Chip: Sure. We did it right. We sent it off to a lab, the water and the soil. And then the lab gave us a formula to adjust it down, right? The original pH of the soil was like, the 7.2, or something like that.   John: So you adjusted it down.   Chip: Down, yeah, yes.   John: With sulfur?   Chip: You know, we used, Jessica, do you remember what we used?   Jessica: You guys are being all serious over here. I’m like, coughing as I smoke this.   Chip: I think we used two things. Sulfur and acidic fertilizer, chicken shit, bat guano, and fish emulsion.   John: Did you use Plant Amp?   Chip: Well I mean, you’re just talking of a few acres of stuff here.   John: Right, right.   Chip: Right. Well, that’s why it was so hard like I’m saying. And that’s why we could only control specifically the pH on this one 8,000 square foot greenhouse. We could control it every single watering and how much better it did.   John: Right. And that wasn’t in soil that was in your soil?    Chip: Correct.   John: Right.    Jessica: The plant bags.   Chip: And to tell you it was even, I mean, the pH issues were in the potted plants that we were feeding on pH water. It was significant. The stuff in the ground, you could hardly solve the problem, right? I mean, it came out in the mold and the health of the plant, I think in the long run, right? As we get like, next to no mold, no bug problems in our perfectly pH-ed gardens.    John: And you really saw a difference between that and the soil that wasn’t pH-ed? Yeah.   Chip: Oh, yeah. Oh, yeah, big time. The stuff in the container’s not pH-ed. It’s kind of just crap, honestly. Like we ended up extracting it. You know, I’ve got a bad opinion. If it’s not great, great, great, great weed, I don’t even want it. It’s awful. Throw it away, you know?   John: Yeah, I can see that.   Chip: But you know, it’s a controversy to check your pH or not. Oh, you don’t have to check your pH. I never do anything for it. But you got to do something, right?   John: Well, you know, it depends whether you’re feeding the plant, or whether you’re just, you’re adding amendments in the soil. And growing in the soil, in the ground, or whether you’re growing and saving your soil mix, and you’re adding amendments to that, and you’re just watering. Because if you’re using liquid fertilizers, it’s naturally going to go be pulled down temporarily. The plant itself adjusts pH, you know? pH means potential hydrogen. So plants will pull up water, they’re pretty amazing. They make their own sugar, you know, and are able to have enough energy to split water. So they split water off from hydrogen and oxygen. With that situation, you get extra oxygen. And that’s why plants emit oxygen, we can breathe. But the hydrogen and some of the oxygen, oxygen are used with carbon in order to make the plant’s body. But there’s additional hydrogen that are hydrogen ions that are emitted out the roots of the plant. And the plant does that to break down minerals in order to suck the nutrients or minerals back up. So when you’re measuring pH, pH means potential hydrogen ions. So there’s already hydrogen ions in the soil. And that reading that you get where seven is absolutely neutral means that that’s the difference between hydroxyl ions, which would be a buffer and give you high pH, and hydrogen ions, which would give you low pH. So really, what you’re looking at when you look at pH, you’re looking at what the plant can feed itself right away. And if it’s too high, you know, it’s not going to get certain minerals. And if it’s too low, then only, then it’s not going to get other minerals. When it’s lower, it’s going to get calcium, iron and manganese, which is key for cannabis. So pH is important. But really being able to feed, like when you’re adjusting the water, the pH of the water and you’re adjusting it down, you’re giving the plant a chance to pull up some nutrition really quick. So it’s good to adjust the pH of the water when – adjusting the pH of the soil, that’s a long term process. That’s why I always used your soil.   Chip: Right. Well you know, and we do that too. I mean, I make potting soi. So of course, I love the potting soil. But like, we use all the technologies. I’d love to grow in the ground. It’s a little difficult to, you know, make containers for the thousands of plants we’re growing. We got a small operation. I like growing in the ground.   Jessica: I like growing in the ground too.   Chip: So what does this mean? You look like you came in here, Jessica, you fired up a joint, now you’re leaving?   Jessica: I basically have an appointment I have to go to. You know, I basically just came in here to make an appearance, to smoke you guys out, to make both of you look good today. Sorry about that.   Chip: I wanted – oh, okay. Well, maybe next time you’ll come out and we’ll have more of an in- depth conversation about pH.   Jessica: More profound conversation?   John: And she takes excellent photos, look at that.   Chip: I’ve been training. We’ve been training.   Jessica: I’ve been training. Chip’s been training me on photographs since the 90’s, back before digital photography.   Chip: She’s an excellent photographer now.   Jessica: And you know, I can, I’m okay. Sometimes I’m okay. Quite.   John: Oh, that was great. I mean that’s great on the IG.   Chip: Yeah, yeah, totally.   Jessica: Straight to IG, yo.   Chip: I mean, just a little bit of cropping, maybe a little color and trust me, you’ll be fine.   Jessica: Totally. Well, it was good seeing everybody. I’m good on that joint. I’ll leave that with you.   Chip: Okay. Hey Jessica, and if anybody’s interested in getting in contact to find out more about your live resins, batters, butters, sauces, diamonds and pearls, how do they get in touch with you?   Jessica: No pearls, but they can get in touch with me at jessica@bakersbrands.com. Or if you are interested in clones, clones@bakersbrands.com.    Chip: You’re on Instagram, Facebook?    Jessica: Instagram, @cannabis – no, hold on. Instagram is bakerscannabisoklahoma. Facebook, I believe is just @bakerscannabis. And, you know, I’m an acupuncturist and herbalist. So if you care about other plants @baker_botanica on Instagram.    Chip: Alright, excellent. I’m glad we had that. That excellent visit with Jessica. She’s always so busy with stuff she’s doing.   Jessica: I’m always so busy. I’ve got important things to do.    Chip: Okay.   Jessica: Bye.    Chip: Bye.   John: Bye.    Chip: Oh wow, she’s great. She always comes in in a tornado. She like, throws weed everywhere. She smokes the place out, and then she leaves. It’s like, the Lone Ranger or something. The Stoned Ranger.    John: Absolutely.   Chip: Who was that masked woman?   John: And to you there in audience land, she was wearing a mask.   Chip: She was wearing a mask with that shirt. This crop here, you know, I really wanted to make it great. And so you know, we spared no expense. We used you know, your full directions of Cutting Edge fertilizer, your supplements, even your, some of your organic stuff. We pH-ed every single, you know, gallon of water that went into the plants. And I mean, it is incredible at how vigorous like when you, when the whole combination comes together. Right? It is just incredible how vigorous the plants grow, how much better they are. Man, you have to sacrifice like either the nutrition, or the pH, or the potting soil, because of the volume or the scale of it.   John: Yeah, I mean, pHing water is pretty important. A lot of people get this side benefit. So you know, in the western United States, you have a lot of calcium bicarbonate that comes up in the water. And by using phosphoric acid, it binds with the calcium causes to fall out, and then the bicarbonate gases off as CO2. You can do that. It’s good to also aerate. Even if you have a 5,000 gallon water tank, if you get a massive 5 horsepower air pump or something, and blow air into there, just big old bubbles, it’s going to cause the, if you pH down to 6, it’s going to cause all the calcium bicarbonate to fall out. And you have to have a Y at the bottom of your tank with two valves. One goes to your field, the other you know, runs off to somewhere where you’re going to create a lot of clay slop, because it’s going to take out the, the iron is going to take out the calcium. And, those two things in the forms they are in will tie up the fertilizers.    Chip: So wait a second, you’re suggesting that, because I think I can use this on our farm.   John: Yeah.   Chip: Yes, because we have five capacity on tanks. And that’s probably why you said that to me. So subliminal there.   John: A lot of people have copied you and they have 5,000 tanks too.    Chip: So I should drop my pH to 6, and then bubble the water vigorously. And then do you –   John: In 24 hours.   Chip: 24 hours either you turn the bubbler off, let it sit and then you drain out the sediment?   John: It’s already had a chemical reaction.   Chip: So it’s already settled.   John: Right. So by turning it off in an hour, the rest of it that’s maybe coming up from the bottom will all settle out. And you’d be surprised, you know. When your water is 7.2, when your water is 7.6, there’s so much more of that calcium. You turn on that waste valves –   Chip: It’s unusable to the plant.    John: Right.   Chip: Right.    John: It’s unusable to the plant. It’s just, it helps buffer the soil. It’s one of the reasons why you have higher pH soil. I mean, you see that a lot of red clays. And, you buffer it more. It’s not necessarily good for the plant, for the type of plants we’re growing. And when you turn on that waste line that comes from the tank, maybe nothing will come out. You’ll have to kick that line. And then slowly, you’ll see like, this extruded clay coming out. That’s all junk that’s tying up your nutrients. And you can add more nutrients and overcome this, but I’m not trying to get rich on this radio show. I’m trying to tell you how to save money.   Chip: No, you know, and that’s where we’ve always really aligned, John is like, we just want to help people grow. And you know, people will come in, and I’ll give them the easiest way to solve their problems. But they want to spend some money. And so they like, buy a problem solver, right? But I always offer the mechanical solution to people first, if there’s one. Something they can easily do by hand or, this  is great. ‘Cause we’ve kind of talked about this before, I’ve had bad water in the past for sure. And not that our water is just awful, but it does come out of the well at 400 parts per million?   John: Yeah, you’re right there with calcium bicarbonate.   Chip: Yeah, that’s calcium carbonate, for sure. For sure. So alright, well, I’m gonna try this man. And now will this change the pH, will this change the EC or the ppm of the water?   John: Yeah, it’ll definitely change the ppm of the water coming out. And you’ll see that you’re going to use less fertilizer to be able to get to the same point. And then if you use compost tea, you’re going to use less fertilizer. I have customers that I’ve told this to, when they followed that through, they came back and I said, “I pretty much can guarantee you’re gonna be able to cut your fertilizer bill by 30%.” But they used tom tea enough and they cut it by 50%. And I was like, that’s great. And he looked at me like I was crazy. But you know, it’s not about –   Chip: Oh yeah, yeah. No actually, I want people to be more effective with the fertilizers and the products we sell. And they’ll be better businesspeople, they’ll make more money, they’ll be better growers. And, you know, they’ll remember that. They’ll come back and do more business with us.   John: Right, and what one of the groups of people that we’re always focusing on is phenotype hunters. You really need to have your program dialed in to see what the genetic potential is of what you’re working with. And there’s quite a few people out here in Oklahoma doing that now. It’s pretty exciting.   Chip: Oh, Oklahoma is the pheno hunting capital of the world right now, I think. With what’s happened with the cannabis seed industry, right,  at the same time, and the light regulations in Oklahoma allowing for no square footage issues, no plant issues, you plant as many seeds as you want. Right? We just got off a 4, 500 – it seems like we plant about 4,500 seeds for 10,000 square feet. So it’s been working for us. And we just have been doing it over and over again. Auto flowers, traditional male, female plants, feminized, photo sensitive plants, it’s been great, man. It’s just really, really been incredible to see all the different genetics, all the different phenotypes, to see the breeders that are for real.   John: Right, yes.   Chip: Right? And the ones that aren’t, because they’re out there, man. They’re out there. Hey then, I’ll tell you this. CSI and Archive, I know you guys have heard me talk about, I know you guys know these guys are my friends. But man, they got the best shit. Like, we planted 20,000 seeds out probably this year, and theirs were the best. Absolutely. The strongest, the most vigorous, the most what they said they were gonna be. Just the quality of the flower like, it was just incredible. So CSI, Humboldt, Archive Seeds.   John: Yeah, and Finest is right there too.   Chip: Oh, man, we’ve planted a bunch of Finest. I mean, there’s a lot of great, great breeders out there, don’t get me wrong. But I mean, we planted out Brothers Grimm Seeds this year. We planted out Exotic Seeds. We planted all the bests, but of everybody’s, dude. CSI and Archive’s. They were the best.   John: Yeah, and there’s breeders that came from California here like Brandon Rust, who won third place in the Cowboy Cup with Death Breath. It’s an amazing flower. I’m sure now it’s probably unobtainium because it really is that good?    Chip: Unobtainium. I’m gonna write that one down. Unobtainium.   John: You cannot find it probably.   Chip: Unobtainium. Yes, scale is going to be one of Oklahoma’s biggest problems, right? And this water quality, this pH issue has absolutely been one of my biggest problems. But there’s this bro science with the, you know, with limited success comes this like,  enforcement on something that’s actually didn’t, was a negative but since, you know, it worked out for you, you thought it was a positive. Right? And I literally just this past week got in just two different like, conversations with people on pHing their containers, right? They’re growing inside, they’re small growers, they’re not even at scale. And, their argument is, “I’ve never pH-ed my plants, and my plants are fine.” And they’ve just never had a pH problem. And it’s easy not to have a pH problem when it’s small like that, but when it scales, that’s really, really when you, really when you see it. I know you’ve seen some big farms here and in California. Like, you know, what are some of the ways that people deal with fertilizer injection and pH control?    John: Well, there’s a whole range of ways to deal with pH and injectors. And it seems like –    Chip: Let’s keep it with container-grown.   John: Okay. Yeah. Yeah, okay.   Chip: Okay. Since I’m make potting soil and all.   John: Dosatrons. Dosatrons are really popular. You know, they’re powered by water. You put a clipboard up and just clean it no matter what, every month. And they’re easy to take apart, easy to clean, no reason not to use them. You know, all our fertilizers go through those.    Chip: You know, I see Dosatrons being used two different ways. We’ll get to the nutrient first, and then we’ll go to the pH, because this is the pH show. I see way number one is where you have five different components. And so, you have five different Dosatrons. The best way to do this is to dilute all of your nutrients with distilled water, at least by half, and then you can use a large volume to come through the Dosatron. Right? And in my opinion, the most success I see people doing really well, this well. And you know, it’s a siphoning unit. So, it just works better if more volume goes through the unit. And when you’re talking about a mL of a nutrient, like, it really is better to have two mL go through the Dosatron than one or even five, honestly. And then the same thing with the, any of the NPK. But the other way, is people take one large stock tank, they mix like 55 gallons, right? And they fill it halfway full of water, and then they put all the stock nutrients in the tank, all their 5 or 10 different components. And then they have one Dosatron. Is there any preferred method or any reason to use one over the other?   John: Well, the cost. You know, Dosatrons aren’t really that expensive, but some people want to use one doser. And I had a customer in an heirloom tomato greenhouse in the central coast in California, and they wanted to be able to use one doser, that was it. And so you can mix our fertilizer line times 13 in that heavy concentration. And it will all go through, and you could set one D40 Dosatron to that. They make a D3000 now, and that can take one ml per gallon. So you can dial it in, say for 10 mLs per gallon really accurately. So you get one of those, and you get a maybe a D15 or a D40. And then you can put the others stock nutrient in through that. Because you don’t want to mix calcium with everything else. Otherwise you get locked out, right? So –   Chip: Even if you dilute it halfway with water?   John: Yeah. You can’t take that chance because then, somebody does that inside, and then they do it in their greenhouse and they want to do it in the field, and they get evaporation in the field. And then you get that problem again. And they, you know, by the time they’re out in the field, they’re hiring so many people and they have other operations going, they’re not watching things closely.    Chip: So I mean, what you’re saying is you really suggest at least two Dosatrons.   John: Yes. Two.   Chip: Two Dosatrons. One for your major calcium component, and then the rest could go all mixed together. Now if I’m using your three part, how would I,  put the micro under one dose, and then mix the grow and the bloom in a stock solution with 50% water?   John: Yeah, you don’t even need 50% water.    Chip: Oh, you could just mix it straight.    John: Mix it straight. Yeah, I made it that way for that reason, because I using dosers.   Chip: I didn’t realize I could I mix it straight. I’ve diluting it for years.   John: Oh really? I just did all this for myself.   Chip: Yeah. That’s why I developed all this stuff, dude.   John: That’s why you develop your soil right?   Chip: Oh yeah, hey man, this new plant in bags I have, the five gallon plant in bags. I mean, they made it to where I’ve just got three people that work with us. And we just ran 8,000, 10,000 square feet greenhouses, like over and over and over and over again, all summer long, I did it with three people, right? Three different sets of 8,000 square foot greenhouses pull, you know, multiple times over the course of the summer. The only way we could do it is with those plant in bags, the absolute only way to be able, to like, finish the crop. Take the old potting soil old bag out, and replace it immediately with a fresh bag plant in bag like, the labor savings was incredible. Incredible. And yeah, I knew that. And so that’s [inaudible 26:21] myself.   John: You know, we make our own mistakes on our own, on our own money, right? And then we try to come up with a solution, and then it becomes the product for your friends. And then it goes. Now, probably people listening are friends of our friends of our friends of our friends. It’s really gone out there now, but a lot of people doing it.   Chip: Oh, man. Everybody that comes in my shop’s so friendly. Rarely do I have someone who’s uncool.   John: Yeah, yeah. I mean, they go somewhere else for a reason.   Chip: So how do we deal with the pH with the dosers? How do you see people dealing with the pH?   John: So you don’t have to worry about the pH using our fertilizers, but there are other fertilizers that you want to adjust the pH. The actual, organic –   Chip: Because when you use your, just your three part, it adjusts appropriately?   John: Yes. You don’t have to adjust. It’s available from a pH of 3.5 to 9.   Chip: So it’s not that it adjusts the pH in the water, even though it will change the pH, it’s just available at the large ranges.   John: Right, right. They’re food grade components that are meant to use, you know, mountain spring water, Fresno ditch water or, you know, water sources from anywhere in Oklahoma.    Chip: Sure, no, I set mine just to let you know, I set mine religiously at 5.8 if I can with your nutrient. And I suggest everyone do that too. You know, I hear people do it all kinds of ways.   John: Yeah. Well, so many people, you have to plan for people who don’t do anything at all.   Chip: Yeah. And so that’s how you did it.   John: Right. And then so –    Chip: And hey, that’s how all of our other crops like I was saying earlier in the conversation is, you know, we weren’t able to pH it. We just put the nutrient in the tank, put it in the Dosatron and didn’t pH the water at all. You know, and it went out there. And we grew a lot of great, great, great weed. I should say good weed that way. But like, wow, man, it just got great as soon as I controlled all the nutrition, all the pH,.   John: Right. Well, in that case, you’re cutting out the calcium bicarbonate right? So you are gonna get a benefit all those fertilizers are available. And you know, that’s a side benefit of adjusting the pH and then aerating it even further does that. And that’s why people used to aerate their reservoirs.   Chip: Sure. I’ll be missing that. Yeah. Well, you know, we did use some. I have seen some really bad water here and the interaction with cheap fertilizer, right? I have seen it fall out. I’ve seen it clog. Like, we’ve had so many calls from customers who was like, “Oh, that drip irrigation, the filter’s not working,” right?   John: Or it’s working too well.    Chip: And that’s what it is. It’s actually like, it’s clogging all the time. And you talk to people and it’s like, oh, man, they’ve got really bad water. And they’re putting all this cheaper, you said it earlier, salt fertilizer in it. And it’s just creating this sludge at the bottom of the tank. Sludge, like in their lines, a paste or a clay, you said it.    John: Yeah, the calcium.   Chip: Yeah, on the inside of the filters. And we of course suggest everybody use the oversized Netta thin filters and promote the bigger ones, right? But yeah. Here, it’s a problem. We’ve seen it.   John: Yeah. I mean, a lot of people out here are pumping out of ponds, and they really need to use a sand filter. But you asked me about it, adjusting the pH on these other doser systems like, like doser system like Agritech from, that Mike has over in Colorado.  Great doser system, uses peristaltic pumps. So it turns in, it turns out exact amounts. So you could do it when you’re –   Chip: Set up a siphoning unit, it has the paralytic pumps that proportionally pull it out, and then add it.   John: And then add it. And you can add as many of those pumps as you want. So you could have 12 different inputs, if you would like.   Chip: And that’s the best way to deal with the pH is with a paralytic pump, right? Instead of –   John: Well, they still have pH dosers. I mean, pretty much even Dosatron has pH dosers. I go to a lot of places and I see super high tech doser systems that either inject with air, actually use 100 psi air to inject the fertilizer into the line as it passes by. And I feel like that mix is best. Here in Oklahoma, there’s Andersen injector systems.    Chip: Oh, yeah, yeah. We’re a dealer for Andersen.   John: Oh, really?    Chip: Yeah.   John: Interesting. Do you have one in your store right now?   Chip: No, we don’t. But I’m going to put one in my greenhouse this next year.   John: Yeah. Those are –   Chip: I think Chris has got one in his greenhouse.   John: Oh, really?    Chip: Yeah.    John: Oh, cool.    Chip: Yeah.   John: Yeah.    Chip: He brought them in. They met together somehow. But yeah, really great systems. Nice people. Good, good customer service.   John: Oh yeah, great customer service. They’re right here in Oklahoma. And they, it’s all metal, right? So it’s really, it’s stainless. At least the ones I’ve seen at trade shows. I actually haven’t been to a facility that uses that. Other people have gotten so far in a different direction, where their doser systems are $120,000. And they’ve got a touchscreen interface and a number of different things. And it seems like people touch them wrong, and they don’t, and they’re so sensitive, they don’t like to be touched. Because they, in an A and B tank situation that was both supposed to go at the same time, it might forget, it might now have been taken offline for the B tank. And now your whole fertilizer program is out of whack. So I mean, surely there’s safeguards for all these things. But sometimes in doser systems, I like to see people just keep it simple. And I think Anderson, although it looks sophisticated, you know, it looks complex, I think it’s simple. And Agritech is still simple, and Dosatron is still simple. Other injector systems, you know, run off the entire, the environmental controller. and that’s interesting. But that’s more complex, and that would take another, a complete show to describe. But just sticking to the simple stuff of, should you be using pH up and down, I never recommend, okay, using pH down, as instead of using pH up. Always just use, bring the pH down, never try to bring the pH up. That –   Chip: Leave it where it is.   John: Leave it where it is, because that locks things out.   Chip: Even if it’s like really low? Or, you know.   John: I mean, what’s really low? Some people run our Plant Amp really low and then our pH will be going into the plant will be 4, and will panic. We get these calls all the time. And we go, “Look. It says do not adjust the pH.” Read it on our –   Chip: Oh, we’ve had the calls to the shop too.   John: Yeah, right. And I just say, “Well, look, why don’t you measure the pH of the water coming out the bottom or the fertilizer?” And they’re like, “Well, it’s 6.2 or 6.4.” I’m like, “Isn’t that perfect coming out of the bottom?” It’s like the plant is pulling out organic acids and converting and taking up the calcium.    Chip: So don’t adjust up, just adjust down. I preferred this for years anyway. I mean, there’s more than one type of pH down too, right? We’ve got you know, nitric acid, phosphoric acid, sulfuric acid, citric acid, which is their preferred product –   John: On Plant Amp, we have some other complex acids from the biochelation process but you know, just sticking to the ones you mentioned, you know, nitric acid, well you got nitrogen. Sulfuric acid, you know, sulfur get locks up with calcium, and you get calcium sulfate, which is gypsum wallboard, right? And you really don’t want that. And citric acid, you know, it’s a partial key later, but you can only use so much of that. Phosphoric acid, it’s kind of the choice of the industry.   Chip: Sure. I’ll have to say I use nitric. Because it’s so much more effective.   John: It is.   Chip: I used it when I can get it. Actually, this year, we just had to use the, for half the year we used phosphoric acid, right? Because we couldn’t really get the nitric.   John: Really, I wonder why.   Chip: I mean, it’s just a rough year on supply this year.    John: Oh, yeah, that too.   Chip: Right? I mean, you know it. I mean, we had so many, you know, issues, just shipping stuff around, or like, you know, warehousing issues, or people manufacturing issues, and then demand issues, everybody wants the product.   John: Well, they want it more and your customers that buy a normal clip, all of a sudden, they doubled that. Because they’re like, what if we can’t get it? I mean, that’s why I got another warehouse and filled it full of product. And got another warehouse and filled it full of inputs, because in the beginning, I saw it coming down.   Chip: You’re kinda in Oklahoma a lot these days. I mean, I’ve seen you a bunch lately. What’s going on with you here?   John: I’m just following the herd, like the bison.   Chip: Follow the wind, man.   John: You know, you’ve got a lot of, a lot of my customers from Michigan, Washington, Oregon, California, other states, but those four primarily, who our legal operators have moved to Oklahoma, to open up. And, you know, there’s a number of reasons for that. I mean, look at the transportation. I’m in Tulsa right now. Well actually I’m here in OKC talking to you, but you know, even here, you just look at the map, and you’re like, “Well, I’m two hours from 40.” And that’s where all the rail lines run, you know? You’re really close to Norm and where it’s like the highest rail traffic in the country, you know? You go two hours from here, and you’re at 70. Two hours further, and you’re at 80, you know? Going back down south again, you know, there’s the railhead in Norman, you could send things down to the Gulf. Now you’re shipping them all over the world. So, you know, what is someone going to do? Well, it would be a good idea to have a growing facility here in Oklahoma.   Chip: R&D.   John: Right. You can do a big pheno hunt, for one. It seems like the state is just encouraging that.   Chip: Oh, yeah, it’s great man. Like, Oklahoma is right off the center of the country, we really are here. It’s a great place to measure what the rest of the country is. I know there’s lots of stereotypes about it here. But, you know, this is like average America, really. Right? This is, it’s average, it’s new to the cannabis industry, and they’re really embracing it great. It’s incredible, right? As opposed to like, the other markets we’ve been involved in, you know, it’s this whole exclusive market scenario. And man, I just like that weed’s for all, and it should not be exclusive. Anybody should be able to get involved with it, in my opinion.   John: Yeah. Well, you know, I’d like to say people are friendly and accepting. But I think we’re going too far in boosting Oklahoma. Being a Californian, people would say, Northern California, I don’t want to go there. There’s gardens everywhere, there’s farms, there’s violent people. And then when they get there, they find people friendly and accepting and open and a big community.   Chip: It can be.   John: And then people started moving to California. So now, it went from when I first got my driver’s license and it was about 11 million, to now, there’s 40 million people. So I was in Colombia earlier this year. And, you know, I was warned about going to certain places, and trying to look for seeds, or doing anything that would stir up locals, because they’re hostile. So I went down there and it reminded me –   Chip: So you went down there and you were like, “Hey, man, you guys got any weed seeds?” Right?   John: I was invited down there. I was invited down there by some hemp farms. And I got down there. And then I realized, you know, it was like being in California 30 years ago. And they’re very friendly and open, and they’ve got great food, good attitude. But in the end, I had to tell them. I said, “Look, when I go back to California or the United States, I gotta tell people that you’re violent, crazy people, because if they do to Colombia what they did to California.”   Chip: I’m just gonna change here, too. This is similar to Oregon. Similar things are going to happen here that happened in Oregon. I think that Oregon was a good dry run for that. I think we need to be prepared for all of those things here.   John: Right. Well, you know, and how do you prepare people, right? So in Colombia, how do you know how do you prepare people there? California, well, they’re already there. You know, I live in Sonoma County. So I haven’t looked personally at the number of lawyers in Sonoma County and actually know the number, but I think it’s the same number as the entire state of California. So, you know, in an earlier realtor program, we were talking, you know, I was introducing myself and a little bit about my past. So, in ’78, you know, part of the reason I ran away from home in Berkeley was because in the Bay Area, 1 out of 82 people were lawyers. And if you study history, Rome, a 1000 year Empire fell when one 1 of 4 people were lawyers. So I thought, you know, I was only 14, what did I know?   Chip: Alright, alright, alright. Right now, I’ve got like, 10 fucking attorneys in my life. And I love you all. I love you. I love you all. Don’t listen to what John’s saying.   John: Okay. I have to say. I’ve got a great tax attorney. I’ve got a great business attorney. And I’m good to, I’m good with just that. But to negotiate, because I’m sure Chip’s talking about California and not Oklahoma that he has these lawyers.   Chip: No, I’ve got attorneys here too, man.   John: Oh, really?    Chip: Come on, bro. You know, I’m always seeking extra knowledge and attorneys, especially cannabis space attorneys are a great place to get it.    John: Right.    Chip: Right? I’m always doing business. Different states, different people. And you kind of end up with like, different attorneys for different things you know? So I’ve got like, a great set of attorneys for any major issue or problem. There are my Cultivate Colorado attorneys. I’ve got a west coast attorney, right? Because you got to have one, that’s rough ground over there.    John: Oh, sure. In each state, they can only practice once.   Chip: And man, you know, I’m currently in some litigation. You know, I’m fighting the good fight here. And so I’ve got some aggressive attorneys, right? And they’re fighting, helping me fight for my rights and our rights as cannabis farmers in California. And then I’ve got some attorneys that just tell me what all the rest of the attorneys are doing. This is no shit. This is a great thing to do, John.   John: Well you see, you’ve gone through a lifelong selection process of attorneys.   Chip: Oh, yeah, yeah. Oh, man. Cedarburg, Brian, Josh, Christian, those guys, I’ve been with them 10 years. You know my guys over at Fairchild and Roth field or something like that.   John: Big firm.   Chip: Big firm. I’ve been with those guys for 15 years. You know, I mean, you know, my people in California, I’ve been with them for 10 years. I mean, in business, you need an attorney. Doesn’t matter where you are, you’re gonna need one. You need somebody to write contracts for you, you need somebody to be able to ask questions to. Like, “Hey, is this,” you know, “Can I? What do you think about?” Because you’ve had your fair share of legal issues?    John: Oh, sure. Of course, and being in business –   Chip: Business legal issues, man. Oh, I don’t like the way you did this, John, I’m suing you for it. You know?   John: Right. Right. And you’ve got to have an attorney with decades of experience to get it, to turn it back from that to, “Let’s negotiate this, let’s arbitrate this. This is gonna go to court.” And yeah, Ray Erlach is my business attorney in California. And Geoffrey Titus is my tax attorney. And you know, these are really good attorneys that have been practicing for 45 plus years. And I don’t know whether they selected me, or I selected them. But there’s been a lot of other attorneys in between that didn’t do what they were saying that they were going to do. So I was talking about when I said –   Chip: I’ve had some bad ones too, man. Oh, 100%. I’ve had bad advice by attorneys. And actually, that’s why I have a group of attorneys that just tell me what the other people are trying to say. And they know their position too. I’m like, “Hey, I need you to give me a clear view of this guy, what he’s saying and doing for me.”   John: Right.   Chip: Right. Because man, I’ve picked bad attorneys in the past. I chose bad, I chose badly. And I didn’t have any review over dealing with it.   John: Right. And they don’t review. They –   Chip: They don’t review themselves.    John: No, you don’t, you don’t –    Chip: [inaudible 44:19].   John: Yeah, let’s see. Go online and go to a blog that reviews attorneys. Oh, wait, there isn’t one. Wonder why, wou know?   Chip: Well, I mean, just an individual opinion, man. You know, like attorneys, they’ll have this idea of how to approach a problem, or a subject, or a negotiation, right? If you’re purchasing a business or selling a business, I mean, all of these has different ideas. And it’s just like in a doctor, they say, get a second opinion. Same thing with a legal opinion, get a second opinion.   John: Right? They’re practicing. The doctor is a practice, which is a little frightening.   Chip: I never really put that together.    John: Oh yeah. They’re practicing theory.   Chip: Your law practice, you keep, when are gonna stop practice? Can you do this shit for real?   John: Well, it’s all based on theory, right? That’s too funny, but yeah, you know, my point before was the number of lawyers, well, these are the number of people that might be unnecessary and unnecessarily creating more legal issues. Because that later they become legislators. And, you know, it’s just the number of bad people, I guess, scum rises, you know. And it’s not necessarily lawyers, but just people in general. And the people that latch on to something –   Chip: Hey man, I’m gonna say, again, I love my attorneys, [inaudible 45:41] lawyers.   John: No, and I love my attorneys too.   Chip: I’m just making my liability, my libel statements here.   John: I know you’re going to cut all this part out anyway.    Chip: No, I try. No I try to like, let it roll, man. I try to let it roll. Because we were talking about pH and I mean, you know, attorneys are kind of like pH adjustment for life. Life problems.   John: Right. Or you’re already in acidic water and you don’t really know it, and they are the litmus test, you know? They are the piece of paper that they dip into the liquid you think she can swim around in, and they go, “Hey, guess what? It’s not acidic. It’s basic. You know that pool you see in the desert with a cattle skull? That’s a pH 10. You’re at 9. You need some help. You need a handout. You need some advice.”   Chip: Alright, so back to pH. I got one more pH question for you, John, Google of all things cannabis nutrition. Man, I tell people this all the time. Demand, there’s a huge range that cannabis can grow with pH, right? What do you think the limits are? At what point is there really starting to be problems?   John: You’re gonna have to talk to my attorney. No. You know, that’s a funny thing. You know, if you have a pH tester, and a meter one, that can test a pool of liquid, you can take a bunch of leaves, and squeeze the juice out of them and measure that. And you’ll be surprised what the pH is. The EC could be 10,000, because there’s a lot of activity in the plant. But the pH generally will be 6.5.    Chip: Mhmm, no matter what.    John: Yeah.    Chip: Right.    John: So the plant does, the plant is, it’s stuck in one place for life.   Chip: The plant is. But like, is the availability of nutrients that’s coming in at the root zone that’s the issue, though?   John: Well, you know, it’s a fluctuating pH.   Chip: See, you can’t ever just ask John a yes or no answer. See, I wanted a like, “Hmm. 4.2 and 9.0,” right?   John: Talk to my attorney.   Chip: Yeah, talk my attorney.   John: Yeah well, if you look at the pH availability of all the nutrients that plants need, you see that they don’t line up anywhere. I mean, they kind of line up between 5.5 and say, 6.5. But ones, some have to be really low. Like, you know, one of the most important ones, manganese. Manganese, the pH has to be 4 in order for the plant to pick it up. Well, how’s it going to do that? Well, the plant adjusts its own pH. So you know, when people want to be this pH perfect, they’re trying to be at 6 to 7, so that the plant has an easier time, going up to 7 to get certain elements, or down to 4 to get certain elements.   Chip: Right. You’re just in the middle, so it’s easier for the plant to go either way.   John: Right. Right, and be able to pick things up.   Chip: Mhmm. So –    John: And that’s in the soil.   Chip: So the further ranges from neutral make it more difficult.   John: Yes.   Chip: Right. ‘Cause the plant, ’cause I’ve personally seen a 8.5, you know, I’ve seen 4.5, you know plants. And they might not be the healthiest, but they grow. The buds don’t get so dense, you know, they might not be the heaviest, right? But they grow.   John: Yeah. I mean, you don’t want to keep it at 4.5, or you don’t want to keep it at 8.5. And if a plant is vigorously growing, it can, if you can measure right at the root zone, if you can take a sample where you’ve got a pipe and you can plug it right where the root is, so you can pull it up intact, and then you test right where the root is, you’ll see that the plant is already adjusting one way or the other. But you know, I mean, I have a $6,000 Metzker pH meter in the lab. This is not something you’re gonna –   Chip: Carry around out into the field.   John: It’s under glass. We’re not glass, but –   Chip: Beep, beep, beep. Bring it over here, back it up. Back it up, back it up.   John: It has its own table, you know?   Chip: Well, I’m not sure if any of our listeners understand pH anymore after our ramblings today, John, but I hope so.   John: Yeah, well, I think we told them that they can pH adjust their water down to 6, aerate it, and pull out the potassium.   Chip: Now, there’s a great tip. That’s a great tip.   John: You have the calcium carbonate, and then they’re gonna save money on fertilizer. And the plant will use that water and that fertilizer better, and you saw it. You did it yourself. And that was your field test right there.   Chip: Yeah, I’m all about the anecdotal evidence.   John: Right. Yeah. Well, I’m a show me guy.    Chip: Yeah, absolutely.    John: Missouri’s a show me state.   Chip: One state over.   John: Right.    Chip: Yeah, totally. Well, and we also talked about a couple mechanisms to adjust the pH, right?    John: Use nitric acid.   Chip: And, use nitric acid and there’s phosphoric acid. All the tomato growers, they’re on the sulfuric acid, you know. I think because you only have to put a little bit in or it’s so  cheap, or I’m not really sure. I’ve never used it myself.   John: Yeah, well, I mean, it depends. The tomato growers that are using it in greenhouses, and they’re still growing in soil. They’re doing off cycle of calcium feeding. So they have a doser system set up so that they’re feeding calcium. And that’s not being, that water isn’t being adjusted.    Chip: Right.   John: And then if they’re in soil doing that on a big scale, they’ve already put a lot of calcium, like, you know, some kind of oyster shell or something in the soil.   Chip: So, last big question. Do I have to pH is I’m all organic? I’m container growing and all organic, do I have to pH?   John: Yeah, organic has a broad range of things, right? You know, if you’re using –   Chip: Thumb water only, and all my organic nutrition is in the soil.   John: Okay, that’s a good one. Because you know, some people do living soil beds, and they want to use all amendments, and keep it steady like that. So then you would pH adjust the water if it’s too high. And you’re going to benefit from that, because you won’t have calcium bicarbonate going into the soil, and stabilizing and keeping the pH too high. Because remember, you’re growing cannabis. So you want quality flower. So you have to be able to pull up manganese, iron and calcium, even though you’re putting in calcium, bicarbonate, it’s not available to the plant.   Chip: Right. So you’re saying for the water only growers, we need to adjust our pH.   John: Right. Well, that’s why I developed over the last couple of years a plant-based organic grow and an organic bloom.   Chip: Oh, Accent. Great, great product, we used a bunch this summer.   John: You can use, it’s CCF certified, and also the calcium that you would use be Plant Amp and that automatically lowers your pH because of the organic acids. So you put that first in a doser, and then the grow or the bloom after that. And you can mix the calcium and the magnesium together temporarily. And that’s the magnesium is also biochelated. It doesn’t have as much assets in it, so it won’t affect. It’s easier to chelate the magnesium than it is to chelate the calcium. Calcium is very, very difficult to get into a plant, but super essential. All the other nutrients go over the back of calcium into the plant. So you know, we did it so that that living bed people can use very little of it. And people that are growing in coco would use a lot more of it. So once again, you are pH adjusting, but using Plant Amp to do that.   Chip: Awesome, man. Well, thanks once again for an incredible episode of The Real Dirt. I’m stoked to see you in town so much. Now you’re going to come back here in a few weeks. We should do this again.    John: We should.   Chip: This is like your regular stop. What John sees in Oklahoma.   John: Good things.   Chip: Good things, good things. Hey, listeners. Thanks for joining us once again for another episode of The Real Dirt with Chip Baker and John Piccirilli. Hey, if you haven’t done it already, please download all of our episodes. Please subscribe on iTunes, on Amazon, on Spotify, on any way you get podcasts. You can subscribe to The Real Dirt with Chip Baker. You can also check us out at any one of our operations, growerscoco.com, cultivatecolorado.com, cultivateokc.com, cultivategardensupply.com. We do it all, right? And check John out at cutting edgesolutions.com.   John: Thank you.   Chip: Yeah, it’s been a been a great episode, and I didn’t say it when we started this episode, so I’ll say it now. Why don’t you guys sit back and roll the largest joint you can and think about this episode of The Real Dirt?
56 minutes | a month ago
The Truth About Delta 8 THC
CBD wasn’t the only cannabinoid that inadvertently became legal when the federal government passed the 2018 Farm Bill. We know that there are currently over 100 known cannabinoids in the cannabis plant. When industrial hemp was legalized on the federal level in 2018, the only cannabinoid specifically kept illegal was Delta 9 THC, the main psychoactive cannabinoid that produces the common cannabis high. Leaving over 100 other cannabinoids to fill the space, growers began experimenting. We saw the CBD boom and the rise of CBG and CBN over the past year, but another cannabinoid has broken into the spotlight and has a lot of enthusiasts curious. Delta 8 THC claims to be the legal alternative to Delta 9, providing similar effects to a traditional THC high. But is it really a 1:1 replacement? Delta 8 THC explained Just like D9 THC, our knowledge about the effects and benefits of D8 THC are limited due to lack of research. For the most part, the resources for learning about Delta 8 THC come from first hand accounts of users. What we do know about D8 THC is that it is chemically different from delta-9-THC by only a few atomic bonds, and according to the National Cancer Institute is defined as, “An analogue of tetrahydrocannabinol (THC) with antiemetic, anxiolytic, appetite-stimulating, analgesic, and neuro-protective properties.” In other words, it sounds a lot like plain old Delta 9 THC. However the experiences noted by Delta 8 THC users reveal some slight differences. Does Delta 8 THC get you high? The short answer seems to be yes. Most descriptions of the Delta 8 THC high note that it is more mild or “lighter” than a traditional Delta 9 THC high. User have also said that the high feels almost identical to D9 THC but without the associated paranoia or anxiety many experience. Other anecdotes note how it can take multiple hits of a D8 THC vape to get a similar effect to a Delta 9 THC vape of similar potency, and that the flavor differs, and not always in a good way. Granted, taste is typically associated with processing, especially when it comes to distillate cartridges. The most popular form of consumption seems to be vaping and consuming D8 edibles like gummies. However just like CBD, you can also find Delta 8 THC flower and other extracts. This Week’s Episode In this week’s episode of The Real Dirt with Chip Baker, Chip sits down with Matt Chandler from Sunshine Connect, a Full-Scale Hemp Product Development, Supply Chain Management & Production company. Matt has been involved with hemp and CBD for over four years, and he’s learned a lot about the different cannabinoids in the hemp plant, including Delta 8 THC. Learn whether Delta 8 is just a new hype trend that will fade away, or a solid replacement for Delta 9 THC in states that haven’t yet legalized. Plus dive into the science and real dirt behind hemp and CBD, projections for 2021 and more. Transcript Chip: Well, here we are. The Real Dirt 2021, thank God. Welcome back. Oh man, it’s so good to be on a roll of Real Dirts. Right now, we’re recording all the season, and it’s just been really exciting. We’ve been doing a lot of market research, really, you know, trying to hear what you guys want to listen to, and give it back to you. And today, man, we’re real fortunate, because one of the most asked about topics we have is hemp, and the chemistry of hemp, and the genetics of hemp, and the genetics of cannabis. And today, I have Matt Chandler, and we’re going to talk about all of that. How’s it going, Matt?   Matt: Doing great, man. Thanks for having me.   Chip: So Matt, tell me how you’re involved with CBD and hemp.   Matt: So currently, I have a brand really focused around more of the experiential side of CBD. And we kind of talk about more of that of like the market. I got into cannabis and hemp about four years ago, I’m actually from Oklahoma where you’re at now. And then you, you were from Colorado. And we switched, right?    Chip: So where did you grow up?   Matt: I grew up here in Oklahoma City area, just a little bit east of the city, Choctaw area. You know, around here growing up, cannabis was pretty taboo.   Chip: Oh, yeah, this was a really hard place.   Matt: Yeah, they’d even have tattoos that were illegal when I was growing up here. You had, people had to go down to Texas to get a tattoo.    Chip: Absolutely, you know. So Oklahoma, for those of you who don’t know about the free lands of Oklahoma, now we have tattoos. We have beer over 3.2. Yeah, totally. There’s breweries.   Matt: And cannabis.   Chip: And there’s medical cannabis.   Matt: Yeah. And when I was growing up, or actually, when I got into cannabis when I was 26. And mainly got into it, because my partner at the time had a hard time sleeping, and was trying to decide between Ambien or that. And we had a small kid and it was like, I can’t do anything. She’s like, in college cannabis helped me a lot. And so I was like, “Let’s do that.” So we went found her some. And at the time, it was illegal. And that year was right before we got into the business. And I think they had 20% increase in incarcerations for cannabis. Yeah, and here it was like a pretty stiff penalty like, two years for possession.   Chip: A small possession.   Matt: Yeah, it’s ridiculous.   Chip: Crumbs, and that’s all changed.   Matt: It’s all changed. It’s all changed. So that’s kind of how I got in the industry,  just coming for the plant that way. Really just –   Chip: The medicinal side.    Matt: Yeah, the medicinal side.   Chip: Man, yeah, that is the true great gateway to cannabis is the medicinal side.   Matt: The medicinal weed is the gateway drug. Yeah, exactly. But I feel like I contribute cannabis to really helping me open up my mind to many things. I feel like you know, growing up here, we’re all taught, you know, proctor our own environment what we’re, you know, our experiences growing up and it’s a conservative state, and cannabis was the devil’s lettuce and all that bad stuff, so.   Chip: Pass the devil’s lettuce.   Matt: That’s right. So –    Chip: You know what Oklahoma’s really done? One of the things that’s obvious for me now, and this is might be a stereotype.   Matt: Yeah?   Chip: But now we write country songs.   Matt: That’s right. We got some good cannabis country songs.   Chip: All the time. We just came up with “pass the devil’s lettuce.”   Matt: I like that one, man. I like that one. You guys are making hits over here.    Chip: No, it’s me and you. It’s not –   Matt: Yeah, right. There we go. Do you play guitar or anything?   Chip: You know, I just, I make noise. I make noise. I just picked up a hybrid dulcimer.    Matt: Oh, okay.   Chip: Totally pretty cool. You know the dulcimer?   Matt: No, I don’t.    Chip: Well, I found out it’s the easiest stringed instrument to play so I immediately excelled at it. It’s the easiest to pick up. Yeah, I started with the banjo and then I moved to the guitar, and I’ve been banging away with those guys for a few years. But I’m kind of new to at all like, maybe three, four years I’ve been playing. My David dulcimer just has this hybrid dulcimer. It’s a Merlin dulcimer. it’s only has, it has four strings. They’re metal, like a banjo. You can play it however you want. You can pick it, you can claw banjo style it you know, you can strum it. Dulcimers are traditionally made to be on your lap. But this Merlin style is more like a guitar. It’s also half. It only has seven frets and I believe the dulcimer normally has 11.   Matt: So when do we get cannabis country album this year, dropping this year?   Chip: Yeah, let’s drop that shit.   Matt: 2021.   Chip: You know what it’s, you know what I really like about it, is it sounds it is, so I really love the banjo sound and the banjo tuning, right? You get the claw, the banjo claw to it. And really have a great like, banjo like, sound.   Matt: Nice.   Chip: Right?    Matt: Yeah, I like the banjo sound, too. It’s unique and different.    Chip: Yeah. I mean it’s all based on that root music back from Africa man. You know, that same tuning. There’s something with the harmonics in the world and like, how that same tuning that’s in many instruments, Indian stringed instruments, and African string instruments. It resonates.   Matt: Creates a unique sound.   Chip: The universal buzz.   Matt: Yeah, I like that.   Chip: Yeah, totally, totally. Universal frequency.   Matt: Universal frequency, that’s right.   Chip: Yeah.   Matt Well, sounds good.   Chip: But yeah, just kind of like weed.   Matt: So yeah, that’s why I got into cannabis that way. CBD was a big part, probably about a year into after I started in cannabis, smoking cannabis. Pretty much on the back porch at night, relaxing, chillin’. Notice that I stopped watching as much TV, it was more of just like, hanging out, having more conversations. And so, it really improved my life in a lot of different ways. And I felt like just some of the patterns I had growing up and programming of what to do in life started to become more aware and more conscious. At the time, my ex-partner had a couple of autoimmune disorders, and we started learning about CBD through it. And it started really helping her improve her energy, and overall mood, and different things. And so at the time, was wanting to get out of Oklahoma, wanting kind of a lifestyle change, because I grew up here my whole life. And we were looking at places in Colorado. It was obviously a big cannabis state. They were big into hemp. It’s probably one of the biggest places in capital for yeah, for hemp. That and Kentucky, I think was two early adopters.    Chip: Absolutely.    Matt: And so moved up there to learn about the plant. We started our own brand. I started consulting with a company that was making CBD isolate at the time, which is about flexing, four and a half, five years ago, so it was pretty new. Yeah, I learned a lot about the chemistry side, started jumping in the supply chain about the growth side, and really just learning good growing techniques, what people were doing, how to grow hemp, because I was unfamiliar at the time. And then how to extract it, and basically for minors and different things like that. So like I said, I’ve been involved with a lot of different areas in the supply chain. But when we first moved up there, it was a brand. When we started up there, I think when we first started CBD, there wasn’t like many manufacturers won’t touch this stuff. There were still a lot of regulations, banking was a mess. And we got shut down several times and banks, and credit cards, and all sorts of stuff. And so it’s just, even now it’s still a little bit challenging, we’ve got a lot better. But really, there was no manufacturers that took touches so we ended up getting our commercial kitchen license and getting some of the licenses we needed to start manufacturing products, and doing products ourselves. Did that for ourselves and other people, and the market’s taken to some crazy turns over the last three years.   Chip: It’s been like a rodeo man.    Matt: Oh, yeah. Oh, yeah. Well, I think with hemp because it’s not, it wasn’t, it had that not same regulations as cannabis did, because it was federally legal, it got a lot more attention and money. So there’s big players starting to dump money in the last three, four years, because there’s a multi-billion dollar market that’s forming. And so people are wanting to get into it. But then, there’s a lot of people that I feel like with cannabis that they’re like, “Oh, it’s gonna be big. We’re all gonna throw money into it.” And so they infrastructure, almost overbuilt, a lot of people started popping up that were making different isolates, and different farming. And when I first started, our farmer made $90,000 an acre on his farm.    Chip: Oh, wow.   Matt: Drawing hemp. Now back then, it was I think Colorado had like, three or four years that they had that pilot program that they were able to do that.   Chip: Oh man. I tell you, I saw all that happen and I really missed out on it all. I tried to get involved with it, but like, it just, I was just so busy with the rest of my world that I just couldn’t get involved with it. It was an awesome, that was an awesome time to be in hemp. And I mean, it still is.   Matt: It is still is, yeah.   Chip: [inaudible 9:02] now though, ’cause you know, now you’re like, maybe a couple $1,000 an acre, $3,000 an acre if you can.   Matt: If then, that’s when you have to be really efficient. Yeah. Just last year, my farmer that made that $90,000 that I’ve been working with a lot, he ended up getting out of the business, because he made less than he did growing watermelons. And he’s an organic farmer and he’s like –   Chip: I grow watermelons, right? They’re just farmers.  Like I grow watermelons more. That was my first crop, watermelons.   Matt: And you don’t deal with it, any of the shit. They can sell the whole foods at Walmart. You know, the watermelons, where the hemp market, people that buy it are all over the board, and changing, and it’s constant chaos it sounds like. So, yeah.   Chip: The market got flooded in so many different areas. There were multiple bottlenecks, there were multiple issues with it. One thing that happened you pointed out was that the hemp market was flooded with manufacturers of hemp juice products flooded with brands, lots of co-packing going on. So a lot of this stuff was all just the same stuff even, right? It was all, so much of it was just and is still just homespun. Homespun people never dealt with marketers or copackers, and might not realize that like, “Oh man, they just made my hemp product the exact same thing as everybody else.”   Matt: Everybody else’s. Yeah, exactly.   Chip: Right?    Matt: And then the more it started being acceptable nationwide in the like, stores and things like that, and all the bigger brands that might already have a name for themselves, but just was looking at CBD as another health ingredient, or adding it to their products and their lines, and they already have the distribution set. So I feel like it pushed a lot of the brands out. And then the ones that got in early that were making stuff like us, it made it very difficult, ’cause as soon as the manufacturer started opening up, they’re set up with large facilities to scale. And so if you’re a –   Chip: You guys are a boutique style. As nice as it might be, it’s just the volume that’s just boutique.   Matt: Mhm. So you got into it, because you had to because the bigger ones weren’t doing it at first, but then after a couple years of regulation changes and them getting more comfortable, they started flooding it in and bring in some of the bigger companies over. And so, I feel like a lot of people that invested heavily in the manufacturing side, which a lot did end up in trouble, you know? And they’re still, some of them that made it survived a little bit longer. But a lot of them those big companies are in trouble.    Chip: Yeah. And it went a couple different ways too, because there was the initial scale that happened where it went from homespun boutique operations to like, the step up, or maybe two steps up even.   Matt: Oh yeah.    Chip: For manufacturing. And then hemp was federally legalized, right?   Matt: Yeah. Which made it a lot easier.   Chip: Everybody could, everybody that ever wanted to grow cannabis could do it. And they did.    Matt: They did, yeah.    Chip: So it seemed like.   Matt: No it really, that’s true, that’s true.   Chip: Do you know any stats from the last year? I mean, 2019 production?   Matt: As far as production, I really, the more familiar set I am is just price per acre. Because you know like, from the farm it was like from 90,000 the first year down to I think it was like, cut in half the next year, down to 10 that was last year, which we were making around $1,000 an acre. And it was like, there wasn’t much sense. They could grow multiple other things. And I think too, it’s just because the amount of hemp licenses I did look at per state, just skyrocketed. I don’t know the numbers off my head, but it went significantly up. And I feel like the supply, basically there’s an oversupply.   Chip: Oversupply. Absolutely, absolutely.   Matt: Yeah, there was an oversupply of the growth, because people and the growers –    Chip: Was Colorado and Oregon could have probably produced all of the hemp for the country, right?   Matt: Yeah, exactly. You know, acres and acres are, that’s a lot.   Chip: That’s a lot.   Matt: It’s a lot. It’s millions and millions of dollars of actual products.   Chip: People went in from the homespun people, the small farmers, the farmers wanted to stick your toe in it. We’re doing one acre, 10 acres, 40 acres. And then all of a sudden it became legal, and I heard multiple people say 100 acre, 1000s acre, right?   Matt: Well if you’re a farm that’s a mass farm and you’re growing hundreds of acres of certain crop on your on your farm, you can make sense out of it, out of $1,000. And that’s still a premium than what you’re getting paid over weed, and other things that you can farm and sell. So yeah, the farmers that have bigger farms, I think they’re the ones that are like, kind of coming in and cutting down the rest. I know so many people that came in hemp that wanted to grow those 1 to 10 acre range. And if you’re doing it by hand, it doesn’t make sense for the labor, and your time, and all that stuff for what you’re gonna to sell it for.   Chip: There is a market for the smokable, or the higher end hemp that you can get into with those smaller acreages.   Matt: Yeah. Which is that, is that popular in the dispensaries here? Or any like, do people buy hemp?   Chip: Oh, it’s at gas stations.   Matt: It’s at gas stations, so people are buying in there?   Chip: It’s a non-weed illegal state, I have been into a gas station that has had hemp or a head shop that has hemp buds for sale.   Matt: Nice. Yeah. Which I don’t know if you’d, do you use hemp, have you smoked them personally?   Chip: Yeah, totally.   Matt: Yes. I’m mixing them with mine.   Chip: I mix it with the ganja.   Matt: Yeah. I mix them with the ganja. I think it’s good like, I blend it.   Chip: Absolutely, it blends great. Because you know, that’s the thing for a lot of the hemp is it’s not fed at all. And it’s just given water, there’s hardly any fertilizer in it. So it might not have the best look. But like, it smokes really great.    Matt: Yeah, it’s more earthy.   Chip: Or it can smoke a really good. The quality of the smoke is good. It might not have the flavor, it’s not stunning but like, it’s a really good smoke.   Matt: Yeah, it’d be more like more of an earthy blend to me as I’m grounding and mixing it.   Chip: Matt, you know what? We’re gonna grow some ganja that way next year.   Matt: What mixing them, half and half?   Chip: No, no. I’m just gonna grow it like hemp, and only water, and just give it some water, and not pay it any, much attention at all, just for the smoking quality.    Matt: Yeah, okay.   Chip: Because then I can mix ganja in with my ganja.   Matt: Okay, yeah.   Chip: No, water only cannabis is the best smoking cannabis, no matter how you, if it’s ganja or hemp, just –   Matt: Just water only.   Chip: Just water only. It’s just how it is. The volume of water just changes the composition of it.   Matt: Okay. Do you give nutrients and things like that?   Chip: Mix it all into the soil.   Matt: Soil, right. Caring more about the soil.   Chip: Yeah, yeah care more –  or I mean even if you use synthetic nutrients, you just like, give it the synthetic nutrients two, three times and then water.   Matt: Yeah. So water is the main, yeah.   Chip: Yeah, water. Water. But yes, it’s not. I mean, fat kids love cake. That’s my theory of growing cannabis. And if you want fat cannabis plants, you got to feed them.    Matt: Feed them water.    Chip: No, feed them fertilizer. Fertilizer, if you want fat ones.   Matt: Okay, gotcha. Gotcha.   Chip: I know that’s not a politically correct statement. But everybody can identify that I was a fat kid. I loved to eat cake, I get it, right?    Matt: That is the perfect analogy.    Chip: Right? But yeah, no, you gotta feed it. Yeah, I don’t know why like, a million people tell me that you don’t after we just said it. But hey, that’s cool.    Matt: Yeah. Do what you do.   Chip: No, yeah. Hey, man, if you want to get that price per acre up, you got to spend the money on it in order to put the fertilizer in it to get more out of it. And there is a cost benefit there. You know, like, you can either do it for $10,000 an acre organically, which is a shit ton when we’re talking about 100 acres or 1000 acres, right? Or like, synthetically, it might cost you 500 bucks.   Matt: Yeah, exactly. I don’t think that the organic markets quite doesn’t pull that much higher of a price right now, for cannabis in general. I’m a profound proponent of organic farming or [inaudible 16:50] and stuff like that. But I do feel like there’s not enough market right now to differentiate if you’re a grower for the cost sometimes. So yeah, I think it’ll start to pop up a little bit more. There’s gonna be some buyers that are –   Chip: No, it already happening. No, it’s already happening. I already see organic cultivation in Oregon. And people ask if it’s organic, you know, and I haven’t seen that for a long time.    Matt: Yeah. Certainly. People are caring more for sure.   Chip: Yeah. So hey, man, this is a perfect time for us to roll into a break.    Matt: Sounds good.    Chip: Hey, let’s a take a moment.   Matt Alright.   Chip: Hey guys, it doesn’t matter if you’re a hemp farmer, or if you’re a medical cannabis farmer. If you’re farming in your basement, if you’re farming out in the back, 40 Cultivate Garden Supplies can help you. If you need anything from truckloads of soil to pints of fertilizer, we have it all. You can contact us online, we ship all over the country and the world. You can look us up at cultivatecolorado.com, cultivateokc.com. And if you need to talk to somebody great, just walk into one of my shops. Ask to speak to anyone, anybody. You don’t even have to ask to speak to someone, we just come up and start talking to you. They can help you solve all of your fertilizer problems, all of your lighting problems. We serve as the largest, most commercial gardens in the country, and the smallest most boutique. And I’m just getting started guys. So please come by. We welcome all of you Cultivate Colorado in Denver and Stapleton, Cultivate OKC in Oklahoma City, and please check us out online, cultivatecolorado.com. Yeah, man. Nice little break. Wow, I can’t believe you did that with that bong man. That was incredible. I can’t even smoke one of those anymore, you know?   Matt: I like the bongs. Yeah.   Chip: I know, I know. Everybody’s heard about the bong at The Real Dirt studio. Man, the industry kind of, it went flat. It went more than flat this past 2020.   Matt: Oh yeah.   Chip: Right? Has it recovered?   Matt: I feel that it is recovering a little bit. I think most of the people that have flooded the market with like, came into hemp as like, this is a gold mine. Farmers are making 10,000 an acre were used to doing this –   Chip: Gold diggers. Gold diggers.   Matt: Exactly. They came in and lost their ass in 2019, 2020. And so, they’re slowly getting up.   Chip: Oh man, I’m sorry for you guys.   Matt: Yeah no, I mean it’s, if you were in those, if you came into hemp for the first time to grow during those times, it was definitely going to be challenging. Not only to grow, but then to sell, because I don’t know about you, but I think every hemp farmer I’ve met, any cannabis grower, the first year is always a learning kind of journey. And you know with hemp, you get one shot that year in most places, at least I think in California and places they might have more growing seasons, but yeah, you had a hard time. And so, most of them I think are got out and so where it’s kind of normalized the supply chain a little bit. Some of the bigger guys that are still in there, they’ve kind of driven the price down, got their price to where they know that they can money on it. And yeah, that the hemp market is completely changed, and it’s really elevated on a global level too. There’s people growing all over different countries, and just like most of the other crops and commodities that we have, wherever the cheapest and makes the most sense to grow for the climate, is where I feel like there are gonna be the most growers, and the most  activity going. And I think that’s gonna be happening with hemp too.   Chip: Oh yeah, absolutely. I mean, it’s that way with every other crop, right? There’s some superior areas to cultivate it. It doesn’t matter if you’re talking, we were talking watermelons earlier. Like man, Florida’s a great place to grow watermelon.   Matt: Yes, yeah. Oh yeah.   Chip: But weed is harder to grow there, right?  It’s just so humid.   Matt: Humid, yeah. I figured it was the humidity.   Chip: You know, I mean, it can be done, absolutely and people are crushing it down there. But it’s not as easy as say like, Oregon or southern Colorado, right? Where it’s nice and dry, and you get, all your water comes from irrigation. You can control it all.   Matt: Control a little bit more.   Chip: You know,  and in Tennessee like, it might rain every day of the harvest season. Yeah. Kentucky’s kind of the same way, but it can be a little drier all throughout the east coast are affected with the hurricane season like, which correlates with harvest season.   Matt: Yeah, growing’s different in every climate, I’m sure. Obviously, it changes constantly, and so, yeah. It was –     Chip: Absolutely there’s always something to learn no matter where you go, it’s gonna, it can if you’re open to it, you can submerge yourself into the environment and kind of read what’s going on, understand. If you understand what the plant wants and needs, right? Then you can manipulate both the plant and the environment to do what you want. It might not be exactly the same, but you gotta pay attention.   Matt: Oh yeah. And I feel like with cannabis or hemp growing is going to be, if you’re starting out, it’s probably not the best place to start in the industry right now. If you’re looking at doing smokables and growing some higher end stuff, then that’s a little bit different. But I think there is a market for those and they are pulling in the $150 a pound versus right now, I think like, yeah. 5, 10 bucks for you know, or lower depending on you know for points, yeah. It’s pretty high.   Chip: I even see people pulling good money on it, on    Matt: Smokable?   Chip: Smokable. It  all depends on how they sell it. But you know, it’s out there. So the future, I mean, the history of hemp has generally been CBD, and maybe some like, snake oil medicine and but it’s really started to mature. And this flood, the thing about floods is historically, the flood will come in and they wash off all the trash us humans like, have put in the way, you know? What they leave is fertile ground, for us to like, rebuild on, you know? And then that’s what’s going on right now in the hemp industry. I think a lot of the like, gold diggers came and went big and small, came and went. Some of those gold diggers turned into like, real cannabis farmers and are interested in it and like –   Matt: Yeah went to stick with it early –   Chip: Went to stick with it and you know –   Matt: All the brokers went to PP or the you know, the PPE or whatever equipment [inaudible 22:23] they just follow the money and whatever big industry is there.   Chip: “Oh, I’m a broker hemp, oh a broker PPE.” Yeah. There’s nothing wrong with making money, dude. I get it if that’s your hustle like, sell buy, buy, sell. Whatever it is.    Matt: Sure it is, yeah.   Chip: I mean, [inaudible 23:42] to this plant. I can’t seem to do anything different beyond it. Or even want to honestly. I mean, I have other interests in my life, but this is the only business I want to be in.   Matt: Yeah, no, I’m the same way. I’ve been in it for almost five years now. And I don’t, I’m in it for the long term too. So not one of those quick fly by night.   Chip: Because I mean, it is a business plan. People come in to me all the time and they say, “Hey, in three to five years we’re gonna exit,” right?   Matt: There’s probably a lot of opportunities with dispensaries and cannabis, especially if it’s been federally Iegalized –   Chip: I have seen people do it all the time successfully. And I don’t see anything wrong with it. Tap on, I hope people do it. You know, like lately, “Hey, let’s go do it man,” you know? I’m on different trip, bro.   Matt: You like to be in the plan and learn it, yeah. Be in the –   Chip: Yeah, totally. I want to be in the mix, man. I want to be in the dirt. That’s why this is The Real Dirt, right? So the real dirt on hemp, cannabis genetics. We just started to like really, like, really get into that right? You know, the first thing is everybody just wanted some weed, wanted some hemp, wanted some CBD oil, wanted some relief, wanted some, those urge for cannabinoids that us humans need and want without even really realize it, but the truth of the matter is coming out. Now there’s all other secondary compounds that are being developed, they’re are already there or have been like, applied. Let’s talk about some of that.   Matt: Sure. I think the first one that kind of came out was CBG, because they can, they’re making genetics now that are high-end CBG, which is the first cannabinoid that the plant grows into before it kind of blooms to CBD, THC and the other various cannabinoids. And the genetics, when they’re making that plant high-end, it’s going to grow higher percentages and extract at higher percentages too, that you can make final products with. And I think some of the things that are going on right now that I see in the industry is that on the chemistry side, they’re learning how to take industrial hemp, which is 0.3% by dry weight, Delta-9-THC, and basically formulate through chemistry mainly by sunlight, heat, sometimes pressure to form different cannabinoids. All the cannabinoids kind of like, turn into different cannabinoids, and don’t care which side off the top of my head, but there’s like, a whole entire tree where CBD might turn into CBN, and then after a while, CBN might turn into a CBC. And there’s this whole like, tree that they turn into different ones. And so yeah, I feel like the you know, we’re able to generate from industrial hemp which can be mass harvested through chemistry, turning them and things like Delta-8-THC, which I feel like it’s very popular. We kind of talked about it a little bit. I like how you said a THC light?   Chip: THC light.   Matt: It’s like THC light to be really honest. But I think it’s awesome for people that are new to it. And like you know, new to THC, or maybe they taken, to me, I feel like hemp is a good stepping stone to people that are like, brand new to the plant. You know, they’re a little sensitive. And so you know, if they took a big bong rip, you know, it’s gonna be a little different experience for them. But taking –   Chip: They might pull a Stevie Wonder that’s for sure.    Matt: Exactly.   Chip: You know, getting stoned blind and start singing.   Matt: Oh, yeah. Definitely, man. Definitely.   Chip: Oh, that goes out to my good sister in law.   Matt: Yeah. Yeah, nice. It’s a good stepping stone. And, you know, D-8, I’ve experimented a lot recently myself, and I really enjoy it. You know, it’s more of a body high and less of a heady high. It kind of gives me that giggly and relaxed feeling, not taking pretty high doses. I feel like with D-8, especially for me, it’s been like, 100 milligrams, versus like, 20 in the edible that I might do. So it’s probably five, four or five times, I feel like you need more of. But really, it’s been great. And I feel like, you know, if I’m trying to still focus and get something done, but want to relax and have a body high, Delta-8 has been great for me on that. And so there’s just cool that there, I think the market, new market is like-   Chip: Let’s talk about Delta for a second. It’s legal in many areas, and only a couple of states have defined it.   Matt: They kind of defined it as legal.   Chip: Yeah. Right, right.   Matt: And who knows what’s gonna happen? Because I think the DEA or the FDA, right now it’s in that gray area, because the only define laws we have are around Delta-9, and that you’re in 0.3% by dry weight. So when you extract it, it’s even in higher percentages, and that’s another debate. But yeah, I think like, some states have came out and said they don’t want it. But overall, the DEA and some of the statements have around from, it’s still derived from the plant, as they term in the Farm Bill industrial hemp. It’s kind of one of those areas where they might come in and interpret it someday, and be like, “It’s too close” and things like that or whatever, but we’ll see. I think in the next six months to a year especially with all the activity we have with like, federal legalization and things like that, we’ll know more on those. But I feel like there’s a lot of opportunity right now, because they’re getting popular, and less people are doing them. And there’s some good alternatives to like you know, I think for more affordable like Delta-8’s pretty affordable in general for you know, comparatively to Delta-9 just because of all the regulations and things you have to do around Delta-9.   Chip: Oh, absolutely. Give me the 9’s but hey, I’d love to have some 8 too. Don’t get me wrong. It’s fascinating, we’ve been saying this for years, that it’s not just THC, it’s not just THC, it’s not just THC, it’s not just THC. But be it in Colorado, and California, and some of the other states have really pushed this certificate of authenticity, this high THC number to sell product, or low THC number to sell product. But you know, they’ve just put THC-9 as the boogeyman honestly.   Matt: They have.   Chip: You know? And the good thing  is it means everything else is pretty much legal on the plant.   Matt: Yeah, pretty much. So they focused on that entirely and forgot about the other seeds that are very similar. They play on one of the two receptor cell sites in your body CB1 and CB2 and –   Chip: Yeah, yeah, yeah. So it’s good. Now see, CBG was one of the first alternative cannabinoids besides CBD, CB, THC that I had –   Matt: Heard about so?   Chip: Well that I actually got to use. Like I’d seen like, I’ve seen them all, read papers about so many of them, and there’s like, theories. There’s hundreds, or 15 or –   Matt: Gave you used the CBG product? Like have you dabbed it or..?   Chip: Yeah, yeah I had CBC, CBG Hash, CBG Key –    Matt: What did you think?    Chip: CBG – first it was a Moroccan style hash made from CBG. She was great, very uplifting, relaxing at the same time, but we literally like, packed a bowl of it thinking it was bedtime. So we packed some hash. And because we also had their CBD hash, this is in in some part of Eastern Europe. Man, we fired up the CBG, we started chatting, everybody started chatting for hours and hours more. Like, “Let’s go get some more food.”   Matt: You got more like I guess, energized?   Chip: Energized, yeah, totally, totally energized. You know where the CBD is far more relaxing.   Matt: Yeah. Some people say CBG is more relaxing too. I don’t know, it seems like everybody’s system sometimes responds slightly different.   Chip: It is. I’m a professional user. So it really, it’s similar to how cabo works, that’d be a great description. It’s stimulating yet relaxing.   Matt: Yeah. Yeah, I would agree with that. I feel like all cannabinoids are still overall relaxing. I’m more chill. I’m more sitting back, I’m more aware and observant around me. You know, some of them make me a little more tired. CBN specifically makes me a little bit more drowsy when I take CBN. Even Delta-9 sometimes makes me tired, but depends on you know, terpenes have so much to do with that too.    Chip: Sure. Absolutely. Yeah, we’re big fans of Lemon G, and we’ve got a Lemon G Dosidoe. And we also have a Gils and Nils which is a Y cross with Georgia Pine Skunk strain. But none of those are real –   Matt: Stimulating?   Chip: Yeah.   Matt: Also tried those. Yeah.    Chip: Sometimes I’ll confuse those in the evening. And like, like last night, right? Or it’s just so good, because it’s got that pentatonic buzz we were talking about earlier, you know? That I’m just buzzing and don’t want to stop, you know?   Matt: Oh yeah, oh yeah. When you do that, does it make you not fall asleep? When you have the [inaudible 32:36]?   Chip: Yeah, yeah, yeah.    Matt: So you’re up more when you do that?    Chip: Yeah. Totally, totally.    Matt: I always see that I could find like, sleep though when I’m, when I need to even with –   Chip: Yeah, you’re like my wife, Jessica. Yes. She’s like, “Oh, I’m gonna go to sleep now,” you know?   Matt: That is like me.   Chip: You know? And I’m like, yeah, I struggle.   Matt: Yeah. Okay. Is that one of the reasons why cannabis helps you a lot, is it?    Chip: Man. I am manic as hell, man. I mean, up and down. I get so excited about stuff. Oh, I’m so excited. Right? And then I mean, I also like, feel it really, too. And I get like, really like, you know, depressed. I shouldn’t say really depressed but like, you know, I really feel it when I lose something, or it doesn’t work out for me. I’m a little bit of an emotional roller coaster and cannabis absolutely evens that out quite a bit. It makes it oh, man, the font’s not exactly right on that, right? Like, you know, instead of just like, “Oh my god damn it. This font’s not right,” right? And for those of you who get into fonts, you’ll understand. “Not that one. Not that one. Oh, man, this, I need this one. Where did the guy get this one?” Yeah, you know, there’s just like, a million fonts out there. You know, I’ll obsess over it. I’ll swing one way or the other. Like, “Fuck it. I don’t care. Use anything. Oh, no, that one sucked. I can’t use that one.”   Matt: Not that one.   Chip: Not that one. You know? Yeah. So cannabis really helps me with that. But you know, I mean, I also, like, a common problem so many of us have is like, I really enjoy the manicness of it sometimes, too, right? And it’s part of like, who I am. And you know, it keeps you know, things exciting to some degree. I don’t want to just be “brrr” all the time. Yeah, you know, but I need to calm down a little bit. Yeah, I need to calm down a little bit.   Matt: Helps you, yeah calm right aways.   Chip: Right, right, right.   Matt: That’s one thing that’s helped with me too. I agree. I think that’s one of the biggest things that I’ve noticed people overall takes them down a notch, kind of where they, a little more chill, and calm, and look at things from a little bit different perspective.   Chip: Yeah, I definitely don’t want any medication over you know, my manicness. But I bet many people with my condition are given it, you know? Or don’t even understand their weed, or do they have like, this simple access to it. Heed on to the nation, man. Hey, I gotta give a big shoutout right now to King Shiloh Sound Systems. If you guys don’t know King Shiloh, I want you to stop what you’re doing, go onto Facebook, go onto YouTube. Look up King Shiloh Sound System. He’s out of Amsterdam. And it’s a group of DJs who previously pre-COVID would go around and have these big speakers and do these big sound Wall of Sound type shows, right? Old school 70’s Led Zeppelin, Pink Floyd, Grateful Dead style.    Matt: That’s awesome.   Chip: Right? But the best reggae you’ve ever heard. These guys have the deepest cuts. They have the best, the biggest collection of reggae singles and vinyls I have ever – I love reggae, I’ve been listening to it for 25 years. And these guys absolutely crush it. Nettie? I think he’s one of the DJs, big belly, overalls, a big white beard. Man, he plays just incredible singles. And, you know, interesting thing about Jamaica, is they got all of our leftover recording equipment from the 50’s and 40’s. And back then like, they just made singles and radio stations would have songs and you know, and so they got all of that equipment, started kind of replicating the same type of thing, right? Like, lots of small producers, lots of like, singles every week, singles every week. Anybody could show up and make a single every week. So all this stuff’s off copyright now, right? So King Shiloh, they play it, so it’s all the stuff you’ve never heard of from artists that you know they’ve lost the copyright or publishing or however YouTube allows you to do it.   Matt: So they can just take it and run with it then.    Chip: King Shiloh Sound System, YouTube, Facebook, everybody please check it out. Tell King Shiloh Chip from The Real Dirt sent you.   Matt: Alright. I like it. I’ll have to check them out. Definitely check them out.   Chip: Oh, it’s great. They play a live show out of Amsterdam every Saturday at noon.    Matt: Okay. How many of you been to? You said –   Chip: Well, it’s all Facebook now. So he’s got 42 that he’s released since COVID, right? Yeah, and man, if you love reggae, or if you’re even interested in it. That’s how to find out about it. Listen to his 80 hours of reggae.   Matt: Nice man. [inaudible 37:45]   Chip: I would suggest episodes, some of the mid-teens, 12, 13, 14s, those are some of my favorites.   Matt: Okay. Good to know, man. Thank you, reg.   Chip: Reggae sidenote.   Matt: Reggae sidenote. Reggae and cannabis goes along great though, and there’s something to them that –    Chip: I mean, just music in general and cannabis go pretty good together.   Matt: Yeah.   Chip: I need more musicians in here. I’m gonna bring some more.   Matt: Yeah, you have to have some people play in.   Chip: Yeah, yeah well, you know, just talking about getting stoned and you know, using you know, cannabis as a performance enhancing drug.   Matt: Yes, exactly, exactly.    Chip: A little PED.   Matt: It’s part of the like, a reggae musician prerequisite is cannabis, I think. A  lot of them use.   Chip: Yeah, I’ve met a few that have shoved it but not many.   Matt: Not many.    Chip: But yeah, not many. You know, reggae’s not really off topic, but we did move along a little bit. So what do you see coming forward for hemp and hemp farmers and hemp industry people?   Matt: Sure. Like I said, on the farm side, I feel like the boutique side, the smokable flower side, if you’re looking to get into business or looking for opportunity, that’s going to be a better opportunity. Most of the products and industrial size are going to be mass farms. If you’re not into that, then it’s gonna be hard to compete, and the market’s more of commodity. I think on the extraction side, same thing. It’s a little bit more commoditized now. There’s some large companies that got into it, got a lot of investments, so the price for them to create CBD oil and isolates and things like that have gone way down. The labs that seem to survive and that I work with a lot now, are the ones that are good with minor cannabinoids. Finding ways to produce these minor cannabinoids from hemp, so they can be sold on the market. Like the ones that are Delta-8 are crushing it obviously, because it’s similar to Delta-9, but they’re able to sell it in more states and things. And so, I feel like that’s yet another opportunity. And then on the brand side, I would say, if you’re just gonna say, “I want to set up a CBD product,” it’s gonna be, you’re gotta have to differentiate yourself. You need the target market you’re going to be going to, an audience you’re going to be serving, and really trying to – I feel like with anything, like Dollar Beard, Shave Club or whatever, razors and stuff wasn’t new and it was a huge market already. But they took it, did a little something different with it, made more of a, targeted to a certain audience, had a different experience and packaging and stuff, and then they crushed it, didn’t they? So I think you know, doing those kind of things in cannabis is more what I’m really focused on, and creating experiences around it. Would love to have a property in the mountains and doing retreats and events around it. And really people can come in and experience it in a safe way, as well as try some different parts of it, I think are going to be really popular. You know, and I think overall just the event and experience industry is going to grow starting this year, from this whole last year not having any events and experiences. So, I feel like that’s going to explode as well. So those are the areas that I feel are most going to explode if you’re looking to get into the hemp and CBD industry. You know, the minor cannabinoids, the boutique products and if you’re on the brand side, it’s really finding your audience and unique people that you’re calling to.    Chip: Everyone who had a rough year in 2019 that decided to keep into it they did, they probably scaled back and really realize this year how to move forward with their business. Some people fell apart, some people waited. I know a few big organizations who were just like, “Oh, yeah, we don’t, we’re not going to grow anymore.”   Matt: Yeah.   Chip: Right? And some of those people may come and go. I think the wisdom of age of the industry is starting to develop. And you know, out of the necessity or the desire or the want, so many businesses and so many products and so many brands have been developed. Nike’s one of my favorite, favorite stories and it came out of like this need for an athletic shoe, right? And even though there were stuff out at the time like, they were the first people who really started to do research on it –   Matt: And cornered that market.   Chip: And cornered that market. And I think that like, the hemp industry is in exactly that place. The cannabis industry is in exactly that place where now, we have time to do research and development. We have time to like, standardize practices and not just think about it as like, this get rich quick scheme. My friend Stacy Johnson, Stacy J of Harvest House, he likes to say, “Getting rich quick since 1989.” And it’s so true but like. right now, I think it really offers that time. And people had all this hemp laying around the past year, they were able to do all kinds of stuff with it. I think the textile market’s coming down.   Matt: That’s different, yeah. I feel like that could be a huge market that really is picking up. Again, I feel like on the growing side, they’re going to be in huge farms that are you know, they’re growing and 15, 20 foot high plants, and they’re coming with harvesting machines that are you know, it’s very efficient, and you get very little bit of a –   Chip: I met some guys that have got 1000 acres in like, Nebraska or Oklahoma someplace. They’re doing it for industrial hemp and they’ve got a pressboard plant or something like that, and man, that’s gonna be great. You know, they like, just harvested their crop and like, they’re trying, they’re gonna go and do it all this next year, they’re gonna have their first round of product and, but it’s good.   Matt: Yeah, it’s the innovation I feel like that has the opportunity in those areas of like, taking the hemp [inaudible 43:20] from the growers, and making plastics out of certain molds for construction, or developing products from hemp on the industrial side is going to be big. I think the bigger stuff like the growing, or the extracting, and the commodities are going to be tougher to get in. There’s a lot of people in there and prices are pretty far down, but creating and innovating from those are what I think there’s, it’s infinite opportunity. Like Nike, shoes were around forever, but Nike came in and claim this domain and you know, has crushed it, and I think there’s gonna be, there’s a lot of opportunity within industry to be able to do that.   Chip: Yeah, absolutely. Yeah, man, it’s all just started. It’s all just started. For people who think it’s over with, or you’re not able to like, it’s all like, just starting so hold on to your hats.   Matt: Exactly.   Chip: It’s happening, man.   Matt: It is, it is. A lot of opportunity. Sticking a plant in the ground and thinking, “Alright, I can just do this, follow this process, and make a shit ton of money,” those are over. You know, you had a short window on those, but the opportunity to take something, and do something cool with it.    Chip: Man, I’ll say I’ve been doing it for you know for, wow, a long time. This is my 32nd outdoor year.    Matt: Yeah. You’re OG.   Chip: It’s never been that easy to just stick a plant in the ground and pull money out of. Yeah, like some people, I hear that works. But like, it’s not real, dude. That was fantasy.    Matt: Yeah, you’ve had, every year has been learning, huh?   Chip: Every year has been great, every year has been a learning curve every year. But it’s just, it is a job. If you want to do it professionally, it’s a job. Go grow a plant in the backyard, you don’t have to do much if you want to, right? But you know, we’ve got great top soil there, you got a water sprinkler there like, you got a fence around, like, you know, go grow a field.   Matt: Personal use plants are like that, yeah.    Chip: Right? It’s just a different scenario, but love weed, love everything about it, and just wanted to keep learning more, talking to more people about it, and, you know, helping more people grow.   Matt: Nice. Which I know you do a lot of growing supplies. What do you feel like the market for people that are just trying to do things at their house? Or, you know, I think that’s another opportunity to like, growing kits. Especially if things come  –   Chip: Yeah, you know, we’ve tried to put a lot of kits  together over time but people, the cannabis industry or DIYers for sure, they just want to buy the parts and pieces, and kind of put it together, right? But I’ll say that part of that is grow tents. Grow tents are, you know, they’re hard to get. I mean, there’s just so many of them out there now. Like, if you are one of the 300,000 people in Oklahoma that got your prescription for medical cannabis, you try  to go by a grow tent, which is like a little 4×4, 8×8 or 4×8 little vinyl type cloth tent that you can erect in your house, and it’ll light tight it so you can flower cannabis. Right. Everybody is interested in that. And I think they’re one of the greatest things in the world, man, honestly. The entry level for everybody who’s wanted to grow a plant, they can easily go do it in their backyard with a bag of soil.  Go pick up a bag of growers, Coco HP, or just drop it in hole in your backyard and plant your plant in it. Like, everybody wants to do that, who’s ever smoked weed or thought about it like, “It’s legal now. Let’s grow.” And honestly, everybody should. Think of how much better it would be. If 150 adult Americans all went out and planted one plant in their backyard. . Alright, let’s split it off into couples and families and just say 50 million Americans went and planted out one plant of ganja in their backyard. Wow, man. We could see some real change in the world.   Matt: Yeah, that would be. It would, and maybe there will be that one day. You know, that’s what I was wondering like, you know, coffee people. I mean, they don’t necessarily grow the coffee, but they’re grinding up the beans, they’re French pressing, they’re doing like, you know, all the extracting basically, the coffee right there in the house. And I’m wondering if cannabis is gonna have that same kind of market to where there’s all these at home, kind of little extraction systems and things like that, it becomes like that much of a household plant, you know? Especially as we get deep down of like, learning more about the plant, the different cannabinoids, and growing different strains. I think it’d be interesting you know? Like I want a little more CBD, or this is more for daytime, or this is more for my nighttime. I’m curious of how the market ends out. And I think there’s a lot of innovation in that area. There’s a lot of room to grow.   Chip: Oh, there’s tons of room to grow, man. It is just starting. Well, hey, Matt, let’s talk about the brand you’re building, and what’s going on with you and your business?   Matt: Sure. Well, thanks man. So currently right now, like I said, I’m really focused on the experience around cannabis. It played such a large role in my life on the way it helped me open up to patterns, and things, and programs that I had that weren’t necessarily serving me, and I feel like it’s a big stepping stone in that. So currently, I have three main core values around our products. Number one is intention setting. So I like to say the analogy of a car analogy. To me, cannabis, and CBD, and hemp are the vehicle that we’re using to get to a place. Our intentions, our navigation, basically like, where are we wanting to go? So we’re really big with for the first 30 days people taking our products, trying to connect with them and find out what are their intentions for taking the products. Is it to sleep better? Is it, why are they wanting to sleep better? Because they’re starting a new business, or whatever it is in life, right? Really be clear  –   Chip: The sleep feels good.   Matt: Sleep feels good, right.    Chip: No joke but like, you know people, like, sleep is one of those things that people like, oh, you can’t sleep. And it’s like, if you haven’t been in that position, you know not being able to sleep, we talked about this already, you sleep great.   Matt: I sleep great.   Chip: And I don’t at all, right? And like, man, it is hard, man. Like, you know, and then like, when you start like, taking you know, substances to help you sleep, most of them have some hangover effect.   Matt: Yeah. More drowsy in the morning more. Yeah, I agree. And so yeah, cannabis has been one of the biggest things I feel like for what I hear most people taking them for, help them relax and sleep.    Chip: And you know, inflammation, any type of inflammation I see. I see with CBD specifically, I see the aid in, you know, they’re the other, you know, pharmaceuticals they’re using, right? They don’t have to take as much. It means that they don’t have as many adverse side effects from the pharmaceuticals as well, right? And all that means something.   Matt: Yep. Oh yeah.  I think that it’s a natural plant that has a lot of different uses. But I think mainly in helping people relax, kind of helping work on the nervous system and their immune system, which is basically taking their inflammation and why people say that cannabis has helped with such a wide range of things, because it usually comes down to those two things. It helps calm their nervous system down, which I think everybody’s a little bit more wired nowadays. There’s a lot more stimulus we have coming at us in COVID and things like that. We just, there’s more nervous system disorders, anxiety, depression, things like that where I feel like you know, definitely cannabis and endocannabinoid system when it’s healthy, helps the nervous system regulate as well as immune system with inflammation. And like I said, it works on a host of different diseases, and I guess conditions that people say it helps with so yeah.   Chip: And hey man, it’s fine to self-medicate. Damn right, we do it all the time. Like there’s nothing wrong with it. And, you know, that’s why all the over counter drugs are there is because you can self-medicate. Self-medicating with cannabis is one of the most effective, less, least harmful things that anyone can do. And I know I’m preaching the choir here, because we’ve got 30,000 listeners here that are just gonna say, “Right on, Chip!”   Matt: Oh yeah.   Chip: But it’s true.   Matt: It is true, it is true. You know, and that’s, I think with our brand, it’s more of like, set your intentions, have gratitude around it, and really just focus on like, what are you trying to bring this plant to do in your life? And you know, our deal is building a community where we can support each other in those changes, right?   Chip: Are you guys, are you connected on Facebook or Instagram? You have social media platforms you work with?   Matt: Yes, we have. We’re on Instagram, @thealchempist.com. The alc-hemp-ist, I don’t know if some people would debate, the name was based on the book, The Alchemist, have you read the book?   Chip: Oh, yeah, sure.   Matt: Yeah, I love that book. And, you know, to me, there’s a lot of hidden stories in that book and hidden gems in that book of good lessons that you can learn. But for me, it was more about that, you know, the boy that kind of went against the programming that he was taught, and what he’s supposed to be in this world to, you know, discover his own personal legend. And that’s kind of what I you know, with that with hemp. ‘Cause as you know, I kind of was the same way I grew up in a, this was not an acceptable plant, like the devil’s lettuce, like we talked about earlier. And, you know, and finding it, helping in my life and following that path, and my intuition that I’ve discovered my own journey. And so, I feel like everybody can do that with cannabis in their own way. And our goal is to kind of help them set that intention, help them form the gratitudes around it, and then build a community where people that are going in the same direction like, “Hey, we’re all trying to sleep better, we’re all trying to do this.” We can kind of share openly like, “Hey, this is this is working for me. These you know, I’m smoking cannabis at night and I’m using CBD during the day, and this is how it’s affecting me, and these are the dosages I’m doing,” because you know, we haven’t had a lot of research around the plant because it’s been illegal.   Chip: Yeah, next to none.   Matt: Next to none. Because federally yeah, it’s still Schedule I which hasa prevented colleges and things like that, which I’m sure your listeners know too. But Schedule I, you can’t do any research around as much where you know, you have cocaine and meth and all of them are Schedule II. So it’s just nuts how that works, but I feel that you know, there’s starting to become more research, especially hemp and stuff is least introduced the plant because I you know, I tell people hemp is cannabis, there’s no difference. It’s the same plant.   Chip: Yeah, absolutely. All the time. People are, “Oh, hemp, not cannabis.” I’m like, “Same stuff. Same stuff. ” They’re like, “Well, not the new federal regulations.” I’m like, “Nope, new federal [inaudible 53:46].” Right?  It just the same plant, it’s just –   Matt: Government had to reclassify to make them feel better about you know, “Alright, we’re stepping, we’re stopping the line at 0.3%.”   Chip: That’s hemp.    Matt: That’s hemp. Now it’s hemp. Now it’s okay. Yeah, exactly. No, it’s an artificial line in the same plant. And so, we’re able to study it from that angle a little bit to kind of see what THC is doing and what, you know, CBD, and CBG, and all these different minor cannabinoids and terpenes are doing inside the body. I feel like that’s going to continually grow. And the more we get into that and more research we get into that, the more we’ll be able to develop products, and have businesses that are focused around certain parts of the plant, and what people are dealing with or need help with in their life.   Chip: Hey, Matt. Well, hey, thanks for joining me today, man. This was a great conversation. I was looking forward to it. We always talk so well together about hemp, CBD and cannabis. Next time you’re down here in Oklahoma, we’ll, let’s go track down some of those industrial hemp people.   Matt: Sounds good, man. Sounds good. Thank you for having me. Appreciate it.    Chip: Yeah, absolutely. And thank you once again for listening to another episode of The Real Dirt with Chip Baker and today, Ma
60 minutes | a month ago
The Real Science Behind Compost Tea
We all know the benefits of compost when it comes to cannabis cultivation. But we’ve also come a long way from just dumping a pile of compost into your soil and mixing it in. With compost tea, we can now incorporate compost into our cultivation practices by simply feeding the plants through irrigation, just like hydroponic nutrients. If there’s one man who has gone to extra mile to understand the science behind compost tea in order to create powerful, organic tea mixes, it’s John Picirrilli, Founder of Cutting Edge Solutions. “So my grandma turned me on to compost tea, I think I’ve already told you this story. She made anaerobic tea. It was just like a jug, a five gallon bucket of manure that we’d fill with water and sit there forever. And then occasionally, she’d get a scoop of water out of it and dilute it and pour it onto her radishes and tomatoes, or whatever we were growing in the backyard, right?” – Chip Baker Even since he was boy Chip Baker was learning about compost tea and its benefits from his Grandma. And John learned a similar way himself.  “You know, going back on some of my many mistakes, one of the early ones was doing something like that. And then you do it on a larger scale than a five gallon bucket. Because pretty soon, you see a little works pretty good, so you want more of it to use all at once.” – John Picirrilli From a five gallon bucket to 50 gallon drums, John quickly expanded his research and development of his compost tea product. And that was 40 years ago. The science behind compost tea and growing with biologicals had limited research at the time, and John was at the forefront of looking at the microscopic details of the teas he was making. Eventually he would start his own microbiology lab where could study compost tea and all of its components scientifically. What John Learned Through his decades of research, John’s findings are plain and simple. “That’s when I realized better biology means better flower.” – John Picirrilli While compost teas are nothing new, using them for cannabis cultivation is a relatively new practice, and that’s why John is focused on educating growers on its benefits. But explaining the complex science behind how good compost tea develops isn’t so simple, especially when cannabis cultivators come from a wide range of backgrounds, age and education. The Real Science Behind Compost Tea In the Season 5 premiere of The Real Dirt with Chip Baker, John and Chip dive into their history and experience with compost tea, from their first discoveries to developing their current regiment. John goes in depth about how he began and continues his studies into compost tea using his sophisticated methods to find which specific microbes and bacteria are the most beneficial for cannabis. The two talk about the history of using compost tea, how it has evolved, and why every cannabis cultivator should be incorporating it into their regiment. And of course the two long time friends share some old school stories from the Northern California days. ‘A regulator told me a long time ago. “Don’t try to list too many things on the label. Just say it makes plants happy.”‘ – John Picirrili Is it that simple? Find out in this episode of The Real Dirt with Chip Baker! Follow Cutting Edge Solutions Follow The Real Dirt with Chip Baker Subscribe on Apple Podcasts Follow on Spotify FULL TRANSCRIPT Chip: Hello, my friends. It’s so good to be back here in another episode of The Real Dirt. Got an exciting season this year for you, The Real Dirt. Wow, last year was incredible. And this year, wow. It’s gonna show so much for the cannabis market and cannabis industry. You know, we’re gonna hold on by the, fly by the seat of our pants. It’s coming so fast and so strong. If you’re involved in the cannabis industry right now, you know what I’m talking about. Everybody sitting at home, unemployed, smoking more weed than they ever have, or you know, they maybe have a little stress or – hey, also, there’s medical cannabis in so many more states now. 2001 is gonna go up in smoke. And I mean that in the very, very best way. That is my prediction, is the cannabis industry is going to be one of the saviors of the country and of the planet. If we’d all just sit back and smoke a little bit of weed, then you know, it’ll be a better place. And those of you who consume cannabis, or who work in the cannabis industry know how good this plant is. And man, dude, it has been so good. Despite of what’s going on in the rest of the country, the cannabis industry just had a banner year last year. And we’re gonna repeat it again. So these next episodes of The Real Dirt man, we’ve got a new studio, it sounds great. You can hear it right now, you can hear the bass in my voice. And I’m stoked man, we’ve been running out of this bedroom in the back of my house. And it hasn’t been the best, and the best internet reception. But man, we’re here, we’re set up for a very socially distanced event. I have many, many guests both on Zoom and as well here in the studio. I have a huge eight foot table, we can all be across from each other. We’ve got great ventilation in here. We’ll socially distance and be as careful as we can. But man, we’ve got some great people from all over the world. They’re gonna chime in this year. And we’re gonna run things a little bit different this year, I hope you guys enjoy it. But I’m really, you know, in this quest for knowledge, and previously, I wanted to know people’s story and understand stuff about them. You know, and I still want that. But one of the goals that we’re gonna have this year at The Real Dirt is we’re gonna answer questions. So if you have any question, and we’re looking on the internet, we’re looking at our Instagram, we’re looking at Facebook every single day. If you have any questions about cannabis, the cannabis industry, you know, ask us at The Real Dirt and maybe we’ll make an episode about it. So currently, we have about 35 episodes planned for this year, we’ll see how it unfolds, we’ll probably get a little bit more, a little bit less. But man, it’s gonna be really informative. If you’ve ever, I apologize for all the bad quality recordings this past year. We’re gonna do far, far better this next year. But uh yeah, man. We’re just gonna grow right along. So yeah, if you haven’t already subscribed, please go to The Real Dirt on iTunes, and on Spotify, and on Amazon and all the other major places where you can listen to podcasts. And listen, all the other episodes you know, if you’re interested in anything, you can ask us at The Real Dirt. “Hey, I’m interested in this, do you have an episode suggestion?” And we’ll give you a suggestion but you know, some of the early episodes are great, great, great information, even though they might have been four or five years ago, three or four years ago. Man, some of that stuff is just great. You guys should all go back and listen to that if you haven’t. We got about 70, 80 episodes published right now and man, they all have some great tidbits of information. But this year it’s going to be super high quality, super informative. And yeah, man. Here we go, man. My first guest is John Piccirilli. Me and John have been friends for years. He introduced himself one day to me in Humboldt County right after I’d started a potting soil plant. He literally rolled by and heard that I’d started a plant, had kind of heard about, you know, what I was trying to do, royal gold coco fiber, this was in like, 2008. John stopped by, said hi. He had a company called Cutting Edge. And so has a company called cutting edge where he makes top quality fertilizers for cannabis. And John helped me over the years tremendously. Anytime I had a question, he was there for me. And you know, when I started selling retail product with Cultivate Colorado and then Cultivate OKC, you know, really supported John and all of his products and whether it’s his 3 Part or his Uncle John’s, or, you know, the Sonoma Gold, man, he’s just got some great, great, great products. He makes nutrition for plants simple. And we’re going to talk to john about of a couple of things. We’re definitely going to get into some compost tea, and we’ll have a few episodes here, where Uncle John kind of explains it all. If you’ve ever met John, you know how he can go on, and on, and on, and on, and on for hours. So, I’m going to try to consolidate all his knowledge into you know, some good, good, good information we can all digest. But what I want you to do now is sit back, roll the largest joint you can and enjoy this episode of The Real Dirt.   John: Hey guys. We got John Piccirilli here. He’s the founder of Cutting Edge Nutrient Solution and pretty much go-to source of all things cannabis cultivation and nutrition. There should be like, a Google section that’s just like,  “John says, Uncle John says.” Welcome, John, thanks for coming.    Chip: Thanks Chip, and happy birthday.    John: Oh, yep. This is my birthday episode. For those of you who didn’t get me a gift, it’s okay. You still have all of next year to plan.    Chip: Right, I mean, I was caught off guard myself. And I’ve known Chip, you know, 15 or 20 years. So…   John: Yeah. Well, the reason you were caught off guard is because you’re eagerly waiting to tell me happy solstice in a few days from now. And you just forget that it’s my birthday a few days beforehand.    Chip: Yes. And then it gets brighter every day.    John: It does. It gets brighter every day.    Chip: So wow John, me and you have known each other for a long time. We met a decade or more ago, when I opened up my first humble soil plant, you walked in the door one day, and politely answered all my questions and told me how I was doing everything wrong. And now I’m successful today because of you.   John: Oh, I don’t know, Chip, that’s not true. You’ve been at it a long time, too. And, you know, for me, I’ve been at it for 40 years, you know. I was one of those punk kids that ran away from Berkeley at 14 and started growing in Mendocino County in 1978. So I’ve had a little bit more time to make more mistakes than you. So I’m just telling you the advice that you think I’m giving you, I’m just telling you the mistakes I made, and not to do this.    Chip: Now you are a world-renowned, known as the problem solver. I’ve made that mistake for before, you know, answer for many, many, many, many, many things. Right?    John: And if people don’t believe it, I tell them how much it costs to make that mistake and it scares them.    Chip: Yeah, absolutely.   John: So they back up and they look at what kind of solutions that I’ve come up with. And those are pretty much our products.   Chip: I sell Cutting Edge Solutions. It’s one of our biggest sellers here at Cultivate OKC, Cultivate Colorado throughout California. It has been called the Calif-or. It starts off as a basic three part nutrition formula, but then there’s several other additives, magnesium additive, calcium additive, cal mag. I mean, you’ve got numerous, numerous products. The thing that’s great about John’s products is one, the customer service. You guys got great customer service, t feedback that you get. But man, you and Kevin go to see more gardens than pretty much anybody I know. I mean, I see a lot of gardens. But you guys like. really are in the dirt, man. You know, the thing that fascinates me is that everybody has a like, this little magic or something they do. It’s not magic, what you’re doing.   John: No. Well, it’s kind of magic. I mean, it’s science. But science is just a small explanation for magic. And there’s more magic than science. So you don’t always use your head, sometimes you use your heart.    Chip: Yeah, I’ve seen you guys turn around more gardens, for sure, after visits and more happy customers. Is there like, one thing that, is there a common thing that people have problems with?    John: Yeah, I would say using pH up and that locks out calcium, and calcium is key. And so ais phosphorus. A lot of ways that we back people out of problems is by using home tea which is a compost tea.    Chip: And you know, it happens to be the topic of our episode today –   John: Wow.    Chip: Is composting.    John: That’s great.   Chip: Yeah, yeah, yeah, yeah. So my grandma turned me on to compost tea, I think I’ve already told you this story. She anaerobic tea. It was just like a jug, a five gallon bucket of manure that we’d fill with water and sit there forever. And then occasionally, she’d get a scoop of water out of it and dilute it and pour it onto her radishes and tomatoes, or whatever we were growing in the backyard, right? As a little kid, but I didn’t know any different until kind of I met you, John. And you started talking about compost tea, and actively aerated compost tea. Wow, if you’re not compost tea-ing now, it’s definitely something you should think about. Mostly, I recommend it for soil growers, the indoor outdoor greenhouse, it doesn’t matter applying it to the soil foliar feeding. Should I make this statement that it is the most effective thing that you can do for your garden, compost tea?   John: It is. It’s true. You know, probably what your grandmother did, you know, she used manure, broke down, and she poured it on and the plants got boosted, right? They look better. You know, going back on some of my many mistakes, one of the early ones was doing something like that. And then you do it on a larger scale than a five gallon bucket. Because pretty soon, you see a little works pretty good, so you want more of it to use all at once. And then you use, make a 50 50 gallon drums. And then it really goes anaerobic. And then you get acids in it that just melt the roots, when you overapply it. So then, there’s an application amount that you should use too. But I mean, that’s how I started out was, like I said, like over 40 years ago, you know, one of the benefits of being back then was you got to see cultivation going from fields and planes flying over, to actual helicopter traffic coming in. And then we had to move back in the barrage, and then ultimately back near the tree line. And then there’s a lot more microbiology that interacts with the plant then. But about the same time –    Chip: So this is application. You saw this through application, you saw the biology change through application.   John: Right, through just trying to use the same amendments and in holes, or trenches, and grow plants and then you know, we had to march the plants back into the barrage, and then ultimately back into the tree line. And then at that time, I thought just fertilizers grew plants. But then I realized by that point that it was the microbiology that was making the chemistry available.   Chip: Yes, the roots, they grow the plants, don’t they? And they need that proper biology around the roots in the soil in order to digest the nutrients in order to feed the plants, right? People can argue that science all day long, but it’s pretty much how it works, right? Synthetic or organic like, you have to have that biological dynamic.   John: You do to have healthy plants. And otherwise you get diseases or bugs are attracted to them, which transfer diseases to other plants that are still somewhat healthy.    Chip: So let’s take this back, John. Let’s do a couple things. Let’s talk about like, what is compost tea, and then we’ll talk about some like, things we can do with it, and problems it creates, and problems it solves. So, how do you define compost tea? Because I know this, people say and do this all different types of ways.    John: Right. So you know, some people define compost tea as any compost, like we were saying before, put into drums of water and they make sun tea. And you know about the time we were being pushed back by the helicopters, I was making sun teas and taking horsetail which is high in silica, cutting those up, putting them in –   Chip: Wild, crafting horsetail.    John: Right. And stinging nettle, which is not easy to collect, as you think.    Chip: Got to pick it from the jungle.   John: Otherwise, your arms are thrashed. But you know, using different herbs and making sun teas, and that seemed to be okay. But I got more results out of it when there was bubbling going on. And then I used it before the bumbling stopped, before it got completely anaerobic. And you know, I got a microscope and I started looking at things closer. And then I got bacterial stain kits for Gram positive and Gram negative, started kind of identifying different bacteria, and started looking at fungi, and staining that with prussian blue, and that led to just building a microbiology lab. I was kind of a kid back then. That was the early realization that you can make liquids that help the amendments of the soil. But compost tea, you know, you asked me that question. And I started to aerate it, so that I could break it down further. And then about that time, you know, it was just sort of wide open. There was not a lot of research being done using biologicals. But I started to learn how to isolate them out of healthy agricultural systems, and scraping them off lichen in the forest, because I realized that some of the best plants were at the drip line were lichen were. They weren’t necessarily getting more sun, but they were growing healthier, and they yielded better, and the flavor of the –   Chip: Better biology.    John: Yeah, better biology. And that’s when I realized better biology means better flower.    Chip: I mean, compost tea is new to many people, but it’s a very old technology. I mean, I’m not sure how far back actively aerated compost tea goes. I mean, people have been bubbling compost in the liquid solution for a moment, right? But it’s new to many people. So what we mean by this is we’re actually injecting air of some sort, and people use all types of things. Are there things you should or shouldn’t use, pumps you should or shouldn’t use?    John: Yeah, some people build these elaborate brewers that’s spin the whole liquid inside of a cone tank. And that might be good to generate bacteria, aerobic bacteria, but not necessarily good for protozoa. And so you know, you’re looking for three things in a compost tea that’s aerated as you say, by at least putting in an air stone if not putting in lines that are perforated, and [inaudible 16:13]. it just depends on the size of the brewer that you’re working with.    Chip: Sure. I’ve made probably millions of gallons of compost tea through all my potting soil stuff and you know, royal gold, we used to apply it directly on the line and use compost tea within our products. You know, I’ve always liked the simple air bubblers, right? I always felt those made the best, you know, product, the best compost tea, even though we’ve kind of used everything. I’ve used, you know, these jet pumps that move water around, we’ve used [inaudible 16:52] pumps. Man we’ve used, you know, just like large air pumps with a bunch of lines going into it. But for some reason, the air stones, they they really do work the best.   John: They do, I mean, you put them in the bottom of a cone tank, a lot, you know, a line that runs from the pump into the tank, and then it’s at the bottom of a cone tank, and it has just the right amount of air.    Chip: Those with bubble size, I think what it has to do with it? Because you got all those little small bubbles, and as they’re turning over in the water, they’re mixing everything, right? And you know, if you think about it, a bubble is this real like, natural like, thing. You know, I just like the idea of that anyway. I don’t know if it’s reality or not, but millions of bubbles mix better than hundreds of bubbles.   John: Well, you know, it’s like champagne.    Chip: Yes, the champagne effect, right.   John: It’s the champagne of compost tea. You know? And the other ones are like the jacuzzi jet of compost tea.   Chip: Yeah, because you don’t really, you don’t want it really swirling. You don’t want it really bubbling, right? You just want it like, moving around. You wanna inject the right amount of air. Do you know if there’s any math involved with this?    John: Oh, yeah. You know, there’s a, you know, you look at, see I’ve used of different organisms that are in a spore state or in a cis state of it, which is like your egg state for a protozoa. Take a drop of compost tea, and put it on a hemocytometer, that’s what you use to look at blood. But it’s the same thing you use in microscopy to look at the population number in one drop, which is pretty much a measured amount. And on this hemocytometer, it’s got a graph and you can estimate, do a bacteria, fungi, protozoa count. Sometimes people are off on the on the fungi because of actinomycete, which is, you know, when you’re turning your compost, you get that white fuzz on it. –   Chip: Yeah, I know it. On the outside, and the inside –   John: Right. And then you dig through that and you see all the strands, that actinomycete is helping break down the compost, but it operates at a warmer temperature, which is just on the outside shell. But when you’re making compost tea, a lot of times you have that in there. People mistake that for actual beneficial fungi. It’s beneficial in the sense that it’s breaking things down and making enzymes, but it’s also, can throw you off if you’re actually reading it. So, you need a Gram stain and there’s a certain way to identify that.   Chip: And all this stuff is inexpensive now, right? Like, you know, digital microscopes and you know, all this equipment is readily available to people. When I started doing it 20 years ago, it was like, $5,000 for a microscope. But now you can get it for 100 bucks, right?    John: Yeah, yeah. There’s decent microscopes for 100 bucks. I mean, we pretty much use Olympus and Leica microscopes which are German lenses and those are –    Chip: Well, you guys are professionals. Of course you use Leica.   John: Well, because we look at, because we look at a lot of samples, right? And so you can get eyestrain. It’s like, the difference between getting reading glasses and real glasses, I guess.    Chip: Now me and you and other people were fascinated with it all. And we might break the microscope out and notice the balance of bacteria and fungi or protozoa over temperatures or, but most people aren’t going to nerd out quite like that. You don’t necessarily need a microscope, right?    John: No.   Chip: No, I saw that look in your eyes. You’re like, “No, you gotta have a microscope.”   John: Well, you know, you were just saying it.   Chip: It’s not that expensive.    John: They’re not that expensive. And, you know –   Chip: It’s easy to use.   John: I mean, we used to have Maverick cameras that cost like$1400 that attached with a special adapter that went on the compound microscope. In the end, you’re like spending thousands of dollars –   Chip: Now you can almost do it on your phone.    John: Yeah, right. Exactly. And they have smaller digital microscopes and digital cameras that are maybe $100 or $200 that are great for taking photos, and sending to someone to identify something that you think is wrong with your plant. Or, you know, the cross section of a root, or you know, many different things. So it’s definitely worthwhile to get these. It adds to your digital library of things that are either going right or wrong.    Chip: It’s just another tool in the tool bucket. So basically, compost tea is any type of compost that’s dissolved in water. And then we’re aerating it.   John: That’s a good basic definition.   Chip: When doesn’t it have to be compost, then?   John: Yeah, I mean, to be compost tea, it should be compost. Usually, it’s vermicompost. Because that’s, you know, high in bacteria.    Chip: The earthworms are incredible creatures and get rid of all the E. coli. And you know, that’s the best thing about earthworms. You use a pure earth, pure black castings and you’re not gonna have any E. coli.    John: Right. That’s very true. Sometimes you could have coliform bacteria, but –   Chip: Still rare for earthworm castings, unless it’s like, unless it’s not been screened. If it’s just compost, and earthworm castings, that’s where you see the coliform bacteria.   John: Well, it depends what state you’re in. And it’s not you personally, but it’s you physically.    Chip: Yeah. Okay, okay.    John: And you know, because different states do different tests. And you know, for a while they were mixing up E. coli, which is a coliform bacteria with all other coliform bacteria. We have coliform bacteria in our hands.   Chip: It’s everywhere.   John: It’s everywhere. It’s ubiquitous, right? So but you know, it’s not something that is going to harm you.    Chip: Mostly compost tea is made from earthworm castings, water and maybe, you know, a couple of other things. I mean, there’s all types of recipes people use for all types of reasons. I know you guys sell a great, great product HumTea that is a completely formulated compost tea recipe or, what do you, how do you phrase it at?    John: Yeah, so that would be a compost tea.    Chip: HumTea, is it, do you call it an inoculant kit, or a starter kit, or..?   John: Yeah, you know, you could call it either thing. You know, I’m not very good at marketing as you know.    Chip: Right, yeah, yeah. You’re great at sales though.    John: Yeah. [inaudible 23:34] I could go in and say, you know, yeah, we have a spawn bag, which is a resealable plastic bag that’s impermeable by pretty much anything, except that it has a GoreTex window on it. So it allows gas exchange. And in there we have some woody material that we grow protozoa on. The actual let’s say, compost itself is a mixture of this woody material, and a mixture of earthworm castings. So the earthworm castings have really good background bacteria, fungi and some protozoa. But we enrich that and enhance that in our composting process and our finishing process. So we usually have a screen of 10 important bacteria, a few fungi, and about 22 different protozoa. So you would take this out of the bag, put it into, you know, we have brewers that have screens. And you can put it into the screen or a HumTea Brew Ball, and that’s actually floats in any container. It will even float in a reservoir. And then we have three different containers, three different say pint or quart bottles depending on the size that you buy of the HumTea inoculant. And those have certain bacteria and there are food sources in there. You know, ours is a little bit more sophisticated than just taking compost from your earthworm castings, and throwing it into some gauze or some sort of screen system, and then bubbling it in water, where a lot of people would add molasses.    Chip: Because you’ve done all the work for you with the HumTea. You don’t have to have a microscope. You can just drop your pre-made formulated compost tea inoculant in a barrel of water in the compost brewer. Any compost brewer, but specifically a Cultivate OKC or Cultivate Colorado compost brewer that you can get in Colorado, you can order it online. Go to cultivate colorad.com, cultivateokc.com, we’ve got great, great deals. Better deals, and you could ever get on 15, 30, 35, 45, 65 gallon brewers. All of that will make it easier for you than just using some random container or you know, maybe not like the easiest thing to clean. But you start with a good compost tea brewer. But any type will work, right? And use the – oh I see, they’re like ” Oh well maybe not any type,” because we already kind of went over that. The ones that move too much water don’t really work so well.    John: Well they work well for bacteria, to generate bacteria but –   Chip: So if you got a specific bacteria you’re trying to grow or wanted high in bacteria, then  you would use that.   John: Yeah, you wanna use of those high volume mixing, spin it around, [inaudible 26:35].   Chip: I mean, anybody can go out and make their own. Anybody can go out and get a bag of earthworm castings. They can get some bat guano, some trace minerals, maybe a little, the smallest amount of some sort of sugar product. They can make their own but man, the HumTea product is really so much better. You know, when you first came out with this, this is how John sold this product. He first came out with it and he gave it away. And he taught us a lot about giving stuff away, all of us in the cannabis industry. And so he would give it away – where would that have been? I mean, you gave it away all –   John: North coast horticulture.   Chip: North coast horticulture, it would have been –   John: In Humboldt County.    Chip: Yeah, it would have been in Humboldt County. And people were like, “Oh, what do I do with this?” He was like, “Well just take a gallon home and when your cuttings are rooted, feed it to them.” Right? “Oh, I’m having problems with you know, my plant. Should I feed all my -” “Well, just start on your cuttings. Take this gallon and feed your cuttings.” And you sold so many people on compost tea and educated so many people on compost tea and Humboldt Tea that way. Off one single gallon. Change their, changed everything for them, right?   John: Yeah, yeah. It’s actually Humboldt Countea.   Chip: Humboldt Countea.   John: Right.   Chip: I see.    John: And then there’s just the t-e-a at the end.    Chip: And now, is there some special biology that you’ve put into the Humboldt Countea?    John: Well, yeah. You know, by just raising it and generating it, and then using it in a good agricultural system and then re-harvesting it. You know, some of the bacteria alone, you know, there’s Pseudomonas putida, and that can break down herbicides. So I mean, I was working with that a long time ago, back when they used the silvicultural practice in Mendocino County and Humboldt County, was to spray hardwoods with Agent Orange that was left over from the Vietnam War. So long ago, this was –   Chip: [inaudible 28:44] for you and me, right?   John: Yeah, that’s right.    Chip: Spraying all the weeds in the woods, they say it’s gonna make the world go good. Oh yeah, man.   John: Right.    Chip: Some protest songs there, protest songs from the 90’s.    John: Right. Born right out of NorCal, you know. There was fighting for their lives out there, literally.    Chip: We got pesticide danger. Oh, can decide, danger.   John: Nice. Oh, yes. Reggae on the river, I hope it comes back.    Chip: Oh, it will. Yeah, yeah, for sure. And it’ll be in memories forever. But…   John: Yeah, we still bring it to life. Yeah, you know, I was giving it out at first because not just to educate people, but just to give back to the community. I can see that here in Oklahoma again, where a lot of people just left because they saw corporations rising in their state, whether it was Colorado, Michigan, Washington, Oregon, California. And they wanted to be back in a community of people that share plant material. And you really see it here now. And it’s good.    Chip: Oklahoma reminds me a lot of Humboldt in the late 90’s.    John: Yeah.   Chip: Right? The organic movement, the freshness, the newness, the idea. Because even though like Humboldt, Mendocino and Trinity, they’re thought about and they are the world capital of ganja production and have been for, like 50 years, right? It’s like Mexico, Humboldt County, right?    John: Right. You go anywhere in the world and they go, “Where are you from?” And you say, if you say Arcata or Trinidad, immediately they’re like, “That’s in Humboldt County. You’re from Humboldt County.” Yeah.   Chip: Yeah, right. So I know there’s a lot of haters out there, but that’s just how it is, the volume of cultivators up there, it’s just now incredible. But back then, in the late 90s, we had just gone through Operation Green Merchant. There was, one of the Bushes came in with an aircraft carrier off the coast of Humboldt, they had National Guard, they were like, stopping and searching people coming in and out of highway roads that just went through National Forest systems. But, you know, all kinds of illegal Gestapo type of stuff. And in the late 90s, cannabis, it was really, really underground. You know, outdoor cultivation. It had it for like, 10 years at that point was really hard, right? You had to hide it, you had to put it under trees. And people were growing indoor. It started growing indoor in like, huge farms. Absolutely some of the biggest farms in the early years. Everybody seemed to have a 40 or an 80 light indoor on a generator back then.    John: Right.   Chip: Right? That’s kind of what’s going on here is that it’s easy to get a 200 amp license, it’s easy to get a license to grow and grow under 200 amps. Maybe that’s what I should say, 2500 bucks, $3,000 you can easily get a license. And it’s kind of the same way back then, it’s like you could go get your prescription and grow some weed and sell it to the dispensary, right? They just kind of formalized it a little bit. But the same enthusiasm, right? The same old coops coming out of the hills going, “I love weed. We used to grow it back in the whenever it is,” right? Man, and we saw it happen then. Because we had that big first explosion happened in ’97. And it was like ’97 to like ’94 or something. And then there was smaller changes in the laws like in Mendocino, they made it legal for 25 plants for anybody, and then 99 plants. If you registered, they were one of the first registrations in the country, that was back in 2004, right? And outdoor cultivation really started to take off again. We got rid of Terry Farmer and a couple of other holdouts from the old war on drugs and it reminds me all of that here. It’s like the, except it just went differently, right? Instead of there being this big political issue, you know, the police are just like, “Oh, weed’s legal? Okay,” right? And it’s not like it was in Humboldt back then where everybody fought it for years, and years. Now it’s like, “Oh, weeds legal? Okay.” People were really accepting of it here, right? They’ve embraced organic cultivation like those old days in Humboldt. Remember how it used to be if you [inaudible 33:22] wasn’t organic? Like I mean, your friends would just like, rail you for it.   John: It’s true.    Chip: Remember?   John: Yeah.   Chip: I mean like, what, I mean, it means me and John are both hydro guys. And I love organic too, John does too. John’s got a whole like organic thing too. You know, organic supplements, organic nutrition, that we use – I’ve got some weed over there in front of us –   John: Oh, nice.   Chip: That’s all just happened in here. It’s a special time and special place in Oklahoma. And man, it’s starting to happen that way in Mississippi, Missouri, Illinois,  Michigan, right?  It’s this new great industry that still anybody can get into. In Colorado and in California now, anybody just can’t get into.   John: No.   Chip: Right?    John: No.    Chip: And if you guys are into it over there, and things are going great for you, me and John are both giving you a thumbs up.    John: We are still there, Chip.    Chip: I mean yeah, we’re –    John: We’re still in Humboldt County, but –   Chip: We know how hard it is, man. It’s hard.    John: The building codes, everything that goes along with it, the invasion of your private property. You know, touring farms here, I don’t see that I see people doing their best, instead of having to pay regulators and go through all these different code enforcement issues, and wait, and wait, and wait, and spend money on their mortgages, or leases, or whatever. In the outlying areas of major cities here, there’s no building codes. So I mean, I was just yesterday at a place that you know, they spent 300,000 on a state of the art greenhouse. And they’re putting up two more, they’re putting up one first and they’re gonna join these greenhouses together. But my point is that when people are allowed to do their best, they do great. And when people are held back by a regulatory industry that doesn’t understand what they’re doing, but wants to take opinions from everyone else –   Chip: And a percent.   John: Yes, let’s not forget that.    Chip: And let’s not forget the percent of profit that they want to take as well.    John: Right. And it really should just be grown and sold at the end that it’s being sold that it should be taxed.    Chip: Easy enough, man, Oklahoma’s got a really good handle on it, that’s for sure. And it’s got some problems, don’t get me wrong. Back to compost tea. A couple ways, I guess, people use compost, either they like, do a soil drench, or they do a foliar spray.    John: Right. So a foliar spray would be to offset other potential plant pathogenic fungi that could be on the plant like, powdery mildew. Aspergillus brasiliensis will take care of –   Chip: Like I know if he’s pronouncing that right.    John: Yeah, I was kind of hesitant when I started because  –   Chip: He almost, your eyes go up in your head, like they’re having this rain man moment.    John: Well you know, you throw out these kind of terms, and then people are, they can’t, you can’t catch it. It’s something that’s really got to be written down. But, I mean, that’s something that offsets and outcompetes powdery mildew, which is a big issue. Going back to this farm that I was just at yesterday, you know, state of the art greenhouse really good quality Quonset houses, and one is lit up and holding all the best mothers. But at the same time, they were put in not Chip’s soil, but another soil let’s say. And that soil was made from composted pine needles back east. And then what happens is, it’s super acidic.   Chip: Oh. So there was a pH problem.    John: To the extreme, where the plants were basically dying. When I looked at them a month and a half ago, the person didn’t want to take them out of their 30 gallon plastic pots. So the only choice is to use a compost tea or to use HumTea, because the microbiology will start breaking things down and leeching out certain elements that are toxifying the plant. And these are prized plants. I mean, they’re, you know, they’re –    Chip: Compost tea. One of its benefit really is if you have sick plants, if you have plants that aren’t doing so good, regardless of what diagnosis you think they have, compost tea will help them.    John: Yeah, it’s true. I mean, it’s like magic, you see? You know it’s working because the leaves –   Chip: It’s kind of like chicken soup. It’s like the chicken soup.   John: It is, for this time of year. It’s flu season. You know, people are afraid to even cough in public. You know, will be hauled off. But you know, when you want to keep those mother plants going until the spring, and you have light in order to be able to do that in a greenhouse and you’re heating the greenhouse, if they’re in bad soil, or if they get some sort of disease because it’s too humid, and you don’t want to open it up because it’s too cold outside, compost tea or Hum Tea is is what you need. Not only foliar spray with, but run through the soil and then that has another action when it goes into the soil. It will stimulate the plant’s immune system.    Chip: So there’s lots of talk about dilution when you do soil drench. Do you have a typical dilution rate? Or how about this, what’s a, because I know it’s varied. What’s the best dilution rate?   John: You know, when you have a brewer, say it’s even a five gallon bucket. When you make tea in that, you should be able to take 1 gallon to 25 gallons. And if you want to go thinner, you can go up to 50 gallons. One gallon of compost tea or HumTea to 50 gallons. And you’re going to get the benefit. You can pour HumTea straight on, and it’s good to do. Pour it straight on. Do it 1:25, do it 1:50. And you pour it straight on, you see a result the next day. You do 1:25, it’s two days. You do 1:50, it’s three, maybe three days. And for me, 1:25 is good because you know brewing it is roughly like, $6 a gallon. So I don’t want to spend too much money, but I want the plants to be healthy.    Chip: Yeah my experience is exactly the same thing. If you, I think that the HumTea, it works best diluting it 1:1, because I think you can use it. I mean, I know you can use it just straight on, but most people can’t afford to, or the volume of it. And you know, I also try to just use it on like, just rooted plants or vegging plants, so I can get the most concentrated colony forming units in one area, right? I like the 1:1. That being said, man, like, you can pretty much pour it in any volume of liquid that you have to feed your plants, right? If you’re using a 300 gallon tank even, you will absolutely see benefit by making a five gallon compost tea and pour it in there. Now, it might work better for [inaudible 40:34] if you only have 5 gallons, and you have a, you know, a garden that would require 300 gallons of water, you’d be better off boiler feeding it, I would think. Even if it’s just on the top of the soil, because we see people doing that too. And I’ve done that too, is just take the like, direct HumTea, Humboldt Countea with a pump sprayer, right, right? Have you ever seen this?    John: Yes, oh yeah.   Chip: They just spray it right on the top of the soil as opposed to the plant and then you get the water in and you get the like, you know, the colony to develop there. And I mean, that’s like, three bucks for something like that.    John: It’s super cheap, and it’s super effective. And that’s a good point, Chip. Putting it in, regarding the sprayer, you can do full strength or 1:1 and foliar spray it.    Chip: The only problem with the full stream is sometimes it’ll clog your sprayer and you have to like, screen it out anyway.    John: Oh, yeah.    Chip: Right? But if you just dilute it, 1:1 goes to the sprayer.    John: Yeah, that’s true.    Chip: Pretty, pretty good.    John: And not use the bottom little part, just pour it on the top.    Chip: Yeah, we screen it out exactly and try to leave the bottoms. When we’re actively doing it, and I don’t know how you feel about this, but I just try to do back to back to back to back compost teas. And I never clean out my compost tea brewer except with water. So I’ll just wash down the sides, wash down the sides, and then just start another one up. And it works. If it’s back to back to back to back to back, that seems to work great. As soon as I let it sit a few days and don’t fight with it. I gotta start over.   John: And there’s a good point in there is, so you’re on a farm and you’re using well water.    Chip: Yeah.   John: So it has no chlorine in it.    Chip: Correct.   John: Right. And chlorine isn’t really a bad problem, you can aerate it for 24 hours and it’ll, you know, take the chlorine out. But, you know, if you’re using chloramide or chlorinate, some cities use that, then you’ve got nitrogen injected with the chlorine. IT forms a more stable compound to keep the chlorine in the pipes, right? And then you have to use something like a Hydrologic Big Boy. Or, you know, if you don’t want that, you could go to your local hardware store and get a carbon filter that removes chlorine, and that’ll also remove that.    Chip: Right.    John: So because that will kill,  mean, why is it there? To kill biology. And you don’t want to do that.    Chip: So don’t use chlorinated water.   John: Yeah.   Chip: So back to the foliar spray though. So we can use it as a soil drench, or we can use it as a foliar spray. How do you recommend people doing that?   John: That’s a good point. You can screen it through a piece of nylon and get all the particles out of it. And then either do it full strength or 1:1, and foliar year spray the top, foliar spray the bottom of the leaves and the stem, you’ve pretty much completely covered the plant. You can also, and this could be called foliar spraying, you could spray where the drip emitters are. And that will, the water coming out of the drip emitter will drive the biology down to where the roots are. And if you just, if you hand water, same thing. You can either throw it into your hand watering reservoir, your hand watering in or you could put, you know, just put it on the top and spoil the tops of the pots or the trench or whatever.    Chip: Yeah, my first commercial application of compost tea was down in Salinas at our first Royal Gold potting soil plant down there. And I saw people spraying it on lettuce and cauliflower. They would say it was a foliar application, they just called it spray. But they’re spraying the plants and the ground at the same time. Right? To get these big rows and this stuff wasn’t plastic culture. To me, it’s like part of it all. It needs to go in the soil. You need to spray the plants. Now what is some of the benefits of spraying the plants over soil drench?   John: Well, spraying the plants, it will knock back powdery mildew and other plant pathogenic fungi that might grow on the leaf surface. So that’s the benefit there. It’s not really like it’s going to be able to break down any fertilizers. Some people say, well, it does, it seems to boost the plant. Well, that’s because they’re spraying with chemical fertilizers, and it’s helping move those into the plant. But in general, it’s better to spray with organic supplements than it is to spray with NPK directly on the plant. The plant doesn’t really take it in well that way.    Chip: Let’s talk about compost tea and synthetic nutrients. Because this is one of the myths or maybe not myths, but concerns people have. Like, if I’m using synthetic nutrients, can I benefit from compost tea?    John: You can. I mean, it depends on what type of synthetic chemicals are being used. I mean certainly, if you’re using urea, you know, you’re gonna kill things. If you’re using something that’s made, and it’s got sulfuric acid in it, you know, there’s some harsh chemicals out there. But in general, when you go into a hydroponic store, or if you want to call it a grow store, the lines of nutrients that are on the shelf are better quality. A lot of them aren’t –   Chip: Say at the farm store.   John: Right.   Chip: Right.   John: You’re not getting ag grade, you’re getting possibly food grade. I mean, we use food grade in our line of fertilizers. You know, there are other companies that use ag chemicals because it’s cheaper. And then people call them salts. I mean, all it means is that it dissolved, those minerals can dissolve in water, and that it’s not necessarily sodium chloride. But you know, going back to how microbiology works, and how well will it do with these different fertilizers? Well, I would say it just depends. But when I was working on HumTea, I developed it so that all the functional groups that do the magic,  let’s say, are offset by our fertilizer lines. So because I built it so that it could be used in recirculating systems.   Chip: And we have used it in recirculating systems with your you know, 3 Part Cutting Edge for sure. It works great. I gave up the organic components and [inaudible 47:25] during a while ago just because I don’t want to deal biofilm, or clogged comps, or some of the other problems  that happened with it. But it worked great. I just prefer to keep the synthetic stuff and recirculating systems separate. You know, if you’ve got a tank that’s not recirculating, then no reason not to mix synthetic and biological stuff together. Right, I know, I know. I’m [inaudible 47:53] now that I said that. Oh dude, I’m gonna have a flurry of people like, “You can’t kill all the biology dies when they come across [inaudible 47:59],” what did you say that [inaudible 48:00] was? You didn’t listen to that?   John: Yeah, it doesn’t. I mean, if –   Chip: It doesn’t, and we can see. And here’s another big myth that happens is people talk about, “Oh, in California, the ground’s dead, because of all of the chemicals that they’ve put on it. You can’t grow anything there anymore.” Do you know any place in California that’s like that?   John: Well, you know. Yeah. Maybe not in the Hills but you know, you look in the Central Valley. And yeah, there are a build up, there’s a buildup of boron from the groundwater. And the boron, you know, it gets to certain parts per million, and there’s fewer crops you can grow until you’re finally left with pistachios. So –   Chip: Oh so they just moved pistachios to those areas?   John: Right.   Chip: Oh, that’s why. Okay, okay.   John: It’s like a succession of planting. And then ultimately, the pistachios come out and then they grow cotton. And then when you –   Chip: Uhuh, that’s Oklahoma.    John: Certain people say, “Well, what caused the Dust Bowl in Oklahoma? Wasn’t that the killing of all the microbiology?”   Chip: No, it was all the people leaving at once.   John: They were trying to get on the freeway first. It’s really dirt roads back then.    Chip: Oh man. I miss the railroad on the freeway. There’s a song there, right, right? Hotel California or something.    John: Right. But you know, the dead lands of California, it’s more like, they’re not dead. They just don’t have, they don’t have the water quality to grow crops. And what is growing burns down.    Chip: Yeah, I mean water quality is a big issue here in Oklahoma and throughout the country. That’s for sure. I mean, the water quality here is pretty poor. We almost all use RO filters. If you’re an indoor you should be using an RO filter here.    John: Yeah and you know, I go to a lot of places here and there, you have boron problems. That’s why those farms were abandoned. So that and the fact that everybody tried to grow one type of wheat, not weed. Fortunately, that’s not happening, because we’re growing many varieties of weed. But wheat, I mean, that’s what pretty much caused the Dust Bowl. It was, there was one popular wheat that everyone wanted to make bread out of in the northeast. And so everybody ran out here, tore up the land, grew one kind of wheat, because it was profitable, and then it became not profitable. And then all those farms were abandoned. And that’s part of the reason of the Dust Bowl. All these people left. They weren’t farmers to begin with anyway.   Chip: Yeah, series of droughts. Everybody was planting at once over and over again.   John: Same thing.   Chip: You know, World War One, it had a huge demand of food for, you know, for that effort. Everybody kind of like, had several great, great years and just everybody pumped it up.   John: Right. And my –   Chip: Kind of like the hemp industry. In the current hemp industry, there’s a Dust Bowl reference in there someplace.   Chip: Yeah, I mean hemp growing, you know, that’s farming once again. I sell a HumTea to hemp growers. You know, they use very little of it, but they use it at transplant because it helps with adjusting to the field from the greenhouse. I mean the hemp industry, there’s another over regulated industry. Keeping people at point three has punished a lot of plant breeders who –   Chip: How will that manage? You know what I hate about it? This is the biggest problem, is it still differentiates cannabis growers. There’s either the no THC or the THC growers. And the non-THC growers – mostly, don’t get your feelings hurt if you’re one of these people – mostly you’re like, “Oh no, I don’t grow THC.” It’s like come on, man. This is just the cannabis plant. Let’s stop being so scared of some letters, right? THC, CBD, DEA, FDA. Let’s stop being scared of those. Let’s think about like the cannabis. Let’s think about the plant. Let’s think about the world. And think about it that way, instead of this just fucked up liability type, human health and safety issue that they try to raise with it. We know cannabis is harmless. We’ve been using it for a long, long time.    John: Very true.    Chip: Yeah. Alright. So John, we’ve gone over a handful of things here with compost tea. Who can most benefit from this? Is this just for small people? Is this just for big people? Can anyone benefit from this? What are the best scenarios for compost to use?   John: The plants benefit from it.   Chip: Anybody, any plant can benefit from it.   John: People are problematic.   Chip: People benefit from it only because their plants are better and it makes the people happier?   John: Yes.    Chip: Oh, I get it. I get it. I get it. I get it.   John: A regulator told me a long time ago. “Don’t try to list too many things on the label. Just say it makes plants happy.”   Chip: Yeah, yeah. Happy plants.    John: And this was California. And I took that to heart because if you read our Constitution, we have the right to the pursuit of happiness.    Chip: Absolutely.    John: So why shouldn’t plants?    Chip: Absolutely. Well, I love compost tea man. I’m glad we kind of got to talk about all of this. I got a couple compost tea recipes I love. I love 5 gallon compost tea, right? And the way that I like to make it, I don’t know if this is right or not, but when I make it this way, my plants absolutely respond. I usually dilute like, 5 gallons into about 20 gallons when I do it this way, right? And that’s out of sheer necessity. But I like 1 gallon of earthworm castings, 3 gallons of water. I’m gonna then put in a half a cup of some type of trace minerals. And then this is where it gets a little sticky, but I really like some sort of fish product. The fish [inaudible 54:33] or the fish emulsion, there’s controversy over all of that. And then just a smidgen of some sort of sugar. That recipe has been great for me and many other people for years. It’s so easy to follow. It’s not hard at all. You bubble it at you know, it needs to be over 60 degrees. I usually almost always bubble it outside. It usually takes three or four days for the fish smell to exchange from putrid to sweet. And, that’s what I like about this thing. When’s it ready? As soon as it turns sweet. I generally like the soil drench as opposed to the foliar spray. And part of that is because I’m scared of the yeast and fungus tests.    John: Oh, interesting.    Chip: Yeah, I don’t know if that’s real or not. But I’m scared of it. And I know you can outgrow it, you know, but many people spray throughout their flower period and I just choose to only like, spray it once or twice when they’re clones. I feed the clones stray compost tea and then dilute it, you know, like 5:1 or 4:1 or something like that. That’s my favorite compost tea.    John: Yeah, I mean that sounds like a successful formula right there. Simple, easy to use –   Chip: Oh kelp. I forgot the kelp. There was my trace minerals, I say trace minerals, but I do prefer kelp for my trace mineral.    John: Ah see, I was gonna add that.   Chip: Oh right, right. Yeah, and you know ’cause trace minerals, mined trace minerals are now harder to find, John. Have you looked for this lately, or it might not be hard for you because you’re in California, but they’re hard to get.   John: Yeah, you have to buy them in volume. You know, they come from mines in New Mexico and volcanic areas. But, you know, no one wants to go out there and truck them in anymore, that’s one of the problems. Cost, fuel, cost of operation –   Chip: There’s something they sell for 19 cents.   John: Right, right. So you know, I keep stocked up on all those. When I get halfway down in a container, I’ll reorder, because I like to use trace minerals for a couple different locations in my, in HumTea. And of course, there’s also kelp in there. Simple things that make a great tea. And sort of feed the microbes that you want to step up and be able to further break down what they need for the plant.    Chip: So if you’re interested in compost tea, definitely check out more information we’ll have on The Real Dirt. Check us out at Cultivate Colorado, Cultivate OKC. You can buy all of your compost tea equipment. If you’re not familiar with Cutting Edge products, how do people look you up, John?    John: Cuttingedgesolutions.com.   Chip: Cuttingedgesolutions.com. Ask your local vendor. If you’re a commercial grower, you absolutely need to check out the quality of the product. We didn’t even go into the whole lines of this whole compost tea conversation I wanted you here for today. Because I believe in compost tea and it’s something we’ve been talking about forever. And you know, really something that I want to turn people on to. So thanks for coming today, John. I really appreciate this little chat and I look forward to having you on in the future.    John: Sounds good. You know all I have to do is drive down from Tulsa now.    Chip: Oh, yeah, that’s right. We’ll get on that whole relocation on the next episode. Hey guys, thanks for joining me today on The Real Dirt with Chip Baker and John Piccirilli. If you liked this episode, and you have not subscribed yet, please subscribe on iTunes. Join us on Instagram, join us on Facebook. Hey and always comment, always leave a message. And if you’re interested in soil, or any type of growing equipment go to cultivatecolorado.com. Stop in one of our stores in Denver or Oklahoma. Yeah, man, we’re always willing to chat and we’ve got great, great, great people who are willing to answer any question you have. So there it is, The Real Dirt on compost tea. Thanks again.
48 minutes | 4 months ago
How to Ruin Your Weed with a Paper Bag
People have some whacky ways for curing cannabis, but a paper bag ain’t the way to do it! When it comes to cannabis, there’s a lot that Chip Baker and Justin Jones can agree on. But when it comes to curing your cannabis in a brown paper bag, the two are at odds. To Chip, it’s a figment of the past that’s best left there, and age old drying technique before the days of plastic bags and bins. For Justin, it’s a quick and easy way to finish out the drying process that works for him. The paper bag dry method Before the days of turkey bags and metal storage bins it was common for growers to dry their flower in brown paper bags. They keep light out and they’re discreet, but that’s about it. The problem with paper bags is that they absorb moisture. If your flower is sitting in a paper bag, over time the bag will suck the moisture out of your plants. Left too long, your flowers will dry out too much and the bag can instill a strange flavor. But Justin has a technique that he insists works just fine. Justin puts his flower in a brown paper bag that is extremely dry, so there is no moisture already present. Then with a dehumidifier or fan nearby he can keep the paper bag dry as it absorbs moisture from the plant. After 12 hours doing this process, Justin insists that his flower comes out perfectly dry. Those days are gone In Chip’s mind the days of needing to use a brown paper bag are gone. With the advent of Turkey Bags, plastic bins with liners and plain old traditional hang-drying in commercial facilities, not only have brown paper bags become unnecessary, they have become irrelevant. Legalization has given cultivators access to better technology for harvesting, drying and curing their cannabis to the point where using brown paper bags or cardboard boxes is a figment of the past. This week’s episode This week on The Real Dirt, Justin Jones returns to talk about why he likes the paper bag method, how the cannabis industry has evolved and matured in Oregon, how it compares to Colorado and Oklahoma and more! Roll up a nice hemp/cannabis blend and puff away while you enjoy another great episode of The Real Dirt with Chip Baker! Follow Justin Dank Dispensary HGH Seed Follow and Subscribe to The Real Dirt Podcast: Instagram Facebook Apple Podcasts Spotify Get great deals on grow gear: CultivateColorado.com Instagram Facebook Transcript   Chip: Once again, you have reached The Real Dirt podcast. Thank you for joining me today. On today’s real dirt, I once again have my good buddy Justin Jones. We just got so much stuff to talk about. And honestly, conversations with Justin was really how I developed the idea of The Real Dirt podcast, because I have such interesting conversations with my friends within the industry. Now I wanted to share those with you, and today we have Justin on the line again. Justin, are you there?   Justin: Hey how you doing, Chip?   Chip: Oh man, doing good, bro. Feeling good. What’s going on over there on the West Coast?   Justin: I’m just transferring some sherbadough here from a ziplock bag into a brown paper grocery bag. And I just want to know, how many guys out there and gals how many people, cannabis growers, know anything about the old brown paper grocery bag?   Chip: Oh, I’m moaning, dude. I am moaning over here. I can’t believe you’re telling me you’re putting your fine buds into a paper bag. Oh my god.   Justin: Man.   Chip: What, why are you ruining your weed? Why are you doing this?   Justin: No, man. No, no, no, this is a good thing. This is what you want, it’s good for it.   Chip: It’s good for your weed to taste like cardboard?   Justin: I don’t know. I don’t know if that’s what it does.   Chip: Man, you put your wet weed in a – or dry weed – in a brown paper bag, and it sucks up all of that moisture that’s inside that paper bag before it releases any outs.   Justin: But you got to have a dry paper bag. You can’t start with a moist bag, bud.   Chip: Oh okay, so you’re telling me it’s all in technique?   Justin: Yeah.   Chip: Well, let me hear it. Let me hear your technique on how you don’t ruin your weed by putting it into a paper bag.   Justin: Well, I don’t put it in there for that long. And you got to know whether you’re rolling the top down all the way, or if you’re just kind of crumpling it up a little bit at the top, or whether you’re leaving it just open.   Chip: Okay. Alright, alright. You’re gonna have to start at the beginning. Start at the beginning. Tell me what you’re doing again.   Justin: It’s something that the old school probably guys that are older than us smoked, it’s a way that you can –    Chip: Before they had plastic bags, all they had  –    Justin: Before all those plastic bags, you had paper bags, because you could use the paper bag to just kind of shift that lot in a slow way when you’re at the end of your dry and cure, and you’ve done your hang. And now you’re doing your seal and burp, and you just got to get that last little, make it perfect. You could use the brown paper bag, you know? And you got to look at other industries too. I mean, the people store seeds in paper bags, people store other thing, because it does have a little bit of a –   Chip: Breeze.   Justin: If you have any takes, breeding with the moisture. And so you know yeah, you don’t want to push your, a wet cell paper bag moisture into your bud, but I would say it’s a way to kind of temper it, right at the end a little bit. If you need to, you don’t always need to.   Chip: Man, I have seen so many people ruin weed by putting it in a cardboard box or in a paper bag.   Justin: Well, why do they put it in there for?   Chip: The same, they’re trying to do the same thing you’re doing. Hey, they got their weed almost dry, and they cut them down and put them in a paper bag to like, finish them out, right? Or cure them in a box. And I believe a lot of this came from early 2000s Cannabis Cup, where that’s what Arion of Greenhouse said that they did, is they cured their weed for months in a cardboard box, right?   Justin: Would you think there’s actually a certain taste or flavor that gets put in there?   Chip: Absolutely. Oh absolutely. It is – alright, so here’s the thing. And you kind of said it earlier about you have to have a dry paper bag, right? Well, it is a little more than that. If you have a dry paper bag, if you’re in Colorado, if you’re in California, if you’re in the desert –   Justin: Oh yeah, wait a minute, hold on.    Chip: You’ve got a dry paper bag.   Justin: I got a dry paper bag in a small closet that’s got a dehume pounding on the other side of the closet too. So –   Chip: You got a dry paper bag?   Justin: Or I’ll blow a fan, right? If you point a fan right at the side of the paper bag, what you’re trying to do is get some movement, but not too much. And get a little bit of that wet in there, but not too much.   Chip: You’re trying to control the dry, so that it doesn’t dry so fast, because you don’t need, you don’t have the best drying room.   Justin: Right.   Chip: That’s where the paper bag really started as and became, is if you didn’t have enough or the best dry room, you’d hang your plants. And so they, because they won’t at some point in many – unless you have a proper dry room, they’ll never dry.    Justin: Right.   Chip: Right? On the coast of California, Oregon, Washington throughout the southeast, you can hang weed up in your house, and it will never dry in your closet.    Justin: Here in Oregon, I struggle with that. And you know, coming from Colorado where you have a hard time not over drying, here you just I mean, most of the time here, your relative humidity is 50 to 60%, which is kind of where you want your stored, finished dry material to kind of, I don’t know.   Chip: End up.   Justin: Right. Right, right yeah. And so it just is like, you’re fighting the moisture, the over moisture and those sort of things all the time on the west coast, for sure. Especially coming into this time of the year here, where it’s gonna rain three or four days a week, and you’re just always gonna have that moisture in the air.   Chip: So yeah, I mean home growers and commercial growers would take their buds down, put them in paper bags, and it would allow them to control the dry rate. They’d increase the heat, or the moisture would be sucked out of the paper bag until they, it would help them dry.   Justin: It’s easier, it makes, it gives them a wider landing pad on not fucking it up, right? And so instead of being like, “Oh, if I miss the wind,” if you’re not doing that, you may be, you missed your perfect window by a couple of hours. Maybe this gives you a day of a window to get back to it, to get it fueled up.   Chip: So here’s the folly, is because you’re in these wet areas, those cardboard bags and the cardboard boxes, they’re sucking out moisture.   Justin: Oh yeah, you can feel it.   Chip: Right, yeah, they suck up moisture. So one, you got to get those dry, you have to get all the moisture out of them to dry. So you have to put, get a dehumidifier or heater, right? That’s going to dry out these boxes and get all that moisture out of there, right? Because if they leave the moisture in there, and then put your weed in there, as your weed dries, it’ll suck the moisture out of the bag.    Justin: You’re going the wrong direction, you have to have – yeah. The box of the bag’s got to be drier than your cannabis and you can only leave it in there for a certain amount of time. And you should, if it’s doing its job, the bag or the box should be super brittle dry. And then you put your material in there, and let’s say after 12 hours, you come back. You should be able to feel the difference in the paper, and then get it out of there.    Chip: So you’re not going in the wrong direction.    Justin: It’s the technique.    Chip: Now your bud’s gonna suck it back up. I’ve used the paper bags like, so, so many times. I’ve had, years and years ago.   Justin: Well, it’s about, it’s all about reusing, you know? We try to recycle and recycling is good. But reusing is even better than recycling. And at the end of the day, I think cannabis guys are great at reusing those thin metal hangers from the dry cleaner? The dry cleaner hangers, you know? Those are real popular for hanging new branches, right? And so, there’s a way to, ‘cause those hangers suck. You get them from the dry cleaner, and then you don’t really use them to hang your shirts back up later, right? So they get kind of built up, so those are good. And then the brown paper bags, got to have them.   Chip: I’m definitely not a brown paper bags fan. I do, however, like to take the brown paper bag, fold the top over one time, maybe one inch or two inch fold and then insert a turkey bag. And then hold the turkey bag up, right? And as you’re going through your cannabis you can just put it right inside to a standing up bag, you know?   Justin: I like that.   Chip: Yeah, totally.   Justin: So, it’s a stand, it’s a turkey bag stand.   Chip: It’s a turkey bag stand.   Justin: Turkey or goose bags?   Chip: All depends on what you’re doing, man. Here in Oklahoma, we sell cannabis out by the gram. Meaning, that we sell it to an extractor by the volume. So we’ll have a volume and it’ll be like, 4,382 grams, right? That’s not quite 10 pounds, but we just, we’ll bag them up in a goose bag like that.    Justin: In those large goose bags. Yeah.   Chip: And just get as much as we can, specifically with trim. When we do that with trim, right? And we try to get at least a thousand grams in one container. But it’s going to the extractor, they don’t care. They check it into their system by the gram as well.   Justin: You’re not trying to sell some of the, a perfect one pound?   Chip: I’m absolutely not. And, we try to go in 500 and 1,000 increments, just to make all the math easy.   Justin: Less brain damage.   Chip: Yeah, exactly, less brain damage. And I would use a larger container and I’ve been told, and I am we’re going to start the stock these bin containers, the bin bags. So they have a large turkey bag style that goes into the thirty gallon Rubbermaid bin now.   Justin: Nice.   Chip: Right? Yeah, totally. So I think we’re going to push towards that, and try to even get more cannabis in, right? Into one bag. Because man, it’s one bag, one label. Here in Oklahoma, 10 pounds is a batch. We’re not –   Justin: You guys got rules in Oklahoma now for that stuff?    Chip: Yeah dude, there’s all kinds of rules here. Yeah, Oklahoma is really –    Justin: Yeah, we knew it was coming. It was wild west there at the beginning.   Chip: Oh, at the very beginning, it was like, you can show up and in 30 days be doing whatever the fuck you want. And that changed, that changed to you can just show up in 30 days, apply for whatever you want. And then that changed to you can show up in 30 days, apply for whatever you want, and then depending on your local municipality, it might take one day to four months for you to get into any type of business, or get in to have a building plan passed or anything like that. And now, we’ve just –   Justin: Now you’ve got residency, two years?   Chip: Two years residency here. If you’re interested in coming to Oklahoma, you can only be an investor for 25% now. If outside residents of the state of Oklahoma, they have a 25% stake max for two years. And then, there’s a lawsuit I hear that they’re trying to lift that. Who knows if that’s going to maintain other states it has maintained?   Justin: We have a chain in Colorado, we spent years fixing those laws. Because they were very restrictive, and once all the money inside of Colorado ran out as far as investment money and that sort of thing, then you had to be like, “I gotta go outside of the state.” So I first started that you could get a, you could get an out, you could get a loan. And the loan could be guaranteed, like a convertible into ownership is that. So you get a loan from a guy from another state that says that could turn into ownership if that person moved to Colorado, lived there for two years, became a resident, then they could like, convert. So that you could do a loan that was convertible, if these other things happened. And then after that –    Chip: That’s a convertible loan.   Justin: Right. And then after that, it became you could just have out of state ownership. And then now it’s, in Colorado, the public, pub coast are circling and making moves, because now you can have 49% ownership can be a publicly traded company. So, it was always that they wanted to be able to just go, background check, deep, deep dive on every single owner. So having a publicly traded company that could have thousands or tens of thousands of stockholders, right? Didn’t work. So now, so they fixed a lot of that. And so now, you’re seeng companies in Colorado start to go public, or go that direction. So Colorado’s now available for the multistate operator, the MSO. But we were really talking about Oklahoma moving forward and the regulations, and so you guys are now using the Franwell Metrc tracking system?   Chip: That is not in place yet, but it will be.   Justin: They’d said they’re going, so they’ve contracted.   Chip: Mhm, they’ve contracted. They say it’s going to be six months before they get it in place, who knows?    Justin: Sure.   Chip: Right?   Justin: Yeah, well, that’s good. And what I like about that, and be it what it is, Metrc really is tracking probably 90% of the legal cannabis, and as we move forward towards a national legalization effort, having one company that’s kind of got most of that in line, it should be good down the road. That we hopefully in the next decade start to integrate the entire country into –   Chip: Yeah, well Metrc’s –    Justin: Legalize cannabis.   Chip: Metrc definitely steps it up. It’s costly to scale Metrc, it’s difficult to scale it. So maybe some of the people who were, got tons and tons of square feet, and lots of plant numbers, they may change their operations.   Justin: There’s new companies coming in that are going to make it, they’re going to take and give you a user interface for your company that really works for you. And then behind the scenes, it plugs everything in the Metrc the way it’s supposed to. And so, Metrc is very clumsy, and it’s very designed towards the applications that the states want to use it for, for tracking the inventory, for tracking taxes, and these sorts of things. And yeah, there’s things that they thought were, would be great for the license ease on the user end, but they’re still real clumsy, and that hasn’t been their focus. So there’s some definitely some other companies that can overlay, and they’re trying. Nobody’s really knocked it out of the park yet, but I think that’s coming.    Chip: It is coming. And it is easier, you can print your own tags now. The technology’s changing. It also makes monitoring, enforcement and regulation, the local government here easier, right? And it will drive more of that, because now they can go into a field that is all RFID, they can immediately get all the data of all the plants in it, you know? They can immediately like, follow that all the way from seed to sale in your operation that will make people tighten up their operations, their business models, account for everything. I mean, I tell you, I hope they haven’t made all the rules, because I hope they don’t make us weigh that shit, wet, dry, stem weight, bud weight. I hope we could skip all that. I know you got, I know Colorado has, I mean it is, that’s not just a Colorado thing.   Justin: No, it really, tracking the waste, tracking all that plant material is kind of the foundations of the early legalization, and it really hasn’t changed. And it’s really if you look at other industries, people are doing that on multiple levels. So, you just, when you’re trimming a plant down, just stick it all in this bin, the leaves go in that bin, the bud goes that way, weight it wet, we weigh it, we weigh it wet before we weigh it dry after you get all those markers all the way through.   Chip: Yeah, I mean, in all of my business, we monitor all of our waste, right? Our waste stream really does say a bunch about what you’re doing in business. And for instance, at Growers Coco, my soil manufacturing plant, we monitor all of the coco dust that’s wasted, we calculate all of the inputs into what all the outputs are, we’re always looking at our trash stream, our plastic, our wood stream going outside the business. Because the fact of the matter is, if you have a lot of bags that are torn in production, that shows up in your trash. And that means that there’s something wrong with your machine, or my employees, or the material where the bags are getting ripped and used inappropriately, right? Are not used inappropriately, thrown away. And each one of those bags cost us 40 cents, or something like that.   Justin: Well, it adds up. Yeah.   Chip: Oh, it adds up, man. And then you, also on the waste stream, you get to calculate how many pallets of material that you’ve gone through. So it is important in that business, that manufacturing business to track it for sure.   Justin: Well, that’s really what we’re doing with cannabis now that you can see the flow. It’s all manufacturing, you know? It’s agriculturally based, growing, processing, packaging, manufacturing, all the way down to get those consumer items.   Chip: Now, at some point though, it’s over regulated, right? It’s something I mean, from in my view, cannabis is harmless, right? Until you turn it into an extract. And at that point, it becomes like, I’ll call it dangerous, right? Because if anyone consumed or a child consumed a chunk of extract, a gram of extract, they would be fucked up, right? And they’re not going to die, but it would definitely be a, considered a poisoning, an overdose, right? They’re not going to die, but like, you know –   Justin: Yeah, you don’t want to do that to your kids.   Chip: You don’t want to do that to your kid, or to yourself, or to anybody. And like that’s to me where it becomes dangerous, and it should be regulated in some way.   Justin: Well, that’s why the regulations, well and that’s why you’ll see 10 milligram doses of edibles and not a hundred milligrams.    Chip: Yeah, I don’t believe here in Oklahoma there’s a limit, currently.   Justin: There will be, there will. It’s five here in Oregon, 10 to 5 milligrams a serving, 50 in a bottle or a pack max. In Colorado, it’s 10 per serving, 100 in a pack, you know? One item is 100 milligrams, 10 pieces of whatever edible, or however that looks. Your Dixie Elixirs you talked about in one of our previous chats, they’ll have measuring guides on the model, or even sometimes they’ll come with a little cap, like your [inaudible 21:01] bottle has your little one ounce measure cap. Yeah, that’s how [inaudible 21:05]. So the tracking’s overly done, but that’s because we’re still operating under these, the guys that the feds aren’t going to do anything to you, if you’re operating legally in your state. And so I think that the tracking system is there, because it’s been there since day one of Colorado rack, the tracking systems are what’s helping protect the industry from the feds saying, “Hey, we’re going to take these guys out.” So, as legalization happens nationally, maybe some of these, some of these things will become less burdensome. That’s not happening anytime in the future. So you just have to get used to it, you just have to spend the money on that end of the business, and compliance, and inventory tracking and do it right.    Chip: Yeah, man. And it is exciting to see it blossom here in Oklahoma, it’s a great place to be. The people are just incredibly nice for sure. It’s inexpensive to relatively speaking, to California or to Colorado, to set up an operation. But the real reason we’re here is the opportunity to help other cannabis farmers to cultivate OKC. And through our research at our cannabis farm, really figure out how cannabis grows best in Oklahoma, indoor or outdoor, greenhouse, the best type of products to use, how the season works, like, it’s really just this huge R&D effort on our part.   Justin: That’s what sets you guys aside from some of the other companies out there that are selling nutrients, or equipment, or dirt, or whatever, is that you guys are actually practicing, and have been the whole time. You’re in it, you’re in the same side of things so –   Chip: We want to get better, we want to help other people do it better. We want to overgrow the current stigma of cannabis, and that’s what we’re doing at Cultivate OKC, Bakers Medical, Growers Coco, at our farm here in Oklahoma. I mean, man, this place has been, this was a really great spot. I mean, Oregon was in a similar manner years ago, and Oregon had a boom and bust. I mean –    Justin: It’s all balanced out here now.   Chip: Oklahoma is going to do a similar thing. Hey, give me the timeline, because Oklahoma will boom and bust due to the open regulations. And then the regulations and just the market environment, it’ll make it change.    Justin: Yes, eventually.    Chip: Right, eventually.   Justin: And how fast it happens. Here in Oregon, they’ve had to remove us to marijuana [inaudible 23:56] –   Chip: Was it medical and then rec? How did it fold out there?   Justin: Right. So medical has been around forever. Obviously, there was a great private market scene going back, 40, 50 years now. But medical converted into recreational and here in Oregon, they actually did away with the medical marijuana system from a commercial standpoint. So when all of the medical marijuana stores were forced to convert to recreational marijuana, and give up their medical marijuana licenses, and just sell recreational marijuana. And so, that’s what you see now. There’s still a few handful of just medical only stores here in Oregon, but it’s only really in areas that are banning the recreational sales. So at the end of the day, if you have a medical card which you can still have your medical card in Oregon, and you can still grow your own, and if you have a medical card, you can grow a few more plants that just with your recreational growing rights. But at the end of the day, you can go to the recreational marijuana store with your medical card, and then you pay no taxes, and you can get a higher amount. So instead of one ounce of flower, you can get four ounces of flower at one trip. And instead of four grams of hash, you can get whatever, whatever it is. So they haven’t totally screwed over the medical side. But at the end of the day, people jumped in and it was wide open. And it was really easy to get a license in [inaudible 25:28]  Oregon, and that would have 2015, going into ’16. And then, that’s when the conversion started happening here with Measure 21 and the, it Measure 21 which was the legalization of recreational here. And then they really were able to find out how much cannabis these guys can grow in Oregon and it became a huge overproduction, especially of outdoor. You could get an outdoor rec grow going for pretty cheap out on a farm down in Southern Oregon, and these guys just grew way too much. And that first year –   Chip: Best climate in the world. Best climate in the world.   Justin: And I think it was 2000, it was fall of ’16 that was going in as there were still a conversion going on, but it was it was going in and I believe that it was like the best growing year ever. It was in the 80s and dry all the way until Halloween. And so it was just a major harvest. So anyways, a lot of guys were only able to get 100 bucks a pound. That’s kind of what it came to for outdoor, and people just started really not doing well. So I think that people started dropping out and then with the hemp thing, in ’19, a lot of cannabis guys grew hemp, smokable hemp instead of ganja, and that cut it down even more on the licensed growers here in Oregon. And now, it’s bounced back out. And if you’re growing indoor, and you’ve got some really good indoor hydroponics type of bud, you can get up to 2500 a pound now wholesale, selling to the stores. I think it’s more in the 17 to 2, and maybe 22. And then maybe there’s a few of the really good name brand grows up here that are that are really great that are getting more, a little bit more with that 2500 premium.   Chip: I mean, two years, it’s been.   Justin: It’s just now been turning hemp. I’d say five years, four to four years.   Chip: So it took four to five years of like, flooded, like, what was the lowest price that cannabis, that quality cannabis got to? Tell me that.   Justin: Five to six hundred.   Chip: What about that greenhouse cannabis? That major production, the major –   Justin: Less than 100, less than 100. ‘Cause we had to start specking out a tier two outdoor grow in Oregon, which is 40,000 square feet of canopy. So that’s an acre of canopy. And basically, if you looked at what it costs you to grow, and for your licenses, and obviously it’s pretty cheap, because you’re just using the sun, natural stuff there. So you’re not like, paying for electricity like you would an indoor thing. These guys were lucky to get 100 bucks a pound and basically pull off 1000 pounds. So you get 1000 pounds of, you could revenue about 100,000 on an acre.    Chip: Grown it like that, it’s fairly inexpensive putting it into a grow, right?   Justin: Yeah but I mean, it’s just $100,000 is not a lot of revenue. And especially –   Chip: If for just the costing, agree.   Justin: Costing, harvesting, it all has to come down at the same time. So you can’t necessarily just one man that. It just doesn’t work. It didn’t work. Now that’s changed. It came back up. Yeah. Well, and they were just trying to call them those oil fields. And nobody really was buying that material for a smokable sort of thing –   Chip: Oh man, all of our R&D, that’s what we’ve done with it for sure, man. It’s like –   Justin: It’s just going to the extractors.   Chip: It’s going to extractors. “Oh, I don’t like that strain. Oh, that didn’t work out. Oh, that takes too long. Oh, that one’s a little sick. Oh,” you know?   Justin: It’s different if you’re a vertically integrated company. And so if you have an indoor and an outdoor grow in Southern Oregon, and you have an extractor, and you have a store or two, then it’s fine. Grow the outdoor, because you’re just going to shove that through your extraction mine, and take it to your store, and you’ll eventually get retail for it, right? So, but there were too many independent growers that weren’t vertical also. So all the guys in Oregon that started out vertical and went with the grow in a store, that sort of thing, they’ve all have done well the entire time.   Chip: Yeah, right. Absolutely. Oh, man, you know, it’s business dude. Those same years in the hydro industry were a lean eight years for us. And I would say, it was about three years. ‘Cause it hit, well one, Oregon and California ruled the cannabis industry, regardless if you’re independent in your state, like their numbers and their volume like, really has a lot to do with what’s going on the rest of the country. I so   Justin: Oh yeah.   Chip: But in Colorado, it kind of hit peak about the same time, right? But it was more affected in some way, and we seem to like, the flood happened there a season before, and slow up a season before it did out there, too. The numbers started coming up a little bit earlier on, it was a solid three years though, in Colorado.   Justin: Yeah, for sure. Well, it just took longer. It took longer. Yeah.   Chip: Right.   Justin: And it’s a different curve but no, it’s definitely –    Chip: [inaudible 31:00].   Justin: You brought up the outdoor. You bought an outdoor, we’re talking production, we’re talking where, who produces for what, so what’s up with all these fires, and what’s going on –   Chip: Oh man, everybody [inaudible 31:13].   Justin: How’s that going to affect the industry?   Chip: Dude, I’m telling you all the ganja from, I’m not saying all, but a shitload of the ganja producing region in the country just got burned.   Justin: Even if it didn’t actually get burned down, did it – I just read an article about all the grapes in Sonoma and Napa are going to be unusable this year, because they smell like fire. And so they’re, even if the farm didn’t get burnt on, there was so much smoke for such a large amount of time, it’s still happening.   Chip: Yeah, fires aren’t new over there. We lived over there for almost 20 years. And yes, some of it is so smoky that it will not sell and then, people have developed an ability to like, get that smoke out in some way, too. I’m not exactly sure how it’s done. But maybe just with the natural aging process, the smoke goes away. I’m not sure if you can extract it with that smoky flavor. I do know that, I mean, I personally know three different people who’ve lost most of their gardens, or all their gardens, right?   Justin: Yeah.   Chip: And it is, as far as my listeners and people that I follow on Facebook and Instagram, multiple farmers have lost their gardens and their infrastructure, and it might not come back next year.    Justin: Right.    Chip: Right. So I mean, this is like, last I checked, I’m not sure if you’re in front of the computer, but this is the August complex, right? It’s what they’re calling it now. And they had several different fires that merged together in August. And it was 100,000 acres, right? Like, that is such a huge area, man. I mean, it spans like, from Santa Rosa all the way up to Hayfork and beyond.   Justin: I just was looking at a map yesterday and it’s a huge part of the region there for sure.   Chip: It’s a huge part, and that’s not the only fire, that’s just the biggest one. There are other fires throughout California, Southern California. And those coastal regions are where the cannabis is produced, a lot of the hill cannabis, so to speak. Now what this won’t affect are the people that are in, I mean for next year anyway, it won’t affect for all those people in the valleys, and in the “ag land.” A lot of those people were pushed out of the forest area, even though man I mean, fire does not care where you are. And the wind starts to blow, and it moves as fast as the wind blows. And I’ve literally watched it travel what looked like 10 miles to me in the matter of moments.   Justin: ‘Cause that’s what we just had in Oregon here. And it did affect a lot of the, a bunch of marijuana guys, and hemp guys.   Chip: Southern Oregon’s huge, had a huge fire too.   Justin: Huge fire, but the one we had up here by Portland was big too, and it caused some problems. And same sort of thing you’re just saying, we had a big windstorm, which normally doesn’t happen until like November, December once it’s rainy. It happened starting the day after Labor Day, and basically there was already a fire going, and it wasn’t that big and then we got these like, hundred mile an hour winds up in the mountains coming down into the valley. And it moved, the one fire moved 20 miles to 12 hours.    Chip: Wow.   Justin: Yeah. So –   Chip: Man, that was just big.   Justin: I’m concerned about that even just the size of some hemp fields and they look fine, but you just, I didn’t get, I don’t know what’s going to happen. It was so smoky here, and the air quality was like, as bad as it can get, you don’t even want to be outside. So, what did that do to the outdoor cannabis plants, hemp or whatever the, you know. We know them to be a sponge, we know them to be bioremediators of some level. So is the, are those plants going to be infected, or toxic, or have heavy metals, or some other thing from being smoked out for about seven or eight days here in Oregon? So even if you weren’t close to the fire and didn’t get hit that way, you lost sunlight production really because there was this weird sepia filter going on for the last eight days. And all the plants just stopped growing. Yeah, all the plants just sort of stopped growing, everything, like, everything stopped growing.    Chip: [inaudible 36:10] max CO2.   Justin: Yeah. So, it’ll be interesting to see what that just did to these plants. And maybe they got cleaned up. Because that went away and the weather’s been good. And they’ve had some good, maybe they were able to well still –   Chip: Well if there’s enough time, if there’s enough time before harvest, the plants outgrow it.   Justin: Sure.   Chip: Right? And, and but if you’re harvesting right at –   Justin: It’s different if it got rained out on you. Right.    Chip: If you’re harvesting right at the smoke, right? Like, if the fire is at your house, if you’re under that sepia layer we’re talking about, and it is the harvest season, you’re going to be the most affected, unfortunately. And maybe you’ve got some technique or something that we’d love to hear about here on The Real Dirt, let us know. Man, that’s just is hard. When it’s just smoke, and you’re harvesting your weed.   Justin: Yeah.   Chip: Oh, I’ve been there, man.    Justin: You guys didn’t have any fire problems in Oklahoma right?   Chip: Fire season comes like fall and winter for us. That’s the dry season.   Justin: Yeah.   Chip: That’s because – but last year, there was some fires and fires happened here. They put up fire warnings, do not burn warnings. It’s windy, lots of grassland, it’s dry. The trees are small, comparatively.    Justin: Definitely sounds like there’ll be a shortage of, there’s gonna be some sort of shortage for the suppliers.    Chip: It is going to affect the demand. And it was already, demand was already up. So, demand is not going anywhere. It’s going to keep going up, just prediction. And supply, man, we just lost a huge chunk of the supply. And I mean, I’ll tell you, Oklahoma didn’t have the best outdoor growing year this year. If you were trying to pull before October, it was rough. It was humid and rainy throughout the state. Colorado, they had that early freeze this year.    Justin: Oh, yeah.    Chip: So their outdoor, their outdoor, like, it was diminished by that. Sure, some people have survived and a chunk of people lost out over that. On the East Coast, it was also a little bit more humid and wet, more hurricanes came through this year than any year before. So I think the overall outdoor production for 2020 is gonna be low. Combined with COVID, with all the new farms not being able to get the supplies, the materials, the people, the employees out to the garden, this is a really great year to be involved in cannabis. I predict that the price will initially dip as outdoor, what is comes into place, and everybody floods the market. And then between December and January, most of that will have run through the marketplace. And then the price will increase. Currently here in Oklahoma, there’s indoor weed between $3 and $3600.    Justin: Yep.    Chip: Right? Wholesale. This is of a similar nature in California. In Colorado, it’s cheaper, but  2800 bucks, $2600, that’s all going to go up next year, right? The wholesale price of weed is gonna go up. Fortunately for you listeners and consumers out there, generally the end user price doesn’t go up terrible. No, you guys are gonna, you guys are going to continue to pay $10 to $20 a gram, $40 to $60 and eight, right? And that’s been going on since 1996.   Justin: Yes, it has. Well, that’s good. Yeah, the consumer price is, well, and they might go up a little bit. Or you might see the higher end cannabis become a little bit more expensive, and maybe the quality of the lower priced stuff is not quite the same, right? You see a little gap, a bigger gap there.   Chip: Yeah, absolutely, man. It’s a good year to be in it. I’m glad I am. Things are good. We’ve had a better year than ever at my grow stores and with Growers Coco fiber.  More people than ever are growing cannabis.   Justin: When’s Oklahoma going recreational?   Chip: Oklahoma.   Justin: Yeah, when’s that going out?    Chip: I just said some Chip’s predictions, okay, here’s the other, here’s more of Chip’s predictions. I think sometime next year, it’ll be introduced into legislation. I think it’ll be a legislative movement here. If it’s 2021, and they’re just gonna push it over to recreational 2022. Maybe –   Justin: Right. No vote, no public vote?   Chip: No.    Justin: Just go to dispute the laws downtown, and get it, and then pass it?   Chip: Yeah, I think that’s what gonna happen.   Justin: We’re gonna see more of that as the country goes that way, it doesn’t necessarily gonna have to go to a big statewide vote. And in which, if they feel like everybody is good with it, and you trust your local congressperson and representatives to do, then it works.   Chip: Yeah, absolutely. Maybe it moves to 2023, if it has to be a voter sponsored initiative here, that might occur. But as far as yeah, recreate or adult use I would prefer to call it, I’m [inaudible 41:46] for 2022. 2022! Yeah, I mean, who knows? Who knows what’s gonna happen with the economy and the recession and, and everything. It’s incredible how like, because we’ve kept all of our spending and whatnot, internal, and everybody’s just like, sitting at home, and buying stuff online, and saving money, and not doing stuff. And it’s, our economy ain’t so bad right now. I mean, the stock market’s holding its own, banking hasn’t crashed, people are still buying houses. I mean, I know there’s a bunch of people out there hurting right now, and I’m sorry to hear it if you are, man. I know it. But like, it’s weird that to me, that just a little bit of stay at home, a little bit of government sponsored cash, has really kept this country floating, man.  I don’t even know what’s going on.   Justin: Yeah, well, people definitely are smoking more cannabis.    Chip: Absolutely. ‘Cause unemployed people smoke more weed. That is a 100% a fact. Every time I’ve been unemployed, I’ve smoked more weed. How about you?   Justin: Yeah. Oh, for sure. I think that it’s also, if you’re stuck at home, and you’re dealing with this pandemic and everything, it’s a smarter choice. If you’re bored, and you’re not going out. I mean, the thing about alcohol and how social it is, is that maybe you go out two or three times a week, and maybe it’s a happy hour with some work colleagues, or you’re meeting some friends over here, and have a couple beers.   Chip: You might say, fuck it.    Justin: Well, people don’t necessarily feel the same about just sitting at home every day chugging three, four beers, bored by yourself. So we’re, because it just the social aspect. So but, sitting at home and packing a bowl, I think it’s more tangible in the situation, in the current situation, right?   Chip: Absolutely. Oh, absolutely. And Netflix is like, I mean, weed and Netflix has been the number one way people have billed their time this past six months.   Justin: That I mean, I gotta admit, I got my kids the Nintendo Switch, and I found some games that I enjoy on there that are kind of fun. I didn’t see myself playing Super Mario Brothers at my age, but hey, it’s something you can catch a buzz, sit there and do that for 20 or 30 minutes. I mean, I don’t, I’m not promoting gaming as a full time job or anything, but you got to find some different home enjoyment. And people have been putting time and effort into their home gardens, and hopefully people have been, grew some extra, grew some cannabis plants at home if it’s legal in your state, just because you spent less time running around town and doing stuff away from the home front this year, and I think next year will be similar so.   Chip: Absolutely. I think people are going to stay at home more. I think that people are going to grow their own at home more. I think that throughout the country now, it’s legal to grow your own, and accepted to grow your own even if it might not be legal where you are. That people are going to sit home, man. They’re going to grow some weed, the amount of weed that enters the marketplace isn’t going to be, isn’t going to meet the demand. We’re not gonna have an oversaturation. I could be wrong, but that’s my prediction. There’s gonna be a lot of first time weed growers this year because of this, right?    Justin: Well, it’s been good catching up here.   Chip: Yeah man.   Justin:   Some different topics, and jumping around a little bit but –   Chip: Once again –    Justin: Hopefully, you can turn this into a good a good podcast.   Chip: How we’re just throwing it all out there these days, Justin.   Justin: I know. Hey, you know –   Chip: [inaudible 45:47] The Real Dirt is we just throw it out.    Justin: We need to do an episode, we did it years ago where we were, we just prank called a bunch of people and did like, a 10 minute check-ins.   Chip: We should prank, we should do Justin, Chip and Justin prank call. Okay, we’ll schedule that one up next up.   Justin: Yeah, let’s do that again. That was fun, just check in with a bunch of people. But otherwise, it’s harvest time here in Oregon. The hemp plants are coming down, we’re here, we’ve had decent weather after all that smoke. But we got a rainy weekend going on now, and then a little bit more dryness coming, and so people are scrambling. I got a call the other day, and somebody needed help harvesting 50 acres of hemp so, it’s going down. And we’ll see, we’ll know here in the next six weeks how it all ends, I suppose.   Chip: Well thanks for the call again, Justin. Thanks for joining us on The Real Dirt.    Justin: Always a pleasure.    Chip: And thank you for listening. This has been The Real Dirt podcast with Chip Baker and Justin Jones. If you enjoyed this episode, you can download others at iTunes and Spotify. We’re The Real Dirt podcast. Please, please, please subscribe. Hey man, thanks for joining me. You guys have a great rest of your day. Later.
39 minutes | 4 months ago
The Dirty Truth about Cannabis Marketing
Anybody that owns a cannabis business knows that advertising is no easy task. The Real Dirt is no stranger to adversity when it comes to cannabis marketing. We’ve been shut down, shadowbanned, disabled, you name it. And anyone else who works in cannabis marketing, owns their own cannabis business or even just likes following cannabis creators on Instagram has probably noticed the issue too. And that’s part of the reason that Olivia Solero started Cannabis Stack. A Platform for Cannabis Professionals Cannabis Stack was created to be a home for people in the cannabis industry to connect without the worries of Instagram and Facebook shutting them down. While it may not be the behemoth of social media that Instagram and Facebook have become, it’s a start. The reality is that advertising any cannabis business or product is basically forbidden on these platforms. And when organic reach has decreased over 60% since 2014, it’s easy to see what the intentions are; money. When they can’t make money off of you, what’s the point in giving you free exposure, especially when you work in an industry that is still illegal on the federal level? That’s the mindset of Instagram and Facebook. What’s the solution? In this episode of The Real Dirt with Chip Baker, Olivia talks with Chip about her experience with being a cannabis business with “cannabis” in their name and the problems it has caused them all the way down to getting a logo made. The two also talk about why cannabis businesses struggle with marketing and social media platforms so often, what could be the cause behind it and why cannabis is constantly fighting an uphill battle. Cannabis Marketing Masters Summit The best way for cannabis entrepreneurs and marketers to be successful in the cannabis industry is through group collaboration and sharing of ideas. If we are all dealing with the same problems, then by working together we can solve them. The Cannabis Marketing Masters Summit is a free online conference featuring some of the most prominent and successful cannabis marketers in the industry, including Chip Baker! Roll it up and get into the dirty business of cannabis marketing! Learn more about Cannabis Stack Get your FREE ticket to the Cannabis Marketing Masters Summit Follow and Subscribe to The Real Dirt Podcast: Instagram Facebook Apple Podcasts Spotify Get great deals on grow gear: CultivateColorado.com Instagram Facebook Transcript Chip: Hey, this is Chip with The Real Dirt. Today’s dirt, I have Olivia Solero. How’s it going, Olivia?   Olivia:  It’s going great. How you doing, Chip?   Chip:  Oh, doing good. I am proud to have Olivia on the show today, because we’re going to be talking about one of the hardest problems, the biggest problems of cannabis professionals. No, it’s not growing weed. No, it’s not extracting weed. No, it’s not packaging weed. It’s not selling weed. It’s marketing and branding cannabis. Olivia has started an online cannabis community, Cannabis Stack. And it’s here to help cannabis professionals connect. Tell us a little bit about this, Olivia.   Olivia:  Yeah we started – my partner, AJ and I – started Cannabis Stack so we can create an online community to inspire, educate and connect cannabis professionals and help them achieve success in you know, the cannabis industry. So our goal –   Chip:  So, is this like a Facebook group, or..?   Olivia:  I would say it’s like a social network, but it’s more like a member community for professionals that we host on our website, where individuals can connect, and they can talk about best practices and resources, and hold each other accountable, and all the great things that communities offer.   Chip:  Oh, yeah, well, that means that you’re not bound by any of those nasty guidelines of Facebook, because it’s your own website.   Olivia:  Oh, yeah. And you know, it’s great to do it on Facebook or somewhere else. But like, you know, you have those guidelines you know, that are really troublesome for this industry.   Chip:  And that’s why we are talking today. What made you realize this was going on, Olivia? When did you have this like, idea that you should start a community, or focus on these type of business problems with cannabis?   Olivia:  So both my partner and I, my business partner and I, AJ, we both come from a marketing background. And we’ve each had agencies and done a lot of work. I used to run a networking series for startups in a community that I lived in, a smaller community that didn’t have that kind of space. And, you know, I’ve always been interested in cannabis, I had done some like, early investing in some dispensaries in California back in the day. We also do a lot of other content sites, so we thought a content site around the cannabis space and like, more professionals reaching professionals like, not another kind of culture site, or how to grow site, which is really cool, but that just wasn’t where our interest was. It was like, creating content in the community around the space and kind of looked around and thought, you know, this is needed. This is a good opportunity. And I’m motivated by the content and industry. So we started this back in, with some fits and you know, stutters back in 2016.   Chip: Right. You were on the forefront of adult use in the country. That’s right when I was changing everywhere. I mean, since then, it’s gone on to over 30 states, cannabis regulation for either medical use or adult use is now common practice. And the common practices of marketing, we’re not kind of, we’re not allowed to do those things.    Olivia:  No.   Chip:  I’m like, I just mentioned Facebook a second ago. Many people, that’s the first thing they think of is, “Hey, let’s start with Facebook, Instagram ads, Google ads,” but we can’t do that.   Olivia: Nope, cannot do that. You know actually, when we first started out, we went looking for someone to build out a website, do us a logo. We had freelancers and businesses refusing to work with us, because of the subject matter. I mean, you know, like no one [inaudible 04:04] wanted, I know, wouldn’t want to design us a logo. Not that they weren’t down for what we were doing, but their company either didn’t want to be affiliated with it, or they they lived in a country where –   Chip:  On moral grounds.   Olivia:  Exactly.   Chip:  This is all on moral grounds, because in our country anyway and many others, you can say whatever you want.   Olivia: Right.   Chip:  Right? But not necessarily with cannabis. They really restrict our use. We have to tiptoe around stuff all the time. You know, we can’t ever imply we’re selling anything in the cannabis industry.   Olivia:  You and I had like, a discussion about this. And I thought it was really interesting, because one of the things that we did when we chose the name was because we were thinking about SEO, and thinking about owning the space and our name has killed us. But the word cannabis in our domain is just, it’s been painful at times, because there’s been to your point, we would have been able to maybe tiptoe around and work around some things, but not with that domain, not with that company name.   Chip:  Yeah, absolutely. Hey, I have the same problem with my company, Cultivate Colorado. You know, I own several hydroponic stores, Cultivate Colorado, Cultivate Denver, Cultivate OKC in the past, Cultivate California, and it has caused so many problems. Even though it’s a garden store, and I don’t touch the plant and we don’t sell cannabis in any form, hemp, or medical marijuana, or adult use at Cultivate Colorado, Cultivate Denver, Cultivate OKC, I still get categorized like we are a cannabis business. We just got kicked out of our Instagram account as a matter of fact, for Cultivate Denver. Yeah, 37,000 followers are now left without posts from Cultivate Denver today.   Olivia:  I’m so worried, we have an Instagram account. We don’t have your presence, you know, and that and part of the reason why we haven’t invested time in that in the past, even though we use it for other projects extensively, is for that fear. We’re, “Oh, do we want to invest in that, and then get caught out?” You know, all of a sudden, it’s they’re [inaudible 6:21].   Chip:  But you know, it’s something that you have to do, though. You have to have and Instagram account. And we weren’t even trying to get 37,000 followers, honestly. Yeah, we were just totally using organic growth. I mean, we were you know, posting multiple times a day and, you know, enjoying ourselves with it. But we weren’t necessarily trying to grow our Instagram account, because of how hard it is.   Olivia:  Yep.   Chip:  Right? But once it got to 37,000 you’re like, “Yeah, man. We got quite a bit of followers.”   Olivia:  Can I ask you a question, Chip? Do you think that’s why you were shut down, because like, you got, you stick your heart, you stuck your head above the ground and got so many followers?   Chip:  No, I think what happened, well, who knows?   Olivia:  Right.   Chip:  Well, I’ve talked to some insiders, and they say more than likely, and other friends and business people who’ve been kicked out of Instagram or Facebook or other social media things. And, and they thought that like, I probably just had somebody, you know, like, complain and say that I was selling weed. And they get enough complaints like that, and you just can’t appeal it anymore. We’ve been kicked out a couple of times. And even though we have strict policy, man, you know, there’s no mention of cannabis sales or cannabis in any of our Cultivate Colorado stuff, right? And I mean, you know, really, really work hard not to pierce that veil, and don’t, and haven’t. So I don’t know if it got broke any necessarily like, community rules, kicked us out, said no appeal.   Olivia: Wow.   Chip:  So, yeah, totally.   Olivia:  That’s frustrating. You know, the other frustrating thing too, is like you put a really good post up, whether it’s on Facebook or Instagram, and you want to boost it. You’re like, “Hey,” and you know, and you can’t. We can’t. It’s just, you know, it’s possible sometimes. But you know, we’ve had to basically not mention things and send people elsewhere.    Chip:  Oh yeah. Oh yeah. It’s common like that. And you know, my Real Dirt Instagram presence, it’s 17,500 people. But we believe that we’re under some type of shadow ban. And I say that because about every 90 days, we’ll have a huge influx of followers for a couple, three days or a week. And then it just stops. And we don’t get any movement at all, one person, no people.    Olivia:  Interesting.   Chip:  So I am sure that they’re not showing our posts. So we’ve actually gone from posting six posts a day, I know, I was aggressive. And to now, we post one post is we use, you know, a calendar system to post it. Before it was live interaction, someone actually posted off their phone or their computer, and then talked to everybody immediately afterwards. But yeah, we had to stop all that because we were just wasting all these resources and just, you know, getting nothing out of it. Nobody was hearing this great content I felt we were producing.   Olivia:  You know, and it’s so frustrating especially, I don’t want to get like into politics. But if you talk about people’s fear and like, all these fake accounts that are getting created and influencing elections. And whether you believe that or you don’t, or whose side you wanted, it doesn’t matter. It’s like, is this really that important? Just to you know, I mean, we’re talking about, we’re talking  –   Chip: We’re talking about weed, man.   Olivia: We’re talking about weed is right. And we’re talking a plant that’s not you know, has so many benefits.  But you know, more than just like fun and getting high, obviously, you know like –    Chip:  Yeah. Right, right. I don’t know why they do it. Hey, you know what, let’s just give a shoutout here. If you’re Mark Zuckerberg or anyone, an upper of Facebook and Instagram, I would love to talk to me about this in an open format where I wouldn’t like, you know, be mean, or berate you at all. Just drop us a line here at The Real Dirt or check us out on our Instagram feed. Come on Martin, let’s have a conversation about it. I know you smoke out.   Olivia: I hope someone contacts you.   Chip:  That would be great if they did, I’m gonna call you up. “Olivia, you’ll never guess what happened!”   Olivia:  I’ll be like, “When is it gonna air?” It could be like, “I’ve got a couple questions, I’ve gotta ask that first -“   Chip:  Yeah, totally. Totally. I’d love that to happen. But I have talked to some, I have talked to numerous Instagram and Facebook and Google, Amazon employees. And, you know, I feel like I have a, you know, understanding of what’s going on over there. They get the word from the top, a lot of stuff is just algorithm associated. If you’re already a paying customer, if you already have an ad on an account, if you’re already doing really good, you know, revenue with Facebook or Instagram, you can often get through it, because you have an ad account person that can you know, override anything. But if you don’t have that, nobody’s picking up the phone, you’re not gonna talk to anybody at Facebook or you know, nobody that means anything.   Olivia:  That’s for sure. And then you just get caught up in some kind of like, appeal system where it’s just, you’ve got to fill out forms and do other stuff. I know you and I, you had mentioned them to me. And I you know, I knew about the Jungle Boys. I don’t understand. I’m a marketer and I don’t always understand why, you know, they’ve got pictures of like, blood on their like, Instagram pages, all kinds of humor and all these products and now, you know, how did they not get shut down? [inaudible 12:11]   Chip:  You know, I get it. No, I get it. How are they successful at it? And you know, we look at those guys all the time. And I think it’s several things. I think like I just said, they were probably in, the people that are running their social media site. I love the Jungle Boys marketing what they’re doing, by the way. They’re you know, you can hate on them all you want guys, but like, from a marketing and sales perspective, thumbs up, you guys did great.   Olivia:  They’re awesome.   Chip:  They’ve done a great job, man. They’ve done a really great job. Regardless if you’re gonna hate on these guys or not like, they’re doing a good job there. It’s hard to be second place in their first place. Right? But I have not talked to these guys. I don’t know, I’m talking out of my ass, but here’s what I think. I think that they probably come from a marketing or Instagram or social media background. They already had connections at Instagram and Facebook, or they were working with an agency that did have with those people. And I think that’s how they’re able to do some of the stuff they’re doing. And then man, other things, they’re just, they follow all the rules, because they have been kicked out over time. But for instance, you know, one of the rules that we don’t break at The Real Dirt is no weed smoking. And in the past, you may have seen me smoking weed or someone else, but we don’t do that anymore. Because you know, Instagram, Facebook don’t like it.  No implications of anything is for sale, ever. Like even, you know, like, “Oh, I bought this first at so and so.” You know, you can’t even say that type of thing. You know, I picked it up, you can’t imply it ,you can’t do any of that stuff is just, you know, “This weed from this person.” It’s hard to comment on it, you really have to separate the human portion of it. So you’ll see a lot of their stuff. And now that I said this, you’ll see it as they’ll have pictures in the background of the products that they’re promoting. And they may or may not like, hashtag or talk about those products in their comments. However, I think their comments you can, that’s one of the most impressive thing about the Jungle Boys posts, is how many comments they’ll get, right? And they absolutely have people working with them to make these comments, to generate this dialogue. And they’re doing great. I mean, it’s I wouldn’t say that it’s completely organic. But they definitely have arranged it to drive the point home they want. But mostly, I think it’s like, who you know. And just I think they just know somebody.   Olivia:  You know, I think that that makes more sense than anything else I can figure out. I mean, like you had discussed. It matters with having a relationship with these big, you know, these big publishers, you know, who are really providing the content, you know, to have a one on one relationship with them is key.   Chip:  Yeah, most people don’t understand about Facebook, Google ads, YouTube ads, like none of this stuff that’s product related or that’s website related is viral in an organic manner at all. And even a lot of the viral stuff isn’t organic. And what I mean by that is, it is paid for advertising and traffic. And you think, why would anyone want to get 5 million views of them twerking? Why? Well, it’s ego, right? And you know, if you know how to market your, market it and but the advertising. You know, you can buy the views, you can you know, on any normal product go and do that, but cannabis people can’t. And it’s common practice in every single industry on social media.   Olivia:  It’s ego, but it’s also there’s huge money involved in captivating an audience to monetize that audience.   Chip:  Oh well that’s is if you can kind of see, you know, like, there’s this guy out of Tinder, I forget his name, but it’s actually his dog’s Instagram site. And it has like him, his dog going everywhere with him, his dog doing stuff, and, you know, he gets a Toyota sponsorship. And now, the dog is in front of every picture or lots of pictures to tell you he was involved. Right?   Olivia:  Give to the dog.   Chip:  Give to the dog. Yeah and I mean, I’m unsure but I’m positive that there was a good beneficial relationship between Toyota, the dog and the dog’s owner.   Olivia:  Yeah.   Chip:  I mean, I love weed. I love cannabis. But on those really hard days, like, you know, earlier this week, when we got kicked out of Facebook or Instagram, you know, I think about it, what it would be like if I was involved with another product that I didn’t have these restrictions and how I would approach it.   Olivia:  I come from a pharmaceutical marketing background,  I worked in-house for a year and I worked on the agency side with pharma as clients. And even though their regulatory process is quite complex on how you can advertise and things that you can say, and even the use of logos on a pen have an [inaudible 17:33]. But I’m just amazed sometimes. I have those moments like you do where like, “Why is, why can’t I do the things I could do in this market? Or with this product? Why is cannabis so restrictive? Why am I not, you know, am I an outlier? Or do I live in like, areas or communicate with people that view it the way I view it?” Because I don’t see the big deal? I just don’t.   Chip:  Well, there are other industries that have our problems, with banking with advertising. I mean, you know, firearms, alcohol, erectile dysfunction, sex toys. All of these things have similar, pawnshops. They all have similar problems that we have.   Olivia:  This is true. I don’t, I wouldn’t like I wouldn’t, maybe again, I’m going to go back to I don’t know if it’s just because I’ve grown up in big cities here in the States. I don’t know. Or I don’t know why it’s that big of, I don’t know why it’s that big of a deal. Who are we protecting at this point? Alright now, I sound paranoid. But that’s not what I mean.   Chip:  No, no, you know, hey, I mean, who knows? But I tell you this, it always seems to come down – when I’m talking to people about it, whether it’s banks or magazines or lenders or car dealerships, because it comes up all the time.   Olivia:  Right.   Chip:  Right? When I’m talking to them about it, the same thing comes up over and over again. It’s federally illegal, they’re scared about the banking.   Olivia:  Yep.   Chip:  Right? There’s these money laundering terms that people are scared of, and they should be, but they’re really just uninformed. It seems to boil down to that more than anything else, is people are scared of the banking associated with it being federally illegal. Now doctors and dentists and people that have federal IDs, they’ll say something like that, that they’re scared for the federal government, because of their federally issued captain’s ID, or pilot certificate, or pesticide applicators certificate. You know, people will bring this up, “Well, it’s federally illegal.” And I think they’re just putting that stuff on it. I mean, I think those are their own pressures. They’re making it up, the federal government doesn’t have anything to do with, you know, what I do if I’m hiring you to come over and do something for me.   Olivia:  Right, right. Well, you know, it’s –   Chip:  Where’s the regulation there?   Olivia:  I don’t know. And, you know, I actually, it’s funny. I had opened up a bank account for a business that has nothing to do with Cannabis Stack. Nothing is, it’s completely separate, completely separate entity. And the bank, I brought in my like, you know, all my paperwork, and I opened up the account. And within a month, they shut me down. Because somehow, they found, they associated, I never gave him this email address. They associated my email address with Cannabis Stack domain with that account, and they just shut me down.   Chip:  Yeah. Well, you know, the banks use the social media as much as anybody else now to sniff you out. And I’ve gone through this numerous occasions, you know, calling us up and, and kicking us out because someone posted on one of our sites about weed. And, you know, we’re like, “Well, we didn’t post that. Somebody else did it.” They’re like, “I don’t care. That means you’re about weed.” You know? Yeah. And they’ve literally looked me up, I mean, I don’t hide from weed, you can look me up. So you know, I’ve literally been looked up, Chase gives, you know, every six months or a year, they have a review of people to make sure they’re not cannabis people that, you know, they’re not, you know, putting illegal assets, you know, or untaxed assets into the banking system. So it’s hard to hide, because we’re all talking about marketing ourselves, or our businesses through social media. And the banks have access all the social media, or anyone has access to the social media, you know. And they can and will use it against you if they, appropriate for them.   Olivia:  Oh, 100%. I mean, the days of privacy are over. You need to behave as if everybody is watching, and will always have that invasion –   Chip:  Everybody is watching. That’s how we sell stuff. And that’s how we brand. And that’s how we market. And you have a webinar is that cannabis slack is putting out Cannabis Marketing Masters summit that’s going to help people solve all of these products. Now, I know one of your speakers happens to be the illustrious Chip Baker of The Real Dirt podcast.   Olivia:  Yeah.   Chip:  But tell me about the Cannabis Marketing Masters Summit.   Olivia:  Okay, so yeah, the Cannabis Marketing Masters summit is happening November 13 and 14th. And what we’re gonna do is carry it over two days, really meant to serve as a resource for marketing in the cannabis industry and help like, entrepreneurs and other professionals be able to like, grow their business through a number of different styles and sessions. So we have a combination of like, techniques and tools for like, SEO and paid advertising, email marketing like, sales and traffic funnels. We also have more inspirational brand stories in regards to like, customer journeys and things along those lines and value like, driven brands.   Chip:  Tell me who you’re gonna have speak at the Marketing Summit. Let’s talk about how it’s gonna work and who should join, who should show up.   Olivia:  This is all really great points.   Chip:  This is free, right? The Cannabis Marketing Masters Summit is free.   Olivia:  The Cannabis Marketing Masters Summit is free. You can register at Cannabis Stack, that’s what two s’s in the middle, or with one s in the middle, or with a hyphen if you like it. So that’s cannabisstack.com/cannabis-summit. And you’d be able to sign up there.   Chip:  Alright, so everybody stop what you’re doing. Just stop what you’re doing. I’m gonna do it real slow. So go to your computer, your phone. Olivia, what are they gonna look up?   Olivia:  You’re gonna look at cannabisstack.com/cannabis-summit.    Chip:  Alright, and then you’re just going to apply to join right there.   Olivia:  Right there.   Chip:  Right there.   Olivia:  You’re going to see a list of the speakers, the dates and the time of the event, November 13th and 14th. You’re going to, all you’re going to need to do is give us like, your name, and email, the company, if you wouldn’t mind. And then you’re going to hit ‘Submit,’ and we’re going to send you a link so you can join the summit, 100% free.   Chip:  And I know we’ve been talking about it, and I’ve been excited. You know, I invited you on this podcast because I thought this was a really good idea that you had not really wanted to help promote it. And yeah, I’m gonna be involved on it. But what I really liked about it is you were giving it away. And you’re trying to just help people expand their business, and do better business.   Olivia: Definitely. We have Amy Larson from Simplifya.   Chip:  Yeah. Oh yeah, Simplifya. Yep, from Vicente Sederburg. See, I know several Simplifya people.   Olivia:  That’s awesome.   Chip:  Jordan Wellington, great guy. I’ve had him on the show a couple of times.   Olivia:  But you may also know that Amy currently serves as the chair for NCIS, you know, the marketing and advertising committee.   Chip:  Oh, okay. That’s how I recognize her name as well. Sure.   Olivia:  Yeah. She’s going to be speaking to strategic plan, like as to like the foundation of like, what your marketing should be in, for any marketing program, but specifically for cannabis marketing. So, we’re excited to hear what she’s gonna present.  Then we have Tyler Horvath. He’s like, the king of SEO, right? He’s the CEO of Marijuana SEO. And he’s gonna give us some like, the three pillars of a successful SEO strategy.   Chip:  Man, I’m really looking forward to this one.   Olivia:  Then we have Brian Chaplin of Medicine Box. And Brian’s going to be speaking to the importance of like, mission driven and value based cannabis brand.   Chip:  And Medicine Box, they’re a vending machine?   Olivia:  No, they do like, a box delivery system for whole plant natural wellness products in like, a subscription box model.   Chip: Oh okay, okay, great.   Olivia:  Then we have Beth Aiden from Nissan Co, which is a public relations, marketing and PR firm. So they’re going to be speaking to the right public positioning for your cannabis business with public relations. So they’re going to kind of break down like, a successful public relations strategy, and what they can afford, specifically to the industry. Then we have Antonio Javiniar from WebJoint. You know WebJoint? They’re like the –   Chip:  No, but you could pass me one anytime.   Olivia:  Only if I could right now. They’re gonna, also they’re gonna be speaking to content, but like content that converts and marketing on a limited budget. So –    Chip:  I’m so excited about all this stuff. You know, these are some great talks, I need these as much as anybody else for sure.   Olivia:  Yeah, they do their inventory, WebJoint’s like an inventory management software provider for like, cannabis delivery services. So which is kind of cool. And we have Travis Crane from a little company called Cultivate.   Chip: Oh yeah. Oh man, he’s a master in social media marketing, that’s for sure. Organic driven social media marketing. This guy knows what he’s doing.   Olivia:  For sure. And he’s got a really interesting story about how he kind of got into the space. So his session is going to be about navigating the waters of advertising, and kind of touched upon some of the things that you and I chatted about earlier. Then we have Andrew Watson from Happy Cabbage Analytics. So this is really cool, because they do some really amazing things with hyper targeted marketing. Because they have, they do like an integrated like, data insights. I’m not doing them justice, and Andrew could explain this much better than I. But they have a marketing platform that integrates with a POS system, so it can help retailers and brands to better engage with their customers. It’s really slick stuff, super interesting. We also have Gianna Guard from Happy Cabbage also. And she’s going to be talking about that whole infrastructure from closing the loop, from marketing to sales, which is, you know, I think –   Chip:  That’s a hard step. That’s a hard, hard step.   Olivia:  It sure is. And you know, we talked earlier about like, just advertising in general. Like, maybe you’ve got a brand and you want to reach the consumers and that’s difficult. Now trying to figure out how you want to reach other businesses in the space. That’s tricky. Super, super tricky. We also have Colton Griffin, he’s the CEO of Flourish Software. So they have a whole supply chain management and seed to sale tracking software, for the industry. So again, Colton is going to be, we’re going to focus a little bit more on sales and marketing. And he’s going to speak to leveraging technology and automation to make your sales and marketing system, let’s say more efficient. So that’s kind of cool.   Chip:  Yeah, like automated emails, automated text messages, collecting people’s emails, addresses, scanning IDs and getting their info. But that’s, all that type of stuff is one of the most useful things in the cannabis industry right now. If you’re not doing it, you got to get on it.   Olivia:  Indeed. And then we have Kevin Green and Tyrone Russell from the Cleveland School of Cannabis. Did you know that they are –   Chip:  I don’t know about the Cleveland School of Cannabis.   Olivia:  They are the only state approved career school for cannabis education east of Colorado. They have a whole curriculum, you got to check them out, Cleveland School of Cannabis.   Chip:  I do. Calling them up.   Olivia:  That’s our lineup. Over the course of two days, we’re going to be hearing from these people and they’re going to dive in deep. And then while the sessions are running, people will be able to jump on the Facebook page that we’re going to be holding the sessions on, and ask questions.   Chip:  How do we get to it again, the Cannabis Marketing Summit?    Olivia:  So if you if you go to the cannabisstack.com homepage, you’ll see an ad right there for the Cannabis Marketing Masters Summit. It’ll be right there.   Chip:  And can you look it up on Facebook and Instagram as well?   Olivia:  Yeah, you sure can. We have all that. If you do a search for Cannabis Stack on either Instagram, Facebook, LinkedIn or Twitter, you’ll find us. Sharing is caring.   Chip:  Sharing is caring. The saddest thing to me about COVID is whether you believe it’s a pandemic, plantdemic, whatever. The cultural aspect of sharing joints and weed is going to be different forever. You know, I still have employees and friends that, you know, they get still hop around the joint circle. But most people I know, have now decided not to do that. You know, I went [inaudible 31:45] a long time ago because I’m such a head that I need to smoke a joint all by myself.   Olivia: Okay. Some can call you greedy, but some could say, you know –   Chip:  Hey, I’m gonna roll you a joint just as big as mine, though.   Olivia:  Alright.   Chip:  Right? So it’s fine. But just the cultural and social aspect of cannabis is such a big part of it.   Olivia:  Oh, for sure. I mean –   Chip:  Sharing is caring, that phraseology that you just mentioned is something that’s, you know, I’ve really like, embraced over the years. And I’ve tried to like, give people as much weed and smoke as many people out as I can.   Olivia:  So you know, to that, it’s funny that you said that last night, because that part has stopped and just all social interactions for me have like kind of, you know, have slowed down, you know, to the trickle. So I was with some people I didn’t know very well and some of them wanted to get high, but they had the greatest solution. They had a bag of individually wrapped tips and like, one big bong, like hookah bong that had one bowl and everybody like you know, everybody had their own hose.   Chip:  They had their own hose. Hoser, a whole new meaning to the name hoser.   Olivia:  Everyone had their own they had their own hose with their own like, brand new like, shield tip. It was awesome.   Chip:  Are you guys gonna give those out as part of the Cannabis Marketing Masters Summit as a promotional item?   Olivia:  I would love to but –    Chip:  CMMS.    Olivia:  I don’t think I’ll be able to do that.   Chip:  A CMMS branded hookah tube.   Olivia:  Well I was, you know, I don’t think I could give away, ’cause I gotta tell you what the head was, it was Scooby Doo. It was shaped as a big dog, the Scooby Doo head.   Chip:  The Scooby Doo head.   Olivia:  Yeah, I don’t know how I gonna be able to top that with the Cannabis Marketing Masters Summit giveaway.   Chip:  Well, I am excited about it. You know, we’re gonna participate. The Real Dirt’s gonna participate. If you’re interested in how we do it. because people ask me all the time. It’s like, “Chip, how do you put out so much content? How do you do it? How is it authentic? How, how, how?” And we’re going to tell you how. Travis is going to tell you how to do it. I’m going to tell you how we do it. And it’s a lot easier than you think, honestly. With a little organization and prepared thought, you too can put out authentic cannabis content. I’m not saying that we’re doing the best of it. But I’ll tell you man, if you listen to this channel, if you listen to The Real Dirt podcasts, you must like some of it. So join us please at Cannabis Stack Cannabis Marketing Masters Summit.   Olivia: Yep, that’s November 13 and 14th.   Chip:  November 13th and 14th November. And it is going to be on Facebook. You join through the Cannabis Stack online community. And yeah, while you’re there, check out their online community. Maybe it’s something you want to be a part of. I know it’s definitely helped me connect with other people, other people in the cannabis community. I look forward to connecting to, with more people there. Olivia, if you had, like, some advice that you could give anybody going into the cannabis business, because you’re in the cannabis space, you’re not just servicing people in the cannabis space. Looking back on it all, is there some golden nugget that you could give somebody right now?   Olivia:  Go find your tribe. Go find your community. And go find the right people that are doing the things that you want to do. And, you know, network and speaking to like, creating authentic content, network authentically. Just don’t promote, you know. You know, like, the cannabis industry is a perfect space for community. Because it you know, because we’re a little bit segmented, based on some of these challenges that we face in the industry. So like, this circumstance offers us a common goal to rally around, and like, we can bring people together, right?    Chip:  Yeah, totally.   Olivia:  And this commonality brings people together. And we’re, we as humans are known to be more willing to collaborate more, we’re more effective in numbers. And we’re more innovative in our thoughts when we do this together. So you know –   Chip: Oh, yeah, community, man. That’s how we do. That’s how we’ve always done it. That’s how we came out of the woods, so to speak, is we gathered a community, you know, we all work together to survive and to thrive.   Olivia:  Yeah. And I think like, you know, they’ll let your like, guard down a little bit, and you got to share and you know, you can’t be worried about taking something that you think is yours, right? There we go again, sharing, right?   Chip:  Yeah, yeah.   Olivia:  I mean, it’s community. That would be my one thing.   Chip:  Yeah. It’s great. It’s great. Well, hey, hey, thanks for joining us today. I really appreciate it. And if anyone wants to get in touch with you, Olivia, how do they get in touch with you?   Olivia:  They can reach me through the website, or they can email me directly. I’m happy to accept if someone needs to reach out olivia@cannabisstack.com. That’s cannabisstack.com.   Chip:  Thanks for joining us. I look forward to the conference on November 13th to 14th. Thank you once again for joining us, Real Dirt listeners. I know you have other things you can do with your time, but you chose it today to spend with me and Olivia. Thank you once again. And hey, just want to encourage all of you guys to visit Cultivate Colorado, Cultivate Garden Supply. Check out Growers Potting Soil. You have any questions about cannabis, just talk to us on Instagram, on Facebook. Once again, man, thanks again for joining us. I love all of you and fire one up for me. It’s The Real Dirt.
31 minutes | 4 months ago
The Science of Breeding Triploid Cannabis
Justin Jones has been in the cannabis industry since the very beginning. He opened the first ever recreational cannabis dispensary in Colorado, Dank Dispensary in Denver. Justin has been a leader in the legal cannabis industry for close to a decade, and now he’s taking over the hemp industry too. It’s not so simple for most to transition from traditional cannabis cultivation to hemp cultivation. When you know the science of the plant and how to cultivate it to get the results you want, you can create some incredible strains and genetics. The evolving science of cannabis and hemp cultivation Justin made his transition from cannabis to hemp when the Farm Bill passed in 2018, making hemp legal at the federal level. This legalization has given farmers and researchers the resources they need to study hemp more thoroughly without government intervention. Through his research Justin has been able to develop triploid hemp plants, or sterile male plants put simply. Traditionally hemp and cannabis are diploid plants which means that a male can pollinate a female and produce seeds. But diploid and triploids are just the tip of the iceberg when it comes to science of cannabis cultivation. Plant science, patents and more In this episode of The Real Dirt with Chip Baker, Justin and Chip get into the real dirt of cannabis science and how changing techniques are producing stronger, better cannabis and hemp strains and what that means for the future of the industry. Roll it up, spark it up and check out this episode of The Real Dirt Podcast! Follow Dank Dispensary and High Grade Hemp Dank Dispensary High Grade Hemp Follow and Subscribe to The Real Dirt Podcast: Instagram Facebook Apple Podcasts Spotify Get great deals on grow gear: CultivateColorado.com Instagram Facebook Transcript Chip: Hey, this is The Real Dirt podcast. I’m here with Justin Jones today, Real Dirt, Sunday morning dirt. How you doing, Justin?   Justin: I’m good. I’m good, Chip. Just got the sun peeking out here coming up, gonna have a nice rainy day here in Oregon. It helped tamp out some of these fires that we’ve had, to help wrap up the end of the harvest here, end of the year.   Chip: Yeah, man, we’ve hit the dry season down here in Oklahoma. The fall and winter are drier, that’s when we have our fire seasons. It’s almost perfect for harvesting cannabis, because it just starts to get dry around first of October. So if you’re lucky enough to be harvesting in October, November, December, those are really good months for you down here.   Justin: We call those fine finishing days.   Chip: Fine, there’s fine finishing days. And if you’re finishing in the next 10 days here in Oklahoma, which many people are, wow man, you’re gonna do really well.   Justin: That’s good. I just was talking to some friends up in western Colorado and they were finishing everything over there and pulling it down out in the Paonia areas. Good value for grown cannabis there in Colorado, maybe the only real value for growing out there in Colorado.   Chip: We’ve had a couple opportunities to move down to Paonia. I wish I could have more time to explore that during our time in Colorado. You know, Paonia was the first like, namebrand weed I would ever, I ever heard of.   Justin: They had a purple or something back in the day.   Chip: Oh, yeah, yeah. Paonia Purple. Peabuds, peabuds.   Justin: That was the pea bud, yeah. And they lost it, nobody’s got it. Some people claim they still, but no one’s seen it for a long time.   Chip: Yeah, you know, that’s what happens with a lot of the famous strains. That’s why like, I call bullshit on anybody wanting to harvest I mean, hold on to their strains. Few people have the overall impact to make a strain happen. And the only way that it happens is through volume of buds produced. And few people can drive that demand, you know what I mean?   Justin: I totally do. And you know, as far as that goes, Matt Deckel, good friend of ours told me about this a while back. Years ago, we started doing that. And so you know, our favorite strains, we don’t just keep them and try to hoard them. We kind of to pair them, let other people enjoy them, and then also backup your cuts. So if you get a bad bug infestation, and you got to [inaudible 2:33] some stuff, or somebody kills your plants, or you know, there’s lots of things can happen. And this way you can start over, and go get your, go get your favorite strains back in your library. So got to back that up.   Chip: Of course, you got to hold on to them. I guess my real, my question is or point is, do you have a strain that’s been a popular, long standing strain in your shop?   Justin: For sure. We definitely do.   Chip: What is it? What is it?   Justin: I would say we’ve got a Chemdog, we had a Chem before that we’ve had for 10 years. It always sells, everybody loves it. We’ve got one of the old school, old school Sour Diesel strains –   Chip: Is that the original, because –   Justin: Yeah, the original for sure.   Chip: Here’s my point, is you’ve got Chemdog and Sour D. And people come there and buy it at Dayton, Colorado. Do you think they would be as possible if there weren’t millions of other pounds of Chemdog and Sour D being grown in the past 20 years?   Justin: I think that that’s, plays a major role. And I think that strains because where we’ve come from and where we still are in most places, but where we’re coming from and moving towards with legalization, people at least now know that they’re getting something that’s repeatable. And so you know, back in the day it gets, and that’s where Chemdog came from, right? Somebody bought an ounce of weed at a Grateful Dead concert. There was 10 seeds in the bag. It was the best pot they ever smoked, they had the seeds, they started planting them, right? And so, they don’t really know what that cannabis was. You have no idea you know, you’d sell whatever they said on the street when you bought it and –   Chip: It was kind [inaudible 4:16] back then. Back then it was –   Justin: KD, yeah. It was just KD, it was just nine Mexican bud. And you know, at the end of the day, now we have, can enjoy the fact that you can say this is Chemdog Four. And then, you can grow it. You can grow it the same way every time and put it out there. And so people that like it that can go and buy it, and get the same thing. And if they’re, you know I, it was really dawned on me about 10 years ago when I started my medical marijuana company in Denver. I had a patient with Crohn’s, really bad Crohn’s. And he told me one time, “The worst thing about Crohn’s  is that I’ll find some cannabis that works and it literally will cure my Crohn’s, but I have no idea what it is. I bought it on the street. I don’t know what strain it is.” They could, it could be the name they said or not. And he said, “It’s almost worse for me to find the bag that like, cures my Crohn’s, because I know I’m going to run out and I can’t go get the same stuff again.” For us back then, the Durbin poison that we grew, and we still grow, it was a cure for him. And all of a sudden this guy’s like, “Well, I can get the same thing every month, cures my Crohn’s, and  now I’m not so stressed out about finding the right medical cannabis.”   Chip: Man, and Chemdog’s not the easiest one to grow either. To make it consistent and look great, it’s not easy.   Justin: Not necessarily. I think it’s easier than some of the other gassy strains that we’ve seen come out of the skunk lines. But where did the Skunk No. 1 go? That’s what I want to know.   Chip: Oh man, you know, you can still get it. I mean, I bought some seeds several years ago from Sensi Seeds, it’s still, you can get it. It’s still there. I mean, the European Skunk one is.   Justin: Well, the real answer to that question is that it’s everywhere, because it was used in pretty much all the background breeding going on for the last 30 years. So, if you look at the data on strains, pretty much everything that’s got any gas to it’s coming out of Skunk somewhere.   Chip:  Yeah, you know, I’ve grown these perfect Diesel buds in the past and I’ve also grown a fair amount of Skunk 1 and Super Skunk. And the Diesel really does have a Super Skunk look, that’s for sure.   Justin:  We’re in the world of hybrids now, you know? So, it’s, you never know.   Chip:  Well, they’re all hybrids, man. You know, it’s a big conversation we’ve been having about indica, and sativa, and hybrids and we just call it all hybrids now. We’re never going to convince people that cannabis sativa is just hemp and that cannabis with THC in it is indica. Oh, I shouldn’t say never. It’s going to take a few years before people like, start talking, stop talking about cannabis in terms of indica and sativa.   Justin:  Well, and as we get some more science involved, I think that’ll help, where the hemp industry is seeing some help from real science, or university science. I just tested a bunch of new hybrids that we’re working on in the hemp side of things. You know, I’m able to take those cannabis samples right over to Oregon State University, drop the leaf samples off, get the test that I need to get done. And you know, that was not available before, you know, a year and a half ago, and really a year ago. And so, it’s still mostly unavailable to marijuana growers, but it’s coming, you know? And as we move along with legalization, I think that we’ll be able to get the science and the real agricultural science guys, those that’ll become something we can use in the cannabis and the marijuana side of cannabis as we are now starting to in the hemp. But that also says, “Hey, what’s going to happen to these marijuana genetics over the next few years if that kind of science becomes more available? And what are we going to see, are the strains going to get better?” Right now there’s a bunch of hemp breeding going on where you’re taking and making triploid hemp plants, and the vigor and the production on these plants is 20 to 40% more than their same diploid siblings. And so what’s that mean, when you kind of start changing the science on the breeding? And using modern techniques, and really not even the modern techniques, just using the traditional plant breeding techniques?   Chip: Yeah, I mean –   Justin:  To get better plants?   Chip:  Diploid, it’s been around for a minute. I mean, people have talked about this for a bit, diploid, triploid. Why don’t you explain that? You’ve been doing a little bit of this with hemp?   Justin:  Right, right.    Chip:  I’ve heard, it’s read about the amount of time. David Clark’s book, Marijuana Botany, I think. It was written in the 70s. So it’s not new science.   Justin:  No, no, this is not new. And you know, this is not also not necessarily considered GMO either. And that’s another conversation that now we’ve had to have in the hemp industry. Is your hybrid GMO? And is the techniques that we use to feminize seeds in the hemp industry a GMO process or not? And so that’s, and there’s another whole, a whole section of talking.   Chip:  Do you have, is there a thirty second disclaimer you have for GMO?   Justin: Well, I mean, GMO doesn’t necessarily mean it’s bad. And you know, there’s obviously people or companies that have used GMO in what I’d like to say a Dr. Evil and I’ll put my pinky in the corner by mouth. You know, if you use GMO to spray poison on plants that won’t kill them and it’ll kill the weeds, then you know, that’s maybe kind of Dr. Evil-ish. But GMO, the GMO process has also done some amazing things for us like anybody that you know that’s a type two diabetic that’s got an insulin dependent thing going on, GMO’s the reason those guys can live a fairly normal life. That’s where they’ve found those, that medicine. So anyways, back to the cannabis side of things on the hemp, you know, what we’re seeing is, you know, lots of different breeding techniques. And so all of a sudden, we can get a triploid and what are the triploids? So your standard cannabis plant is diploid, diploid, diploid, I don’t know, I’m not a scientist, I’m a stoner. So you have a diploid patch. What you do to make a triploid, which the reason we’re trying to make triploids is because they are a sterile plant that will not get the seed, so they are not able to be impregnated by pollen and create a seed. And on the same side of things, you’re also hoping that the pollen that would be produced from those plants might not work to inspect another plant to create –    Chip:  Sterile, sterile male?   Justin:  Yes. And so, and even if you get a, even if you get a hermaphrodite –   Chip:  They do this with other crops, right? Like,   Justin:  Well, this is revolutionary for hops. One of the big reasons that the beer industry has gotten just insane in the last 30 years, just because they came up with the seed was hops. I think it was in the Willamette hops from here in Oregon, where the, it was the first variety of seedless. And what that allowed the farmer to do is push the crop out and harvest it when it’s truly ready, and at its full potential. But in hops to do that, you’re risking it going to seed and if your hops go to seed, you get like, a dime on the dollar, okay? So the seedless hops allowed the hops farmer to get bigger production, bigger, you know, more hops per acre and better hops, without accidentally screwing it up and blending. So –   Chip: And this started in the 50’s, 60’s, do you know?   Justin:  No, I think the first seedless hops that came out of Oregon State and it was, I think it was more like closer to the 80, early 80’s. So the seedless hops was something that came out of Oregon State and Oregon State developed that original Willamette, I believe, the Willamette hops. And they made that available through the public as you know, the fact that Oregon State’s a land grant university. And so that allowed other hops breeders to go and start breeding projects to seedless. Anyways, what you do here with hemp is, we’re going for this triploid so that we don’t have seeds in the crop. And that way, you can grow whatever you want on your plot of land. And I can be right across the street and I can still grow some [inaudible 12:55] essential oil cannabis for CBD or CBG production, these sort of things. And so, you know, as the industry matures, that’s going to become something that we want to see. And even if you’re in the Midwest, where there’s a lot of rogue hemp, and rogue male cannabis plants, you could still grow seedless oil crop, right? Right. But it takes a long time and you know, you can’t skirt the fact that it just takes a certain amount of days to grow plants out, and then cross breed them, and then grow them back out, and test them, and check them, and regrow, test them and test them and you know, all these things. So, I’ve been working on that now.    Chip: And the flowers there is, they do have, or reported to, reportedly to be larger and more vigorous triploid cannabis, right? Correct?    Justin:  Yes, the plants we’re seeing, even if we just look at them from early stage, bigger, it’s just unbelievable. Then I’m hearing 30 to 40% more production, save your buds, less flowers, less leaves, more this, and your ratio of a usable commodity off of a plant versus you know, on a triploid looks like you’re gonna have a lot more sellable weed.    Chip:  Yeah, absolutely.   Justin:  And you have no seeds in there, so you know, nobody wants to process seeds, because it does something weird to the oil. And then they have to go through it and remediate that. So basically, you know, as a farmer, you’re trying to produce the best material for the person that wants to buy it. And so, in the past, we’ve kind of been like, “Any material produced is fine, because there’s not enough.” Now, we’re getting to like, “Who’s going to produce the best material? What farmers are going to grow it, and then get it into the right form?” And if you don’t have to deal with seeds, and if you’ve got 30% more flower mass over your stems, all these things are exactly what we need the plants to do. But we’re also going to hopefully start seeing this creep into the marijuana side of things. And as I think as some of the genetics, cannabis genetics hemp guys are looking at, how can we start to look at this over at the marijuana side also? So that when we do get a lab, when we can go get on a flow spectrometer machines and test the ploidy level of a plant, and see if it’s a diploid or a tetraploid, or a triploid. You know, we’re gonna see this enter over into the marijuana thing. And maybe some of these old genetics that start to delve out over time from clonal, from over cloning and just being, you know, in that world, we can revive some of these things. And then, you know, again, you know, is it GMO, isn’t it GMO? I mean, you know, truthfully, if you’re not using marker assisted breeding, you know, I’m looking at it that way, you’re still using it, you’re still using your brain, and your eyes, and your nose to –   Chip:  Map. Map.    Justin:  Yeah, to select strains or select –   Chip:  And that’s traditional breeding, right?   Justin: Right, right.   Chip:  Hey, man, this summer, we grew a bunch of autoflowers, you know. This is my first like, big autoflower year. We planted out cumulatively about 20,000 autoflower seeds this year, all different types, all bunch of different vendors. And man, I’ll tell you, we got some product from Mephisto Genetics, Three Bears, OG, and they don’t pay me to say any of this, guys [inaudible 16:28]. But we all, everyone who saw this plant were like, “Wow, that’s like genetically modified weed? Like, what the fuck is that?” Because, you know, one, like in 65 days, it’s done. But there’s literally no leaf on these flowers. It’s the perfect cannabis for extraction. It was all bred with traditional techniques. And I mean, 20 years ago, I saw a big bud that looked very similar, right? These huge buds with just a little bit of leaf on them, you know? And that was bred traditionally, as well. That was straight [inaudible 17:06] seed’s product and now they’re Skunk product. But you don’t have to have genetically modified, or use genetically modified technology to breed superior cannabis. You can use science, our current observations with plants, math, additional techniques, all of these things have worked for hundreds of years.   Justin:  And even the work that we’ve been doing in the last year, you can really, you don’t necessarily need the university level agricultural science lab, but it makes things faster and better. And here’s the example. When you’re looking for tetraploids, and you’re doing a pheno hunt, but you’re looking for a tetraploid, not a diploid, you look at the size of the stomata, and the shape of the stomata on the leaf. So if you use a nice microscope, like a $200 microscope these days, and these are all, all these microscopes plugged right into your computer, and you can go in and capture your screenshots and look at things.    Chip: Oh sick, man, we just got one. Like, I was gonna get one for the clone nursery, so anybody can look at any of the clones or any of the weed, make sure there’s no mold or mildew or PM or any bug, or anything. It’s right there on the counter, $200.    Justin:  Great, yeah, look at it. And so what we’re doing, is we’re actually taking and looking at the size, and measuring the size and the shape of the stomata to see, and that can tell us what the ploidy is on it, okay? So when you’re hunting for a tetraploid, you’re looking for a different,  a less round stomata, and also the size of stomata is bigger. And so –   Chip:  Like how, that’s two, three times bigger, you know, how much bigger?   Justin:  From what we were working on, the microscope that we had was measuring in pixels. And I don’t even know what, we don’t even give a shit what that prize is. Because what we are doing to say, “Okay, this is a, this has this stomata is 70 pixels. This is 80. This one’s 100. This one’s 110, this one’s 60.” And what we’re looking at, first of all, we’re looking at stomatas that don’t have a perfectly round shape, first of all. That’s a first indicator that it could be a tetraploid. The problem is most of it falls in the 70 to 90 zone, okay? And so you know, you start to, so what we would do is we would use the microscope to get a bunch of the work done, and to measure and know. And then we would send all those samples to the lab and find out, yeah, that is not a tetraploid. That is maybe a tetraploid. That is a tetraploid. And then you know, then you get that data back and you start to say, “Okay, I can probably guarantee anything above these 90 pixels is a tetraploid.” But when you’re breeding and you don’t, you know, and you can’t get back the time that it takes. You want to know for sure. So you don’t waste six months on something that turns out, you’re wrong. And so, you get your tetraploid stock and then you start breeding with those plants. And I guess in layman’s terms, they have six sets of DNA. That’s why is it tetraploid, and then a diploid has two. And so, when you hybrid the two, six divided by two becomes three and that’s your triploid. And then those because of the three sets, DNA cannot make babies. Collect the donkey and the horse, make a mule, right? But then a mule can never replicate, the mules are optional.   Chip:  Oh, the mule cannabis, Justin Jones, we’re talking about genetics, random other thing, but mostly –   Justin:  Yeah, well, I finally got that –   Chip:  It’s all about the ganja.   Justin:  I finally got that ganja rolled up here for the Sunday morning smokedown but –   Chip:  Oh, what are you smoking? What are you smoking on?   Justin:  Sherbadough from Archive.   Chip:  Sherbadough, that’s Sherbert and Do-Si-Do, right?   Justin:  Yeah, you know, the boys are like, “I’d love to hit that, hit everything with the Do-Si-Do.”   Chip:  Oh, yeah. I just planted out a huge pheno selection of Archive Do-Si-Do crosses, Fletcher over there’s got always running some R&D. And he had a new Do-Si-Do male or a new Do-Si-Do donor he was using for his feminized line. And these guys, Sherbert Do-Si crossed with Do-Si-Do. Diesel, OG Face Off, T-1000, Tangie, Lemon G, Skittles all crossed  with the, that new Do-Si-Do donor. So we’re excited about it, they look great.    Justin:  That’s good. I’m sitting here, I’ve got, I’m talking about you know, breeding and hybrids. I’ve got a Gorilla Glue 4 here from Archive that I grew. And then I also have a Duct Tape, which is Gorilla Glue 4 divided by the Do-Si-Do. And so to see like just the pure Gorilla Glue 4, and then right next to it, you know, it’s sister, or, you know, half sister, whatever, whatever with the Do-Si-Do. They’re very similar, but yet very different on the terpene profile. That Do-Si-Do gives everything just a little something I don’t know, that’s more magical. It’s different, it’s better.   Chip: It’s bigger. It’s bigger, for sure. It is better. And yeah, I’m really excited about it, man. You know, we’ve planted out of 2,500 of those seeds, and I’m going to have an incredible Do-Si-Do out of it all. I’ll be able to pick the Do-Si-Do. And I’m looking for the hybrids too but, man, it’s exciting just to see it all. That’s for sure. Right now I like the Do-Si-Do Face Off and the Do-Si-Do SFP backcrosses the best. If you think about it, those are almost all just like BX backcrosses, because the Face Off is in the Do-Si-Do. And then cross it back to the Face Off and cross it back to the SFP.   Justin:  Well I’ll tell you what. The marijuana breeders right now need to get hip, start trying to work on protecting their IP if they have it. Because that’s going to be the next thing once we get some sort of federal legalization, and guys want to become the next Sierra Nevada of marijuana or the next Two Buck Chuck or whatever. People are going to start going to war over their genetics and I’ve even had conversations with some guys in California that already want to start working on a Mendocino hamlet. And you know, Humboldt hamlet –   Chip:  Yeah, the Appalachian, the Appalachian is definitely starting to grow in ideology. Yeah, you know, Calculator right now, famous MAC line. He is upset that clone dealers are dealing his MAC 1 strain. He claims just recently on his Instagram channel that he’s going after some major clone producers in California for selling his MAC 1. I don’t believe he really has any legs to stand on currently, because there’s not going to be a court that’s going to enforce it. And you know, also just because like he claims to own a plant, doesn’t mean he owns anything, right?   Justin: No and it’s going to come down to the processes too. And so, there’s a popular hemp breeder here in Oregon and they’ve already got that patents filed on a bunch of things. And one of their patent pendings is on crossing autoflower genetics into full term photo plants. And so, if that patent gets issued, anybody into choosing that process will have to pay them some money. Maybe, right? I mean, everything has to be, try to be enforced. But at the end of the day, they’re saying that they own the rights to cross a ruderalis with a, you know, cannabis sativa or whatever, and get that early hybrid.   Chip:  Yeah, this is Phylos. Phylos –    Justin:  No, no, it’s not that one. Were filed that is Oregon CBD.   Chip:  Oregon CBD. But Phylos, they have a couple similar, similar thing going on, right?   Justin:  Phylos has been collecting data on the different strains of cannabis and trying to relate them to each other to say, “Okay, you have a -“   Chip:  Oh, okay. So Phylos was not involved with the autoflower?   Justin:  Well, where they could become involved in is to who has the real, true, earliest version of a strain? And so there’s a, you know, let’s just say Jack Herer, okay it’s famous person and also a strain.   Chip:  Yep.   Justin:  If somebody wants to say, look, in order for you to say that that’s Jack Herer, it’s gotta A, be this, 123. This terpene profile stand, it’s got to be grown in Mendo or in this Hamlet, right? So they’ve done that with wine, obviously. If you grow your grapes in Washington, you can’t call it champagne. You gotta call it spark, white, sparkling, because it didn’t come from France. You’re gonna see that play out. Part of what Phylos is trying to do is they try to find those oldest, earliest grandparent genetics, or who’s  got the oldest clone that’s not, you know, whatever. We’ll see. We’ll see how, but there’s already people trying to patent. And I don’t think anybody’s trying to patent Sour Diesel, I think.   Chip:  Well, cause if you can patent cannabis sativa strains, you can patent hemp.   Justin:  They’re trying to patent the processes to feminize. So if you spray a certain type of silver on your plants, then to get a feminized pollen, and then you’re using that in your breeding, that that would be infringement on their IP. So again –   Chip:  Yeah, the plant’s gotta stand up in court and somebody has to enforce them and sure.   Justin:  Well sure, but I’m just saying that you know, hemp has become you know, fully legal before marijuana. It’s you’re seeing it already, the –   Chip:  Oh, there’s already a patent with hemp. There’s a hemp, or hemp people have already received patents for hemp, right?   Justin:  I believe so. I would say probably yes, but –   Chip:  Charles Webb. Those guys, they got a patent. They were the first people to get a patent.   Justin:  Probably.   Chip:  Yeah, totally. I’m sure others have by now. It’s a little weird thing to do, but yeah, go file for a patent if you think you got special shit. Then go sue everybody who uses your special shit without your permission. I guess that would do it, right? Mostly, I don’t really have special shit, though. It’s just normal weed that’s hype.   Justin:  Well, it comes down to this. The best advice I could give any of these breeders and I’m not a breeder, we’re messing around with some stuff for fun. And maybe it turns out to be something, you know –    Chip:  We’re messing around with stuff for fun. How many seeds you got in your seed vault right now? Can you count?   Justin:  I don’t know. A couple hundred, 300. You know, at the end of the day though, what I you know, the people that have been breeding in the marijuana side of things, you know, whether you’re the guys that wear the funny sunglasses and the fake mustaches at the Emerald cup, or not, because you’re trying to not necessarily be above you know, or be out in the public eye. You’ve gotta start getting into the science and you gotta team up with somebody with some sort of trust. Well, if you don’t go the bioscience routes, you’ll wake up and realize that the guys that did go that route, and jump you, and go five years ahead of you in a short amount of time. You can be scared of that, and I’ve seen them be scared of going that direction because of you know, just that Dr. Evil science side of things. But boy, a lot of knowledge out there that’s never been applied to cannabis from you know, from our modern world of agriculture. So yeah, find some science buddies if you’re out there breeding and, you know, try to figure out how to do all these things. Because even just getting your genetics into a tissue culture lab, you know, and having them clean them up and do all these things, that can take like up to a year.   Chip:  Yeah, no shit. Right.   Justin:  And so you can’t you know, if you wait too long, and then say, “Hey, we really do need to take this clone that we’ve been using forever and get it cleaned.” It takes a while. So in California, I think there’s a lot of bioscience companies and people are starting to jump in on the marijuana side of things. But until it’s federally legal, you really won’t get the doors opened all the way. But those who have already started something will be ahead.   Chip:  Well, it’s been another fine episode with Justin Jones. Thanks for joining us, Justin.   Justin:  Yeah, thank you, Chip. Great talking to you. We got off on some tangents there with the genetics and other things, but that was fun. And we’ll circle back and produce more sense of that some other day.   Chip:  Yeah, absolutely. If you’re like this episode, or interested in others, please download it at the iTunes. We are The Real Dirt podcast. Also look us up on Spotify, and you can check us out therealdirt.com Hey, remember, if you’re ever looking for soil or soilless growing mediums, check out growerscoco.com, ask for them in your local store. And if you’re cruising online one day interested in buying some hydroponic or indoor supplies, look at cultivatecolorado.com. This has been The Real Dirt. Love y’all.
39 minutes | 5 months ago
Revolutionizing Cannabis in Michigan
Six Labs isn’t just another cannabis cultivator. They’re aiming to be the next generation of cannabis. Joe Ori knew coming into cannabis in Michigan with no industry background was going to be difficult. He couldn’t just open up a shop with his name and get attention, he had to come up with a way to differentiate his business from others. So he created Six Labs. Joe and five other partners created Six Labs not to just participate in the booming cannabis industry in Michigan, but to bring the industry into the next generation. Six Lab’s business model was designed specifically to address the problems in the cannabis industry and to find solutions. Craft Cannabis in Michigan From the quality of their products to the transparency they give to consumers regarding their processes, Six Labs stands above the competition where transparency isn’t necessarily a requirement. In this week’s episode of The Real Dirt with Chip Baker, Chip talks with Joe about how he got into the cannabis industry and started Six Labs, the problems they aim to solve in Michigan and across the country, and what states are doing to hold themselves back from success in the industry. Learn more about Six Labs Follow Six Labs on Instagram Follow and Subscribe to The Real Dirt with Chip Baker Instagram Facebook Apple Podcasts Spotify Get great deals on grow gear CultivateColorado.com Instagram Facebook Transcript Chip: Welcome to another episode of The Real Dirt with Chip Baker. On today’s dirt, we have Joe Ori. He is founder of a cultivation facility in Michigan, Six Labs. Hey Joe, how’s it going?   Joe: Hi, Chip. Thanks for having me.   Chip: Oh, man, you’re currently speaking to me in my new podcast studio, we’re under construction. So listeners, forgive the poor sound quality. We’re fixing to turn this back into an awesome state of the art podcast facility to bring all of the great people like Joe and others to you. If you haven’t listened to any other Real Dirts, if this is your first one, please go to iTunes and Spotify and subscribe  The Real Dirt podcast. Man, I was really excited when you contacted us about chatting because you know, you’re an entrepreneur. My favorite subject is business. No matter if we’re talking sugarcane, or pecans, or ganja, my favorite subject. You’re in one of the hottest states right now, Michigan. Can you tell me a little bit about what’s going on in Michigan?   Joe: I don’t know, you know Chip, how much background you or your audience knows about it. But when we say that, we tell our investors that Michigan is a new market, they all kind of do their own research and say, “Well, it’s not really new.” They did have a medical program back in 2008, 2009, that was wrought with problems. It basically became a legalized black market, if you will. And so back in on 2016, 2017, the state looked at what they had and said, “We’ve got to revamp this thing.” And they rewrote the laws, and modernized them, if you will. I mean, it’s kind of crazy to call anything in the cannabis world “modernizing,” because it’s all relatively new. But they rewrote the laws, and opened it up to real businesses coming in. And so, when you said I’m a  founder, I’m a co-founder. I have five partners. And we saw an incredible opportunity to meet and have a substantial footprint in the state of Michigan. So it’s a relatively new market, when you look at it in perspective, and then we have a substantial lack of supply of pretty much every product. Very recently, the caregivers who were the effectively the market back in 2008, 2009, and up until 2016, 2017, were recently taken offline relative to certain products and their ability to sell to dispensary. So now there is an incredible lack of supply, and the prices are extremely, extremely high at the cultivation level, and they’re anticipated to be that way for a while. And obviously, the Coronavirus didn’t help some of the newly minted companies meaning ones that came online before us, or were planning to come online. Because construction stopped and everybody’s kind of halted. So, Michigan is going to have a pretty solid market for a few years, and then we’ll see which, what happens. You know, we’re trying to force the state to avoid the problems that Oregon ran into. And in Colorado with an oversupply of growers, and I think I know a little bit about you. I think you guys are in Oklahoma, and I’m very well aware of what you guys got going on there. I have a very good friend of mine who’s just started a company in Oklahoma. And you guys got thousands and thousands or whatever, six, 7000 licensed growers, and in all different sizes, I know that. But you know, that’s kind of the thing. Every state’s different. You don’t know what again, it’s like a box of chocolates.   Chip: Yeah. Oh, yeah. Michigan’s hot for a bunch of reasons. One, it has a historic cannabis presence. Historically, people have grown and consumed vast amounts of cannabis in Michigan, right?    Joe: Yeah.    Chip: There’s growers, and there’s growers in underground networks. And in states like that, they blossom a little bit differently than states that don’t have a cultural connection to cannabis. Ann Arbor and Detroit were huge hub spots for cannabis and hashish for 50 years.   Joe: Oh, yeah. I mean, there’s no shortage of people who are using and have been using for years and are fans of the of the product. Obviously, strangely enough, there’s quite a few municipalities that still haven’t opted in. I mean, when you look at the map of Michigan, and you start to pinpoint where you might open some retail stores, you’re really kind of limited in the sense that I think [inaudible 4:40] and don’t quote me, but it’s I’m pretty close, I’m sure. Like, I think there’s only about 138 municipalities that have opted in, to actually have retail stores. So you know –   Chip: These are counties?   Joe: Those are, those would be cities, municipalities. And the crazy thing is Detroit, itself. Detroit proper still hasn’t opted in for recreational cannabis. So you’re talking about a monstrous opportunity, once that does happen. And people are trying to forecast where it’s going to be in the next place it’s going to open, and there’s a lot of lobbying efforts going on. But when you get up in northern Michigan, yes, I do agree with you that there’s an incredible base of people that are fans and supportive of the plant, hopefully going to force the rest of the hands of the state to jump online, but it hasn’t been as easy as you might think.   Chip: Oh no, it’s not easy, man. It’s hard, it is absolutely hard. And, where it used to be maybe a little easier, the commercialization of it is definitely difficult.   Joe: It’s the craziest part of this business. I mean, we came in, and we said, “Okay.” We’re what we call early, late adapters, right? We didn’t come in in 2008, we don’t have a company that started in Colorado or California. But we said, “Let’s identify what’s wrong with the industry. Let’s identify problems, let’s solve problems.” So once we came together, and the group came together, rather organically. We had, we didn’t pick and parcel, we just were a group of guys who knew each other as through friendship or business. And we ended up having, an attorney myself, we had an accountant, we had a financier, we had a restaurateur who’s master of logistics. And we actually had a builder who oversaw the entire project. And those are the partners that came together. And then we had a younger partner, who is really, really passionate, embedded in the cannabis world. So with those six partners, hence the name Six Labs, we came together. And some people don’t understand the product, some people are really talented in business, and then other people are passionate know the product, but but don’t know how to sell it. So, you have a, we’re basically jelling those those processes together, just to make a, what I believe to be, the next generation cannabis company. Because everything that we do, from the minute that we started our project, has been geared towards solving problems. So we researched and we traveled throughout the country before we even met with the designer for our facility. Aand we said, “Okay, we like these things. These things seem to work, is there anything better in the industry right now?” Then we found all these other things that don’t work, and we went out and tried to solve those. So when we created our facility, we got some people in the state, were looking at us saying, “You guys are never going to make it, you spend too much money.” We could have built our facility for probably 6 million, and we would have had a great facility. We went out organically, raised money with former business associates, friends, family. And we built a $10 million plus facility that we basically said this, Chip. If the federal government gets involved in this in the next few years, and the FDA starts to place regulations, we said this, we don’t know what those regulations are going to be. Okay, we don’t. But we said this, “If we’re not passing after those regulations, then no one else is.” And that’s the only thing we could do to say that we were going to definitely make this next step whenever that comes. But yes, right now, there are a multitude of problems. I mean, you can talk about the ones that we have poked on, which is confusion and intimidation in the market, product quality, lack of consistency, perception, fact that there’s no brands. I mean, there’s no national brands. And then, what you have now is some of these companies that are in other states, because they can’t get licensed and it’s too much money to do it. They’re just buying labels in other states, but it doesn’t mean that it’s their cannabis. So one of the other thin we wanted to do is be transparent. We want, you don’t necessarily know where you’re getting your cannabis from, especially if it’s got some label on it from a company in California. And now they’re saying, “Well, we’re growing the same cannabis here.” And we wanted to basically give our consumers a seed to sale transparency, where they know everything about it, as much information as you possibly can give them, and educate them. So that they can make the best decisions for their medical, or their recreational needs. So, but, it’s an evolving market. It’s super exciting. That’s the best part about it is that it’s so new, it’s so young, and no one really knows where it’s going that you really, there’s no right or wrong answer.   Chip: Yup. It’s all just started. Yeah you know, Joe, interesting, I’m listening to your story, I realized you’re a hybrid cannabis entrepreneur. Almost all the cannabis entrepreneurs fall in about in three different kinds of areas. There are the growers or weed dealers that have been doing this forever, and so it’s natural progression, right? There are the investors, whether it’s family office, venture capitalists, that get approached by a grower, “Hey, one of these growers are drug dealers,” to fund their operation. And then there is the like, brother in law and family friend that get together, whether it’s smoking a joint on the back porch and say, “Oh, man, I think we can do this. We could throw our money together.” And the reason you’re a hybrid is because most of the like, brother in law investment type packages start off real small, and they don’t have this bigger picture, solving problems, this experience in business. It’s often their first business, they may be successful as dentists, or attorneys, or real estate, or something other like other, but haven’t had a vast entrepreneurial industry. And you’re a hybrid of the VC investment plan, but the brother in law, family investor, type of investment package.   Joe: I think that’s probably a fair assessment. And you know, I have my own personal journey with cannabis, I mean, I’ve played sports my whole life. And I knew early on that I wasn’t going to go to college unless somebody gave me money to go. So I worked really hard in school and played football and I went to college, and injured myself very severely in my freshman year and had my very first back surgery when I was 18 years old. I’m aging myself, Chip, this is back in 1988. And, I had my first back surgery, I got surgery, and I felt great afterwards, went right back to playing football. And I ended up re-injuring myself the following year. And then the year after that having a second surgery, and now this is 1990. I’m in New York City in college I go into Columbia University, and I’m in chronic pain. So what are these doctors doing? Well, this is the beginning of the opiate period, right?   Chip: No, you need the chronic, you need the chronic.   Joe: Right? So they’re feeding me opiates like they’re going out of style, and I’m really not feeling well. So I personally just stopped taking them, but I’m in chronic pain. And as I, I hate to say this about the Ivy League, but cannabis was available to me back in the 90s. And I started experimenting with it, and noticing that I was getting certain levels of pain relief that I said, “This is better than anything I’ve taken.” And alcohol only made your symptoms worse the next day because you were dehydrated, and you felt like shit. So I had my personal journey. And then as I grew,  I’ve looked at the NFL, I’ve looked at the sports leagues, I’ve got tons of friends who were former NFL players. And I have friends who work for the NFL, and I battled them all the time. I said, “How could you guys be especially after they got exposed? How could you guys be suspending these players for testing positive for cannabis? But yet the back door,  the back room and the athletic room, you guys are pounding opioids down these guys throats? They’re all ruining their careers, their lives are going under. And yet the hypocrisy continues.” So I had a personal pursuit when I, when cannabis wasn’t medically viable. I said,  “This is, this is, I want to get into this. I want to change the way the world perceives this.” Because it’s not what you know, I’m 50, I was raised by immigrant parents. They told me everything was dope, right? You know, everything was bad.    Chip: Yeah.    Joe: And so you grow up. And they’re like, so you grow up in this mentality where everybody who smokes cannabis in Michigan, or does anything, you’re all put in together, heroin users and cannabis users in my family were blocked the same, right? So I had a personal pursuit about this. And so it’s not just smoking a joint in the back room, but we did definitely look at it and say, “Okay, if we’re going to do this, we’re going to do it right. And the only way to do it right, at this stage in the game, how do we become different is to solve problems that are out there.” So that’s what we’re doing.    Chip: Man, I’m real interested in that. Because that’s, one of my business philosophies is answer questions, solve problems. How did you identify the initial problem? And what were some of the first ones that you realized, that you’d want to share with us?   Joe: In doing our R&D, we did exhaustive R&D. Everyone in the company was given specific tasks to figure out. And that went from the actual cannabis products that were out there, and from labeling, and how many were out there, what the users were feeling, how the medical patients were responding to certain, going to a dispensary, what their experiences were. All the way to the facility, and what kind of equipment you were using and what kind of logistics you had in place. So we said, we came up with a list. And the list started with like I said, the product, confusion and intimidation. I mean, so many products out there and you’re relying on a bud tender, right? And some of these bud tenders are awesome. And I’ve experienced them.   Chip: Yeah, most are just Burger King weed.   Joe: Correct. And so when you look at it like this, you’re saying, “Okay most of the states are medical,” right, Chip? And then some what, 11 or 12 are online is rec, but back then it was all medical. So you’re saying to yourself, “Okay, so not only you’re not getting a doctor script, but you’re actually going to the pharmacy and you’re not getting a pharmacist tell you what you should take, you’re getting a bud tender.” So we saw that that’s a problem inherent in the industry, and we’re aiming to solve that problem. We can’t require a curriculum for a bud tender just yet. But what we’re going to do, is we’re going to put everything on our label, we’re going to let everybody know what goes into it. We’re going to try as best we can with limited research and science that we have available to us to pinpoint what these particular products are expected to do for you. We’re going to try to control the dosage, and give a control,  product quality control, which leads into that issue. I mean, when you look at these states, Chip, and you see how it’s different. So many of the testing regulations are.    Chip: Oh, yeah, man. [inaudible 16:10].   Joe: You know, and look at it. Come on, I mean, and you’re looking at it, and you’re saying, “Okay, these are mostly put in by lobbyists.” And cannabis, these acceptable levels of toxicity should not be being decided by lobbyists, they should be being decided by science.   Chip: Oh yeah, absolutely. Oh, in Oklahoma, the pesticide levels just changed the acceptable levels increased went from 0.5 to 0.25.   Joe: So that’s a perfect example. So it’s been, it’s more, it’s been 0.5 for all that time. Now, it’s 0.25, and you know, what level is acceptable? And then you start to think this crazy thing, which is, especially for people who’ve been using cannabis for a long time well before legalization. You look and you see how challenging it is to get your cannabis in a controlled environment with experts and all the greatest equipment money can buy, to be as clean as it possibly can, and you still see levels of infiltrates, that you’re just like, “How the hell did this happen,” right? Well think about what’s in the black market products. And when you start to think about what’s in the products where people really have no concern or care, there’s no testing, you start to say to yourself, “What have I been ingesting for all these years? What is the cannabis user who still goes down the street to buy illegal cannabis or God forbid, buy an illegal vape cartridge? What are they getting?” So we’re trying to get a –   Chip: Totally unregulated, totally unregulated man. I think people use Raid for spider mites, and also the worst contaminants, mold, mildew, smoke, diesel fuel.   Joe: Jesus, I never heard that one, Chip. I gotta be honest with you. That’s crazy.   Chip: I’ve heard all kinds of stories, man.   Joe: Yeah, so I mean, and they’re real. So and then obviously, you got lack of consistency. You want to go into the store, and if you have, and you’re lucky enough to be in a state that has legalization, and you have a consistent provider through from seed to sale that you trust. You could go in there one day, though, and when you start getting into edibles, and you start getting into the levels of THC, and what’s actually, you’re being provided, you want to know, and rely on it in the sense of saying, “If I go to the pharmacy, and I get Tylenol, I know what I expect from Tylenol. It’s going to give me the same reaction every single time.” Well, we need to get to that place. There needs to be that kind of consistency. So we think that with all of these variables that are in place, we’re trying to do our own in house R&D, and trying to test and research what other entities, and what other countries for that matter, have done. And, we’re looking at it this way, Chip. I don’t know what your feeling is about this, and I’d be interested to hear it,  because I know you’re in the business, I know you’re a really bright guy. It’s like the United States is allowing all these other markets in other countries to take off. And it’s great that they’ve allowed the states to do this and bypass federal regulation. But really, what we’ve allowed to happen is we’ve allowed other countries to get behind the science first. And they’re way further along in getting to products that will actually be consistent and solve these, many of these issues that I brought to the table today. And I think that we are losing out. And, I don’t know what the trade agreements are going to be once this all becomes legalized, and whether they’re going to open up the floodgates to California and whatever they got going down in Mexico and other countries, but there’s going to be a drastic competition. I mean, if you don’t agree with this, I think cannabis is eventually going to be an ingredient rather than a product. I think it’s going to [inaudible 20:03]. Cannabis in Michigan.   Chip: I think it’s already started. Hemp industry already, already started that one for sure. It’s an interesting question, man. Interesting. You know, one of the many things that makes America great is pretty much anybody can come here. And in a brief period of time, overnight, in some states and cities, and sometimes a week, or 10 days, or maybe 30 days, you can set up any business in the United States. No matter if you live here, if you’re a resident here, if you own property here, all you have to do is have a passport, and some corporate documents, and anybody can open up the business here. So places like former Soviet Union, Russia, Israel, Amsterdam, England, all of these places have had these university sponsored researches for a long time.   Joe: Oh, I know.   Chip: GW Pharmaceuticals, they’ve been working out of Great Britain for 25, 30 years now. And man, the stuff coming out of Israel, and technology and gene development –   Joe: It’s incredible.   Chip: It is just incredible. And all those people are just going to come to the US and do business. And that’s what’s happened with GW Pharmaceuticals, is they just opened up patents in the US, or attempted to. So, yeah, we’re absolutely behind on the research, and the opportunity for a lot of American people. But the other opportunity is just this influx of new technology and ideas, and coming from the international research place, marketplace.   Joe: Yeah. I mean, listen, that’s something that nobody talks about enough. And I’m glad you touched on it, because not only is the United States passing up on the opportunity for this commodity, but they’re actually ignoring, the potential massive manufacturing opportunity that this product presents. AAnd the type of quality engineering that the United States could provide, if in fact, this was accepted nationally. And we were able to look at this as a completely separate industry of technology. I mean, you’re talking about the possibility of creating completely new, advanced machinery, advanced testing machines, all kinds of different products that would stimulate our economy in a significant enough way to matter. I look at all the loss opportunity, and I say where, you know, it’s almost amazing to just be in something where you’re literally like, “Okay, where’s this going to be in 10 years? And I’m going to be in it.” And that’s the other thing, too, is, I’ve had enough experience as an entrepreneur to know, listen, this isn’t going to be, we didn’t we didn’t get into this to pump and dump. You know, we got into this to do it the right way, 7 to 10 years is usually the amount of time that it takes to get this business to where we want it to be, to whether we actually say, “Are we, do we have a strong footprint in it? Or is it time to potentially exit?” But so we’re in it, we’re not, we have no plans of going anywhere, we’re going to grow the company. We have a lot, and you know one of the, I tell all of my partners all the time, one of the beautiful things about being in our 40s when we started this is that we know a lot of people, and we have a lot of contacts with business. And it was relatively, I hate to say this, relatively easy to raise. We raised  close to $14 or $15 million [inaudible 23:36], in both equity and financing, and it was relatively easy. But the problem is, is that we all had to step away to a certain degree from our other careers, and jump all in. And all of us are all in now. And things have changed since that happened, where now we’re all kind of getting in our lanes, and everybody is functioning like a company, rather than six guys who had a great idea and enough money to start it. So, those those types of changes can be can be cathartic at times, because some of us are friends with each other. And I see myself not talking to my friends that much, not because we have problems, but because we’re working together now. And socially, you just don’t want to go out with the same guy who you’re dealing with on a regular basis every day about trying to get a company off the ground. So –    Chip: Yeah, my feelings used to get hurt over that. But I realized that exact same thing. These people hear me all day long, they don’t want to hear me later on.   Joe: Yeah, well, you know, that’s true. It’s totally true. And my feelings have been hurt at times because a couple of my, the guys in it, one particular is a very close friend of mine. And you know, he and I really used play golf together. We don’t, of course we don’t play golf anymore at all, but we don’t really have our times together. And but I will say this, that part of entrepreneurship, and I know we’re gonna touch on some of that stuff, is that this particular venture was one that I have the most confidence in I’ve ever done for one reason, and one reason only is that the partners that you choose, sometimes they’re not the right people. For one reason is that they don’t have the same will, they don’t have the same [inaudible 24:18],    Chip: Right. You’re right.   Joe: I won’t, I will not, you know, the ability to pivot, the ability to take care of a problem. And when you say, I’ve got it covered, you don’t have to worry about it, that that guy’s got it covered. And my partners are incredible. I can’t say enough about them. They are salt of the earth guys who have an immense amount of success in other industries, and they literally dropped everything. And now they’re submerged in this, and they are just the type of guys who you never have to worry are going to get done what they say they’re going to get done. And that in and of itself, that could probably –   Chip: Oh, that’s great.   Joe: Yeah, that could turn a halfway good idea into something big. And we have what I believe to be much more than a halfway good idea.   Chip: Does everybody have a previous background of your six partners?   Joe: I’m gonna be honest with you, three of the six did and three of the six they had really no opinion one way or the other. But to be honest with you, those are the three guys who had no previous experience, Chip, they’re more over the top about their passion for it now than probably the other three.    Chip: Oh yeah, they’re new to it. It’s all new and exciting. It’s such an exciting plant business.    Joe: Correct, Chip. Cannabis in Michigan. Chip: There’s so many opportunities in it. And you mentioned this in the beginning that we were, this is all just starting, it’s all just fresh. And so many people think that cannabis industry is over. But man, it’s not. And you don’t have to have $12 million. I know people in Michigan that have started on $12,000, or $20,000. And they’re gonna do good. But this is a, it’s a great, I’m not going to call it a corporate strategy even though that’s exactly what it is. It’s just that you know, often has such bad connotations, but a really great strategy to come into the market strong, guy with a multi-year game plan not just to get rich quick. If you think you’re gonna get rich quick in the weed industry, it’s just not going to happen. My buddy Stacy Johnson over there at Harvest House in Colorado, and if you ever up in Colorado, you should really go check his place out in Crested Butte, and in Crested Butte, and in Nederland Harvest House. It’s all boutique quality cannabis. But he’s got a great phrase that’s, “getting rich quick since 1989.”    Joe: Well, if he started in 1989, then it’s a sort of an oxymoron, because it’s really, he’s not getting rich quick, but he probably made a couple of shekels. It’s funny, I made the statement not so long ago to I don’t remember who, but it might have been on a podcast, or might have been to one of our investors. And I said, “We aim to be the largest craft grow company in the United States, because we want to, we want to maintain that same boutique type of mentality and boutique approach to the quality. But we also recognize that in order to grow, you have to expand.” So rather than have 100,000, 200,000 square foot grow and just make what we deem to be Walmart weed. We and I hate to call it weed, but you know what I’m saying it doesn’t sound great calling it Walmart cannabis.   Chip: No, no, yeah, exactly. That’s such a good term for it.   Joe: Okay. So we yeah, so we want to create a craft boutique environment. And frankly, we want our consumer brand to be a lifestyle brand. We want to try, and branding is so difficult, because of the fact that you’re so limited on your commercialization of it. You can’t do it outside your state. There’s no national brands now. So trying to put your footprint in the ground in your state is hard enough. And then when you start to say, “Okay, once the floodgates are open, and this is allowed for interstate commerce,” because that looks like it might be happening out west. I don’t know if you’ve been reading but you know –    Chip: Oh yeah, I’ve got I’ve got some great friends involved with that. Justin Jones over there. He’s involved with it in Oregon, and we’ll see it happen there first.   Joe: Yeah. So I mean, one way or another, I was telling my partner’s the other day. I said, we applied for our recreational craft grow license in Illinois, which is an incredibly difficult license to obtain we’re actually going to –   Chip: Oh yeah. I lost 14 of those so far.   Joe: Well, yeah, that’s the other thing. You got to deal with losing, failing the test. And it’s tough for me because, I am somewhat of an academic and I’ve taken a lot of tests in my life. And as a trial attorney in my background, I don’t like to fail. You do all the things you can do, and it’s costly, man. I’ll tell you, the barrier century are incredible. I mean, you can spend, 100, 200, 300. I’ve got friends who spent $400,000 on their craft grow license in Illinois.    Chip: Oh yeah. I know.   Joe: And so, you look at a guy who says, “Hey, man, I’ve got, 6000 bucks for the filing fee,” or 2500 I guess for the social equity it was this time. “I’ve got $2500 for my license application, but who’s going to do it? How am I going to do it? Where am I getting the information? Where are the SOPs coming from?” And you’ve got, months and months of work with 20 people just to compete. So,  but I told my partners, I said, “If the interstate commerce pack flies up in Oregon to California, then I wonder if we can take a boat from Chicago’s Navy Pier, across the lake in Michigan, so that we can transport product back and forth, because we’re not contiguous with Michigan.” That’s the funny thing about Illinois is that you got to go through Indiana to get to Michigan, and Indiana will, hell will freeze over before Indiana becomes –   Chip: That’s what they’ve said about Georgia, but I’m applying for a license down there right now.   Joe: Yeah, that’s a good point, Chip. That’s a good point.   Chip: And Oklahoma used to be the worst place in the country to get caught. And now, I mean, oh man, Oklahoma is changing fast. They’ve got, it’s really kind of got a bad rap. Because the way that you perceived it from the outside, but the inner workings of it, and it’s got it. It has all the makings for progressive state man.   Joe: That’s really cool.   Chip: The social stuff that goes on here, the like, the multiple ethnicities that are here. I mean, you know, the LBGT community here, like, it’s just, you would not expect all of that.   Joe: Well, you got a lot of big college towns, too. I mean, people fail to realize that most college towns really do help. I mean, you know, as far –   Chip: Yeah, absolutely.   Joe: As far as, I think that that’s a big factor. I mean, you guys got two major universities out there with, couple tens of thousands of students, and those are, and then all the other universities in the various cities, and that really helps. I mean, I thought Oklahoma was underrated, in the sense of where it might be someday. And as I understand it, I mean, isn’t it like most of the people who have, everybody says, “Oh, Oklahoma saturated with growers,” and blah, blah, blah. But aren’t those a lot of small growers, you know? It’s not, you guys don’t have thousands of huge 50,000 square foot grow facilities, am I correct in that?   Chip: You know, you mentioned the, we call it the backpack laws, right? That they used to have in Michigan or California, where almost anybody could have a small grow with just a little bit of investment or a letter from their doctor, kind of the same things going on here in Oklahoma, but they just took they just took the veil off, right? Instead of saying, “Okay, it can be medical marijuana, and we’re not going to like, regulate the growing and the selling of it,” as most states have, it doesn’t introduce it, right? They used to jump right in. And that not allowed, because, I mean, it’s the exact same mechanism that happened in Michigan, Colorado, in California. It just started a little differently. You know, and yeah, bunch of out of state people would come here. I mean, I’m from around the state. You can still invest here being out of state, the number of people applying for licenses has slowed down. But yeah, man, they’re gonna have recreational cannabis here, Texas is right next door with 8 million people. I mean, this is really a great, great, great place to be for cannabusinesses.   Joe: Don’t you guys have something like 1500 dispensaries already? Is that true?   Chip: Man, I think it’s even more than that. In the cities, the interesting thing about it here is in Tulsa, Norman and Oklahoma City, there’s building and planting departments. So and that’s also where the concentration of the dispensaries are.   Joe: Gotcha.   Chip: So you see a lot of them that have signs that they haven’t been opened up because the city has just been so inundated with building and zoning issues.   Joe: And how are they taxing it?   Chip: Taxation’s great here, it’s just taxed half the retail sale.   Joe: And how high is that?   Chip: I think it’s 15%.   Joe: That’s great. Yeah, we’re, I think Michigan, we’re about 16%. You know, which then, you look at Illinois and Illinois is gonna, Illinois is one of the first states if not the only state that passed legalization by legislation rather than referendum. So, it was great because the law’s already written, they’re gonna have 500 maximum dispensaries, they’re gonna have x amount of grows, they’ve done the calculations. So in Illinois, you don’t have to be, you’re not going to have to be vertically integrated to survive.  Whereas many other states, you always want that. You always want your grow with the processing facility in five, six major dispensaries. In Illinois, you’re not really going to need that because there’s going to be a need for you no matter what, because they’ve already calculated it. And there’s only so many licenses that are going to be, they’re going to be awarded. But, on the flip side of that is the fact that like I said, the barriers to entry are ridiculous. The application process was ridiculous. And they came out with their dispensary awards last week that were supposed to come out in June, but because of the Coronavirus, that got delayed. There’s lawsuits alleging that the applications were not read fairly, there was supposed to be a social equity component to it. So you got a lot of points for social equity, so almost everybody has social equity. And then they had an additional five points for adding a veteran. Well, what some companies did, was went out and got a veteran. And here’s the caveat, they had to be 51% owners of the company. So there were, it turns out there were over 4000 applications for dispensaries in Illinois, over 4000 applications for 75 licenses. But you could apply an unlimited amount of licenses, one entity if you had the money. So 26 license applications, or applicants, I should say, tied for first place. But they had, they covered all 75 licenses because they applied for multiple license. It turns out that there were a bunch of other people who didn’t have a veteran who also got a perfect score. So they sued, because they basically said, spirit of this application process was for social equity. It wasn’t for veterans, it just got tagged on at the end. And someone figured out well, “Well, if I have a social equity who is a veteran, I’m going to get all 55 points.” And so they filed the lawsuit in federal court, I’m sorry, I think it’s actually in state court and file an injunction the state has holding off the lottery. Because they’re basically going to take the 26 ties, put them into a hat and all those 26 entities are going to get all 75 licenses. So point being those, people look at it and say, you know, it’s like playing lottery, because if you get this grow, and people are talking about the grow license, which is a craft grow 15,000 square foot under canopy maximum. And they’re saying those licenses alone are worth $10 million. So you know, yeah.   Chip: Oh my god, I got a 10,000 square foot California one that I feel like I’ve had $10 million in it.   Joe: That’s funny.   Chip: Oh, it did not really, but like, I gotta make the best of it. Thanks again for joining me with another fine episode of The Real Dirt podcast. If you enjoyed this episode and want to hear others, please download and subscribe The Real Dirt podcast on iTunes or Spotify. Please, please, please, please, please subscribe. Check us out on Instagram and comment on some of our posts so we can move forward there. And hey, man, thanks for lending me your time. I really appreciate it. Have an incredible rest of your day, this has been The Real Dirt.
50 minutes | 5 months ago
Cancer, Cannabis and Cultivation
It’s all too common for someone to enter the cannabis industry for personal or medical reasons. Jim Gerencser is one of them. Jim’s son Eric has had a rough battle with cancer throughout his entire life. From the time he was 8 until he was 18, Eric underwent regular brain scans to determine if the tumor in his brain would end up being fatal. After beating that cancer, another was found in his abdomen, and it was even more serious. But because they recognized Eric’s condition early, it was easier for doctors to find and eradicate the cancer before it grew to a dangerous level. This victory inspired Jim to create E.R.I.C., also known as Early Recognition Is Critical. The E.R.I.C. Program aims to educate people about the early recognition signs of various cancers so it can be fought before it spreads. And now Eric himself is a teacher to young students about how to take care of themselves. But cannabis was a major factor. Eric was on 9 drugs during his Chemotherapy treatments. With the help of legal cannabis oil, Eric was able to cut out 5 of those medications, down to 4 with the help of cannabis. That’s what inspired Jim to enter the cannabis industry. Jim meets Chip When Jim needed an expert to help him plan out what he wanted to achieve in the legal cannabis industry, Chip was the first name to come up among his friend and business circles. Once they connected, the rest was history. If you don’t get the vibe from their conversations, Jim and Chip have become great friends that are working together to change how cannabis consulting works. In Part 2 of their conversation, Jim and Chip talk about Eric and how E.R.I.C. got its start, how they started working together, the importance of R&D in cannabis cultivation plus some more in depth cannabis talk! Learn more about Early Recognition Is Critical (E.R.I.C.) Learn more about Greener Consulting Group Follow and Subscribe to The Real Dirt Podcast: Instagram Facebook Apple Podcasts Spotify Get great deals on grow gear: CultivateColorado.com Instagram Facebook Transcript Chip: And we’re back, Jim. Jim: Yeah. I love Cultivate. Chip: Oh man, I got a great crew.  Like, if there’s anything that I’m proud of,  it is my crew and how they work together, and work with other people, right? I have worked on that and we have cultivated that.  Jim: No pun intended. Chip: Yeah, I am most proud about that. I’m impressed with my whole crew, man. I’ve got maybe 30 people, not a bad apple among them. Any one of the people would sit down and chat with any of you about cannabis, or sports, or whatever you found common in your life. And they’re not arrogant or ego driven just you know, all really good, good people that support cannabis. Jim: So the way Chip proposes we’re added as Ganja U in Oklahoma and it’s summer solstice – Chip: That’s our nickname. That’s our nickname for our cannabis farm out here, Ganja U, because we just keep learning. Jim: So we’re out there, and we’re out there on the summer solstice and Chip’s whole crew from Cultivate Oklahoma shows up. So, Chip is an amazing, he’s not like a boss. He doesn’t boss people around. He’ll jump in there and do it first. And he’s a leader. So it’s been fun watching how you manage people. Chip. You’re totally a remote kind of guy, but you’re a hands-on person. But you can manage it remote, because you have a good team in place already. So yeah, give Cultivate a call. I’ve met half the crew, looking forward to meet the other half. I highly agree with what he says, he said that it’s a hell of a team. Call him up, man. So especially if you do it yourself, if you want to put together a little package which I’ve done in the past, a lot of times you got to go to three or four different stores. Cultivate will take care of it for you right there. So yeah, good stuff. Hey, the reason I’m into this is like I said – Chip: Yeah, let’s talk about ERIC. Let’s talk about ERIC. Jim: ERIC is a cancer prevention charity. I started it back in 2012. And Eric had gone through two brain tumors. One of them was a reoccurrence from a misdiagnosis. We brought him to the doctor when he was eight years old six times, and the doctor basically did everything but get him a CAT scan, calling it sinusitis. And I was bringing him to a buddy of mine, he’s a chiropractor, awesome, Ultimate Frisbee friend. His name is Dr. Scott, big shout out to him. But Dr. Scott was adjusting Eric just to help him feel better. And he said, “Why don’t you go get a CAT scan?” So CAT scan. Thirty minutes later, we’re sitting in the office, Eric’s got a big tumor in his head. It’s almost a golf ball size, because it was misdiagnosed for so long. So long story short, everything was good with that. Ten years later, he got full clearance on his brain tumor. Finally, from the time he was 8 to the time he was 18, he had to have annual scans that would basically be like a death scan. It was like, “Is it coming back or not?” Because we had already seen it come back. So when he was 18, he had full clearance. A month later, he had some weird, something going on with his abdomen, he couldn’t pee, went to the doctor. The poor kid had another type of cancer happening. And so at the age of 18, he goes in and starts chemotherapy. And at that time, I had a friend whose mom was going through Stage IV Non-Hodgkins lymphoma and Eric’s type of cancer he had this time was Non-Hodgkins Stage II. And ended up, her mom passed away the second day of Eric’s chemo. So we were blown away. We were fucked up, and we had no idea what we were gonna do. And we just knew we needed to support Eric, we need to take care of this. My friend’s name is Cassandra. And we needed to take care of Cassandra and Cassandra’s family and ended up starting a charity. And we didn’t know what we wanted to call it. But we knew one thing we wanted to do, was we wanted to make sure that we could introduce cancer symptoms earlier to people, because her mom had Stage IV, Eric had Stage II. Eric was still alive, her mom was not. So, we started coming up with names and I came up with “Early” and “Critical,” and my cousin came up with “Recognition Is.” So we came up with Early Recognition Is Critical based off E-R-I-C. So here we are, eight years later, 2020, ERIC has been teaching kids cancer symptom education. The hardest thing to do is go into schools anymore. So I am taking ERIC out of the youth space, and moving it into the adult space. And I’m going to be focusing on using fully extracted cannabis oil to fight cancer. So this is the official coming out party and I want to thank Chip for allowing me to do it. Chip: Yeah, man. Let’s fight cancer.  Jim: Let’s do it.  Chip: Hey, ’cause and one of my best friends named Greg, he’s says, “Fuck cancer!”  Jim: Fuck cancer! Chip: Right, Greg? Greg Davidson. Jim: Say it out loud. Chip: Fuck cancer! Alright, one, two three. Both: Fuck cancer! Chip: Fuck cancer. Jim: Yeah, say it again and keep saying it. And don’t be afraid to say the word cancer, because the way to beat it is to add “fuck” to it. Fuck cancer. So, right now we’re officially fighting cancer with cannabis. And if you have any questions call me direct. Hit me up on Facebook. I’m on Facebook, I’m on LinkedIn, I’m on Greener Consulting. You can find me, G-E-R-E-N-C-S-E-R. There’s not many of us around. So yeah, thanks, Chip. It feels good. I’ve had it in the closet for eight years. I’ve been wanting to merge the two forces together. I’ve been doing survivor stories for both sides of it. I’m just out doing survivor stories. So if you’re a survivor, hit us up. Go to our website, early recognition is critical. Tell us your story. Tell us if cannabis helps you save your life, or if it helps make skin cancer go away like it did me. I had a basal cell carcinoma on my arm. I went to a dispensary in Santa Cruz. I also own a professional Ultimate Frisbee team called the Dallas Roughnecks, and we’re big supporters of cannabis curing cancer, to be honest. And I had a spot on my arm and I used fully extracted cannabis oil, they refer to it as FECO oil. This FECO oil dissolved that cancer within two weeks, with no side effects whatsoever, and there’s absolutely no sign of it. So man, I am pumped about this, as you can tell. I’m ready to talk about it. We’re gonna fuck up some cancer. And we’re gonna – it all started right here on The Real Dirt. So there we go. Chip: So in the past, let’s talk about this early recognition portion of ERIC, and why that’s so important. Jim: So you know that the key to beating cancer is recognizing it early. I hear that all the time, but nobody really pushes it. If you have Stage IV, what that means is that the cancer has metastasized across your body. And it means that it’s moved from where it originally came in, which would be either your lymph nodes, or some of your more sensitive infected parts of your body, and then it starts spreading. And as it spreads, and if it gets up into your chest, that’s basically Stage IV. And it’s kind of what they used to refer to as a death sentence. Stage I means that they found it exactly where it started, and it’s contained in one specific area where they have multiple different ways to be able to treat it. Like you can do chemo, they can do radiation, they can do surgery. Eric’s Burkitt’s lymphoma, we did surgery, and then they also did chemo. So he went through a surgery, they did the biopsy, and then they also did chemotherapy. But Eric did cannabis the whole time he was doing this, and it allowed him to be able to continue eating. And when Eric came home from the hospital, this is really important. He was given nine prescriptions. And after he used cannabis oil, he was able to eliminate five of those. So a lot of the medicines are all these different – Jim: Wow man, five out of nine. Jim: Five, gone, off the list, do not need them anymore. They were basically drugs that were gonna make you feel not nauseated. And then you had to have, you have another pill that would make you feel not nauseated from the pill that makes you feel not nauseated. So that’s just a bunch of crap. And that’s what Health Camp Buddy’s all about. And so recognizing cancer symptoms early, we recognize it because Cassandra’s mom had Stage IV, Eric had Stage II, he’s still alive today. So I just did the math. And I started realizing that we could use Ultimate Frisbee as a way to teach people to speak up. I think “speak up” is our best message. One night, I woke up in the middle of the night. And I was like, “Speak up, tell someone.” And my friend was like, “What the hell’s going on?” I was like, “It’s all about speaking up. You can recognize it early. But if you don’t tell anybody, it’s nothing’s happening. You have to recognize it. And you also have to speak up.” Ultimate Frisbee is a great sport that I have been part of since I was 19. And part of Ultimate that’s cool is you call your own fouls, all the way up to the pro level, they have reps in the pros, but all the way up till that point, you call your own fouls. So you have to speak up. So we use these Ultimate Frisbee clinics, we would go into the schools, and we would work with 5 to 600 kids in one day, which is fun as hell but also tough as hell. And teach them to speak up if something’s wrong with your body. We simplified it down to giving them some really basic symptoms. Eric’s symptoms were headache and vomiting. You can have a headache, and headaches aren’t normal by the way. If you have a headache, something’s wrong. Go to get it checked out, and don’t just accept it as a headache. But then he had vomiting too, which was nausea and actually vomiting. And what was happening was his brain tumor was causing his blood fluid to not be able to drain, and the only way he could get it out was to throw it up. And it was vile basically coming out, and it’s not normal. So that is a cancer symptom. And also not being able to pee. Come on, you should be able to pee. You should be able to go to the number two, you should be able to use the bathroom without it hurting, without it being uncomfortable. So if it’s not, speak up. So that’s my ERIC speech. And like I said, early recognition is critical. That org, I’m really proud of it. It does save lives. I’ve had multiple people call me up saying that they’ve gone to the doctor because of what we’re doing. And they caught their cancer at Stage I. End of story. It works. Chip: Yeah, that’s dramatic, man. That is absolutely dramatic. Jim: So yeah, we’re, we’re loving it. And it’s cool. It’s really cool to be able to combine cannabis with it, because I know that that’s where I think I could do the best, do the most damage, save the most lives without pills. It’s kind of a concept I wanted to start, plants over pills. If you ever listened to an article on a commercial for like, anything but Viagra, they tell you all these symptoms. Yeah, you could take this pill for high cholesterol, but you might commit suicide and you’re definitely gonna probably have diarrhea, and you probably won’t sleep at night, and you’re not going to be hungry anymore. But good for you, you don’t have high cholesterol. But there’s other ways to do it. One way is to eat healthy. I’m probably not a great example of that. But –  Chip: We all struggle with that one, that’s for sure. No matter, the most healthy of us still have their issues. Jim: You’ve helped me out a lot there, Chip. You being a vegetarian definitely has made me aware of it. Chip: Man, and yet now you got the vegetarian chili going. Jim: How about that? Yeah. Chip: Yeah, let’s talk about your vegetarian chili recipe. Jim: You got to taste it man. So I start off with, I sauté garlic, onions, celery, carrots and bell peppers. And then I put it in a crock pot and add a bunch of beans, and a bunch of tomato sauce, and tomatoes, and a lot of spices, a lot of curcumin, and oleander, and a lot of parsley and paprika in there. And a lot of chili, I love chili pepper. And then I cook it for about three or four hours. And then I take about a quarter of it and I’d mix it up in my little bullet to get the consistency right. But I add a lot of bell peppers. I love jalapenos, basically throw anything I’ve got in the kitchen that’s a vegetable. I’ve had broccoli, I’ve had asparagus. It’s amazing, man. I make it every week. My daughter and wife hate beans, but they love the chili. Little do they know it’s like, 70% beans. So it’s all presentation I guess, right? Chip: Yeah, totally. Totally, all presentation. Jim: So what’s your recipe? Give us a recipe. Chip: Man well, okay, so my cheater recipe is with cans, right? I’ll just say the cheater recipe. Okay, so one can of chopped tomatoes, right? One small thing of tomato paste, two cans of beans of assorted – I like the chili beans that, I get the organic chili beans from our local store, can’t remember what brand it is. But they’ve got a couple of different types of beans in it. Onion, garlic, paprika, chili powder. Here’s where I got a little non-traditional for some people, or maybe so but like man, I put some powdered onion powder in it as well, right? Just like, gives it this boost of flavor. Even though we sauté actual onions. Then I take some oil, I sauté the onions and the garlic all together. Man sometimes I’ll put in like, a vegetarian sausage or impossible burger or something like that. We’ve got some like, mushroom type of burgers too. We’ll like, chop that up a little bit at that point. Jim: Is it possible that your favorite protein is that [inaudible 13:57]? Chip: No, no, no, I’m a cheap vegan, Jim, right? And I’m a vegan at heart, because I’m lactose intolerant. But I still like, love cheese pizza, I had it for dinner last night. Yeah. Right. And I’ll eat the cheap shit too, I’m not you know. Jim: If you’re hungry, you gotta eat. Chip: I’ll eat it all but like, I eat cheese pizza and I’m lactose intolerant. So like, I have to eat some lactose enzymes and, then I love butter, because I’m from the south and everything’s double butter, double sugar. But I eat fish man, I’m a fisherman. Now that I’m in Oklahoma, we buy fish. When I lived in California, I tried to catch most of my fish. We’ll eat fish like, four times, five times a week. Jim: What’s your favorite fish? Chip: You know, I have a few favorite fishes and favorite dish, favorite fish recipes. Black cod, which is a deep water cod. Its texture is just incredible. I think that’s what one of my favorite fish, right? If you get true Blackwater cod – Jim: Did you use to get that up in Northern California? Chip: Yeah, yeah, it comes out of Alaska. Jim: Oh hell yeah. Chip: And you can get it, you get it all over.  Jim: Do some people call that ling cod? Chip: Ling cod’s different. And ling cod,  they are cod, but you also catch them higher in like, 100 feet of water, 200 feet of water. Where like, the black cod they’re deep. And so the pressure of the water changes the consistency, their consistency, right?  Different fish, man. Great, great fish. If you’re ever in Denver, there is great, great sushi in Denver. And I know it’s totally environmentally inappropriate, but farm raised Croatian tuna, the Toro on this stuff is so good. And you can get it in a couple of restaurants in our area. Izakayaden is the one we go to. Otherwise mostly- Jim: You’re a big sushi guy though. Chip: I eat sushi for sure. But in Oklahoma, I haven’t really found the sushi spot. Jim: Yeah, there’s not one. Chip: I hear there is, actually. But I haven’t gone there yet. I mean, because most of the sushi is flown in overnight. So it’s all about your connection wherever you are. I love shrimp and lobster and crab, Dungeness crab and crab cakes. Jim: Stonecrab claws. Chip: Yeah, I’ll eat all of that. I mean, in the north coast up in Trinidad Westhaven like, we could fish for a lot of that stuff. Like the Dungeness crab, a great fishery for that up there. Tuna, cod, salmon. I mean, you go out and catch rockfish, and ling cod limit any single time you want to go out during the fishing season, you’ll probably  limit. Jim: What are we going to get to pass a joint again, man. Chip: Oh, well, I mean, I quit that a while ago. I don’t, and with the people you hang out with? I don’t know if I can smoke joints with you anymore. Jim: Oh. Chip: Jim is frequently trying to pass anybody who will look at him in the eyes a joint. Jim: That’s a bad habit. Chip: Compliment, compliment. No, it’s a compliment. I know. Well, I mean, I haven’t really spoke about COVID too terribly much on our podcast. I’ll say plandemic pandemic, it’s a storm in the horizon, and I’m trying to avoid it. I’m also a private pilot, and you see a thunderstorm, you avoid it. And there are limits that you should get to it close to it, there’s a reasonable limit for your plane size. 30 miles, I believe is what they say. That’s what I’m trying to do is just stay healthy, stay away. I’m not sure what all the facts are. I don’t think anyone knows what all the facts are. It just is such a new problem. Every day, people guess something different about it. Now, I just have had to turn my ears off a little bit. When we go into any store in Oklahoma, we mask up like everybody else, pretty much. There’s usually one or two people that don’t. And hey, whether regardless of what you believe, plandemic, pandemic, like I said. I mask up, man. I go in the store. I respect the other people around me, because I don’t want to cause them fear or harm. And it doesn’t have anything to do with being a sheep. It’s all about just respect for your neighbors, respect for your fellow humans, respect for the scenario and situation. right? Like, no conspiracy theory. It’s just, man, it’s just kind of how it is. You got to like, deal with it. Chip: Yeah, I think it’ll teach us all a lot of like, barriers and the space between each other in general, you know? It’s just like ,respect the boundaries, man. Everybody should have boundary, right? And everybody’s is different. So – Jim: Have you flown yet? Jim: You know, I haven’t, man. And that’s amazing, right? I’m a flyer and I have not, I just had a grandkid. He was born March 22nd. Can you believe this? Snoop Dogg for a grandpa? His initials are OG. I don’t think that was intentional. Knowing my son and daughter in law I’m pretty positive, that wasn’t intentional. And I only tried to pull the OG just enough to get the people that know what’s up. But yeah, but I’m proud. Chip: You are very Snoop Dogg. Do you listen to hip-hop? Jim: I don’t.  Chip: Do you rap at all? You don’t listen to any, no Snoop Dogg for you? Jim: No Snoop Dogg, man. Chip: It’s alright. We’re gonna get you to a Snoop Dogg playlist. Jim: You saw I have a record player. And I’ve got some rock and roll. I’m a Led Zeppelin, Led Zeppelin freak. I saw Led Zeppelin in 1977 in Fort Worth, Texas. Chip: God. Wow.  Jim: It was awesome. Holy shit. Chip: What size venue was that? Jim: It was like, maybe 17,000. Something like that. Yeah, it was awesome. And my brother stood in line and got in like multiple fights throughout the night, and got tickets. And somehow, my buddy and I got front row, first balcony, center. It was amazing. But I had smoked way too much weed. I think I smoked, I know we rolled like, 90 joints. I actually – Chip: What were you smoking? What were you smoking, do you remember that? Jim: Probably, it was good Mexican weed back then. II was always –  Chip: You were in Texas. Jim: I was in Texas, but I had connections. One of my best friends was a grower even back then. And he ended up growing, going to college at Texas A&M. And then he got a job at Teledyne, it was one of the [inaudible 21:16] out in California. And his job was to go check on the oil rig. So the first thing he did is start big farms by every oil rig. So he was growing killer weed in Southern California back in  I think, ’81.  So we were smoking Mexican weed, but we smoked 90 joints, man. And I ended up getting in trouble at football because like, I ended up having to quit football, because of the penalty that they put on me. Texas football. I missed one day of practice. Yeah. Now, granted, we did get caught – Chip: You gave up your football career to go to Led Zeppelin. Hey man, you had your priorities straight, bro. That was the smartest decision you ever made. If you have not done that, that would have shaped your life forever, and you wouldn’t have been who you are. Jim: I would have been three – Chip: You chose, oh, dude, you chose an experience that, you have told this experience 1000 a million times. It’s probably one of the most important things that’s ever happened to you. Jim: Yeah. It’s something that many people have done. Chip: That’s life, right? That’s how it turns, man. Jim: That’s what it’s about. It’s not about how much money you have in the bank, it’s how many stories and memories that you have. My lifestyle’s kind of based on time rich, we’re actually doing a movie. It’s called The Ultimate Charity. And it’s all about ERIC, and how we got so many eyes on ERIC so quick. And we started the ultimate frisbee team and they ended up winning the championship in 2016. And we went all over the world. I mean, ERIC’s actually right now in Colombia, Venezuela, Slovakia, Hungary, Germany, Italy. It’s all over the world, man. I’ve done an amazing job of blowing it up and not really even knowing it. And I think it’s just organic. I just kind of got out of the way, and started something really cool and run with it. So good stuff, Chip. This has been awesome, man. Chip: No, no, no, man. It’s great, dude. I’m glad we’ve been talking about this for a minute. And I want to do some other podcasts with you, too. Here’s the three podcasts, you guys. Here’s what me and Jim are going to do in the future. We’ve been talking about this for a minute, because we both really love business, and I analyze my business, and other people’s business, and help my friends with their businesses all the time. And we’re gonna analyze some sort of cannabis business on a podcast here soon, right? Yeah, totally, totally. And man, I started when I was young, Jim started when he was young. I’ve been doing this like, I’m 47 right now, Jim’s 65. Like we’ve been doing this ever – Jim: 60. Chip: 60. Hey, I was trying to give you more experience, bro. Not call you older. So you still can’t get the discount, then Jim: Oh, no people are discounted at 55 now, man. Chip: Oh, okay, good. Let’s go to Ryan’s and get some food.  Jim: That’s terrific. Hey Chip, that’s a freaking great idea. Chip: It’s a great idea, though, isn’t it? Yes, I should do that. Because we just both love to do that. That’s such a fun thing for us to do. People will learn about it. We’ll go over a whole PL, BL, we’ll just pick a cannabis business. Jim: Yeah. And if you want us to do your business, why don’t you send it in? We’ll start a little application process. Chip: Yeah, absolutely. That’s what we’ll do. If you have a cannabusiness with a PL BL, it doesn’t even have to be a current one. It could be last year’s. We need this. We need you to be sure of your numbers. We need, you’d have three years of these numbers. And you’d be willing to get on podcast with us and talk about it. And I mean, it’s simple. We’ve been in business for three years and been running some sort of financial management software. We use QuickBooks but whatever we’ll generate a PL and a BL for three years straight, so we can actually see what the business has been doing, and generate some good conversation. It’ll be fun. I really love to do this. I know businesspeople like, “Oh, PL, BL. No.” Jim: They don’t get it, we can talk – Chip: They don’t get it dude. Jim: We’ve done so much that a lot of people would love to hear. I used to do all my own taxes. I wouldn’t do them, I wouldn’t have my account layout five different scenarios of different cash flows, and different ways to spend money on some things. And we can all talk about a lot of fun things, and honestly, we could bring some specialists on. I’ve got a guy that’s a tax guy. Or we could bring in a, you know, specifically based off of what kind of company it is. Yeah, I love it. Chip: That sounds fun, man. We’ll do that. It’ll be a Greener Group Excess episode, we’ll start doing that.  Jim: Did you just think of that? Chip: It just came off. We’ve been talking about similar stuff. But like, I mean, we talk about it all the time. I mean, I deal with PL BL all the time. It’s how I run all of my businesses. And if you’re not running a profit and loss statement, or a balance and ledger statement on a monthly basis reconciling them, then you’re really missing out on understanding how your business works and being able to see where you can go with cash flow, where you can go with tax – Jim: How to anticipate things yeah, how to save money on tax. I’m a specialist at that. I understand cash flow. I understand cash basis versus accrual basis. I’ve converted, I think Jeff and I both have just recently converted from cash to accrual. That’s a big thing. It happens only if you hit a certain revenue amount, the IRS requires you to do it. Been there, done that. I survived, so we do it. I’ve started businesses left and right. Chip has had great exits. Hey, let’s  schedule that in. I’d look forward to- Chip: Yeah, man. We’ll have to schedule that in. Hey, let’s find somebody though. Hey, we’re reaching out. Any type of cannabis business, it doesn’t matter what you’re doing. From if you’re a class one or class three, if you’re a dispensary or an attorney, if you’re an ancillary company selling products to the cannabis industry, or if you’re in the cannabis industry extraction to hemp, anybody’s peel. But you have to have three years’ worth of reconcile, balance, ledgers, and profit, and loss statements. Jim: Hey, it’d be awesome if you have like an idea of where you wanted to go too. Like, what  we’re trying to help you with? Are you wanting to scale? Or you want to sell? Are you wanting to make more profit? Are you wanting to like, give us some ideas? And basically, we’ll suggest for you, but come up with an idea. Bring your company to the table. We’ll come up with the name of this probably next time we talk and smoke one. Chip: This is great. This is great, dude. I’m loving it. We might we got a whole ‘nother like, this is literally like, both of our like, I shouldn’t say hobbies, but we get excited about it. Jim: It is. I know [inaudible 28:21]. Do we not have anything else better to do than this? Chip: Yes. Like, I’m gonna find the 1%, I’m gonna find 1%. That’s often my motto is like, stack up the 1%, man and get 1% profit coming out of it. Jim: I’m always better helping other people than helping myself. I hate to say that. I don’t know what you call that. But it is what it is. Chip: Yeah, I’m similar. Jim: I think it’s called just giving. You know, when you’re a giver, you want to help other people, it’s almost a codependency. You want to help other people more than you want to help yourself. Even on the airplane, they tell you if we’re going down, put your own mask on first, that way you can help more people. It’s a good point.  Chip: It is a good point. Jim: But we’ve already done that, Chip. I think we both have our mask on already, you know what I mean? We’re very comfortable with each other and we’ve never brought up money. It’s never been like, it’s not like, we have to make money or we’re, I’m broke I need I’ve got – because money is one of those things. If you have too much or too little, you’re in trouble. There’s somewhere in between there that you’re comfortable. And I think both of us are comfortable. I think we’re comfortable in our skin. And a lot of times skin is green. It’s how much passion. Chip: Hey man, I spend all my money on weed and I always have, and I’ll probably always will. Any of my friends out there listening to me know what I mean about that. I’m either gonna invest it all into more businesses that are weed associated, hire more employees and I do whatever I want, but like I also work 10 hours a day. Jim: So Chip I used to always say back in the day it’s like, all my friends would say, “Why do you have weed?” I was like, “I always buy enough so I don’t run out.” And I always referenced, I could always turn weed into money, but I cannot always turn money into weed. Chip: Money into weed. That is very freak brother quote right there. Hey, let’s talk about weed, Jim. You were smoking some Humboldt, what do you mean by that? Is it indoor? It’s indoor? Jim: Yeah, indoor. I’m a big fan of indoor. Honestly, I got some fresh outdoor but in this greenhouse, but I guess I’ve learned from Chip, greenhouse weed is outdoor. I’m just not a fan of –  Chip: Even though they might call it indoor. Jim: They might, yeah. That’s the thing about the industry is we’re all outlaws and some people don’t care that much. So some people just make shit up and yes, but other people are really concerned about it. The genetics is really, so I’m a big fan of indoor. I like the flavor. I do a maintenance process. I smoke a lot of just, a couple hits here, a couple of hit there throughout the day, all day. And it allows me to relax. I don’t have to do any ADHD pills. I use cannabis to manage that. It’s called self-medication. And I’m a big, I have my medical cannabis card in California. So I’m legal. So if anybody’s wondering, I believe that this medical cannabis deal is a beautiful thing. I think there’s, how many states are legal right now, Chip? 33 or…? Chip: I mean, there’s more legal than not right now. Jim: We should celebration of like, a special little song. [inaudible 31:40] a cannabis song. Chip: Smoking weed makes me feel fine. Legalize another state. Jim: You gotta put an auto button for sure. Give your host a stop button too. Chip: Like a hook. Jim: What are you smoking, man? What are you smoking? Chip: I’m smoking right now, I’m fixing to roll up some Kush 19. It’s from our light depth here in Oklahoma. Jim: Hey, so one of our customers, we were meeting them, they hadn’t bought the business yet. I was looking at investing in it. We all took a break and we all rolled joints up. But Chip made a comment. Remember that you made a comment that, “Hey, this weed is from a buddy of mine.” Right? And the investor said, he told me off record, “I will never invest in somebody that doesn’t smoke their own – ”  Chip: Smoke their own weed. Jim: It was a really funny statement. So that’s kind of what we’re dealing with here, this guy – Chip: They’re nice people. They just didn’t understand what was going on. Jim: They did not get it. Chip: Like hey, Chip’s looking for the best weed in the world. He’s not ever gonna buy any of that shit. I was coming to see Jim, so I looked for the best weed I could find. And because man, I don’t have it all the time. And even though I’m smoking our own cultivated weed right now, in the other room I also have some variety of weed from [inaudible 33:26] Genetics, a local Oklahoma company. Man, I love their Grandpa’s Breath and their [inaudible 33:28], big up the jive. If you’re in Oklahoma, look for them at your local dispensary or come to Bakers Medical and ask for it there. They have great weed. Chip: I smoked it. I’ve smoked it for sure. Yeah, I just smoked a couple hits of that outdoor. The thing about indoor, it seems like the whole joint, you can taste the flavor of it. I guess is that’s the terpenes that you’re tasting or what is it? Chip: Oh, Jim. Man, you just got to get good outdoor, dude. It is the full flavor, like that really good, greenhouse, organic grown outdoor. That’s the flavor all the way down? Oh my god dude, it’s just so good, right? Jim: Prove it. Chip: Hey, I’ll tell you what, I got terpene tests that say that my outdoor here and my greenhouse does prove it. And it is higher than terpene test from indoors of the same strains, right? So we actually do have that proof. Man, the extract – Jim: What causes that? Does the heat bring up, do you think the heat causes, creates a – Chip: Man, especially in the greenhouse, it’s in this natural environment that’s still protected, right? And part of the terpenes and the secondary compounds are to like, fly off the plant and either act as an attractant, or repel pests, or be a memory to an animal that eats it. Right? It’s like, “Oh, don’t go near that funny smell and skunk weed, because we got high as fuck last time, we’ve had to eat the seeds out of it.” Right, that’s the initial purpose of it all. But then like, we’ve like, “Oh, I like the myrcene, I like the limonene, and breed that in there. And select for that. And that’s what we, as humans have done to increase it. So in a greenhouse, they’re contained, and they don’t blow off so much, but they still get the natural sun. But then you use a UV resistant plastic on top of it, that that pulls out a bunch of the UV.  And that whole accumulation of things, I believe makes greenhouse weed have the highest terpene. I mean, I’m not the only person saying it. I’m pretty sure it’s already been proven. Now, you cannot, you can get the worst terpene profile out of bad greenhouse operations, or bad genetics, right? ‘Cause that happens too. Jim: Okay, well I have to be more openminded. I’ll see – Chip: Hey, man, I’m not claiming to have great weed right now. And, we’ve been growing our outdoor for extraction. We’ve just pulled some, light depth is pretty good. But I’m just gonna say it’s pretty good. I got a high opinion of it all. And man, it was real rough here this year. It was wet, it was humid. At almost every harvest period we had throughout the summer, because we had multiple ones, whether it was auto flowers light depths, traditionally powered outdoor, it’s just been so wet, man. And – Jim: What you’re doing is people don’t, and a lot of people probably understand, that is much R&D that you do. Chip: Oh, it’s all R&D. Oh, yeah, totally. It’s all R&D. And that’s the beauty of Oklahoma is that we man, I mean, we’ve grown so many different weeds. Five or six different techniques, greenhouse, outdoor, clones of seeds, light depth, late season planting. I mean, we’ve planted 20,000 seeds this past year, kill off a bunch of seeds, threw a bunch of stuff away, extracted it all. And the point was, we’re looking for genetics that thrive here in Oklahoma, under several conditions. Light depth, early planting, light planting, full season, indoor, and that’s kind of part of it all. It’s just like, I am absolutely a shotgun approach guy to it, and just plant out shit ton as much as you can in Oklahoma. I’ve never been able to plant out this much. So we planted out more than we could control. Man, we’ve seen some great, great, great, great returns out of it. We’ve had some plants that didn’t survive at all. We had some auto flowers that didn’t work out at all. We had some auto flowers that worked out great. We’ve planted every single month, March, April, May, June, July, August, September. And it really, really learned a lot about what’s going on here. Jim: Bring up a couple of like, a couple of the obstacles that you did and how you pivoted, maybe an example of how – Chip: Well man, I’ll tell you that the biggest obstacle we had this year was material supply early in the season. COVID had hit in March, everything was fucking crazy. Looking back and oh it was just nuts, man. We’re gonna be feeling that PTSD for years. But couldn’t get materials, couldn’t get supplies. Everybody was weeks out of stuff. And so we had planned on putting 40,000 square feet of hoop, right? We got to 19,000 and I just couldn’t put up anymore. We had been delayed because of, and we had started in February putting this stuff up. We had a hard time getting employees, man. We had a hard time getting farmworkers. We had about 12 different people come out and the heat just crushed them. Because man, if you’re not used to working outside, the heat here in Oklahoma will crush you, right? Hands fucking down. And we’re even like, cautious about it all. But still, it’s a hard job, man. Jim: It’s farming. Chip: Yeah, it’s farming. We’re at the ranch. We’re not convenient to any of the big cities. We noticed this man, that many people wanted to come out and work, but they had childcare issues, right? Because their kids couldn’t go to school or couldn’t be under the assistance with their grandparents or whatever it normally had been. And we lost, a bunch of people just couldn’t hang with driving an hour or an hour and a half, and like, having to deal with their kids, right? The kids were I don’t know, just kid stuff, dude. Like, “Oh, babysitter didn’t work out. I’m not feeling good. Oh, you know, this, that, the other.” And because everybody’s kids are home, the normal daycare wasn’t working. We had a problem getting employees here. And I had planned on having six employees for 40,000 square feet of hoop, and 20,000 ish, well, 50,000 square feet of outdoor, that was my plan. That’s what we were prepared for. But we could only get two workers trained and kind of up to speed before like,  the season started. And at that point, I decided I wasn’t going to build any more greenhouses. We weren’t going to plan all the outdoor, and we went with just I think, 60,000 square feet, 20,000 square feet of outdoor, and then 19,000 square feet of greenhouse. And then we had another 20,000 square feet of shade out. So we just kind of left all that be. And three people, it was still too much for three people to handle. And that’s three people plus Jessica and me, my wife and me, when we could, when we weren’t working our other jobs, or doing podcasts. So labor was really a big, big problem for us this year. And it threw off my plan. And of course looking back on it, I should have done it differently. But I’ve always been able to get employees and get people to work. And usually, they stay for a long time. And it was just, it’s just been difficult this year, man. That’s been the biggest problem for me this year, was employees at the farm. Jim: Labor. Labor is tough right now, man. We’re dealing with that big time with our companies. Nobody wants to work. The government gave out. It’s really weird because in March – Chip: Well, it’s more complicated than nobody wants to work, that childcare issues that they deal. Jim: Yeah. Yeah, it is. Chip: Like, I’ve literally had employees, because we’re an essential business. We never stopped working Cultivate Colorado, Growers Coco never stopped working. And we’ve had some employees that have had to quit to take care of the kids. Jim: That’s sad. But it’s not it’s not the worst thing for the kids. The parents can deal with it. But I’ve heard there’s a lot of parents that aren’t dealing with it very well. I mean, I used to do those clinics at these schools. And what they actually did more than I’ve ever done is drink margaritas afterwards. It’s like, holy shit. That’s, it’s hard to be, teaching kids all day every day. And like, we didn’t have to go. We were like, grandparents. We didn’t have to go back the next day. And it was still not easy. But if you got kids, certain kids, I’m sure you don’t get along with everybody. And if you got to go back to the same environment every day, oh my god. More power to the teachers. They don’t make enough money. Chip: Oh, teachers. That’s the hardest job, man, that one. More power to you, man. It’s changing, this whole thing’s changing education, that’s for sure Jim: It’s got to be better. We got to get better at – you know what the cool thing about is, Chip? I think we can now we can spread our wings a little better and get the best teachers, and give them the best platform to teach more kids. Chip: Yeah. Oh, yeah, man. Jim: That’s what it all is. It’s like fucking, it’s opening up that opportunity. It’s like a, it’s a beautiful thing, really. Sad, but true. We should take advantage of it, because now Zoom, and dude. You called Zoom, I bought Zoom. Chip: I should have, oh man. That was a good call, wasn’t it? Jim: Chip, I sold most of mine and kept just 10 shares, but I’ve made so much money on that. And I had 50 shares based off of what you said, I bought it the day you said it. I said, “Wow, that’s it.” And that’s every day, people should have business partners like us. They could brainstorm for 10, 30 minutes, whatever it is, and little shit like that comes up. And so yeah, the idea,  I can’t wait for the next podcast, dude. Let’s schedule it. If you got a company that you’re interested in reviewing, be the first company. We could go, we don’t have to name your company. We can keep it generic, neutral. We can [inaudible 44:33] Chip: Well, you know, there is the thing is people are scared to talk about their numbers, often, right? You can be anonymous. Like, I was thinking about just pulling up one of my businesses from like, five years ago or something. I could probably feel comfortable talking about stuff from way back then. Jim: We would definitely do it anonymous. I mean, there’s no reason to, and we can even keep the owner’s name –  Chip: Unless you didn’t care. Unless you didn’t care. Jim: Yeah, maybe you just sold your business and it doesn’t matter. Or there’s something like you’re getting ready to sell it, and you want some help. We’re going to give you free help. I’m going to include my CFO, his name is John Beasley. I call them John 420. Have him help us out, let him evaluate it. And 420 John and I’ve got, we got Erin.  Chip: For all those who love the weed, roll it up and smoke it now. Jim: This has been really good chip. I hope we can – Chip: It’s been great man. Thanks for coming on. I know we kind of just started babbling here as soon as we started smoking weed. This Kush 19 is great, man. Oh,  it’s a novel kush, it’s 707 Kush seeds that we planted in 2019, sussed it out. This is really great, great kush variant for Oklahoma. Jim: What’s your dispensary called? Chip: Bakers Medical. It’s actually my wife’s dispensary. Yep, yep. Wife dispensary, Baker’s medical. She’s there every day, we sell clones. Jim: And healthcare insurance. Chip: And yeah, if you want a health care camp shirt, go to Baker’s Medical. This Kush 19 wow, it’s coming soon. This tastes good. It’s not great, though, man. It’s just good. Jim: Oh it’s just okay? Chip: It’s just good. I’m not, no, no, no, no, no, it’s good. It’s good. It’s good. It’s good. It might be okay weed, but it’s okay.  Jim: Better than okay? Chip: No, it is not okay okay. Okay okay? Okay no, okay okay. Jim: That’s okay good.  Chip: No, this is good. This is okay, good. This is good okay.  This is good okay. There we go. Okay okay, good okay, great okay. Jim: And that’s how it is.  Already scheduled for the day. Chip: Yeah. And man hey, I do have some great okay, dude. This Durbin Thai Highflyer. It’s a strain we grew 15, 20 years ago maybe? We got a cross that in this other seed 99 from Brothers Grimm seeds. Super up. Oh, awesome, awesome, awesome high. “Sativa” high. This Apollo 11 also from him, super, super, got really buzzy, electric weed, man.  I know you’re more of the medical medicinal side, but I really love that buzzy electric high man.  Jim: I need to try that more In the morning. Chip: Yeah, totally. Well, it’s been great having you Jim. Thanks a lot for joining us on The Real Dirt. Give me your contacts, how do people get in contact with you or want to hear more about your story? Jim: Best way to contact me is jim@timerichcbd.com Chip: There we go. And you’ve got some LinkedIn?  Jim: LinkedIn, Jim Gerencser. Facebook, private message me. Google Jim Gerencser, you’ll find me. Chip: You can check his bio out at greenerconsultinggroup.com. Jim: You’ll get Chip and I right now. At this stage, you get Chip and I, and all the introductory calls. So we’re excited to be talking to everybody. Have a good 420. Good deal, Chip. Awesome job. Chip: Yeah. Thanks for joining us. If you enjoyed this episode would like to listen to others, download The Real Dirt podcast on iTunes or Spotify. Hey, just subscribe. That’s the best thing that can happen to you and the best thing that can happen to us. But the more that people that listen, the bigger our network grows and the better this whole community gets. So once again, I really enjoyed this episode. I really enjoyed talking to you guys. And if you all do something for me this week, man is give a brother or sister a call randomly if you haven’t talked to them in a while. Give ’em a call. And just tell ’em that you love ’em and you wish you could burn a fat one with them. Thanks, this has been the real joing. Real joint. This is the real joint. This has been The Real Dirt. Thanks again. Jim: See y’all later. Have a great day. See ya, Chip.
41 minutes | 5 months ago
The Real Dirt on Cannabis Consultants [ PT. 1 ]
Got a grow problem? There’s a consultant for that! At least that’s what it seems like these days. The cannabis industry is inundated with consultants. From solving a pest problem to something as simple as picking out the proper nutrients for your first grow, people will hire a consultant for just about anything. It’s got a little bit to do with laziness and money, but more so a lack of knowledge about the plant. When a new commercial cannabis operator is handed a bunch of money by investors and told to be successful, that’s a lot of stress thrown onto a person’s shoulders. Especially if that person is inexperienced or has only grown on a smaller scale, they will need help. But just like any other industry, the cannabis industry has no shortage of snake oil salesman. These people call themselves “consultants”, but they usually just have one little trick or “bro-science” technique that worked a handful of times with their friends, so now they think they have the knowledge to tell others how to fix their problems. A New Type of Cannabis Consulting As the cannabis industry grows and the consulting market becomes more saturated, it has become easier to pick out the fake consultants and find the real experts. But the problem still remains; most of these experts only excel in one area. Whether its pest management, cultivation techniques, extraction technology, banking or security, it’s extremely rare to find a consultant with experience in all of the above. That’s why Chip and his good friend and business partner Jim Gerencser came up with Greener Consulting Group, a firm of cannabis consultants with dedicated areas of expertise. Traditionally, a consultant operates alone in a contractor capacity. But Greener Group has evolved the cannabis consultant, and turned it into a team that can solve any problem in-house. Greener Group aims to remove the hassle of searching the web and asking associates for consultant recommendations for every individual problem. No matter what the issue is, one or more of the consultants from Greener Consulting Group has the skills and industry experience to solve it, guaranteed. In Part One of this two-part episode, Chip and Jim dive into the real dirt of cannabis consulting and how dirty the industry really gets. Plus, hear about which states are doing regulation right and which got it completely wrong, and what the future holds for medical and legal cannabis states in the aftermath of COVID and plenty of classic ganja talk between a couple stoners. Roll up another one, sit back or get back in the grow, and enjoy this episode of The Real Dirt with Chip Baker! Connect with Greener Consulting Group Greener Group Facebook Greener Group LinkedIn Follow and Subscribe to The Real Dirt Podcast: Real Dirt Instagram Real Dirt Facebook Apple Podcasts Spotify Get great deals on grow gear: CultivateColorado.com Cultivate Instagram Cultivate Facebook Transcript Chip: Today on The Real Dirt, I have my good friend and partner. I mean, I’ve known you all this time and I can’t even pronounce your name correctly. Jim Gerencser. Jim: My first name is Jim. My last name is Hungarian. It’s Gerencser, the cs is a letter in Hungary. I learned that last year when I went to Budapest. Chip: Oh, that’s why I can’t pronounce it. Jim: That’s why you can’t pronounce it. Yeah, you only have 26 letters in your alphabet. They got like, 41 or something like that. But I’m glad to be her. Chip: I mean, thanks dude. Thanks for joining me. I’m glad we got you on. Me and Jim have been,  we got a bunch of projects the past year or so. We met through a group called Baby Bathwater. It’s a networking, marketing group, entrepreneur group. And we didn’t even meet there though. Did we? Jim: We didn’t even meet there. Chip: Yeah, yeah, yeah. Jim: I basically was on the island in Croatia, this private island for a week with all these,  150 people. I’ve met one of them before. And I probably became best friends with 30 of them. And I took over Chip’s job on the island. Chip: And with the Baby Bathwater. I’m usually – Jim: The cannabis – Chip: I roll it up. Yeah, I’m the cannabis guy. I roll it up. Jim: Yeah, they don’t have to hide that does that in Baby Bathwater. They outsource it to Chip. When Chip wasn’t there, it was a break in the supply chain. And, I started two days before I got there trying to create the supply chain. So they probably figured I was the best guy to keep it rolling. Honestly, I’m pretty good at that. Chip: Yeah, absolutely. So the story I hear is after this event, it’s basically like a five-day crash course in advanced entrepreneurism and marketing, mixed with five days of long nights. It’s a pretty incredible place. But after the fact, a couple of days after it came, people called me up and he’s like, “Oh, man, you’ve got to meet Jim. Oh, you got to meet Jim.” Two different people like, sent us friend emails, right? You know, “Chip, meet Jim. Jim meet Chip.” Jim: That’s the cool thing about the group. Yeah, they kind of mix and match you a little bit and then try to find either like-minded, or opposite-minded people that seem to get along. And honestly, they nailed this one. Chip: Oh dude, me and Jim get along so well. You’re kind of like an evil older brother. Jim: Yeah, I’m an evil older brother, but also with the cousin side to it. You know like, you got your cousin that you believe in 100%, because you have to, right? I mean, you’re in there. You’re messing with your parents and your parents are, came from the same family, you know? So it’s not like, you can trick them. Like, you can trick fuck everybody else. So yeah, you learn a lot from cousins. And I only had one brother. I didn’t have any younger brothers. So I think Chip and I have a love hate relationship in terms of we love a lot of things together. And we don’t hate anything, really. I mean, that’s the neatest part about us. We’re not haters. Chip: Oh, yeah man. Not haters at all. Jim: We don’t spend lot of time even going there. And anybody that has any of that in them doesn’t seem like they are allowed in what we’re doing. So it’s that simple, which is pretty awesome. Chip : Well, yeah, hate’s a kind of a natural thing people have. I’ve really have had to work it, work with it. Coming from the south, Southerners are typically like, haters of things, right? That’s not Southern. Jim: That’s sort of default. Chip: Right? Jim: Yeah. Chip: Yeah, that’s their default for good or for bad. It creates a lot of interesting cultural things, that’s good for it. I generally try not to prejudge or, hate, I’ve had to work on it. I’ve had to work on it. Jim: I think Chip, that’s a good point.  I believe that this entrepreneur group that we met through is a group that works on stuff, and you see that. And when I was there, one of the shows I went to, I think it was a marketing guy that runs all the advertising for Peloton. He started off the conversation with, “Who here is an entrepreneur?” Everybody raised their hand, so it was kind of humbling in the fact that, you brought that many entrepreneurs together. And we were all there to learn more. It was like, yeah, we’re entrepreneurs, but we’re thriving, we thrive for more information. And we’re all there together, not competing. We all could probably be in the same industry, because everybody’s fighting for the almighty dollar, in one way or another. But yeah, well that’s what I liked about it most. And afterwards when I sought out my cannabis, because I’m a medical cannabis guy, I’ve seen cannabis work for curing cancer and fighting cancer and making cancer cells commit suicide. So, my whole goal in this cannabis space was to meet somebody that I think can help me get to that space faster. Chip: So Jim calls me, to the listeners of the podcast, I’m a very friendly person, but I’m very busy. And I have a lot of different projects. And I don’t really take meetings with people I don’t know. I communicate with people over the phone, or try to email back and forth with people in tool, like there’s a reason to me, and this is all pre-COVID, too. So it was back to my old MO of like, “Hey, would love to chat with you. Let’s get on the phone.” Right? Like, “What do you want?” on an email. And Jim wouldn’t be straight with me. He was like, “Well, I’d rather just come and see. You know, so I keep blowing Jim off. And then one day, he just showed up, right? Just like that. He’s like, “I’m coming tomorrow. I’ll be there at noon.” Jim: I’m “the shorter the notice, the better” kind of guy. Chip: Yeah, right. Yeah. He’s like a bill collector. You’re like a bill collector. Jim: You don’t tell him you’re coming. Yeah. Chip: Right. So Jim shows up, we meet, we hit it off immediately. Jim smoked more weed than I do. He immediately had some great, great weed. We smoked like, 10 joints in my store, before it was a store, I just rented the facility, my grow store, Cultivate. I just rented the facility. It was empty warehouse and we smoked it out, dreamed of what to be, huh Jim? Jim: Yeah, I was looking for, I don’t know what I was looking for, Chip. I was looking for somebody like you. I didn’t – Chip: You wanted to get into the cannabis industry. Jim: I did. I wanted to be – Chip: You’re a successful businessperson. And you wanted to get in the cannabis industry and didn’t quite know how, but love weed. Jim: That’s it. That’s it, I saw all the things happening. I’ve got a bunch of my friends that are either retired or getting ready to retire. Half of them have never smoked a joint in their life, but they know that I have partaken my whole life. So they were reaching out to me like, “What do we do? Who do we invest in? How do we get into the space?” And I was like, “I don’t know. Let me find out.” So I started digging into it and honestly felt like I’ve gone through like a four-year education class in the last 12 months with Chip, because Chip is one of those guys that actually knows business, which I immediately realized that. I was like, “This guy is actually a business guy. And he’s in the cannabis space.” Because what I had experienced on a small scale was that you’re either one of the other. Like, most engineers don’t sell, you know what I mean? And that’s kind of what I consider like oil and water. You’re either an engineer, or you’re a salesperson, no way in hell you’re both. To actually make a certain person that can talk to both people, because they call it a liaison, because they can’t even talk to each other, they’re so far apart. So that’s what I really wanted to do in this space, is learn as much as I possibly could. There’s so much to learn about it, and what I ran into was a [inaudible 8:02]. Chip introduced me to so much crap I don’t even care about, but I was interested in it. I wanted to learn as much as I can and not that I’m a huge education freak, but this space intrigues me. So here we are a year later, we’ve run multiple different deals together. I’ve invested in some of his businesses, he’s given me some direction on some other businesses to invest in or not to invest in, which is probably the most important thing, what not to invest in. You got to – Chip: Yeah, when to say no. Jim: When to say no, you got to love what you’re doing, and I did love it. And like I said, now I’ve run the course of a year of investing, finding out that yeah, everybody in the space is cool, but I’m not sure I love everybody in the space. I don’t hate anybody, but I’m not sure I love everybody. Chip: Well, many people just, they’re on a wing and a prayer, or they have like this idea, or this thing they want to do, and it might not have anything to do with the business of cannabis actually making a profit, which can be cool, man, right? Like those guys that are doing RSO for a penny a gram. Man, coolest thing possible right? But it’s a nonprofit business in the truest sense. Jim: It really is. They don’t even let you expense your labor. What the hell, man? I mean, what kind of business,  it’s just such a federal, this is a federal fucking. it’s literally at the point, it sets a epitome of getting fucked. Chip: Right, right. And Jim, speaking of the taxes, the 280 East Tax System. And basically, we in the cannabis industry get taxed at gross profit instead of net profit. And you guys can all go look that up, but it’s basically profit before expenses as gross profit. And cannabis industry generally can’t take off. Expenses only cost a good soul. Jim: Which is ridiculous. So everyone is forced to kind of you know, still remain outlaws, right? I mean, we’ve talked about that from the beginning, Chip, we’re guaranteed outlaws. I mean, we were forced into it. We’re at different levels, but we’re definitely considered, you definitely would look at stuff out of the dictionary, and you would see pictures of us as an outlaw. Sure, no doubt. Chip: Not criminals. Jim: Not criminal. Chip: But outside the law. Jim: We’re forced to be outside the law. Chip: Yeah, forced. Forced, not even like by choice. It’s like, oh, man, we can’t have normal banking. And since then, like Jim said, we’ve set up several cannabis businesses together and joined some other businesses. I previously had a hemp seed distribution company, that was more of just like a brokerage. We’ve taken that and we’re turned it into certified seeds. And we’ll launch that later on this year. It’ll be an online marketplace for certified hemp seeds. Jim: The one stop shop. Chip: One stop shop, multiple vendors. We’re not making any of the seeds. They’re all from the highest and most reputable vendors in the country associated with this. Jim: Yeah so we started, we spent our time going through it, sure we have the best vendors instead of trying to grow the best seed. Chip: Yeah, exactly. So we’ve gotten a bank account for that and how long did that take? Jim: It took six months. Chip: It took six months to get a bank account. Jim: For hemp seeds, hemp seeds. And by the way, they’re legal. Interesting thing. And that’s what, this brought us to our most recent venture, right, Chip? I mean – Chip: Oh, yeah, yeah, Greener Group. Jim: Greener Group, yeah. Chip: Greener Group. Jim: Something I think that we’re both more excited about than anything else that we’ve got going. I mean, in terms of our deals, Chip has a lot of stuff going on, and so do I individually. But together, Greener Group is our baby. We’re nurturing it to a point, we’re still trying to figure out how to deal with, what space but we’re kind of dialing it in. Chip: Just totally hit the ground running, that’s for sure, man. So you can check it out at greenerconsultinggroup.com. It’s a new website, you might have to like, look for it a little bit. You can find us on LinkedIn, on well, Facebook’s already kicked us out, but Instagram. What I realized was for years, people have been asking me for consulting, and I’ve done it sparingly over time. A big part of it was because I’ve just got so many other businesses, it’s hard to like, dedicate the time to somebody when they need to solve a cultivation problem. So over the years, we developed a lot of technical consultation that was just free of service at Cultivate Colorado, and it still remains true, right? If you want to light design or dehumidifier design, you just tell us the square footage and we’ll tell you immediately how many lights or dehumidifiers you need. I’ve shied away from all the other consultation, but what I realized was Jim had this really great business in the automotive industry. And one of the things that I really consider one of my assets, I look at what everybody’s doing, and I try to bring in great stuff from it. And Jim has this great business that he operates nationally. And I thought to myself, “Man, this is a great way to do this with cannabis as well.” Jim, tell me about Nationwide. Jim: Yes, so what we do is we manage vendors across the country for recalls before they get to the dealer. So auto manufacturer – Chip: Automobile recalls. Jim: Automobile recalls. So a car that normally gets sold at a dealer has a recall, you go back to the dealer, they fix it. What we do is we manage these projects for the cars that have not been sold to the dealers, and they’re normally by the thousands. We go out there and bring whatever crews necessary. So they might need engines replaced, or they might need a light bulb replaced. So you don’t have the same people doing it. So I don’t hire these people until I need them. And when Chip was telling me he’s got this database of consultants that do from seed to sale, I was like, “Why don’t we just incorporate that into what we’re doing at Nationwide, and manage these vendors on an as needed basis?” Chip: Yeah, Jim started like, listening to my phone calls basically. I was, you know, are hearing me complain about or talk or about like, my life or schedule, and he realized this, right? He was like, “Wow, man, your network is incredible.” I mean, I think you were the first person to really bring it up, Jimmy. Jim: Yeah, well, everybody else has took it for granted. Because Chip, they don’t want to tell you anything, because they wanted you to keep giving them free information for the rest of their life. And that’s my biggest challenge is to get you to quit, we don’t want to quit giving free information, but we got to draw the line somewhere, right? It’s a bit, people take advantage of it. And well – Chip: I definitely agree with that. But I’ll also say that by my unconditional giving, it’s brought me my network that I have. Jim: I agree. Chip: And what you have made me understand is there is a way that we can make business out of this information, and I’ll still be able to unconditionally give. Because like this podcast, we unconditionally give to people, right? Like yeah, I do this podcast to lead gen for all my other businesses and tell you about cultivatecolorado.com, and tell you about cultivateokc.com, and tell you about growerscoco.com, all my potting soil, and now Growers, and now Greener Group, too. We’re telling you about Greener Group but really like, I started this podcast because I wanted good information to go out to people about ganja, hemp, medical marijuana. I don’t use the laws, destroy the misconceptions and myths. And that’s all unconditional, mind conditional giving on the spot. Jim: It’s a show of your unconditional love for the for the cannabis plant. I’s simple as getting people educated. I didn’t know that cannabis was both hemp and marijuana. It’s a very simple thing, but I’ve been around it my whole life, didn’t know that. Basically starting with that, it makes you realize that all these things, hemp is legal. It’s the same plant as cannabis as marijuana, or high THC cannabis is what they refer to it as, and low THC cannabis is hemp. One’s legal, one’s not, what the hell, man? So I want to talk a little bit about my project I’ve got going right now that we’re working through your grow in Oklahoma. Chip: Yeah, yeah, yeah, let’s talk about The Health Camp and Eric and all of that. Jim: Yeah, The Health Camp is one of the big projects that I’ve got going right now. It’s an app that’s going all out. One of the programs I’m working with currently, it’s called Cannabis Oil Success Stories. And it’s 175,000 people on a Facebook private group that share these stories about how cannabis has helped them fight cancer. And I’ve been looking at this page for a year and a half or two years. And when I met Chip, my intention was to make the best oil and share it with everybody. But then I realized that there’s a lot of good oils out there, and that I could probably be better spent using my passion to create a place to have everybody share their information. And then we can go through, and aggregate the data, and be able to find out the best way to use what product on what cancer for what type of person, and be able to get that information to the general public. Right now, it’s kind of hidden. It’s there, but it’s hidden. So I’m creating an app called Health Camp Buddy. Health Camp has THC in it. And it starts with the word Health, heal. Heal is a really big part of our world. And we’re creating this app, it’s a social media type of crowdsourcing platform that allows people that have used cannabis successfully, to be able to enter their information and we’ll aggregate it into a result that will be able to give a person that’s dealing with cancer the information easily generated for them. So they can either have access to the oil, and know what kind of oil to get, what oils work best for what type of cancers, certain body types work better with different types of FECO oils. We’re talking about fully extracted cannabis oil is what I’m focusing on. There’s a lot of other things that you can put with it, but I think my reason I’m on earth is to be able to focus on the FECO oil itself. So I’m going to be giving this app together, we’ve actually got phase one done. I expect it to be completely finished within the next month. I’m excited as hell about it. I think it’s going to save lives. It’s all ties to this charity that I run, it’s called Early Recognition is Critical. I want to talk to about my son, I could talk about Eric forever. He’s an awesome kid. He’s a three time cancer survivor since he was age eight. And anybody that has kids can relate to the fact of being a parent and being a caretaker of an eight year old son that’s very athletic and loving, and dealing with this kind of shit. So I’ve been dealing with it my whole life. I’m trying to give back. I believe cancer fights cancer, naturally. I don’t think that chemo is the, if it takes chemo, do chemo but also use cannabis. That’s my – Chip: Oh, absolutely, man. Absolutely, Jim: So it’s been awesome. Chip’s got a lot of experience with a lot of people. I’m using his network. We’re growing some marijuana in Oklahoma specifically to be able to be made into the best FECO oil, and different types of strains because each strain is different. I mean,  you want indica for cancer, if you’re fighting cancer you don’t use CBD. You might use CBG,  you might use CBA, but you need THC. And you need high THC indica, which is a very sedative cannabis compared to the sativa, which is a little more of a head high. It’s more medicinal, yeah kicks your ass. When you’re sick, you need to rest. So yeah, that’s what I got going on. And with the help of what Chip’s got going on, we’re working together to, we give back. It’s one thing that I love about Chip is the first day we talked about the Eric Charity and Chip wanted to, I could see in his eyes, he was a giver. And I learned at a late age that you giving back feels really good. I was selfish I guess, growing up. I’m a unique individual, I actually got divorced 12 years ago, and I’m back with my ex-wife so I don’t give up easy. So beware. Chip: Alright, let’s not turn this into tilling the ball now. Come on, this is The Real Dirt podcast about cannabis, mostly. Jim: Let’s do it. Alright, I’ll smoke it. Chip: What are you smoking on today, Jim? Jim: Some Humboldt. The same. Chip: Oh, okay. Yeah, I got you. I’m on the porch this morning, this is a Friday morning porch session. And we got a tractor driving by. Jim: Chip’s got the best porch, on the best thousand foot view in Oklahoma. Chip: We’re a thousand foot high here in Oklahoma. Jim: The weed is just okay, basically. So Chip: t’s okay, kush okay. Yeah, Oklahoma has been a really great place for growing ganja. I mean, it has its set of circumstantial issues. But every place does, and yeah, Northern California has the best climate, when the climates right there to any place in the world probably. South Africa aand here also has similar type of climate. Maybe Argentina. Jim: Is that the same longitude, latitude? I mean – Chip: It is, except those on the southern hemisphere. And but it’s similar coastal mountain type environment.  Lots of indicator species, and wine, and grapes. And that’s kind of how I relate it, but hey, look. In Northern California in Oregon, the West Coast man, forest fires, dude. Jim: Oh my god. Chip: Right? Like, devastating the smoke. And like, sometimes it’s okay, but other times, it’s just totally ruined. And even if you don’t get burned out, it can be difficult there too. And last year here in Oklahoma, it was just hot, dry and windy. And this year, it hasn’t been as hot. But it’s definitely been more humid and with less wind. It’s definitely has its challenges, and we have been challenged, you know what I mean? We keep pushing the envelope, and COVID, and the employment shortage, all that caused us problems. I mean, I’ve been doing this my whole life. There’s no sure homeruns. Jim: That’s why if anybody needs any help in Oklahoma specifically or Colorado or California, Chip’s the guy. He’s already been there, done that. He’ll wear a suit coat, I think. I probably won’t. Chip: A suit coat. Man, I look fresh and clean. Jim, however, he’s gonna come right off the frisbee golf course, and pull off his visor, right? And go into the board meeting. Jim: You may be right. Maybe that would be [inaudible 23:41]. But yeah, so we got a killer deal work – Chip: Hey, Greener Group, man I mean, yeah. Yeah, let’s talk about Greener Group. Jim: Let’s talk about Greener Group, yeah. Chip: So what we’ve done is we have compiled a large group of experts in the field of cannabis that are already working as consultants in the cannabis space. And here’s what we realized, is even the best of the people, they started out just being best in their fields, right? And they know how to grow cannabis and scale it, or they know how to do financial assessments of cannabis businesses, or they know how to operate cannabis businesses. And they kind of just got like, through opportunity. They got moved in the consultant space, which is more of an entrepreneurial space, right? But in their heart, they’re tradesmen and experts in their exact field. And they have a hard time running business, because business is hard to run. So what we’ve done is we’ve aligned these guys, right? Right now, we’ve got 12 people that are official lead consultants for us. But I mean, the network is endless. If you call us in any state, pretty much I’ve got someone close to you that we can work with. We’ve built this network of consultants now. You call us up, we have a conversation about what your problems are, what your goals are, what you want to solve, whether you’re buying a cannabis business, or you’re building a cannabis business. Jim: Or you want to invest in a cannabis business, Chip: You want to invest in a cannabis business. I mean, we’ve talked to all of those types of people. We’ve talked to government agents, we’ve talked to investment groups, Jim: Money laundering specialists. Chip: Money, yeah, I hate that term. So deceiving, but it’s bank relationship specialist, we’ll just go ahead and explain that right now, so we don’t get off topic. Which is, hey man, if you are a bank, and you want to open a business to cannabis people, you have to do it in a certain way. So you bring on someone to help you do that. And our guy is one of the leaders in doing this. So you call us up, we chat with you about what your goals are, your problems are, we’ve got this list of consultants. We pull out our consultants, send them on the task, and they’re usually I mean, it’s usually accomplished, like, quickly. We’ve got a couple of projects that seem to last a little long, but like, they’ve almost, that’s the beauty of our network, right, Jim? Is we solve some problems immediately. Jim: We’ve already seen them all. Chip: Famous story about Picasso is – I don’t know if it’s real or not, maybe it’s not Picasso, but I think it is. A lady walked up and was like, “Oh, hey, Picasso, could you sign this paper, sign this napkin?” And so he does a little doodle, signs it and says, “That’ll be $30,000.”  Like, “Wait a minute. That only took you 15 seconds.” He was like, “No that took me 30 years.” It’s just kind of an example of how it works with us, too. It’s like, we’ve already heard all the problems, right? Just like our call yesterday with a bug problem the guy had, like, we immediately know how to solve that. But many other consultants or groups of people, they want to hook you in for a year-long contract, and we just want to solve your problem, walk away, right? And that’s really been our success is that like in just a matter of a day or two, we can solve most people’s problems. Jim: The thing about this project with Chip and I is that we already have our livelihood covered. So we’re not desperate for like, paying overhead with – Chip: Business, right? Jim: It’s not a hobby, but it’s like a passion for us. I like to claim we bring the culture. I’m not sure Chip’s a big lover of that, because he’s been in, he’s been that guy for so long. And I haven’t been, so it’s kind of fresh to me. But I believe it’s important to bring that. I mean, Chip and his group have helped me make smart decisions on investments going forward. I highly recommend, if you’re 60 years old, and you want to invest in cannabis call Greener Group. I mean, we’ll go over stuff with you that you never have thought about. We can look at your books, we have a CFO that works for us, that works for multiple cannabis companies across the board. We’ve got people that – Chip: Right, we can in one hour decide, like tell you literally if some investment opportunity is is full of shit, or worth investigating. And we’ve done that a couple of different times, it’s really amazing. Because we have so much experience in the cannabis industry, we can immediately look at operational costs and expenses, and tell if it’s real or not. Jim: You can’t hide from our group because we have, we’re not one dimensional. We’re multi-dimensional. We’re like full spectrum. We’re full spectrum consultants. It is not us our way or the highway, when you call us and talk to us, you’ll realize that right away. We’ve got a great team together. One of the good things we do with our consultants is we support their back end too. We take that loosely, we support their business side of it that the stuff that they’re not good at. It’s like a doctor, a doctor doesn’t – Chip: All the reports – Jim: All the crap that they don’t get. Chip: All the office support like, it’s really turned the consulting industry into a more professional organization. Because in the past and hey man, no offense to you consultants, you guys know what’s going on. You guys are growers or extractors or businesspeople, and you all need better back end offices. If you got a great back end then yeah, you’re gonna do great. Jim: It all starts with that, and we’re getting better at it. We’re gonna have all of our guys with an app that can really communicate well with the customer. Like I said, we’re not looking at a full-time gig. We’re in and out. We’re in to fix your problem, get out. We’re problem solvers. Chip: Yeah. And you know, our consultants also, they’re independent consultants. And so if you’re a cannabis consultant from hemp to extraction, from genetics to banking, IT, whatever, right? Give us an email, man. We want to increase our network and we might have some business for you. And you’re an independent contractor, we’re just helping you guys too, man. Sure, it’s business and I enjoy business, and this is a good, good business to be in. We saw there was a problem in the industry on both the consultant side and on the consumer side. Jim: And like I said, I’m pushing that investment side guys. Anybody that wants to invest in the cannabis? Chip: Yeah, absolutely. Jim: Give us a call. We’ll go through the pros and cons with you. We’re gonna think of stuff that you’ll never think of, I promise you that. Because we have people coming to us on a regular, we’re still learning every day. And what we do is we learn every day, and then we share it with you. It’s a fun business to be part of, being part of Chip’s network has been amazing. All you gotta do is call Greener Group and you’re part of it, man. So it’s that easy. If you have – Chip: It has been fun though, man. We’ve talked to like, we just launched this business a couple of months ago. We’ve talked to like, so many cool people about projects they’re doing. And working with so many cool people right now on projects, man without naming names or specific locations, like what’s the favorite call that we’ve been on? Jim: I like the one that came from Tennessee, and they overgrew hemp. Because it was one of the first ones that we had. And these guys were like, “Man, we really don’t know what to do. We basically have thousands of pounds of hemp. We don’t know how to get rid of it. We don’t even know where to start. We don’t know what to do now, because we got so screwed this year. What do we do next year?” They were just completely at end, at wit’s end, you know? Chip: They were real typical of what was going on in the hemp industry this year for sure. Jim: Yeah, supply and demand. And – Chip: I mean, they’re smart people, they were in the agricultural industry. They already had like, success doing other stuff. They’ve already got like, products on the shelves in the oil, ag space, like not cannabis-related at all, or hemp-related at all. They were successful businesspeople and had problems. Jim: Which is very common. They thought, “Oh, it’ll just be like growing strawberries.” It’s not. Chip: Yeah, we just grow it and somebody will buy it. And strawberries aren’t like that either, man. And nothing is. It has to have that sales channel. Jim: I think personally from a business side, that’s the first channel that you should create before you grow anything. Chip: Oh, yeah. Hey, you know, I mean, one of the things that we do a lot of is branding and marketing.  And it just naturally do all of our businesses. And the thing that both of us realized is, you can have the best brand, the best design, the best content, the best advertising, the best product placement of any of your competitors. But the only thing that’s going to drive your brand is sales, right? You have to sell. And honestly, that’s the first channel you should work on, instead of the last. People who try to get work on the opposite side, right? They work on the brand first and – Jim: The easy stuff. Yeah, they work on the easy stuff. And one thing we’re finding out at Greener is that marketing is tough. Like I said, we got kicked off Facebook. I mean, both Chip and Travis, Travis is one of our partners. And they were like, “It’s not if we’re gonna get kicked off, but how long?”  And it’s like, “We got to work around this crap.” There’s constant contact won’t let you send out cannabis stuff. Chip: Cannabis emails, right. Jim: So at Greener, we’re figuring this out. We have our own CRM, and we’ll work with you if you need help with anything like that. If you’re starting a dispensary, if you’re getting ready to think about doing a grow, call us first. Let’s talk about a supply chain before you grow them. Yeah, don’t call us after. Chip: I just realized we were starting to sound like an infomercial, which is totally cool, ’cause it’s my podcast and I can do whatever what I want. Jim: Yeah, exactly. Chip: But no, it’s exciting. It’s so exciting to talk to all of these different people. Man, I think my favorite conversation was also a hemp comp. I’ve had two conversations that were my favorite, I think. The cannabis farm on the west coast that wanted to relocate to another state. It was just, it’s difficult with the environment, the fires, the remoteness, the taxes, the state and local taxes over in California are just ridiculous. And they wanted to move, and I really liked this conversation, because they were cannabis, successful cannabis people.  They’ve been doing it for a moment. And they realized like, they needed a little help and reached out to us. They were interested in other states that they can move and operate in, because previously California for many, many years was the only place to operate. And now, it’s just not the case. So I really liked that conversation. And man, I also liked that hemp technologies conversation we’ve had. These guys are trying to develop some hemp technologies, and were really approaching in a different manner. And that was really inspiring, because the hemp textile industry is just growing so much, growing so quick. Jim: It is, and we’ve got a great by the way, we’ve got a excellent connection with textiles, and hemp. Chip: Yeah, absolutely man. Engineers… Jim: Hey, we also have the ability to, we’re a specialist at building any kind of app or website in the cannabis space. So let us know, we’ve got all that covered. Chip: I know it sounds like a one, not a one stop shop. But like, literally, through all of my years of business, I’ve had to do all this stuff for my businesses. And mostly I set up with my own employees or networks of people that now understand cannabis. And so I’m basically opening up my network. Jim has got a huge IT section and programming section to his business right? Like, we can pretty much design or modify any software, build any app or website through in-house means, that’s what you’re saying, Jim, right? Jim: Yep, yep. We got the capacity, we’ve got people that, the team that’s building Health Camp Buddy. And what they do is, like I said, we can put you on a CRM that you don’t have any restrictions whatsoever. So yeah, give us a call. I’m a marketing, branding guy, I love talking about that. Chip and I dream shit up every morning, I kind of look forward to those calls, because it fires me up. It’s like, it’s better than exercise, that’s for damn sure. It does, it puts us on the same page. And it’s like, we don’t have to, I’ve never had a partner with, I gotta say, Chip, I got it. And he’s like, he hangs up. We don’t waste each other’s time at all. And if you’re going to get a partner, find somebody like that. Chip: I couldn’t say enough about how much I’ve learned in the past year and a half that we’ve been working together. And I know you said you’ve learned but man, I’ve learned just as much. So that is the beauty of a good working partner relationship, is that you learn from each other. And me and Jim have both have poor partners in the past, and we’ve had exits from businesses that worked out or didn’t work out. And we’ve had a significant amount of experience of working with people. And having an active partner in your relationship, versus an investor is a completely different scenario. We should do a whole podcast about that. How to partner, how just specifically how to partner with people. Jim: How to get along. It’s a hard thing, man. Get along, I’d start by get a bong, right? Chip: Get a bong, yeah. Jim: Yeah. I mean, I totally believe that you’ve got to have something in common with somebody and Chip and I, we found out our common denominator immediately. And we’ve never broken off of that. I mean, we’ve stuck with it, we stayed in course, we pivot left and right. But it always comes back to the, we’re business partners that have become friends. I highly recommend. Don’t partner up with a friend. Chip: Yeah. That’ s a better way to do it, that’s for sure. Jim: Become a friend after you become business. That’s my free information I give you.  Some of the other things that Chip has brought up that are pretty awesome are that we’re both businesspeople. We believe that entrepreneurship is awesome, I’ve been selling cinnamon toothpicks since I was eight years old. But the number one thing is that we support cannabis. We really believe in it and Chip more than me, he lives it. His goal is to grow more weed than people can smoke. And my goal is aid people’s lives with cannabis. So we got, if you want to participate in this mission, give us a call, man. Follow us. Follow us, Eric is a big mission actually, Chip and I were gonna talk about this and I want to bring it up is that I’m getting ready to – Chip: Hey, let’s pause for one second breathe. Because Jim will just start talking and get so excited about stuff. But hey, let’s just break for one second and say, this The Real Dirt podcast. Thank you for joining and listening. Please join us on iTunes or Spotify. Hey, and if you’re out in the world, and you need some equipment of some sort, lights, soil nutrients, cultivateokc.com, cultivatecolorado.com. We ship all over the country. Call us if you’re in Colorado. Call us if you’re in Denver. Call us if you’re in Oklahoma. We’ll ship to you. We have commercial accounts. We’re one of the largest purchasers in the country of rock wall general hydroponics, botanic care, pure blend, growers soil, tuber. We ship all over the country. We support cannabis farmers all over the country, specifically in east of the Rockies. But coming to the west coast soon, and look for all of our products in the west coast, 2021. This is The Real Dirt.
28 minutes | 5 months ago
The Devastation of the California Forest Fires on Cannabis Farms
There’s a saying that cannabis farmers have to protect their crop from three things; pests, people and police. But California farmers can add fires to that list too. Jeff from Little Hill Cultivators has been a featured guest on The Real Dirt Podcast more than once, and he’s a personal friend to Chip. We’ve talked with Jeff about his grow practices, growing organic, California craft cannabis…but now we’re talking about a different topic. Little Hill Cultivators in located right in the valley of the Emerald Triangle in northwestern California, and it’s also right in the center of the raging California forest fires that have been destroying the state for the last few months. Now, the fire is making its way to Jeff’s doorstep. With minimal support from local firefighters due to their secluded location, Jeff and his team have been on their own to deal with the biggest fires in California’s history as they burn through thousands of acres and put thousands of cannabis farms at risk. In this exclusive, last-minute episode of The Real Dirt, Chip and Jeff talk about what’s happening in California right now, why it could be happening, what Little Hill is doing to fight and what the future could hold for Jeff and his farm. Please follow and support Jeff and Little Hill Cultivators Follow and Subscribe to The Real Dirt Podcast: Instagram: https://www.instagram.com/therealdirtpodcast/ Facebook: https://www.facebook.com/therealdirtpodcast/ Apple Podcasts: https://podcasts.apple.com/us/podcast/the-real-dirt-with-chip-baker/id1173559750 Spotify: https://open.spotify.com/show/1tC6OyqCJfUWsmGYovqlQP Get great deals on grow gear: CultivateColorado.com Instagram: https://www.instagram.com/cultivatecolorado/ Facebook: https://www.facebook.com/cultivatecolorado/
42 minutes | 5 months ago
The Evolution of Cannabis Cultivation Technology
Remember when your only grow schedule was in a tattered notebook? Who are we kidding, half of us still do it that way! But the truth is that cannabis cultivation technology has advanced exponentially just in the last 5 years. Controllers that can monitor and alert you when CO2 levels or temperature gets too high or low, irrigation feeding systems set on timers so you never have to worry about feeding on time, and more. But what about one application that can monitor all of it? That’s where Trym comes in. Trym is the brainchild of Matt Mayberry, a homegrower who began to notice a lack of software services designed specifically for aiding cannabis growers. He noticed that there were individual products for monitoring your team, environmental conditions, and regulatory compliance, but not one single product that could do it all. Matt set out with the goal of simplifying the grower’s life with easy to use cannabis cultivation technology software, and Trym does just that. Trym software is helping to manage more than one million square feet of cultivation space. Designed in collaboration with valuable farming partners, integrated with numerous solutions to help cultivators run their businesses better and keep them inspired to grow smarter every day. As the industry evolves, so do growers and the cannabis cultivation technology they use. Trym continues to evolve with them through collaborative efforts and essential customer feedback that helps shape the future of the app. In this episode, Chip sits down with Matt to talk about the inception of Trym, the services that they offer for cannabis growers and cultivators, and the continuous evolution of cannabis cultivation technology! Learn more about Trym Follow Trym on Instagram Follow and Subscribe to The Real Dirt Podcast: Instagram: https://www.instagram.com/therealdirtpodcast/ Facebook: https://www.facebook.com/therealdirtpodcast/ Apple Podcasts: https://podcasts.apple.com/us/podcast/the-real-dirt-with-chip-baker/id1173559750 Spotify: https://open.spotify.com/show/1tC6OyqCJfUWsmGYovqlQP Get great deals on grow gear: CultivateColorado.com Instagram: https://www.instagram.com/cultivatecolorado/ Facebook: https://www.facebook.com/cultivatecolorado/ Transcript Chip: Hey! This is Chip with The Real Dirt. Thanks for joining us today. Today I’m in my newest of new podcast studios. Yes, there’s quite an echoey sound in here. And we’re going to turn this into the new Oklahoma City podcast studio. So look forward to many, many episodes here. You’re gonna have people from all over the country, and all over the world to guest here at The Real Dirt. Hey, I want to thank you for joining me today. And if you haven’t, please go to iTunes or Spotify, and subscribe to The Real Dirt podcast. Please join us on Facebook and Instagram. And, you know, if you need any hydroponic, or indoor, or outdoor growing materials, please contact us at cultivatecolorado.com, cultivateokc.com, and if you’re using soil or soilless medium, Growers Soil is what you should use. So without further ado, on today’s episode, we have Matt Mayberry. We’re going to talk about software and how it relates to the cannabis industry. So sit back, fire one up and enjoy this episode of The Real Dirt.   Chip: Hey, Matt. Chip here. How you doing?   Matt: Good. How are you?   Chip: Oh man, I’m doing great. It’s starting to be nice and fall weather over here in Oklahoma. Wait, where am I talking to you, are you in California someplace?   Matt: Yeah, we’re just north of San Francisco in Marin County.    Chip: Oh, man. I was just over there up in Humboldt. Rough fires, dude.    Matt: Oh, man. It’s crazy. Yeah, this summer, it’s definitely been a strange one. We left California actually, when the smoke got really bad here. The fires weren’t very close to [inaudible 1:48] for us so far. Well, I guess my definition of close has gotten a lot different over the last few years, but we didn’t have any, like imminent fires like that were in our town, that were, that were meaningful in any kind of way. But the smoke is really bad, so we took off the Oregon to get away from the smoke. And then the fire solid is up there basically, the smoke got really bad up there. Stayed there for a few weeks and we decided to come back down here.   Chip: Yes, right. We had a podcast scheduled and you had to postpone it, because you were fleeing from the smoke.   Matt: Yeah, it’s been a wild one. So I’m glad we finally did it. And we got this thing on the books.   Chip: Yeah, man. Thanks for joining me, man. So Matt, you know, technology is now like, and it’s starting to be so much part of everyday life. And the cannabis industry is no different. No matter if it is hemp, or ganja, or medical marijuana, we’re all using technology in and Matt, tell us a little bit about what you do.   Matt: Yeah. So I’m Matt Mayberry. I’m the cofounder and CEO of a company called Trym, and we build farm management software for commercial cannabis cultivators. And ultimately, what we do is we help growers better manage their operation, and manage their team, and then also help scale their business so they can be successful.   Chip: Yeah, you know, farm management software is something that industrial agriculture has been using. I mean, it’s probably one of the first things that happened with the computer, right? It’s to figure out how to count how many pigs or chickens that you got. But the industry really has been dominated by some major, major industrial, agricultural players. And there haven’t been too many people like yourself to want to come in, you know, to the farm management side. Man, what gave you the idea to do this?   Matt: Yeah, so I started out my journey in cannabis, I guess when I was about 17 years old in North Carolina. You know, I was smoking cannabis recreationally with my friends and –    Chip: Mothership, you were were smoking Mothership over there?   Matt: I don’t know. We did not have the quality of products that we have these days [inaudible 3:54].   Chip: So, okay, famous weed strain from from my past, Mothership.   Matt: Okay, nice.    Chip: Asheville, North Carolina.    Matt: Okay, cool. I wonder if that has a parliament funkadelic influence.   Chip: Asheville’s the center of music in the south, you know.   Matt: Oh, yeah, absolutely. Yeah, I got my first degree at Appalachian State in North Carolina, which is like about an hour away from Asheville. So, spent a lot of time in the mountains of North Carolina. But yeah, so I mean, when I was a teenager, I was riding around my friends. We were smoking cannabis, and I really enjoyed it. And I was always been, you know, I’ve got two different engineering degrees. I’ve always been kind of a tinkerer. And so that started at a very young age. So I decided to try and see if I could grow the stuff myself. Got a little bit better, go into App State, met some other growers there. When I graduated, I went into tech and I didn’t, I didn’t grow commercially. Kind of still home growing though, and I had kept my eye on the industry. I had a lot of friends that are in the industry. I still have a lot of friends that are growers, some of them from back in North Carolina. When Prop 64 passed, essentially, I started looking at the industry more seriously as a career more than just something that I did in my free time. And so, started looking at the space. And given my experience in cultivation, I say that in a very humble way, my experience in cultivation is much different than a lot of our customers. You know, I don’t grow product that looks like what our customers grow, but with my interest, and mild experience in cultivation, I decided to take a look at the space. And me and my cofounders felt really comfortable with cultivation. Benjamin, who’s one of our cofounders, actually he used to work on the commercial farm off in Mendocino. And then he was an electrical engineer at a company that he and I used to work at. And my wife, Karen is our third cofounder, and she was part of my experiments in home growing here, once we moved to California. So we all three had experience with the plant. And we started looking at when Prop 64 passed with the lens of how can we apply the experience that we have in technology, and apply it to the cultivation space. So really, we just started poking around and grows, trying to find like, what was going on at these farms, and how people were currently managing things, and seeing if there was a place to actually apply some additional technology in one way or the other, whether it was hardware or software to make their lives easier. And what we found was that as far as the record keeping went and the management of the farm went, really the most sophisticated technology was whiteboards, and Excel spreadsheets, and notebooks. And in I guess, the regulated markets that currently had that kind of compliance element as well, they had software that was provided by the state that most of the growers didn’t like. So we started thinking, you know, it looks like there’s a pretty big opportunity here, but let’s figure out what that is. And so then we just started to iterate on releasing small amounts of product and working with the farms that we had pretty good connections with, to try and see if that was something that would be valuable to them. And eventually, we ended up with a product and started selling it to people.   Chip: So you’re homegrown.   Matt: Yeah, I mean, I –   Chip: Yeah, you’re homegrown, you know.  You know, I kind of put, I put people into two basic categories in the weed industry.  There are the pink shirts, and there’s the homegrown, right? And the homegrown people are people who’ve been growing, you know, cannabis for themselves, you know, and the people around them were started out that way, right? They had this desire to like, “Hey, I want to help, you know, cultivate cannabis.” And the pink shirts are generally the people that want to cultivate the business of cannabis. They both intermesh and, you know, I lovingly say the term pink shirts, because several of them work with me. But like, they come from the business side, and often not from the homegrown or from the cannabis side. Now, almost every other tech person I have talked to were pink shirts. They wanted to bring some business side to it. Did you have like, a problem that you wanted to solve? You know, ’cause like, you’re looking at, you’re growing, you’re seeing what people are like, is there a number one like, oh, man, nobody’s taken advantage of nobody’s doing this.   Matt: Yeah. So what we found when we started talking to growers was that they have really a multitude of different problems that they face every day. And in order to solve those, they’re either using manual processes, or they were using multiple different pieces of software to do that. So scheduling out a batch of plants from seed all the way through to harvest. And people are using things like Google Calendar, or those like paper calendars that you buy at Staples, and they’re mapping everything out. And they’re either mounting them into grow, or they’re sharing that calendar with their employees. And then, the compliance element of it, that they were usually using their notebooks and Excel to track all the compliance reportable events, and then handing that over to a compliance manager that would then put all that into the state system, and report it to the regulators. And so the other thing was, you need to know what’s going on in your grow, you need to know what the conditions are, you need to know what happened last week. And if you don’t know what’s happening right now, if the lights go out, you need to know that. And there were people basically, putting together like, there were some people that we talked to that were putting together their own systems for like, thermal shut off where you know, if their air conditioner went out, they would turn off some of the lights. And they were kind of rigging a lot of this stuff themselves. There’s stem systems that were out there that were doing some more advanced control,  somewhere out of people’s price ranges, or some just didn’t have access to those types of systems, I guess at the time. But, we just saw there were a lot of different problems that a lot of people were putting together, you know, they say innovation is born out of necessity, right? There was a lot of, kind of, micro-innovation in all of these grows, where people were solving the problems that they had. And we were able to kind of look at all those problems, and then think about, alright with our, so my background was I worked in hardware, software, and firmware. Benjamin who is our business partner has worked in hardware, software to a degree, and firmware. And Karen, our third cofounder, she is basically all things customer facing, marketing, and revenue, that kind of thing. So when we started looking at how can we apply what we know to these, we were able to look at the multitude of problems that people had and kind of figure out what that solution was. And what we saw is that there was really no software that was built specifically for cannabis cultivators. So you mentioned earlier in this call, that there’s all these systems that exist for broader ag, and that’s true. But the reality is, a lot of those systems were built for like row crops in Iowa. And farming –   Chip: Yeah sure.   Matt: 20,000 acres in Iowa is a lot different than growing like, five warehouses in Oakland. It’s –    Chip: And most of it is animal husbandry, or a lot of it, animal husbandry.   Matt: Yep, exactly. There’s a ton of that, and a lot of row crops have to, where they’re using like, satellite imagery to detect like, pathogens, or water necessities, and things like that. So, what we did is we actually took a lot of lessons from, we explored the farm management space. We looked at what a lot of those companies were doing for large scale commercial agriculture. And we looked at cannabis, and we saw kind of where the gaps were. A surprise kind of insight was we, we said, “There’s not really anything that’s specifically built for cannabis growers.” And with my experience in software, I’d seen there were restaurant softwares, and there were dental office softwares, and things like this, and everything was built, you know, with the idea that you can do everything that you need to do on a daily basis in those softwares. And so, we kind of took some lessons from those as well, and set out to build a software that would cover all of the major aspects of a cultivator’s business. And those, I kind of generically put those into three different categories. One is managing your team, the other is managing the environmental conditions, or monitoring at least the environment conditions in your facility. And then, the third is your regulatory compliance. So those are probably the three biggest challenges that people face every day. Creating groups of plants, tracking the activities that need to occur on those groups of plants, knowing what conditions they were exposed to, and then reporting all of that to the state. So that was really the problem that we set out to solve, was kind of simplifying the growers life and allowing them to really focus on what they do best, which is growing really high quality product.  And ultimately growing better product as a result of not having to worry about a lot of the other nuances that affect them on a daily basis.   Chip: Yes, man, so many states like Colorado, and California, and Nevada, they’re just so complex about their tracking. And man, then there’s you know, there’s some things about California that’s really nice about their harvesting, their batching. Where Colorado, it’s like, “Wow, you got to weigh it all. You have to track it all,” like Colorado is, in my opinion, has one of the best programs, because you do have to track so much of it, but it’s not ridiculous, like maybe Nevada is. You know, it’s tough out there, man. It’s really hard for new cannabis operators or experienced operators to really keep up with it all, right? You like, literally have to have some sort of technology now. It’s not just growing plants.   Matt: Yeah, I mean, the legal market invented a new role in a cannabis cultivation facility, which is the  compliance manager. You know, before regulation, there was no compliance, because there, you know, everything was –   Chip: It was like, “Oh man, is this good? This is good, bro! I like this one.”   Matt: In addition to the compliance element that comes with the regulated market, it’s also that there’s now this kind of quality expectation with brands where you put out a product and you say, you know, this is a pretty good cultivar, I’m branding it with my farm. And then, the consumer tries that, they like it, they go back to the store, they want more of it, or they get it delivered or whatever. If it’s not the same experience, then you might lose that customer. And so, there’s experience, expectation, and potency expectation, and kind of brand image all kind of encompasses all of that now. And that’s a really new thing that we really didn’t have in the legacy market. You know, it was you knew, so and so down the street had the fire Sour D, but you didn’t necessarily like, expect that every time you got that Sour D, it was gonna be the exact same or what have you. And so we’ve kind of created this machine to the industry that has also led to a lot of changes beyond just reporting to the state for compliance. It’s also like, developing standard operating procedures that are unique to different cultivars and things like that. And I think that’s a really exciting evolution, because it’s what you see in like, wine and spirits, and what you see when, you know, you look at other industries. You know, you kind of have a recognition of the brand, and you expect certain things from them.    Chip: I mean, you kind of gotta be feeling like the, when you go and talk to some of these cultivators, like you know, you’re introducing the you know, the Ford Raptor, and they’re still on the like, donkey and car type scenario, right? Because I mean, ganja farmers, they’re like, salt of the earth, right? Like, most of them, the older school ones, you know, this isn’t what they’re interested in. Do you have like, I don’t know, it’s almost a cultural like difference to be able to talk to people in that manner. Do you see that?   Matt: Yeah, I’d say it’s a mix in the industry. You know, we’ve got some growers that know they want something, but don’t know exactly what it is. And they meet with us to kind of see if we’re at, and then some cases we are, and in other cases, you know, like you said, they might say, “Well, this is not necessarily what we’re looking for.” But for the ones that get it, some of our larger customers are actually telling us what they need still. You know, we started out very much customer centric, focus on what the growers needs are and figuring out like, here’s what their problem is, here’s what the ultimate need is, let’s figure out a solution to that, working really hand in hand with them. And we still have that to this day, like, a lot of our new feature development comes directly from growers saying, you know, “This is now really important in my business, can you help me figure out how to solve this?” And as the industry evolves, our customers are evolving, and our software platform needs to evolve to keep pace with them, as well, because there are a lot of –   Chip: And do you have an example?   Matt: – the customers.   Chip: Example of one of those customer changes or customer like, developments you mean? Customer based research?   Matt: Yeah, I mean like, almost every feature in the app, I’d say. But I’ll give you a couple of examples.    Chip: So I mean, you talked heavily to people about what’s going on, this isn’t just your ideas?   Matt: We would not be anywhere without the guidance from our customers, you know.  What we try to do is spend as much, I mean, ultimately, all the way down to our head of engineering, actually, right now on this call, our head of engineering is covering a customer meeting for me. And he’s meeting with a large client that we’re trying to close, and working with them to figure out how we need to make some adjustments to be able to deploy our software across their portfolio facilities that they have. So all the way down to like, the engineering level, we have people talking to our customers, because if you don’t understand the problem that the grower has, then you’re not going to be able to build software that’s going to solve that problem. And so, from our customer support to our marketing, to our engineering team, to myself, you know, we spend an immense amount of time talking to our customers. But a great example is when we first launched, we had a mobile app only. And it worked well for some of our really early customers, we had basically the ability to monitor environmental sensors like temp, humidity, co2, in the rooms. You could create groups of plants and assign them to those rooms, and then track them on the way and harvest them. And then you could also assign tasks to those groups of plants, so that your team could execute them all from the mobile app. And we started out very much mobile focused because the farms that we were working with at the scale that they were at, basically, a lot of them didn’t even [inaudible 16:56] in the facility. It had to be on mobile. So then we started working, honestly, we probably want a deal that was, we were way over our skis on and we probably shouldn’t be one, but we want it. And yeah, one day, they immediately said, “This is great. We like what you’re doing for the team. But you know, managers, we really need a web based application. And we got to be able to map things out like we do on this current calendar that we’re using. And we need to be able to plan out months or even harvests in advance.” And so working really closely with them, we built out that functionality. And now it’s probably like the most popular feature in our app is this like, that this kind of concept of task planning for your team. And I mean, literally, we just did a survey not too long ago, it was one of the more popular features that we have. So I mentioned cultivation earlier in the call. I’ve grown but I’ve never grown at the scale that these guys are growing, and I’ve never produced product that was anywhere close to it. So these guys are great. So, humility is a really important thing, being humble at what you’re good at, and recognizing where other people have expertise that you don’t have. And these growers know their craft inside and out. And you know, I think we know tech and software inside and out. But you gotta we got to listen to those that really know what they need. And that’s the way we were able to really build solid features that actually match their expectations.   Chip: I’ve said this over and over again. And it’s my number one encouragement or advice that I give people is, growing cannabis on a small scale or large scale is more about logistics and movement of materials and people, right? Like, you know, there is a certain magic and magical moment that happens when you cultivate cannabis. But especially on a commercial scale, the logistics associated with it all, you know,  you have to be detail-oriented, if you want to be successful and on, and  the cannabis to look the same brandable, you know, be it the same high quality, or similar every single time. It’s more than just talking to your plants, right?   Matt: Yeah, absolutely. That’s a hundred percent right. Another example of a feature that we built in collaboration with customers is actually very much in line with what you’re talking about here. So, after we built out that task calendar, we had some customers saying, you know, “I’ve got, you know, 22,000 plants that I’m managing in this cultivation facility, and I’ve got a team of, you know, 30 people that work here every day. And I have to coordinate all of them on these plants. And I have to grow these plants in the exact same way every time. So I really need a way to repeat that process for groups of plants, and be able to basically like when I create a group of plants, we already know exactly what needs to happen on it all the way through from when I initially cut the clones, and plug them all the way through when we’re harvesting and hanging. We came up with this idea of a workflow. So, a workflow is just a series of tasks that need to occur on any group of plants. And you can create as many workflows as you want. So you can have one for each strain, you could have one for for different cultivation styles. Maybe you’ve got one farm that’s greenhouse, you got another one that’s indoor, one that’s outdoor, you can have different workflows that apply to those. Or maybe you’re testing out like, rock wool and cocoa together. You can have different workflows for those. And then when you create a group of plants, you just assign this workflow, and it’ll automatically populate your calendar with all the tasks that need to happen for that group of plants. So 100% agree with you with the inventory and team management problem being one of the major things that the growers have to overcome. You know, the art of growing cannabis is in itself a full time job, you know, to really figure out exactly what your plants need, and what you need to do, and then to coordinate that across, I mean, some of these farms that we’re working with are like, measured in miles almost, right? They’re like 400,000 square feet cultivation facilities. When you’re talking about growing at that scale, you really need to have really strong processes in place in order to manage effectively. And to get the same output that you’re expecting every time. Labor is the number one operational expense, at least here in California this is true.   Chip: Everywhere, you know, and you just can’t be, some things just can’t be automated, just like the grape industry. So much of the you know, grape industry is still hand labored, still handpicked, still hand trimmed, you know, it’s a part of it.   Matt: So take that, and then imagine that you had to tag each individual grapevine with a barcode, and you had to know what grape came from each vine.    Chip: Yeah, God. Right? Yeah, I mean, this is literally, do you have a statistic on how much compliance costs and labor?   Matt: I mean, I’ve heard numbers as high as like 30% increase in labor.    Chip: Yeah, it’s 30%.   Matt: That’s coming from older markets in California, because California is still pretty new in the compliance area. But like Colorado, and Oregon, I’ve heard, it adds 30%, to just everything that we do, when it comes from, you know, planting all the way through, I mean, harvesting is probably the most laborious part of cultivating at this point, because you do have to weigh every plant. And a lot of these regulations, it’s pretty clear that whoever wrote them, either didn’t consult extensively with growers about it, or ignored grower advice, because there’s a lot of things that add a ton of additional expense to the industry. And ultimately in time, that doesn’t, in my opinion, add a lot of additional value, but.   Chip : I’ve been in on those rule defining conversations with legislators and, man, it just it, you know, they’ve got this certain perception of public safety that they need to meet. And it kind of, that trumps everything. So even though we know that cannabis as a plant is pretty much harmless, right? They have to have this like allure that they’re protecting, you know, the public from it. And that’s why you get, you know, these weird laws, right?   Matt: Yeah, I mean, I’ve seen, especially like, I’ve seen it, you know, the distance to school thing. It’s like you can, in some areas, I’ve seen schools that are down the street from a 7-11 where you can buy alcohol. Or down from, you know, a big box store where you can buy hunting rifles, but no, you can’t have them. Cannabis store or anywhere close to that where they actually have a bouncer at the door that checks your ID to make sure you can come in there. You know, it’s pretty ridiculous, some of the things that we see. But I, yeah, I get it. The public fear that started at the beginning of the 20th century in this country, and continues all the way now to this day, I think is, is one of the biggest things as an industry that we have to overcome. You know, the federal perception is one thing, and the federal legality is one thing, but the public perception is a whole another mess.    Chip: Interesting how in California has the oldest history of cannabis in the country, right? I mean, I know people were growing cannabis all over, but California’s got one of the oldest histories. And there’s all this preconceived information and leftover PTSD on both sides of the fence. And, you know, I was just there, I’m dealing with a cannabis license up in Humboldt. And you know, there’s so many concerns people have that are just leftover with historic stuff that doesn’t occur anymore, and it might not have ever occurred. But like, you know, just the like, the preconceived notion that cannabis farmers you know, don’t care about the environment, or polluters are trash, or you know,  other places like say, Oklahoma where I’m at right now. I’m targetting my former city. Like, people are so open to cannabis here and they’re really interested in it in a way that like, I don’t see it in California, righ? It’s really, really strange man. You know that, you think that a state that has so much history with it and people who actively voted for it right, and you know, and smoke weed at night, or at home on the weekends. Just the conversations they have as they’re against cannabis and cannabis production because the myths you know, of system abuse.   Matt: Yeah, I mean even the county that I’m in here, there’s no storefronts where you can buy it. We have delivery services, but you know –    Chip: In Marin County?   Matt: Marin County, yeah.   Chip: Home of the Grateful Dead, right?   Matt: Yeah. Home after they got busted, right. Over selling at San Francisco and then –   Chip: Safehouse.   Matt: Yeah, we had a little stint in LA where they were manufacturing LSD and then they came back, and they all landed in Marin Country. And ultimately that’s where Jerry died since the beach but yeah, that’s where Bobby still lives. And Phil Spot and Sandra Fells.   Chip: I mean, isn’t that ridiculous? Like, I mean, The Grateful Dead really did like, define so much like street level cannabis dealing and like help, you know, find cannabis travel throughout the country, right? It’s so many. That’s the first time so many people got exposed to high end cannabis, is going to dead shows.    Matt: Yeah. True story.   Chip: Anyway, man, thank you. My cannabis licenses is in Humboldt. And they’re the hardest, it is so hard to get a cultivation license in the county of Humboldt. They’ve just regulated it, and restricted it, and zoned, it’s pretty much to death. It’s just nuts, but like used to be like, where all the weed came from, right?   Matt: Yeah, for sure. Yeah, I don’t know, it’s, it’s interesting. I’ve heard plenty of stories of people that have attempted to get licensed in California that were coming from the legacy market. That for whatever reason, you know, either they had a hard time getting a license, and they had challenges with their facility, they’ve just decided not to, some have remained in the legacy market. And others have moved to other states to try and, you know, give it a go in some of the newer markets that, depending on which market you’re talking about, in some cases, like Oklahoma’s a good example, it’s much easier to, from a licensing perspective to start an operation there that it is in California. It doesn’t necessarily mean that it’s any easier from a building a facility, and designing it, and actually running it. But you know, when it comes to licensing there, there are some newer markets that are a lot more liberal with their their kind of allocation of licenses and things like that.   Chip: You know, the limited liability, or the limited license states like Missouri, and Arkansas, and Georgia and Florida, you know, they make it a little bit different, because there’s no application process. And it’s not quite the same over there. Usually, when there’s a limited liability state, there’s no legacy people evolved into into it at all. Right, or like somebody on the board, or some other like. billion dollar group of people would come in to like, try to get a license. Because that’s what it takes, man, right? Like, it takes millions of dollars to get a license in one of those exclusive states.   Matt: It’s like that in some parts of California to where maybe not the millions of dollars, but there’s like a whole side of the industry right now, which is like license application writing, right? Where you have to, like, say the right things and portray yourself the right way in order to kind of, especially when it comes to storefront, you know, dispensers are I think especially a really coveted areas are much more challenging thing. But yeah, there’s –   Chip: In Oklahoma, one of my favorite customers is Danky McNuggets. Yeah. But when you’re writing an application, like you have to, you know, have a, it can’t be fun like that. It can’t be the Cheech and Chong show so much anymore. It’s like, “Oh, we’re growing and building a sustainable cannabis operation. And we’re gonna give back to the community and healthy harvests friendly cannabis shop,” you know, ends up being the name, right? And that’s why so many of the names are so, you can’t remember anybody’s name, right? Because they’re all like, you know, something THC related, but like, you know, Co-Op, or I don’t know, that whole weird thing that’s happened with cannabis has like, definitely decreased the culture of it all when we used to go and buy it on people’s couches.   Matt: Oh, man, I still trip out when I drive through Oakland and I see the billboards like, on the interstate. Because I’m just like, you know. Did you grow up in Oklahoma?   Chip: No, no, I grew up in Georgia. I moved to California when I was like, in my early 20s.   Matt: Alright, so I have a similar story, but grew up in North Carolina. And so like, I remember having conversations with my parents, and they were like, I was like, “This stuff’s gonna be legal there!” And they were like, “Bullshit.”   Chip: It’s federally legal now.   Matt: So but now, I’m driving down the interstate, you can you know, you see it advertised on the interstate in Oakland. And that’s just a really awesome experience, to see the evolution and, you know, we have these kind of, I guess, high-end problems now that we’re talking about, of, you know, the way that they’re regulating it. But the fact that it is regulated in a positive way is a really amazing thing.   Chip: We got to complain a little bit, you know, I mean, checks and balances of it all. And, you know, the way we of course, cannabis people win is by like, “Hey, let’s get some software to track the growth in the way to the plant all the way through. So if anybody like questions where my cannabis went, I’ve got the data that shows exactly where it went.” That’s kind of the beauty of it. That’s how we get the win, right? That’s how we get to grow. It’s like, “Oh, we just track it. Oh, sure. I’ll do that. Oh, I’ll have a fence. Oh, sure I’ll be far enough away from people.” And you know we just comply, just you know, compliance. That’s exactly what that means, is we’re not trying to fight it, right? We’re just going to comply. “Okay, whatever you want. We’ll do it,” you know, and keep getting to grow more weed.   Matt: Yep, absolutely. We’re happy to help.   Chip: So man, you get to talk to just a lot of great people, I’m sure. You’re primarily in California, but do you go other, you know, other places?   Matt: Yeah. So we’re actually in 14 different states. We focused on California, because that’s where the bulk of the team is here. And it’s really where we have probably the majority of our connections. But, you know, we do have customers in Colorado, and Oregon, and Oklahoma, and Massachusetts, Maine, Actually just recently got our first customer out in Hawaii. So yeah, we’re all over the place, Indiana, Pennsylvania.    Chip: And you work in hemp, as well as in ganja, and medical marijuana as well.   Matt: Yeah, we just recently started bringing on some hemp farms. The compliance piece is obviously not really a major factor there. But the farm management work that we’re doing is really helpful there. So it’s been interesting evolution of the product, I’d say, to see that we have customers outside of cannabis that are using us.    Chip: When you’re talking to your hemp customers. I mean, they’re more like traditional row crop farmers. Where the ganja customers, the medical cannabis customers, it’s more like a nursery style type of operation. How do you handle that with your software?   Matt: Yeah, it’s interesting. A lot of the hemp farms that we work with actually are similar to the anecdote that I gave earlier, which was a lot of growers in California that, you know, for whatever reason, were having challenges getting licensed or whatever, they move to other states to give it a go there. So a lot of the hemp farmers that we know are actually people that started out in like, medical cannabis states, and then moved to either, move back home to like Tennessee or South Carolina, or somewhere like that to start doing hemp. And the interesting thing is, I think a lot of the hemp farmers are establishing themselves in markets where they believe legalization will happen soon. And then, they’ve already got the infrastructure built up so that when licensing becomes available, they can get their cannabis license, and be ready to drop the cannabis license. So we focus mostly on high-end smokable flower hemp, because it is so similar to cannabis, aand it works really well for the software that we built out. The other aspect of the industry that’s moving towards the like, massive row crop outdoor hemp, that hasn’t really been something that we’ve addressed yet. But we do have aspirations to do that over time. Now, we just need to, I think, make some slight adjustments to be the ideal solution for that type of cultivation.   Chip: Yeah, no, I get it. It was, you know, my first thought. And yeah, this year, we just saw the industrialization of hemp, and when incurred with that, the glut in the marketplace, the development of machinery. But yeah, you know, they don’t, it’s not as regulated here as much as ganja and medical marijuana is, but you still need all the stats. You still need to know what grows where, you still need to know your water consumption, you know? So are you guys integrating any like, drone technology or satellite technology? You’ve kind of mentioned those before.   Matt: Um, no, we’re currently we’re integrated with like, environmental control systems. So things like troll master, agricultural type of aeration controls, things like that, as well as Argus controls out of Canada. Their industrial environmental control systems, we’re able to pull data in from those systems, and then represent that in our system. We’re looking at some other environmental control integrations as well. And then, obviously, we’re integrated with Metrc. And also we’re looking at some complimentary software systems now to integrate with as well.    Chip: So like, Link4 or Privo, something like that?   Matt: Yeah, those are, those are the types of companies for sure, that are on our integration list. We’re mostly indoor and greenhouse, although we do have some outdoor farms that are on the platform. There are indoor trained drones, we have not specifically started working with those yet. That plus, there’s a lot of like imagery technology that’s out there, that I think is still maturing. But, they’re using machine learning, and imagery to essentially identify like, pathogens or pests, or things like that on plants. And so, I think as the industry continues to evolve, those technologies will also evolve. And if it seems like that’s a need that our customers have, then we’ll look to integrate those types of technologies at the point where it seems like it’s sufficiently developed and would solve problems for our growers.   Chip: Yeah, absolutely, man. I mean, it seems like everything’s coming with a data port these days, you know, and sensors, you know, are soon to be on everything. I mean, I’m surprised that like, we don’t have sensors on our lights for temperature or par. And, I mean, it seems like they’re already, it’s just not too complicated to put it in there. Maybe should somebody get the idea. Hey, give me 1% for this idea, there’s a par reader on your lamp out there, send me one lamp anyway that reads par, I only need one. But you know, but you know what I’m saying? It’s like, the integration of all this is all just phase and a half. And I mean, it’s just happened with, like the GPS and satellites have just started to happen with tractors. And even though we’ve been talking about GPS and satellites for years, but it’s taken such a long time. And like, now I’m out here in Oklahoma, this turnpike they’re building. I saw this one guy was driving one tractor, and then there were other two graders right behind him that were totally empty, right? And they’re just, you know, following his GPS, you know, he’s controlling them.   Matt: Wow.   Chip: Yeah, yes. It’s totally crazy, man.   Matt: It’s a drone tractor.   Chip: Yeah, drone tactor.   Matt: That’s pretty amazing.   Chip: Yeah, the technology is everywhere, you know what I mean? The most expensive thing with cannabis is labor, like you said, to be able to automate any point. But then, you also have to, like read the data, right? Like, you know, just because you know, you’re shoving all your weed in your automatic harvesting machine, and it sorts the nuggets, and pushes the big leaf to one side, the small leaf to the other side, the eighth nuggets this way, the pound nuggets this way, you still need the data from it all.   Matt: Yeah, absolutely. I think when we started Trym, we thought it would be really great if we could Google set out the catalog the world’s data. I think, you know, you could say we set out to catalog the cannabis cultivation industry’s data, right? We didn’t actually set out to do it at the industry scale, though. We started out to do it at the grower scale, where we could actually catalog out their data, and then they can look back on it, and reflect on it, and figure out how to make improvements. Because ultimately, you and I can both be growing like you know Mac. We can both be growing a strain. And your version of Mac might be different than mine, right? Because like, we think it’s the same cut. But ultimately, it may not be, and I mean, there’s been obviously a lot of efforts to try and make, to try and identify those similarities. But knowing that I’ve seen one of my friend’s Gorilla Glue, I’ve seen  the other one’s Gorilla Glue, and they look fundamentally different. It’s like, something happened along the line, and maybe [inaudible 37:01], or whatever. But also like, we don’t track everything, right? So these outside influences around like, how tight is the envelope of the room, and that kind of thing. So yeah, we have the inputs, but we don’t know every, we haven’t characterized every element of every room. So we think we’re you know, the kind of similarities across different growers make a challenge with the differences of their grow environment, the differences of their strains, make it difficult I think, to really create this whole industry wide, perfect model of what’s the best way to grow cannabis. But what we can do, I think, is provide growers along the way, as we continue to get better about how we make it really easy to track data, we can make it really easy to provide recommendations to growers on how to make improvement. Like hey, you know, normally when you run your Alien Cookies in room three, you keep it 73 degrees, and you get this output. You’re running at 75 degrees on average, you know, if we could drop that back down, then you might get x percent more output.  You know, those are the types of things along the way that I think we should be able to provide, becauseyou know, you can already provide those types of assertions, and a lot of, there’s a lot of technology to provide those types of assertions in other industries. You know around like, turbine performance and around you know, broader agriculture, you know. If the field looks this color of brown from the satellite image, then you’re probably suffering from this pathogen, you know. That’s something that they can do [inaudible 38:22]. The fact that we can’t do that in cannabis is, I think, a statement to the fact that it was federally illegal. A lot of growers weren’t didn’t have the will, or the motivation to take really accurate records that were especially digital. Because you know don’t have a record what you’re doing, and with the medical, you know, there was a lot of that. So, a lot of internal nomenclature. And there’s a lot of unique cultivars that exist, and a lot of unique environments. And so, that’s been a gap to go to provide that cannabis. But that’s what we’re on the way to do, is to help growers ultimately grow a better product. And we’re doing that by tracking all those major pieces.   Chip: Oh man, that’s where it’s at. We need to grow better weed, dude. Everybody needs to grow better weed. I need better weed, you need better weed, we all need better weed. That’s for sure, man. Man, this has been an awesome conversation. A lot of people look you up. How do people find out about Trym?   Matt: Yeah, so our website is trim with a Y, so trym.io. You can go there, you can request a demo, or you could email us at info@trym.io. Love to talk to anyone that’s interested. As I mentioned, we’re in 14 states, our farm platform works in any state irrespective of the compliance system you guys use. And then, if you’re specifically looking for Metrc support in California, definitely reach out, because we, over the experience of building out that integration for compliance, have turned into industry experts as far as compliance goes in the state of California. So yeah, we’d love to have a conversation with any of your listeners that think we could be helpful.   Chip: Oh man, that’s great. Yeah, Metrc is coming to a town near you, Oklahoma. So get ready for yeah, we just passed it a couple of days ago.  Not passed, but it just came into action, I believe just a couple of days ago. So it’s all starting to happen here.   Matt: That’s the truth, man. Yeah, those guys have a pretty good grip on on the regulated states.    Chip: Yeah well, here it comes. It’s all good. Hey, man. Thanks for the conversation. I really appreciate us finally getting together. It looks a little clear out there. Not so smoky. I hope the breeze keeps up, and the fire stay down.   Matt: Yeah, thank you. I really appreciate it. It’s been really nice talking to you. And yeah, hope you have a great rest of your day. Chip: Yes, thank you. And hey, thanks for listening to another episode of The Real Dirt. This has been The Real Dirt with Chip Baker. If you’re interested in this episode or others, you can subscribe on iTunes and on Spotify. If you have any grow needs check us out at cultivatecolorado, cultivateokc.com. And remember, when life’s getting you down, just grow a little bit of weed. It’ll make you feel better. Thanks again, Real Dirt.
28 minutes | 6 months ago
The Real Dirt on Permaculture and Cannabis Tourism
Notice: This episode was recorded before the forest fires in California began. Restorative agriculture is no joke. As cannabis cultivators, we are all stewards of the environment. Our actions can directly impact our local ecosystems, and as cannabis cultivation spreads across the nation, that impact can grow rapidly. Restorative agriculture, or permaculture, is the act of farming while trying to prevent as many environmentally harmful practices as possible. Water usage, nutrients, soil beds, and farm design are just some of the aspects that go into restorative cannabis cultivation, and Sol Spirit Farm is doing it all. Judi Nelson and Walter Wood are the owners of Sol Spirit Farm, a licensed 10k square foot regenerative cannabis farm in Trinity County, CA and Sol Spirit Retreats, a cannabis tourism-focused, farm stay hospitality business. Walter has been cultivating cannabis since 1996, and his passion for improving the environmental footprint of his cannabis cultivation is what drives every cultivation decision. Judi and Walter started Sol Spirit Retreats in 2019 after meeting a lot of people, even people working in the cannabis industry, who had never seen a cannabis plant growing in the ground under the full sunshine. They wanted to share the experience of being in the Emerald Triangle on a cannabis farm, and show off how regenerative farming, permaculture principles, and appropriate technology can enhance the cannabis we bring to market, while improving the health of our land. In this episode of The Real Dirt with Chip Baker, Judi and Walter take Chip through their grow processes and how they maintain their restorative cannabis cultivation practices. They also dive in to the new world of cannabis tourism and the many challenges, especially the legal hurdles, that the two had to overcome just to operate. While still small and driven mostly by word-of-mouth, Sol Spirit Retreats has drawn in a lot of people trying to experience the northern California life. Judi hopes that one day it will be just like a winery and orchard, where visitors won’t just be able to tour, but also taste the cannabis on the farm! Check out this episode on our new YouTube channel or go to your favorite podcast platform to listen on the go! TRANSCRIPT BELOW Connect with Judi and Walter Instagram Facebook Sol Spirit Farms Follow and Subscribe to The Real Dirt Podcast: Instagram: https://www.instagram.com/therealdirtpodcast/ Facebook: https://www.facebook.com/therealdirtpodcast/ Apple Podcasts: https://podcasts.apple.com/us/podcast/the-real-dirt-with-chip-baker/id1173559750 Spotify: https://open.spotify.com/show/1tC6OyqCJfUWsmGYovqlQP Get great deals on grow gear: CultivateColorado.com Instagram: https://www.instagram.com/cultivatecolorado/ Facebook: https://www.facebook.com/cultivatecolorado/ Transcript   Chip: Oh, here we are, The Real Dirt. Today at The Real Dirt, I have some peoples from one of my favorite place in the world, Trinity County, California. Man, Trinity and Humboldt, and along the border there, is one of the most beautiful and rugged places in the world. And I have Judi Nelson and Walter Wood of Sol Spirit Farms and Retreats. Say hey, Judi and Walter.   Walter: Hello!   Judi: Hey, Chip!   Chip: Oh, man, I just love that whole area you guys are in, outside Willow Creek all the way to Hayford. I’ve got some really great friends over there. Little Hill Farms is over there, and man, you guys are just in paradise.   Walter: Definitely, definitely. We love it. We have been out there for about 20 years now and I don’t know, we hardly leave. It’s home. It’s a magic place.   Chip: So are you guys on the mountain, or the river?   Walter : We’re about 300 feet up from the river floor. So we’re just out of the river fog, but at the same time, we’re not up on the hilltop. So it’s a nice kind of in-between. We’re in the valley, but we get about 12 hours of sun so it just works out perfect.   Chip: Oh man, it sounds beautiful. Yeah, that river fog can plague you. I lived over in, off the Vandusen for a number of years. Man, the fog just creep right in on you.   Walter: I had no idea how bad it was until one day, we just took a little drone up and it was like, 10 o’clock in the morning. We’d been in the sun for hours and the whole valley was fogged in just below our shelf.   Chip: Oh yeah, there’s places like that all over. You know I lived in, up in Kneeland right outside Arcata for a number of years. And we’re at the 3500 block, which is 3.5 miles up that hill. And if you went just a half a mile further, you’re gonna have enough fog. Almost every single day like, hours before you know, we got out of the fog.   Walter: Luckily, we were living in the area for a few years before we bought the property, and we had a pretty good idea what the [2:18 inaudible] were. Permaculture course really helped nail in what exactly makes a good piece of property for homesteading, and growing some fine medicines.   Chip: Well, man, you guys are in the homesteading capital of the world, that’s for sure. And you mentioned permaculture, and you know, we talked about regenerative farming earlier. You guys have a unique cannabis business. You know, many people just have a, they cultivate, or extract, or are packaging something, but you have this cultivation that you integrate with a farm stay. Tell me how that works.   Judi: Well, so we have been inviting guests up to the farm. The [2:59 inaudible] as legalization of recreational hemp in California, we started going to a bunch of different trade shows. And it was kind of amazing to meet people who are in the cannabis industry who have never seen a cannabis plant growing in the ground. And it really surprised me, because obviously, we’ve been sort of up in our little bubble here for the past 20 years, and I just didn’t realize it. And so, we just really wanted to be able to bring people like that up, and be like, “Hey, check this out. This is this way that this can be done that’s not taking a lot of resources.” We’re actually trying to make our piece of property and the land that we’re working with in a better state than when we found it. And in order to do that, we have some bell tents, which are these beautiful canvas tents. And people come up, and they generally spend two nights in the tents. And we raise pigs and chickens on the farm, as well as vegetables and fruit, and so we’re able to do farm-to-table meals. And then Walter takes them on a really nice farm tour, and shows them all the different techniques that we’re using. And we usually take them rafting on the Trinity or on the South Fork, depending on what time of year it is. And it’s just been really great, because I think to people who are suffering nature deficit, nature connection deficit, it’s a really rejuvenating experience I think for people.  Especially if they’re coming from a city, to come up and just chill out, smoke some good medicine, and connect with nature. And it’s been really rewarding for us too, and hopefully for them.   Chip: That sounds so fun. But you guys don’t have a normal cultivation or I shouldn’t say a normal, but it should be normal. But you guys use permaculture and regenerative farming techniques.  Many people have heard organic or maybe living soil, and those are kind of part of regenerative farming and permaculture a bit. And I know it’s a huge question to ask, but man, can you like, tell me how it applies to cannabis?   Walter: Well, we’re working on a whole bunch of different angles and we did this, we have transitioned substantially in the last few years. We were doing the full season plants up until almost legalization, and then we switched over to the light dep, and so we’re getting all that worked out. And so we’ve now got about six and a half thousand square feet of, we got living soil beds which for us that means we don’t till them, we don’t broadfork them or anything. We did originally broadfork them to just loosen them up a little bit, but not to actually turn the soil. There is a living clover cover crop growing year-round, it’s a little bit died back right now, because they were associated out by the ladies on the first round. We just replaced the spot where the plant itself was potted in, or the pot went in into the ground. And so the rest of it’s all connected, all natural, all living. Tilling really disrupts the biology of the soil and releases a lot of CO2 into the air. With this, the clover cover crop, we didn’t have to import any nitrogen this year. All’s we’ve been feeding has been compost fees, most of that’s made with onsite compost, we’ve been doing various KNF type things, which we are importing some sugar to make our nutrients. So that’s just about it. It’s all natural farming, just trying to to make as many nutrients as we can at home to import as little as possible, and just build that soil.    Chip: When you say beds, describe what your beds look like.   Walter: Well, so I mean we are on a little bit of a slope. It’s pretty mellow, but it does slope so we went across that hillside.  And when we broadforked it and all that out, we leveled out a six foot bed going across the hillside, it’s tied right into the soil. There’s no cage around it or anything like that, it’s just directly in the earth. And then, we’re going to be putting up some wood edges on the downhill side to just help retain that edge. It’s grown right in the earth. It’s super important to me. We don’t have to feed as much, and the plants have access to what they want. They can make choices, and they’re not stuck in a little tiny soil spot, they have access to the whole area.   Chip: What did you have to do to your soil to prep it? What did you add to it at the beginning, and what are kind of the things that you add to it now?   Walter: Well, so this year, like I said, we actually, we did not add anything besides wood cover crop (7:50). And then we also did bring in forest duff from the hillside above of the patch. And so we brought in a couple inches of the leaf litter and stuff that’s just starting to break down a little bit, so that brought in our indigenous microorganisms or IMOs, as they’re known sometimes. So we covered the beds with a six inch layer of that which completely covered that clover for a little bit, then that cover crop burst right back through that, and basically just incorporated all of that leaf matter right away. And so previously, when we first did prep those beds, we did bring in some manure. I think that was about it. I’m so scared to bring in even from outside anything because our tests, our flower’s tested to the parts per billion on these pesticides, and what if I’m bringing in some straw or something, and if it were to have something? So we avoid bringing in anything. We like to keep everything from on-site, that way we know it’s clean.   Chip: These aren’t like, beds that normal people think of that have wooden sides, their area is that you’ve built in the soil, grown in and added your own ingredients, local ingredients.   Walter: Exactly, exactly. Chip: When you talk to people about cannabis techniques and grow techniques, a bed means so much different, so many different things. You know, in the indoor world, it can mean something, it’s totally different than the outdoor world.   Walter: We are directly in the ground for sure.   Chip: You’re directly in the ground and you say you do light dep, is it under plastic? Or is it under natural sunlight during the day?   Walter: So yeah, we do not have the clear covers on the greenhouses, so they are open to the natural sunlight. It makes it simpler. We don’t need as many fans, things like that, because it is open. And then yeah, we roll down some tarps over it at night, give us the 12 hour cycle.   Chip: Oh yeah, absolutely, man. I’m just envisioning your garden here as we’re talking about it. I mean, I’ve been in quite a few Humboldt and Trinity Gardens on the hillside. I feel like I know, I feel like I’ve been to your place before.   Walter: One thing that’s a little unusual is each bed is on its own, a foot higher than the next, because it’s sloping down the hillside. So then the bottom of the greenhouse has just some leg extensions to level it out. And so once again, just trying to simplify, keep things as minimal, and environmentally friendly as possible.   Chip: That’s the name of the game. And you know, the interesting thing about everything we’re talking about, is there’s no cost in doing this. Like you virtually have, I mean, you have very low input costs.    Walter: Yeah, comparing it to an indoor scene it is very drastically reduced. I would do only two runs a year. So we have very little lighting, very little inputs, and that way, the light dep is significantly more labor I find than the full season was. And you know, just pruning up all these plants and anything when you multiply it by 1800 or 2400 pound a run, all of a sudden like, just a few [11:13 inaudible] here and there adds up.   Judi: There is an increased labor cost, you know, you’re just trading going out into the forest and having to collect these inputs. That’s a labor cost, right? So you’re trading maybe some increased labor cost on going out and sourcing the nutrients ourselves compared to like, just going to the store and buying something that somebody else made in a bottle. So it’s a little bit of a trade-off. It’s not like there’s no cost associated. There’s no material cost, but there is a labor cost for sure.   Chip: Wait, wait a second. I thought that’s where the farm stay came in. Don’t you have the guests doing that for you?   Judi: I gotta make that work out, right? That’s the next step.   Chip: Sounds like you guys got a great trim camp. You really need to be hustling guests here in October, huh?   Judi: Right. Yes, come pay to trim our weed. That sounds like a great plan. I gotta get to work on that.   Chip: You would be the first person to try to implement that one.   Judi: I’ll let you know how it goes.   Walter: We’ll outdo what everyone else has [12:16 inaudible].   Chip: You know, not too many places have cannatourism, and that’s what we’re talking about here. And this is so akin to, I mean, wine tourism or fishing tourism. Like, this is like, a brand new thing. And how has it been perceived?   Judi: Well, you know, it’s been a little bit of a challenge just working out all the legalities of doing it, obviously because cannabis is so highly regulated. That’s, I would say been the most challenging part, is just trying figure out and make sure I’m not breaking any rules. And one thing that I mean, the people who have found it and have come out,  we sort of kept it a little just word of mouth so far, but the people that have come out have all had a great experience. And I think that, especially in Trinity County, and in Humboldt, like, it’s a huge thing if we can make it so that it’s easy for farms to do this, and to show it. There’s a huge demand for people who want to come and have this experience. It’s like, legendary, this area. There’s lots of people that want to come have the experience. So it’s been really well-received by the people who have come so far. We’re just trying to make it better all the time. And someday too, what we hope is like, just like wine, it would be amazing if we can get to the point with the state laws and the local laws that I could actually allow people to purchase cannabis at the farm when they come, you know, be able to buy our flower on our farm. So far that’s not allowed, but I really do hope that one of these days soon, the various involved agencies do allow us to do that, just like you can at a winery. And do tastings, and do that whole thing, because that would be amazing.   Chip: Absolutely man. They’ll treat us like adults one day.   Judi: Someday.   Walter: Maybe, I sure hope so. We know it’s come a long way.   Chip: It’s amazing, you know, Humboldt and Trinity County has such long-standing history, but there’s just always been this fight against cannabis there, and it just still remains. It’s one of the most difficult places to get licensing to this day. They’re really missing out on so much great culture. And this huge brain trust is there of people like yourselves, and living environment, sacrificing to grow cannabis, and cannabis growing them in return. It’s just an untapped resource, and they just haven’t used it well enough, that’s for sure.   Judi: Especially in Trinity where, you know, there was logging and mining, and that’s kind of what everything was built upon. But that’s been gone for decades now. And there’s not a lot else going on in Trinity. And I do think it’s changing. You know, we were able just recently, the Trinity County Agriculture Alliance, of which we are members, which is a group of licensed cultivators in Trinity. And we actually proposed our own cannabis commercial, cannabis tax measure, like, to tax ourselves. Because up to that point, Trinity didn’t have one and, you know, we all want to see our community services happen. And, we were able in five days to collect 10% of the registered voter signatures in the county to get our measure on the ballot.  And you know, who would have thought that that would ever happen in Trinity County? But it just did, so it’s coming around, it’s happening. You know, we’re getting more organized, and as people can kind of come out of the closet a little bit, I think that’s only just gonna increase.   Chip: Yeah, ’cause people are still scared to talk about cannabis there, even legal cannabis owners. They’re scared to talk about cannabis. They’re scared to bring it up to their neighbors. It’s still taboo in so many communities, in so many places.   Judi: Yeah, it’s true. I think that for me, that’s been one of the best parts about recreational happening in California. It’s just like, “Okay, you know what? We’re here. We’ve been here the whole time, but now we’re letting you know.”   Chip: So tell me about this tax initiative.   Judi: Well, so there was a tax measure proposed on the March election by a group of people who really actually just wanted to put all of – my perception – was that their tax basically was just to put everybody out of business. And so this, the Trinity County Agricultural Alliance came up with one that is much more small farm friendly, because in Trinity County, almost everybody has 10,000 square feet or less because of the way that the ordinance was written. There’s only a few people who have more than 10,000 square feet. And so basically, the TCAA came up with this proposal where it’s all based on sales, right? So for instance, in Humboldt County, you have this square footage tax where you’re charged per square foot, kind of regardless on whether you grow anything or make any money or not, which personally, I don’t think is the best way to do it.   Chip: Oh, it sucks.   Judi: I think that like these other industries, you should be taxed once you make money, right? And so luckily, we kind of had time to look at all these other counties and be like, “Okay, what’s good, what’s not good?” And so this tax, it’s like, for your first hundred pounds, you’re taxed at this rate. And I can’t quote you the exact numbers, but you’re taxed at a lower rate. So if you’re a very small producer, those first hundred pounds you grow is taxed at a low rate. And then it goes up, like okay, and then the next 200, I think, and it goes up from there until like, over I think a thousand pounds, you’re paying, I believe it’s $15 a pound in cultivation tax to the county, basically. And, you know, there’s some other things in there about different businesses, there is no retail in Trinity County yet at this point. And so they’re not, you know, they’re missing that, again, they’re not collecting any tax revenue because they’re not allowing anybody to sell retail, which hopefully, again, they’re gonna get that together. But this initiative mostly is for taxation on cultivators, because I think that’s appropriate as long as you wait to tax them. Wait until I’ve made some money, I’m very happy to contribute to the county coffers to do roadwork and, public safety, and things like that, and schools. And so, we just wanted to show as an industry like , “Look, here we are, we want to contribute, but don’t try to put us out of business.” Because that’s not going to be good for the county long-term.   Chip: Yeah, there’s so much green greed, it comes from every place. The counties get it for sure, and the state governments get it for sure. Well man, I salute you guys, for working so hard to put it together. Trinity was considered one of the harder places when it all started, I think Humboldt’s shown that it’s the hardest place right now. I mean, Mendocino might not be so easy either, but it hasn’t been any easier anywhere in the Triangle.   Walter: I think the triangle has some like, 60 or 80% of the permit since, it’s a large number.   Chip: More like 15, 16,000 people in Humboldt with commercial grows, you know, before all this has happened. And to say that you have like, and to say that you have 500 people or 600 people with licensing? Man, I just don’t think that’s a good enough attempt to get people out of the private market industry, and get them into tax. Because literally for Humboldt, it’s billions of dollars. They would convert all of that private grow – sorry guys, you should probably pay some taxes, all of my private grow friends that are out there just growing in the hills. I love you guys, you should pay more taxes. If they would incorporate all those guys into it, it would like really, really change. I mean, my local school, Trinidad Union School District, man they’re failing, they don’t have any money, right? Like, COVID’s hit them so hard like, there’s like, just so much stuff, and through Humboldt and Trinity County an educational loan that needs to be worked on. And you know if they played their cards right, like, cannabis could totally bring the whole Emerald Triangle out of all of their problems, right? It could help with the fire suppression issues. It could help with all the drug problems, it can help with all the homelessness, it can help with all of the educational stuff. I mean, it’s just such a wasted resource. It’s just kind of frustrating when we see as there.   Judi: Yeah, I think some of that is not necessarily seeing the legal market in California. And it is a challenge right now to, when you compare just all the hoops you have to jump through, all the money you have to pay. And yet, I personally think, because the state especially is taxing the end product so hard, they just have this huge black market that’s still going, and it’s hard to not look at that and be like, “Wow, that was so much easier back in the day.” But again, now it’s all changing and it’s the time to like, get together and move forward into the light.   Chip: No, it’s the responsible thing to do. And I mean, I don’t know about Trinity County, but Humboldt County per capita always had more people contributing to fundraising than anyplace else, you know? And that was because all the cash dollars from the fishing, the logging and the cannabis. And now the fishing and the logging, it’s like next to nothing compared to what it used to be, and it’s just cannabis. If they could just, open up their arms, just embrace it.   Walter: Relax a bit.   Chip: Yeah, relax, relax a bit. I know you have such a special place and inviting people out there. Tell me about some of the people that have come in and visited you.   Judi: So last year, we mostly focused on some different folks who either own, or manage, or the buyers for various retail shops in California. Again, because there’s no better way for someone to learn where this particular brand, our Sol Spirit brand of flower comes from. And, the lot of them had never been to the Emerald Triangle. So last year, it was a lot of retailers. And most of them were so stressed out when they arrived, because they’re jumping through their own set of hoops. And that job, I can’t even imagine trying to pull that off. And so, it was just super relaxing and rejuvenating for them. And most of them, you could just like, see their faces change by the third day where they were just like, “Oh, okay, we’ve let go of the stress. We’re here. ” And also getting to see the way that we farm, I think really opened their eyes to like, it’s not all the same. So like, indoor has its thing and then people with like, really large grows who are maybe putting out more mid-quality stuff, but in volume, that’s a whole different thing. And then our particular craft, regenerative way of doing it, it’s like, you’re actually talking kind of about different products, right? And so I think it was great for them to be able to see, like, “Oh, yeah, the next time somebody comes in and tries to sell me a regenerative craft cannabis, I’m not going to compare it to this $8 eighth in a mylar bag that came from a 12-acre scene in Salinas,” or something, you know. So that I think is like, an education piece that’s super important to us. And so there’s that, and like, that really, I think, changed a lot of their perspectives. And then this year, we’ve had more just regular folks. It’s been interesting with COVID to kind of work that all out, and so we had a bit of a slow start just making sure that we could keep everybody safe. And now I feel like we’ve got that down. And it’s been, I feel like even more rewarding, because we’ve had several people from the Bay Area come up, and some of them have been stuck in their apartment for months. So to be able to come out and of course, the beautiful cannabis medicine also helps with their mindset. And we had a couple of people come out where they sort of like, changed their whole life trajectory over the weekend, because they were able to just kind of step out of their normal life and gain some perspective on what they were doing which of course the cannabis is also really helpful for.   Walter: Yeah. The hills of Humboldt County and Trinity County have a way of doing that.   Judi: It’s been really great. We’ve had all kinds of different people, yes. Yeah. You know, you get used to where you live, and you kind of stop seeing it, I think sometimes. And being able to have all these different people come and see it from their perspective and out of their eyes, it really refreshes our love of the place as well.   Chip: Oh man, you know that’s the thing that people don’t understand or know about that area, Northern California is it has the least light pollution I’m pretty sure of any place else in the US. Right, maybe even the continental US. I mean, it is you get to see this guy.   Judi: Yeah, it’s pretty amazing.   Chip: It’s been great chatting with you guys. If people want to come to Sol Spirit Retreats, how do they get in touch with you guys? Can they follow you on Instagram? Or how does it work?   Judi: Well, they can follow us on Instagram. We have two different Instagrams, so one for the farm and one for the farm stay. And they’re, Sol Spirit Farm, s-o – like the sun, Sol Spirit Farm and Sol Spirit Retreats. And then our websites are the same, solspiritfarm.com and solspiritretreats.com.   Chip: Yeah, well, hey, thanks for joining me and man, smell some of that good Trinity County here for me. God, I wish I was there right now with you.
56 minutes | 6 months ago
The Real Dirt on Investing in Cannabis with Narbe Alexandrian
There’s those with a passion for cannabis, and those with a passion for money. In Narbe Alexandrian’s experience, both have been successful in the cannabis industry. But those with more passion for money rarely stay around as long as those with a passion for the plant. Narbe is the President and CEO of Canopy Rivers, a venture capital firm specializing in cannabis. Prior to joining Canopy Rivers, Narbé was a Venture Capitalist at OMERS Ventures, one of the most prominent technology venture capital funds in Canada. During his tenure, Narbe helped fundraise for two funds ($520M of capital), sourced and led multiple debt/equity financings, and acted as a Board Observer for several portfolio companies. Now he has turned his focus to cannabis and securing financing for cannabis startups, and investing in cannabis businesses across the country. Narbe knows a thing or two about what investors are looking for in a cannabis business or startup, and has valuable information to share on new and emerging markets. From how Canada’s market exploded and businesses scrambled to take advantage, to the step by step process of investing and growing a business portfolio simplified, Narbe and Chip talk about it all in this episode of The Real Dirt Podcast. Learn more about Narbe Alexandrian Canopy Rivers Instagram Canopy Rivers LinkedIn Follow and Subscribe to The Real Dirt Podcast: Instagram: https://www.instagram.com/therealdirtpodcast/ Facebook: https://www.facebook.com/therealdirtpodcast/ Apple Podcasts: https://podcasts.apple.com/us/podcast/the-real-dirt-with-chip-baker/id1173559750 Spotify: https://open.spotify.com/show/1tC6OyqCJfUWsmGYovqlQP Get great deals on grow gear: CultivateColorado.com Instagram: https://www.instagram.com/cultivatecolorado/ Facebook: https://www.facebook.com/cultivatecolorado/ Transcript Chip: Once again you have reached The Real Dirt, and on today’s dirt we have Narbe Alexandrian. Narbe, he is the President and CEO of Canopy Rivers. They’re the largest cannabis venture capital company. They’ve invested in some of the largest cannabis operations in the world. Thanks for joining me today. Narbe: Thanks for having me. Really excited. Chip: I love Canada. I love Toronto. There’s so many polite and pleasant people there. I’ve been to Toronto a handful of occasions, and even the police officers that were trying to arrest me were really polite. Narbe: Yeah, there’s a lot of sorry’s, a lot of thank you’s, that’s for sure. Chip: Just for the record, I didn’t go to jail, I never have been. It was a totally misunderstanding and they let me go. Narbe: Awesome. Glad the city was nice to you. Chip: Yeah. You know I was really excited that you know, we were able to organize a conversation, because you know, cannabis business is the most important part about the cannabis industry. You know, everyone thinks just cultivation, growing weed like you know, that’s all it’s about. But like, that’s only where it starts. And ultimately that’s, the point is to provide that product. But business in cannabis is so much more complex than it used to be. Narbe: Absolutely. I mean, the beginning piece is cultivation, like you need to grow it out of the ground in order to be able to do all the things that you can to it. So when we look at the industry, we see it as seed to sale of what are all the different steps that are needed to go from the initial idea of I want to cultivate cannabis, all the way to the products that you see on the shelves today, and all the post retail services and products that you see on the shelves for cannabis businesses as well as consumers out there. Chip: I talk to people all the time, I talk to, especially here in Oklahoma. You know, one of the things about Okla- we were speaking earlier about Oklahoma, and California, and Colorado. One of the really different things here as opposed to other states, is it’s so many mom and pops. And there, there are some like small investment type structure,  and there’s some big companies that have moved down here. But when you look at the stats, there’s 7000, 8000 cultivation licenses issued so far. And most of those people are just small mom and pop people that their only interest in is growing cannabis. But other places, like Canada, or California, or now even Colorado, and kind of the only way you can get involved in the cannabis industry is by, you know, coming at it with lots of capital resources. And that’s kind of where you guys come in, because you tell me kind of some of the stuff you guys have done in the past. Narbe: So we’re a venture capital vehicle, like our job is to invest capital into the cannabis industry, specifically into companies early on, and watch them and help them grow, hook them into the ecosystem of what Canopy River’s in and its partners, including Canopy Growth have, to put fuel on the fire and get them towards some sort of a monetization event naturally. So, get them big enough that some large company wants to buy them, get them big enough so that they can go public on their own, get them big enough so that they’re just driving cash, and there’s a dividend potential in there as well. So that’s our idea. Like we’re looking for companies that want to grow and can continue to grow. So, there’s two types of businesses out there, successful businesses. One are the ones that want to grow, grow, grow, and then sell the company, and get a financial profit. There’s other types of businesses that aren’t that interested in hypergrowth, or blitzscaling like we call it in the industry, but they’re more so looking for a lifestyle. They’re looking to build a company, get a good income off of it, enjoy it every single day, not necessarily looking at growth at all costs, but more so looking at just simply growing and earning a paycheck off of it, and potentially building some equity into the business over a period of time. The latter businesses, like those businesses that are more lifestyle, they’re harder to invest into because as an investor, you don’t get the same bang for your buck as you do for the ones that really want to pour out oil on the fire, and just keep going, and going, and going. So whenever we look at a company, we’re looking at how they fit into each of those molds, and how we can help them out. We don’t ever say no to a single call or an email or anything of that sort. We want to talk to every single person we can, every single entrepreneur we can. We’re very grateful to have had the opportunity to have seen over 2200 deals come in. So 2200 companies, over 2200 companies, have pitched us to date, telling us what they do, how they fit into the ecosystem, why they’re so different from each other. And through that process, we’ve met over 4000 entrepreneurs, or founders or founding teams that have a specific thesis about where this industry is going. So having that many conversations, and we do a great job of codifying that information, those discussions, in order for us to really understand how things are playing out gives us a lot of domain expertise in terms of where we think this industry is headed. So, love to talk more about that as well, and get a bit more deeper into where things are going. Chip: Man, you know, one of the things you just said that struck me. You’ve talked to 4000 people who had the confidence and the desire, and to seek investment in order to grow their cannabis business. That just seems like an incredible position to be, like just to be able to like, talk to so many people in the almost the exact same position, even if they were doing, you know, different things from extraction to, you know, business development. Is there something about, I’m really intrigued about the people you talk to. Is there something about them that is all similar, you know, or that’s surprising? Narbe: Yeah, I mean, I’d say that they all have a passion for cannabis, or they have a passion for money. I see that those are probably the two different pieces that you do see. The best businesses are the ones that are just hyperfocused on solving a problem. So they come to you and they pitch to you and they say, instead of saying, “This is what my product is, this is what my company is,” they don’t start it off like that. They say, “This is the issue at hand in the cannabis industry today.” If we’re looking at a certain state, call it Colorado, they would say, “There’s too many small cultivators out there, there’s too many small retail stores out there. And to get these cultivators to talk to these retail stores, means that there’s a lot of phone calls and emails flying around everywhere, trying to get product on the shelf, and trying to get distribution. And there’s no broker to go through, there’s no channels to go through, it’s very hard to do that. So that’s the problem at hand. Now, our company, our product is to create a marketplace where cultivators can talk to stores, and get their product listed on there without having any friction, without having any human interaction. And they can send samples, they can send mass shipments, so like a wholesale business to business platform.” Those are the types of companies I’m more intrigued with, because they’re actually trying to solve a problem that’s out there, instead of trying to create what everyone else is creating. That’s kind of like, the best case scenario of when you hear a pitch. And then there’s the two other sides of it. You see the one side where people are so invested into making money in this industry that they don’t, they don’t consume cannabis. They don’t understand the consumer of cannabis, they don’t understand the intrigue of it. They build product that nobody really wants to buy, because they just don’t get it, and they don’t make money off of it either. And then there’s another set of, kinds of companies and entrepreneurs that are very passionate about cannabis, but aren’t as willing to do the homework to understand how to build a business around it. So they take bad advice, they don’t really think through their decisions. And they get into deals where they can’t get out of, and then it becomes much harder for them to operate, and much harder for them to grow. And my background has been in technology I spent up close to a decade in the tech industry. And when I see the cannabis industry, there’s just so much sophistication that’s still needed. We’re so early in the game, that it’s pretty intriguing to see where we are. It’s pretty exciting to know that we’re all trying to help this industry grow and mature to what it will become in the future. Chip: You really did identify my customer, for sure. The passion and the get rich quick person. Those are the people that we commonly come into contact with, you know, their technique, or they love the plant, or they have a healing story about it. They say something like, “Oh man, me and my best friend from Google and Microsoft, we all got together, we had an [9:18 inaudible] on something. And we bought these other team of people in, we’re going to build this big thing. We’re going to exit it out in three years and be billionaires.” And some of them do it, right? Narbe: Absolutely. And then I think they missed the mark on that, at the most parties. I mean, I’d see a few of them that actually do succeed, and I call those the lucky ones. But for the most part, it’s very hard to do so. So as an investor, like one of the things that we’re so focused on is, can we work with this company, with this individual for a very long time? Because you might see the stories about the Instagrams or like the Canopy Growths that just go from a nothing to a huge company in a short period of time. But those are Cinderella stories in the grand scheme of things, because for most entrepreneurs, it is a huge grind to get to, from the beginning towards building an empire or a huge business. And that period of time takes a long time. I like to use an anecdote of a US marriage. And a US marriage on average is about ten and a half years. Similarly, the period of time between founding and exit of a company, on average is about 9.6 years. So it’s 9.6 versus 10.4 years. when you make an investment into a company, you’re basically getting married to the company, the entrepreneur needs to understand how to work with them. You need to understand what strengths they have, what weaknesses they have, where they want to really focus in on, and you have to really see it as a ten-year relationship that you’re building off of. And if you can’t do that, then it just, you shouldn’t put the money in. And even if it means that you’re missing out on a Facebook type opportunity where you can make 100 times your money, you just don’t want that risk of working with someone you just don’t understand, and who does doesn’t understand you. Chip: Yeah, bad partner relationships are, if you get into the wrong one of those, they can just be a nightmare, absolutely. Partnerships are often made to break up. I’m glad you really brought that point up. You know, I’ve talked about this with my other partners, whenever we start a new business, there’s always, you know, an understood exit plan for everyone involved. And if anyone wants to pull the parachute cord, they can. But it’s really important that you do that for people, and be very clear at the very beginning. I just had a partner exit from our business, and you know, it was time for him to go. He wanted to get paid, he didn’t quite know how to bring it up. We figured it all out really kind of amicably, and he walked away with you know, with what he exactly, what he wanted. We didn’t quite figure it out at the beginning of the business, because we didn’t know any better. You know, but yeah, that relationship lasted about 10 years, right? That’s a really interesting point you bring up. Narbe: I’m going to use that point any time I bring up this anecdote again. Chip: You know, you start out a business, you got these ideas. And you know, of course, like, you know, you’re younger than when you exit it, unless you’re just, it just happens in months. You have these long periods of time between changing your idea of what that business started out to be, to realizing like, what the business is really good at, and focusing on that, and turning it into something successful. And few people, I’ve seen few people that started out with like, the idea that they maintain ten years later. Narbe: Yeah, absolutely. And things change a lot. People’s personal lives change, their professional lives change, they want to move, they want to, they want to build a family, they don’t want to spend as much time. So, when you’re starting off a business, it’s really important to think about structuring it so that all partners within the company have a way in, and have a way out. So, I’ve always believed that on day one, you shouldn’t be splitting the pie between all the partners and saying, “You own 25%, I own 30%, so and so owns 40%.” You shouldn’t be doing that on day one. Instead, you should be thinking about where you want to end up, and putting everyone on a vesting schedule so that over a period of time, people have to work for that equity. So, if you and I, and someone else, we partner together, and we all split the pie evenly, so 33% each. And then tomorrow, I decide I don’t want to be part of this anymore, I shouldn’t have the ability to walk away with my 33%. Those are some very fundamental aspects of growing a business in the early days that honestly a lot of entrepreneurs miss out on. Again, because the sophistication of this industry just isn’t there. And the onus is really on entrepreneurs to listen to shows like The Real Dirt, and read publications on the internet to really understand the pitfalls that they can avoid. Chip: Oh man, I should have talked to you like, ten years ago, man. You would have solved so many problems for me. Where were you? So man, I got to say, there’s a lot of confusion in the US here over the Canadian market, over venture capital. Like so many people see that or have this perception that the Canadian market rose and fall with a bubble bust on it, or man, could you give me kind of an outline on what’s happened in Canada? And what’s going on today with the Canadian cannabis market? Narbe: Yeah, so Canadian legalization was first put on the table in 2016, when Canadian Prime Minister Justin Trudeau was elected for prime minister, or our president in Canada equivalently. And at the time, everyone started to race to build a company. So legalization was set to be in 2018. It was 2016 at the time, and if you were a cannabis company, your evaluation wasn’t based on how much revenue you were generating, because you couldn’t sell. It was illegal at the point in time, but it was more so on how fast could you ramp up the the production of the facility, or the manufacturing of the facility in order to get ready for legalization in two years. So, a lot of the Canadian licensed producers, they went crazy in terms of trying to build as much capacity as possible. They would buy all the greenhouses and retrofit them. And these greenhouses would be filled with like, mold and like, the walls would like, be baked in with like, pests and mold. And it’d be very hard to to get, to not have that impact the plants, but they do it anyway. They did find facilities that had no water, they had to ship water in every day, no electricity, they’d have to bring generators in. But it was it was by all means, “Let me pick up the most square footage of cultivation space that I can within the country prior to legalization taking place.” And the idea there wasn’t that Canadian population was going to be booming in terms of the number of consumers that are buying cannabis, but it was more so if Canada is the first G7 country that’s going to legalize cannabis. Well, guess what? There’s another six of them out there that are going to probably follow suit and say, “If a big country like that’s doing it, why don’t we do it in the US? Or why don’t we do it in parts of Europe, or all the European Union?” So, the race for capacity was, what I’d say 2016 and 2017, was characterized that. 2018 rolled around and legalization hit. And suddenly you found out that — Chip: And that, pardon me, pardon me. That race is really what fueled all the speculation. Narbe: Absolutely. Chip: Because people are going into these chutes and there’s like, “Ah, this group just bought 100 acres of greenhouses.” And the reality of it, it’s a defunct nursery, like you’re saying that needs significant amount of work. But that’s not what the market hears, and that’s not what the media picks on. It’s like, “Canadian market is huge,” is what they hear. Narbe: Exactly, exactly. And a lot of that was driven by hedge funds. So the hedge funds were putting in money into the industry, saying that we will fund the initial asset purchases for a lot of these companies and we’ll give hundreds of millions of dollars. And the reason why they were doing that was, they were forcing these companies to go public. They knew that retail investors out there understood cannabis, understood the benefits of it. And they would say, “I’ll give you 100 million dollars right now, you need to go public.” And the way I’m going to structure it is that there’s no downside for me, because I’m going to own a piece the company. And I’ll also be using financial mechanisms in order to make sure that any downside I get covered, and I’m only working on the upside. So they made a ton of money, but they also fueled the tide of companies. And while the companies they fueled shouldn’t have been fueled with that much money at that point in time, and some of the companies that they did actually succeeded as well. So there’s wins and losses across the board. Chip: Everybody wants to shine on the bad news, too. Narbe : Exactly. Exactly. But I mean, I quote Benjamin Graham who is the idol of Warren Buffett, by saying that in the short run the market is a voting machine, with a long run it’s a weighing machine. So right now, we’re at a point where it’s not a voting machine anymore. It’s not about how much capacity or square footage you have. It’s about, what are you doing in terms of revenue? Are you actually selling it to the customer base? And if you take a step back from that ship, there’s two flavors of companies out there. One are the artisanal, premium quality cannabis cultivators that are doing indoor or greenhouse or outdoor, but they’re really weighing in on,  “I don’t care about the yield. I care about creating the best product that I can for the consumer. High THC, beautiful bud, no crow’s feet, like it’s just stuff they can actually sell in the market, and that’s what I’m going to be working on.” And there’s another set of companies that are saying, “I want to be the lowest cost provider. I want to be the person who brings in the can to a curious customer with a $3 joint or a $4 joint, because I have the ability to cultivate at a low cost. I might not be getting the high 20 percentages in THC, I might be getting 20%, or 18%, or 23%. And it might not be the best cannabis you’ve ever consumed in your life, but it’s going to be what gets you into the market. And it’s going to be what gets you into the more premium product afterwards.” Anybody that doesn’t fit either of those two bills is stuck in the middle. And that middle is where you’re selling product that isn’t of high quality, or isn’t at the right price, and you’re just not growing anywhere. So right now, there’s a lot of companies stuck in that middle category, and they just can’t break out of it, because their infrastructure is old. And you can’t create quality cannabis, and it’s old so you can’t be the low cost provider, because you’re paying more than your competitors are in order to make sure that it’s free of pests and molds and heavy metals etc. Chip: Worldwide, it doesn’t matter how much you put into that kilo or pound of cannabis. It really is how much someone’s willing to pay for it. Narbe: Absolutely. Chip: I hear people say it all the time. It’s like, “Oh, I’m organic. I have living soil, like, you know, we put all this effort into it. This is biodynamic, I, you know, have a solar powered greenhouse, we made all this stuff by hand.” And I really appreciate all of that, but it has absolutely nothing to do with the commercial value of cannabis. Narbe: Absolutely. Chip: And that’s driven by other factors, you know, every state seems to be different. I’m learning more and more, but you know, here in Oklahoma, a variety is definitely important. More so than any other state, it’s a new state to cannabis, so people are really open to the different flavors and the different names. There is a smaller segment of society that will really pay for the higher end cannabis. Most people want inexpensive but good cannabis. They came from $40 an ounce Mexican import ounce, $100 is, $200, $300 is significantly more than they use, you know, you’re used to paying. So I see exactly what you mean, you know, is here specifically it’s very little at the top and then all the rest of it at the bottom. Narbe: Exactly, exactly. And if you’re stuck in the middle then who’s gonna be looking at you, right? You’re not the, you’re not one of the cheapest, you’re not one of the best, and then what are you? Mediocre? Who would want to buy mediocre cannabis right? So — Chip: No one ever said that. “Oh, if I had my choice,  I’d buy some mediocre cannabis.” Narbe: Exactly, exactly. And then you have other companies as well that are just so key focused on trying to teach customers about everything else outside of THC. So I understand, you understand that when you look at a cannabis bud, it’s more than just THC. It’s about the entourage effect, the terpene profile, and how it looks, and the moisture content of it. There’s just so many different attributes of it. However, you can’t expect the customer to, on day one, to know all of those with that information. You can’t expect them to know that on year five of this industry. When we go and buy a bottle of wine, for the most part, for the most part, the majority of customers don’t actually know what they’re buying. They don’t know what the difference between a Cabernet, and a Merlot, and a Malbec is. Same thing on the cannabis side. You can’t expect for the customer to know this. And so, if the customer is saying that our focus is on THC content, then that’s what you should be focused on. To think that you can educate the customer is a foolish concept in the short term. Like there’s so much going on in people’s lives like, why would they sit down and try to understand how to buy a bottle of wine, as well as how to buy a pre-roll of cannabis? Chip: You know, that’s something that we really should strive here though. And we’ve, and we’ve done it everywhere to Colorado and here, is customer education. And you said it,  it’s not something that’s immediate. For instance, when the early days of pesticide use started to come up in our store in Colorado, it was one of the states where you could buy any pesticide off the shelf. So it really kind of became up to our staff to educate people on the pesticides they were using. We did that for years. And it wasn’t until the state came out with regulations on it, that anybody paid any attention, or even cared, you know? And we put a lot of effort into it, but you know, it just wasn’t mandated. It wasn’t something they had to do, and they didn’t do it. Narbe: Absolutely. Keep it as simple as possible. I say this to companies all the time. I say, “Why don’t you just create a cannabis product called 20%?” And it just says it right on there. Or call it sleep, or call it creative, or call it– Chip: Yeah. Narbe: Just explain what the product is. And it’s very, very much like a Soviet Union type vibe that I’m putting out there, which saying that, just make, just tell them what it is. Hiding behind the logo and expecting to teach the customer everything that exists. Instead, just give them what they want, and just be obsessed in and hyperfocused on being one thing to the customer. Don’t try to be everything. Chip: One of the things that is kind of new to the cannabis industry is this idea of brand. In the past, you know, people just grew weed and there was other people that sold weed. And then it came to like, strains and preferred cannabis. But brands are relatively like, you know, new thing to cannabis. Do you see many people coming to you, and saying “We’re gonna make this brand of cannabis that’s internationally known?” Narbe: Oh, yeah, for sure. For sure. So, we see the industry kind of moving in five waves. The first wave is cultivation, where if you’re one of the first ones there, and you get a heads up on building a greenhouse, or building your facility, and just getting through the experience curve of being one of the first in your state to grow cannabis, then there’s success there. As the industry progresses, it goes into wave two, which is ancillary, the picks and shovels, fertilizers, LED lights, software technology, paraphernalia, vaporizers, etc. Third Wave is CPG, which we’re currently in right now, where there’s brands coming up every single day. I think there’s about 90 new skews of products coming into the cannabis industry per week within North America. So there’s a lot of brands just being hit in front of the customer. The top five players in any given state are changing on a quarterly basis all the time. Wave four is pharmaceuticals, which we’re still not there yet, because it takes time to prove anecdotal effects are actually driven by research. And then the fifth wave is maturation, which means that like Coke and Pepsi, there’s going to be a few large giant global companies that handle majority of the market share. And there’s gonna be small, not mom and pop shops, but mom and pop shops are always medium-sized enterprises, which then take another 30, 40% of the market as well. So right now, we’re in the CPG phase, which is consumer packaged goods, brands that are being created. And to me, there’s a big disservice that companies are doing by creating cannabis brands, and not creating brands that use cannabis, because cannabis itself as an ingredient. It is becoming more standardized and commoditized every single day we go through. So, you need to, instead of looking at it as the product, think of it as an ingredient. Are you trying to help someone with sleep aid? Cannabis can help, as well as melatonin and many other products. Are you trying to help someone to be more creative? Well, there’s sativa strains that are absolutely awesome for stuff like that. So think about what the problem set of your customer is. And just hyperfocus on it. Be the sleep product that your customer wants, and don’t be anything else. And it’s a hard thing to do this early in the industry. That’s the difference we’re seeing between the companies that are growing very rapidly, and the ones that are just the me too’s of the industry, trying to create a copycat of whatever else exists. Chip: Right. Take something and own it. Narbe: Exactly. Chip: Right. Narbe: Exactly. Chip: It’s hard to find that niche, that’s for sure. I’ve had it in my grasp a couple of times. It’ll slip out especially in our modern world, how everybody communicates with each other and, you know, using online applications to design you know, everything, and we can communicate with thousands of people. Yeah. Narbe: Totally, totally. I have companies that I speak to time to time where they say, “Well, I can’t tell you anything unless you sign an NDA.” And I say, “Well, we’re just having an introductory call. Why don’t we just talk about it before we sign anything?” And they say, “No well, if we tell you we’re scared that it’s gonna go away.” And my response to that is, “If you think within a half hour conversation, you’re gonna tell me something that is gonna, that you think that’s not going to be stolen, then I think you’re wrong. Because, not that I would ever do that, but the internet can disseminate information very quickly. And if you get to a big enough size, not too big, but you’re growing, and Forbes comes to you and asks you that question, you can’t make them sign an NDA, you’re gonna have to tell the answer. Or you’re gonna want to tell the answer, or else they’re not gonna run the story. And guess what, all of a sudden, everyone knows what your secret sauce is.” So it’s just all about just trusting the other counterparty, and really taking a step back and just being very honest with yourself and saying, “Do I have something special? Some sort of a competitive advantage that’s sustainable over time? Or do I not? And if I don’t let this go find one. And if I do, how do I hold on to this, and make sure nobody else gets to it?” Chip: This has been an awesome conversation, man. We’re really just getting into it. And the big thing I want to chat about with you is venture capital, and how it works. So many people have, you know, different visions of it. You guys are considered, you know, the devil of the industry and to some people, other people are totally scared of venture capital, because they think that’s gonna, like, you know, take their opportunity away. Tell me how it works. If I’m a small company, and I want to, I want to get some capital, like, like, how does it work? Narbe: Sure. So from a very general basis, a company comes in and says, “I want to raise capital.” They present us with a PowerPoint presentation or a deck that walks us through who they are, what they’re doing differently, how they stack up to competition, what their financial profile is in terms of how much they’ve raised, where they got money from, what revenues they have, what geographies they service, what categories they service, and they just basically give us this very introductory high level overview what the business is like. The next step after that is to provide us with a financial model of where they see the future going. The value of your company isn’t in what you’ve done in the past, it’s what you’re going to be doing in the future. So through that mechanism, we get to understand how they see their company evolving. There’s a lot of weight attached to that financial model, even though it is fictitious in a sense, you’re assuming a lot of numbers around it. But we want to understand, A. where the entrepreneur sees the business going? So do they see the business becoming five times as large in five years, or they see it being the same value or the same size for the next five years? And those have different motives attached to them, and they have different mechanisms of investment attached to them as well. And then once we’ve done those two conversations about the deck and the model, the next thing we do is we create a data request. Then we say, “This is the information we need to really understand, take a deep dive into the company.” And once we’ve done all that, as the investor, we proceed with the term sheet that says, “This is what the deal was that I wanted to do. This is how much money I’m gonna put in. This is what I’m going to get back, I might get a board seat, I’ll tell you If I am. What happens if the company doesn’t succeed? What do I get for that? Or what do I not get for that?” And you walk through all the high level terms. The next step after that is an important one for the entrepreneur. And for everyone listening to this show, you need to have a good lawyer in hand because you need so when — Chip: You say that one again, please. Narbe: You need to have a good lawyer, because you need someone to walk you through the legal jargon involved in getting to a deal with investors. Because there’s some investors out there, and I’m not going to name names or anything like that, that ask for a lot, that asked for a lot. They want to have all the upside of the business, but want to mitigate the downside of the business. And that doesn’t drive. We shouldn’t be doing that. Again, like they’re not thinking of a ten year partnership, they’re thinking about themselves in that situation. And they could be the nicest, kindest people out there, but you need to really work with a lawyer to understand what it is you’re actually signing up for, and what happens if things don’t work out. I love to really focus in on things not working out, because while everything looks rosy and awesome when you first put the money in, things can change very quickly, you need to be ready for that. So that’s kind the entire thing in a nutshell. After that investment has been made, we work with venture capitalists in general. Work with the portfolio companies in order to help them grow, link them up to other portfolio companies, and other companies they know, their network, help them with hiring by bringing in consultants, help them with legal matters by providing them with resources. And it’s really just unleashing the network that that investor has to help that company get to that next level. Build, build, build and get towards an eventual exit, which is either through acquisition or through a go public event. Chip: But you make it sound so simple. Narbe: I mean, I’ve done it so many times. But yes, it seems a bit simple to me. But — Chip: Hey man, out of those 4000 individuals that have come to you, do you, you got a percentage of how many people you guys worked a deal out with? Narbe: Yes. So we’ve seen over two 2200 deals, pitches of companies. And of course, like every time someone pitches, starting company pitches, there’s multiple entrepreneurs and operators, and we’ve done 18 deals. Chip: All right. What’s the odds on that, do you know what the percent is? Narbe: Venture capital is typically around 1%. Chip: Okay. Narbe: You need to see a lot of companies in order to do the deals. Chip: Okay. Okay. Narbe: So we’re right around there, just under that 1%. Maybe we’re a bit more pickier than the average. Chip: I mean, if I do an email campaign, and I get 1%, I’m usually pretty happy about it. Narbe: Yeah, you know what? I love that topic. I was actually reading up, back in the late 90s, t by email, click through rates were like, 70%. I don’t know if you remember those days, but I got any time I got an email, I’d open it. Chip: Oh yeah, I’d read it all. Narbe: It was a very — Chip: “I got an email!” Narbe: Yeah. Chip: Yeah, “you’ve got mail,” right? Narbe: Now it’s the complete opposite. Chip: AOL really dominate- I know, absolutely. It’s like, “Please turn off my notifications. Please, please, please.” And I mean, is it just capital that you guys are, you mentioned earlier that kind of sounds like you’re a turnaround slash, do you have a description for what you guys do? Because that’s not what I would think of as venture capitalists. I mean, I know a couple people that do turnarounds. But you guys do a little bit something more than that. Narbe: Yeah. So we’re not, we’re not turnaround. We’re not a turnaround type of an investor. And I’ll honestly say like, we don’t, we just don’t have that skill set, nor do we want that skill set. We want the entrepreneur to be running the business, we don’t want to run the business ourselves. So the key here is to find the right operator. And I’ll use the anecdote that there’s no eBay for great ideas. If you have a great idea, like a killer idea, nobody’s gonna buy an idea off of you, nobody’s gonna pay you 50 grand for an idea. If you take that idea and you execute on it, then you can sell that company. So it really comes down to the entrepreneur, the operator. What our job is, is to give the domain expertise and the relationships that we’ve developed in the industry, to our portfolio companies, and to friends of the company as well, in order to help them succeed. So, we have a group internally at Canopy Rivers. They’re called the impact team, run by the former CEO of Canopy Growth as well as, he’s a McKinsey consultant, Harvard MBA. He’s created a team of experts in life sciences and regulatory affairs in growth and scaling. And our job is to help compliment the employee, the entrepreneurs that we invest in, in terms of getting to know different people in the industry, getting to know different parties. So I’ll give you an example. If you’re a small cultivator that’s looking for capital and you go to a venture capitalist like ourselves, we would help you find proper genetics to help you with volume purchases on supplies, we’d help you with getting to know retailers and customers in order to sell your products into, we’d help you with everything in and around your business. But we wouldn’t, at any given time, run your business, because that’s not our job to do. Chip: So it’s more like an accelerator. Narbe: Yeah, yeah. I mean, it’s more similar to an accelerator, except that typically when you think of an accelerator, it’s usually very small companies that are built off of an idea. It’s a bit different because we’ve already picked up the company where you have revenues, you have some market share, and you want to go to that next level, that next level, and the next level. Chip: So you’ve got, you’ve got 18 companies, do you guys have an idea of the type of company that you’re looking for, or the type of return that you’re interested in when you decide, or is everybody different? Narbe: Typically, for venture capital funds, you’re looking at investment returns about 15% year over year. Every year, your portfolio grows by 15%. But to get that 15%, when you get into a deal, you have to think of it as being a deal, “I can give you ten times your money.”  And if you believe it’s going to be 10 times your money, you’ll probably end up with 3 to 5 times your money, which then will convert to 15 to 20% return on investment. So that is kind of the mindset that you have, “Is this a 10 bagger? Is this going to be 10 times my money?” Because it’s growing very fast, it’s very competitive in nature, and it has, it’s carved out a niche for itself. In terms of where we look into across the value chain, there’s four key areas that we’re really honed into right now, and this changes all the time. One of them is on the brand side, we truly believe there’s no true customer affinity with brands that are out there. The customers aren’t only choosing one brand of edibles or one brand of pre-rolls, and not buying anything else, similar to how you see customers using Coke and Pepsi. The second piece is on the plant science side. We’re really zoned in on how to help take cannabis cultivation to the next level. So it looks a lot like what you see for vegetables and fruit cultivation around the world. The third piece is bio synthetics. Similarly, aspirin is derived from the bark of a willow tree, but you don’t see any willow tree cultivation facilities anywhere in the world. And the reason is that, the enzyme that that tree develops to help you with a headache is made in a lab. And similarly outside of THC and CBD, where the plant does give you a lot of that, the other minor cannabinoids, we have a view that they’ll be created in the lab instead of being created organically on a plant everywhere. And then the fourth area is data and technology. We really do believe that that there’s a lot of value in understanding the mindset of what consumers are buying, and as well as what retailers are buying from producers. And to understand that gives you a leg up in terms of what to develop next, and how to present it in market. Chip: Are you looking at companies that have $1 million in revenue today and want to grow it? Or $10 million? I guess it’s kind of all over the place, tech companies might not have any sales. Narbe: Yup, yeah. So our view is that we’re a lifecycle investor, like our smallest check has been 750,000 off of an idea, our largest check has been $50 million. So, we are very open to talking to all types of entrepreneurs and all types of businesses, not necessarily anybody with a certain threshold. To me, it’s great to just learn about how entrepreneurs view a business. So, I mean, I say this a lot to companies that are based out of Latin America, or China, or Europe where they’re looking for funding. And I say the first thing you should do is focus on teaching your prospective investor about your geography, and why it’s different than in North America, and then go into your company at the end of the day, and then that’s key. Like, it’s about the teaching piece of it. You’re a company, you’re looking for investment money, teach your investor why you’re different than anybody else. Teach them about how you see the industry as well, and build that rapport to show that you’re different than every other company that’s out there. Chip: You know, when I started my first potting soil company years ago, a friend of mine said, “What makes you think you can do this so special?” I immediately was resistant, you know, and as a young entrepreneur it was my second business at the time, I was just literally so bold and brazen, it was like, “Oh, because it’s me, I’m doing it.” And, you know, the market was so much smaller 20 years ago, right? And no one had heard of cocoa fiber at the time, or very little people had. I was on the cusp of a revolution. But to start a business now, it seems so difficult to me, for young entrepreneurs, to be able to come into a marketplace and just immediately be able to compete with people in the cannabis industry specifically that have been doing it a long time, or just have so many resources, you know, behind them. I mean, I started my first potting soil company with literally like, $3,000, right? And I just don’t know if anybody could do that today. Narbe: I think so. I’d challenge that. I’d say it like there’s never been a better time to start a business than it is today. Like the amount of resources, and podcasts like yourselves that entrepreneurs, young budding entrepreneurs, pun intended, could really listen to, read, understand what the pitfalls were, how people succeeded, how people screwed up, to really just really zone in on what the idea is. There’s an unprecedent amount of data out there about how to start a business that we’ve ever seen in the history of mankind. So compare starting a business now to ten years ago, [41:33 inaudible]. Chip: You’re saying just the sheer access people have to information just accelerates the overall growth. Narbe: Absolutely. Chip: And your chance to exposure to any market in the world is readily available at the stroke of your fingers, honestly, right? Narbe: Absolutely. The [41:55 inaudible] is on the entrepreneur to really sit down and learn these things. And if you have the time of any, you can carve out the time, and I say, if you’re looking to start a business, and you don’t know where to start, just carve out an hour every day, sit at a Starbucks, and just read. Just read articles, read about that industry you want to get into, read about what other companies are doing, listen to a podcast of a successful entrepreneur, and just get your mind going. And it is a snowball effect of within the day, and I’m sure you can attest that as well, that every small move you make, somehow turns into a very tangibly big deal later on. Chip: Yeah. Narbe: And you can’t predict that, you can’t. And it gets a bit daunting when you think of the successful people and you say, “How do I get there?” You just have to show up every day and put in your work. Chip: Yeah, no man, plants grow, man. You put a seed in the ground. You give it every single thing it wants, it gets huge and big. Sometimes you can’t water it so much, or feed it so much, it’s that much smaller. But like, if you get it everything it needs, just the potential for growth is just incredible, and that’s in businesses, and in relationships, and people as well. Narbe: Absolutely. Chip: Well, you’ve changed my mind. Okay, okay. I now think that it was harder when I started my business. And now I realize it was. I was literally getting phone calls from Sri Lanka at four in the morning, you know? Narbe: I love it. I love that — Chip: And they’re speaking broken English — Narbe: I love hearing the grind. Chip: Yeah, it is easier today. Like if anyone wanted to go start a potting soil company, they could look up manufacturers at the touch of their fingers. You know, when I started, I don’t know how old you are, but we’d go to the library. And there was this encyclopedia of businesses and manufacturers. Narbe: Yup. Chip: And we would search through it and find like, suppliers and nobody had websites, you would call people directly and build a relationship with them. Narbe: Yeah just think about the long distance charges you’d incurred just to call them. Nowadays, you have Google Hangouts, and video calls, and voice calls made over the Internet that you’re not paying anything extra for. So, it’s just remarkable how much easier and cheaper it is to run a business. Chip: Yeah no, absolutely man. The virtual assistants, the on demand workers, the sheer amount of like marketing talent, and graphic talent, and product development talent like you know, you can access all those resources for inexpensive. You just have to know how to like, who to ask and how to ask for what, and anybody today if they wanted to get involved in you know, breeding cannabis, breeding hemp, breeding, you know, high THC hemp, anybody can get involved with a two day at a high level, because they can just, you know, look up people in the industry that want a job, frankly. Somebody in India, or even in Seattle, or Vancouver, and there’s somebody who’s interested in cannabis that, you know, has a PhD in genomics, genetics, biology and wants to help you out, and will over the phone, or over Zoom, right? Narbe: It’s just a matter of doing it right. It’s just a matter of just picking up the phone and doing it. Not many people do that actually, a lot of people sit there and just fantasize about what their company can do, instead of just learning, and it’s remarkable if you just contact someone and say, “Hey, I just want to pick your brain for five minutes on a certain topic that I have not, going to sell you anything. And I’m not going to ask you for a job. I just want to know what you did in this scenario to get to where you were.” It’s remarkable how many people actually reach out to you and say, “Yeah, I’m okay with that. Let’s do that call.” And you do that call, and that call turns into a follow up call, and that follow up call is half an hour, 45 minutes long, and soon enough, someone wants to give you a job and someone wants to buy your product. And it’s just about putting that process in and getting those at bats. Chip: At bats. Oh man, I say it all the time, you just got to jump in, you really do. We have all this hesitation and resistance. And it’s product development, or entrepreneurs, you like, want to build this perfect thing and get it perfect and it hits the market and everybody loves it, and you know, you get a home run. But I think it’s more important to have a base it to literally just hop in the deep end and learn how to swim,  right? You get great product development, you get customer feedback, you might get a lot of shit too. If you can get beyond that, like for me anyway, that is my preferred method of launching a product, starting a business. It’s just getting into it, right? Narbe: Yeah, it is remarkable how much you’ll learn from it too. Like I remember this one time I got an investor, sorry, an entrepreneur that came to pitch me and every time I asked – it was half an hour long – and every time I asked a question, she just dumped a data dump on me of the number of people he surveyed. So I asked a question, like, “Who’s gonna buy your product?” and be like, “Oh, I used Google Search, Google Audience. I surveyed 300 people, and these people said they would pay for it.” I can’t say anything against that. “Okay. So how about the pricing?” Well, as you come up with a price, then you said, “Well, I looked up all of my competitors, then I scraped the web for their pricing, and this is the price that they’re selling it at. And I think that I can sell at this price and get better margins.” “Okay, I got that, too.” And every time I was asking questions, it was data, data data, and you can’t, the data itself, like, it really answers the question without putting any objective opinions into it. But at the same time, the data does have confirmation bias attached to it as well. So as an investor, you always worry about the best data being shown to you, not the bad stuff. But what I’m trying to get to is, if you back your idea and your thesis with data around you, it’s going to be very hard to refute that you’ve done a lot of homework on this. The best pitches that we see are the ones that the entrepreneur’s ready to answer every question, because they’ve sat back and they said, “You know what? There’s a finite number of questions, there’s a known number of questions that someone can ask me over a half hour to understand my business, and I’m gonna be ready for every single question that’s going to come out there.” And there might be some weird one that’s like, “What kitchen utensil might you be?” that they’re not prepped for. I don’t ask that question, but there’s always those random questions that they might not be prepared for, but you need to be prepared when you come into that pitch. And those are the ones, the ones that answer the questions and give you that look like, “Is this as hard as it gets? Because I live and breathe my company, and you think I can’t answer these questions. These are easy.” And those are the ones that you see the passion just glittering in the idea that they’re presenting to you. Chip: Oh man, I’m smiling just thinking about it. I mean, I know people make the television show comparison to you guys all the time, but it must feel just like that, right? Narbe: It is except you’re not trying to find those one-liners to stump on the entrepreneur and make yourself look good on screen. Chip: Oh, that’s funny. You’re right. Well, you know, you gotta sell the story. You guys sound like you’re having a great time. Narbe: Yeah, you know, I’m grateful for the opportunity to talk with so many bright minded individuals all over the world about how they see this industry progressing. I’m literally so grateful for it. Chip: We’ve kind of talked about one side of it. We’ve talked about the, you know, the entrepreneur side and kind of how the venture capitalists work. Many people today feel like they’ve had some bad cannabis investments. And there’s more people that have gotten, lost their investment in cannabis operations, than you’d care to know. People enter it often with passion, without so much data, it’s often a brother in law, cousin, best friend type scenario. And you, things just kind of go wrong. All that is changing. Do you have a tip for the investor? On how to be wary, and how not to get involved in a bad relationship? Narbe: Yeah, I think the first step is that you need to really understand that venture investment, or angel investing, or  investing in a private company, that is most basic level, is a very high risk move. High risk because once that money goes in, that company’s going to spend that money, and there’s no way for you to take that money back out. This isn’t like buying Apple stock where every day there’s a market for it that you can sell your shares to. Instead, it’s a very difficult proposition because you need to wait 5, 6, 7, 8, 9, 10 years in order to get your money back and get, potentially getting return. And between that period of time, there’s a lot of areas where companies can screw up and can really change the way the outlook of that company is. So when you’re looking at an investment, and you need to kind of tell yourself like, “I’m okay losing this money, and I’m taking a risk here.” And I’ve always like, financial literature and theory tells you that for these types of investments, you should put no more than 10% of your wealth down into investments such as these, and you hear all too much that people are putting their entire nest egg into an idea that just doesn’t pan out. And this is why governments in both Canada and the US create systems in place where individuals can’t invest in these private companies, unless they’re what they call “accredited.” Which means you have, and it varies by state and by country, but in general, it means you have wealth. You have call it, $5 million of assets in hand, or you’re making a million dollars of cash flow per year. And the government then allows you to invest in these private companies. And there’s a lot of times where companies that take investments from individuals don’t do that work to make sure that those investors understand the risks that they’re going into, and it turns into a bad place. When we look at the cannabis industry itself, it’s a bit different.  You’re seeing different data coming from Main Street versus Wall Street. So when you’re looking at the capital markets and stocks right now, they’re much lower than they were a couple years ago. But when you look at what’s selling in each of the states, you’re seeing monumental growth rates like 10, 15, 20, 50% within a few months. So you’re seeing the industry grow very fast, but you’re seeing companies getting smaller, smaller in terms of evaluation. And that’s just generally the nature of the stage that we’re in, in the cannabis industry, where the ones that are going to win are going to win, the ones that are going to go bankrupt are going to go bankrupt. And because of the, you don’t know which ones are which at this point in time, and because it’s so early, everyone just kind of takes a hit until those winners are figured out. Chip: Business is so much like gambling. Serial entrepreneurs, we’re gamblers at heart. But you throw in some cannabusiness in it and wow, it sure it sure can make it exciting, that’s for sure. Narbe: Absolutely. [53:15 inaudible]. Chip: Sounds like a good country song or Jerry Garcia song. Narbe: Yeah, the returns aren’t as good as gambling either, though. You can’t double your money by betting on red or black. Chip: Yeah, well, you know, that’s just a fan- it’s a fantasy. Yeah, well, I get it. Man, it’s been great talking to you today. You know, cannabusiness, like I said, is the most important part to the cannabis industry. It’s maturing so much right now. And really come in and [53:45 inaudible] it is really great to hear your perspective on the consumer packaged goods, on cultivation, and where you think the cannabis industry is going, man. I really appreciate you joining me today. If people want to get in touch with you. what’s the best way for them to do that? Narbe: Yeah, you can reach out to me on LinkedIn, you can email me narbe@canopyrivers.com. So if you’re interested in learning more or talking, happy to chat. Chip: Thanks for joining us man. I really appreciate your time. Narbe: Thanks for having me. Chip: This has been another episode of The Real Dirt, and that was Narbe Alexandrian with Canopy Rivers. Man, it was really great speaking to them about capital investment into cannabis. You know, the only way we can grow is sometimes we get a little help from our friends, or help from others. And you know, don’t let quote unquote, big business keep you down, or think you that you can’t survive in the cannabis industry. Listen to this conversation. You know, we talked heavily about how people with just an idea can get one started. So if you’ve got an idea, man, take that first step. Just try it. If you’re thinking about growing cannabis, if you’re thinking about getting into the cannabis business, man, just hop into it. Just try it, right? Don’t let money stop you. Don’t let time stop you. Definitely don’t let your friend’s shit talking stop you. Just try man, and you know, when you get slapped down, stand up. When it’s not working, examine what you’re doing, and be determined to make it work. If you have the desire, you can stick it out long enough. If you can keep your eyes open, and make sure that you’re right, making the right economic decisions, man, chances are you’re going to do just fine. So thanks again for listening to this episode of The Real Dirt. This has been fun and exciting for me. Please, if you’re interested in other episodes like this, check us out on iTunes, The Real Dirt podcast. You can also download other episodes at therealdirt.com. Please check out cultivatecolorado.com, we can supply you with all of your propagation and equipment needs. Thanks again. This has been The Real Dirt.
45 minutes | 6 months ago
The Secrets of the Country’s Largest Cannabis Operations with Nick Morin
Remember that show Cribs? You know, that show where we got to take tours through the mansions of the rich and famous and feel bad about ourselves. While it’s been a long time since we watched Master P show off his gold ceiling, there’s a new, better, completely unrelated Cribs that is all about cannabis. CannaCribs was started by Nick Morin through his company the Grower’s Network to show us all what it’s really like inside some of the largest and technologically advanced cannabis cultivation operations across the country. But it isn’t all green ganja and piles of cash in these operations. What you don’t see on CannaCribs is the behind the scenes details that Nick gets from the head growers and owners of these operations. From the shady investment dealings that growers fall into like overfunding and inexperienced fund managers to the stressful work that goes into maintaining a large scale cannabis operation, Chip and Nick dive into it all in this episode of The Real Dirt Podcast. More about Nick Follow and Subscribe to The Real Dirt Podcast: Instagram: https://www.instagram.com/therealdirtpodcast/ Facebook: https://www.facebook.com/therealdirtpodcast/ Apple Podcasts: https://podcasts.apple.com/us/podcast/the-real-dirt-with-chip-baker/id1173559750 Spotify: https://open.spotify.com/show/1tC6OyqCJfUWsmGYovqlQP Get great deals on grow gear: CultivateColorado.com Instagram: https://www.instagram.com/cultivatecolorado/ Facebook: https://www.facebook.com/cultivatecolorado/ Transcript: Chip: Once again you have reached “The Real Dirt.” And on today’s dirt, it’s a very special episode. Today, I’ve got Nick Morin from Canna Cribs. Now, if you haven’t seen Canna Cribs, you’ve got to check it out, great YouTube channel. It’s absolutely one of my favorites, it’s one of the best production in our whole industry. And if you haven’t seen Canna Cribs yet, you’re missing out. Thank you so much Nick for joining me. Nick: Chip, thanks for having me. I really appreciate your time. Chip: Nick called me up a couple, a month or two ago, and said he was going to start a podcast. And we’ve exchanged a bunch of information and talked back and forth and you know, I’m really excited to hear about your podcast. You’ve just launched a new podcast and you know, we just immediately got along on the phone. ‘Cause like, we do the same thing. You know in some manner, is we get to go talk to ganja people all over the country and world and find out, you know, what they’re all about. And get to go into gardens that we may, people just dream about. What’s it like having this dream job, Nick? Nick: I just would say I’m extremely grateful to be working with my team, you know, my bestfriends and going out and filming these stories, telling these stories now on the podcast. It’s a dream job and it’s something that you know, as a little kid I never would have imagined I’d be here today, but it’s pretty special at this point in time in this industry, as we’re evolving rapidly. Chip: I know we have a lot talk about. But like, let’s talk about Canna Cribs. How did it start, when did it start, like tell me about it. Nick: I’ll take you to the exact point in time. CannaCon Seattle, I was talking with my friends that own uh, Glass House Farms in uh, Carpinteria, California. You know, it was dinner, it’s after the trade show. As many people do after a trade show, you go out for dinner and drinks and we’re just brainstorming. And when you get those energies, you know, across the table going and some good ideas, Canna Cribs was born. You know, I wanted to create a Youtube series. And I was really inspired by Marijuana Mania by Berner, and Strain Hunters and their team, and I wanted to come up with uh, kind of my own version of garden tours. I think Growing Exposed was coming up around the same time as well. So you know, I was chatting with, you know, Graham and their whole team over there. And we came up that – it sounds like you got the intro going, so yeah, that’s, that’s it right there, man. So we flew out there shortly after, actually flew to Tucson and picked this up which was a surreal experience in itself right there. I put together my team from University of Arizona, you know, some friends from college, some friends that I’ve worked with, and then some acquaintances kind of one degree away in Tucson. And we flew out there, filmed our pilot and as they say, the rest is history. Chip: I’ve actually got it on right now, “Glass House Greenhouse Commercial Cannabis Growing Operation in California,” Canna Cribs. I really love this episode, I love everything about it. Like it’s so like, highly produced. I’m a TV junkie, I love format. And like, just the way that you guys have produced this whole series, it like, mimics you know, several other of my favorite type of genres. The like, you know, fix and flip style genre, where they’re either it’s an old junk car they find, the barn find, and turn it into — Nick: Right. Chip: You know, something. Something great. Or like, you know, a house, where like they buy it, and they like, fix it and flip it. You’ve got a lot of the like, elements in the editing with that. It really like, draws people in. Man, I also love all of the, the product placement that occurs in this episode and other episodes. It shows the products that people are using, but it’s not like an over the top infomercial advertisement. ‘Cause we all know it’s like, advertising helps pay for it all. It’s very discreetly done, it’s done well. Nick: Yeah. You’re exactly right. The product placement and advertising, it allows for us to go out there and film. And you know, a lot of people don’t know this, but it’s not like we’re charging farms tens and thousands or you know, a hundred thousand dollars to go out to film. It’s actually no cost, vast majority of the time. So the farm doesn’t pay anything, and we of course have to pay our crew and get out there. And you know, you know this very well, Chip. Youtube gives us zero dollars in advertising. I can’t even spend money on Youtube to promote our show so, it creates an environment where you have to be very scrappy. You have to be wise and extend your dollars through organic content. And the thought leadership behind the brands, the products, the services that these growers are using, it’s a pretty straightforward model where these are the products that their success is built on. Those companies you know like, let’s say soil companies. You know, your background and growing media, and every episode there’s a different growing media. And these growers rely on that product for their success so it’s a really natural fit where we get to educate fans all around the world. We get to help promote the grower through the episode. And then the vendor has an opportunity to promote their products naturally, because we don’t place products that aren’t naturally used at the farm. Chip: And you can tell the authenticity of it due to that. What was your background in cannabis previous to this? Nick: So I just say, a lover of the plant. I’m relatively — Chip: You’re an enthusiast. You’re a cannabis enthusiast. Excellent. Nick: That’s exactly right. So I started consuming young and you know, I have two older brothers and that probably helped a little bit. Yeah, I actually started Growers Network and Canna Cribs shortly after, during my senior year in college. So, this is my first foray into the, into any professional industry, really. I started a couple communities while I was at the University of Arizona. So I guess I do have a background in kind of grassroots community building from the ground up. And then you know, I have a passion for both cannabis and also technology, and the marriage of the two of those things, as well as marketing and community building, it’s kind of where I live today. And what I’m super passionate about you know, when it comes to sharing very special stories that will impact the history and our future, everyone in this industry with the rest of the world. And just kind of showing and proving that there is a way to have you know, legal, compliant, and really good cannabis at the end of the day that saves lives and builds businesses. Chip: You came to this as just an enthusiast. You had a surface knowledge of how cannabis operated, how it grew, the production of it all. Did you have some misconceptions that were immediately proven inaccurate when you started doing Canna Cribs? Nick: I would say that like, everyone on our crew including myself, we didn’t really know, we didn’t really know what went into a commercial sized grow operation. You know, we might have had friends growing here and there, more you know, underground and maybe at the hobbyist or kind of that caregiver scale. But, to walk into a commercial grow operation and see that scale, it was incredible. So I’d say, maybe less misconceptions but more just, you know, kind of what’s behind the curtain. Having the opportunity to share that with the world is really special. Chip: You talked about the stories, you’ve mentioned that a couple of times. Do you have a favorite cannabis story, or favorite episode that you made? Nick: Oh my gosh, that’s a tough one. Choosing between your babies — Chip: Oh I just keep pressing the memo, hey I just started man, I just started. Nick: I love it. I love it. Yeah, no, I love the question, Chip. So I’d say you know, one of the stories that I probably enjoyed the most telling and also was the most moved by, was Scott Reach of Rare Dankness. He’s gone through a lot of personal turmoil and you can listen to his story with his health, and how cannabis really healed him and gave him an opportunity to you know, run a business and support his family. So, a lot of that comes up in you know, throughout the episode and you know, it’s not every single episode that that story is going to be exactly the same. You know, each episode kind of has a unique, I guess unique story to tell. But with Scott and Rare Dankness, before we went out there you know, we did some research. We always like to do some pre-production research to come up with some story points and kind of build out what the episode’s going to look like before we set foot on set to film. You know, his personal fight with cancer and how cannabis really helped him personally with his fight with cancer, but also his background with breeding and as a geneticist. And through his other companies, he’s building, in my words, he’s building a cannabis empire. It doesn’t stop with just House of Dankness, it doesn’t stop with just Rare Dankness, he has a seed company around the world, he has a new nutrient line. So, one thing that I really resonate with and connect with is the entrepreneurial spirit of these cannabis grow operation owners. And there’s a lot of different types of commercial grow operations, but that episode with Scott, it really shined through, all the different things he had going on, and I loved it. Chip: He’s really built an incredible room. If anybody’s out there who wants to see great, great, great cultivation grow room, look up that episode. Which episode is it? I’m looking for it now. Nick: Episode six, it was right after Honeydew Farms in Humboldt. Chip: Episode six, man, totally. Episode six, Honeydew Farm. The first Canna Cribs was the Honeydew Farms one. Nick: Oh really? Chip: And I’ve spent most of my life in Humboldt. I moved there ’97, and still have a property, and farm, and business there today. I heard that there was some, you know, because it’s a small community, so I’d heard that there was some like, thing being filmed, Honeydew Farms. And it was out, so yeah I went and checked it out. That was my first exposure to you. And then of course, I watched all the rest of the episodes. Nick: Yeah. Yeah, it’s bingeful content. You know, it takes you about a weekend to watch all the Canna Cribs and Deep Roots, and we have a couple you know, new projects on the horizon. But, you know, if you ask me the favorite episode to film as far as where I was, it’s hands down, Alex Moore’s Honeydew Farms in Humboldt. It was my first time travelling there. And I mean, honestly Chip, I felt like the time froze. You know, our cellphones weren’t working. You know, we just had our cameras and we were kind of like, paused in this beautiful forest and his property is pretty amazing as well, you know, on a river basin. It was, it was magical. And we stayed in Arcadia? Chip: Arcata. Nick: Arcata, Arcata. So we stayed in Arcata and you know – or no sorry, I apologize. We stayed in Eureka. Chip: Eureka. Nick: Yeah, we drove up about an hour and a half up the hill and then an hour and a half back down to our hotel each day. So, we had to wake up super early and we went to bed pretty late each night, because we were battling sunlight. You know, most the farm’s outdoors so we had to film very efficiently with the daylight there. So, part of that was probably some lack of sleep that added to the effect. But, it was amazing. We went out to the waterside as well at the end of the episode. We went to the Redwoods. Everywhere we go, Chip, we try to characterize the region. We try to give the audience a glimpse into what it’s really like. Not just in the farm, but the surrounding area. Because we have around 150 countries around the world watching our Youtube channel, right? So, if someone’s in let’s say, Russia, and they’ve never been to Humboldt, I kind of put it on our shoulders like as a responsibility, to tell them what it’s really like, and to show them that glimpse of the world. And Humboldt is such a beautiful place, and I, I’m actually going to be, right after this interview, I’m actually interviewing two brothers that cofounded Lit House Farms in Humboldt, Big Al and Chris. And then last week, I interviewed Nat at Humboldt Seed Company for the Canna Cribs podcast. So, I love Humboldt — Chip: Yeah, I know Nat. I’m actually like, growing his seeds right now, Auto OGs. Nick: Oh nice. Okay. Chip: Totally, totally. Yeah we got like ten thousand Auto OGs we’ve planted in the past like, two weeks. Nick: Wow. Chip: They’ll come out some time in October. Nick: Well, I’m always finding a reason you know, trying to find a reason to go back so if you still have property, if you have friends up in Humboldt, I’d love to film them some time. Chip: Ah man. I love it out there. We’ve got so much stuff going on up there, you know. It’s an incredible, geographical environment, you know. It’s a really rough political environment, you know. There’s just a lot of people that do not support legal cannabis and try to stand in your way at every point. It’s really unfortunate because there’s so many small farmers over there that can really bring and grow the best cannabis in the world. They’ve got like, the experience and the time, and the understanding, and the desire, and the heart to do it. But you know the, so many you know, at so many levels, the county and the bureaucracy, and the county is against what they’re doing. How many people in the county, they totally accept it. Right, many of the board of supervisors totally accept it. But, it’s just a fight you know, for anybody trying to get a legal cannabis operation there. And absolutely anybody who has gone through the worst to get one because, it’s not at all, easy there. It’s not at all easy there. So yeah, let’s hope that the industry survives. But yeah, I’ve got tons of connections up there. I’d totally hook you up with anybody you want to, if you can’t figure out who to talk to. You know, I started a potting soil company up there years ago, Royal Gold Soils. I sold soil to everybody up there for years. And currently, my new soil company, Grower Soil, I’m not in California yet. I’m mostly just focusing on you know, the midwest and the east coast. Yeah, I’ve got tons of connections all over man. If you ever want to go see anybody, just ask. I might know them. Nick: Thank you. And that’s what I love about this industry when I first started out you know, I was working with my bestfriend and roommate at the time, and current business partner, Nate Lipton of Growers House. And he had a spreadsheet of growers, right, that are commercial growers that buy from Growers House. And I was originally, and I still run Growers Network today, all the work you know, a lot of the conversations around Canna Cribs up to this point. But the first company, and it is the production company of Canna Cribs, it’s called Growers Network. And it’s an online forum. We have about 11,000 members all over the world. And just people where they can go, and connect, and learn from each other. And I was just originally handed a spreadsheet of the top contacts from Growers House, and I just interviewed for ten months. You know, I picked up the phone, and the Lean Canvas methodology in the startup world, it’s called Customer Segment Testing. Chip: Sure. Nick: So, I just picked up the phone and called the you know, a hundred growers and listened to their paying points and you know, how they learned how to grow cannabis, where they were at in their career you know, super seasoned or new, what hurdles they were jumping over to become a legal professional grow operation. And at no point did I say, “Oh, join Growers Network,” or, “Oh,” like, Canna Cribs didn’t start at that point. So in the very beginning, my first ten months in this industry was just network building and acceptance amongst growers that were complete strangers. And what you just shared with me right now has been my experience up to this point, just generosity and open arms and welcoming into the industry. So thank you, and thank everyone out there that helps to you know, nurture this industry. Chip: You know, it’s interesting you say that. ‘Cause there’s really two sides to the cannabis coin. And well, you know, it depends on which coin you’re talking about. But the knowledge coin that we’re talking about, there’s two sides of it. There are the guarded people that won’t let you in, and are closed off, they don’t really want to talk about it so much. A lot of it’s leftover from prohibitionary you know, thinking. Some of it is you know, the propriety knowledge, they think what they have is like, the best. There’s often ego associated with all of that, but that’s one portion of the community. And then the whole other portion of the community, like 75% open. Talks about it, invites you over, wants to know what you’re doing, ‘cause they want to know if they’re doing it right or wrong, right? Are absolutely like, enthusiastic about what they’re growing and want to make it better. So it’s real interesting, it’s not an even coin flip that most people in the cannabis industry that I come across, and I’m a, you know, both us are kind of a unique pawn in the pyramid, but you know, but they openly want to tell us what we’re doing. And tell other people, and talk to other people openly. Nick: Yeah. Chip: It’s just a great place to learn, that’s for sure. Nick: Yeah and right now, you know, I like that you said it’s a great place to learn. Right now, trade shows up to this point were kind of like, the in-person exchange of like, information, and knowledge, and contacts and products, and services. And now that they’re all shut down, what I’ve seen is a huge influx of traffic to our Youtube channel. And to our, you know, Growers Network Grower Forum because people can’t meet in person anymore. So I mean obviously, no one planned for this. But for the content creators out there such as yourself and you know, my team, we’re really in a pivotal point right now where, and that’s why I started this podcast is, we need to kind of ramp up, you know. We need to, you know, create more content and share more stories because there’s not a whole lot of in-person outlets right now. We’re kind of leading that charge and I kind of take it upon us to provide, and kind of have that responsibility to provide that knowledge and information exchange. Chip: You know, cannabis, the way you learn about it and the way people learn about it now is through this open source. It’s through Youtube, it’s through Google, it’s through this open network of people like, bragging, or people just completely enthusiastic about cannabis. You know, it’s so much different than say, let’s take a trade like, photography. Or marketing, right? With marketing, if you’re interested in marketing , you can go online, and you can buy like, you know, two dozen Frank Curran courses, you can buy like, you know any type of how-to Youtube advertisement, or how-to Facebook advertise or how-to content. But the cannabis industry isn’t like that. Can you shed some light on why you think that is? Nick: Well, I think you said it a little bit earlier Chip. You know, a lot of people, I’ve heard it on your show as well, there’s a lot of growers out there that in their mindset, and in their belief, they’re growing the best way, right? There are so many processes that go into growing cannabis. I’m not a grower myself, you know, but in filming these large scale grow operations and then telling these stories, I’ve learned a whole lot about you know, growing cannabis organically. Growing cannabis you know, kind of boutique indoor. Growing cannabis outdoors, you know. 36,000 plants at Los Sueños Farms. So, what I have found is it’s extremely fragmenting on how to grow cannabis. There are so many unique ways and the beautiful part to me, is there’s not one right way, you know? Like, you can grow soil, you can grow soilless. You can grow you know, indoor with LEDs, or indoor with HPS. And there’s all these, right path, left path that you can take throughout the entire grow cycle. And I want to educate the world on all those different options. And in each scene in Canna Cribs, if someone’s listening to this and have not seen a Canna Cribs episode, we always start with genetics. We go through propagation, and we follow lifecycle of the plant all the way through kind of seed to sale, if you will. So throughout each scene, you know, I have not filmed an episode that has completely replicated a previous episode. You know, everyone’s doing propagation a little bit differently. You know, they’re doing veg a little bit differently. So to your question, I think it’s fragmented. You know, email marketing is email marketing, right? There’s some tricks to the trade, but it’s an email at the end of the day. But you know, growing a plant, there are so many different unique ways to do that, and furthermore, there’s always new ideas, right? There’s always someone with an innovative idea and when they share, it’s the rising tide for every grower in the world. And then, kind of you know, fuel to the fire here, new products, right? You are a product inventor. You are a product genius and innovator, and when you, Chip, bring a new product to the market, it opens up a Pandora box of all these new types of cultivation methodologies. So, I think it’s fragmented because there are so many different ways to grow the plant. Chip: Man, you really hit the nail on the head there. There’s absolutely no one way and that’s just the beauty of ganja, of cannabis, THC or hemp, right? It can grow in a million different spots. Nick: That’s the resiliency to the plant itself, right? I mean, it’s pure for a reason. I love your saying, plants grow us. You know, we don’t grow plants. And I got to pinch myself right now, ’cause it’s so surreal to actually be on your show, talking to you about that. But, I completely agree. This plant’s here for a reason, it’s extremely resilient. And the fact that it can be grown in all these different, you know, unique ways to the region, to the grower, you know, to the product. It’s here for a reason. Chip: You started Growers Network 2017, 2018, something like that? Nick: Yeah, so the end of 2016 going into 2017, I’m a senior at University of Arizona, I did about ten months of research, just trying out what business model to start. You know, I had my hypothesis that I wanted to do something in the community space, get my background, and I thought there was a model there to build a new breed of online growing forums, which is Growers Network today. A little bit more of you know, I pay all my respects of course to the forums that got us here today, like the Grass City and Overgrow and all those amazing forums. But I wanted to do it a little bit differently and provide a safe place for the professional growers that were trying to transcend out of let’s say, a house grow into a you know, 300,000 square foot greenhouse. Like, how do you do that, you know? Who do you talk to, you know, where do you go to learn? Those are the kind of questions that I was trying to ask these growers and that was what Growers Network was born out of, was that research. Chip: Man, it has changed since 2016. I mean compared to 2020, right now as we record this episode, it’s August 2020 here in Arizona. I’m in Oklahoma, we have seen cannabis become legal all over the country in the past four years. We have seen, like you know, trends in cannabis happen. We’ve seen governments legalize it, we’ve seen Ponzi schemes associated with it. When you started this, at some point you started to get like, a vision of what was happening. Your perceptions of it in 2016, how did they change from your perceptions of it today, knowing all that change has happened? Nick: Let’s just start with vendors, for example. Equipment suppliers, manufacturers. So in the beginning days, let’s say 2016. You know I went to my first trade show was a maximum yield show with Nate and his father, my mentor, Pauly. And they’re with you know, Growers House, and we went there to talk to vendors and walk the shows in San Francisco. And, it was all new to me. This professional side of the industry that I just didn’t know existed, you know. You know, as a connoisseur, or a consumer, or advocate in high school and college, I just didn’t know that this whole professional industry existed. You know, I was kind of naive to that. So, since then, I have seen a lot of new products hit the market. I’ve seen consolidation of different companies. Like, take Fluence for example, with you know, OSRAM coming in, and take Hawthorne, for example, and Scotts Group coming in and acquiring Davita. And you know, I listened to that episode on your show, and I loved that one, by the way. And I’ve seen that consolidation happen in a short amount of time you know, past five years on the equipment side alone. On the grower side, you know I’m always trying to pick the next market to go out and film. And I definitely will reach out with you about Oklahoma you know, once it’s a little bit safer to start flying. I definitely want to bring the Canna Cribs crew over to Oklahoma and film some farms out there. But what I’ve seen is, you know, a lot of expansion, you know. It expands into a new region, new state, and then, it kind of restricts down. You know, it’s a period of time where it grows, grows, grows, hits that apex and then, consolidation starts to happen. And kind of that market equilibrium starts to happen, right? The supply and demand starts to balance out. So I’ve seen that happen over the past five years which is pretty incredible. I’ve seen you know, Canada come online and some other parts around the world, Colombia for one, that’s really you know, kind of blowing up and they’re part of the world. So, it’s exciting, and at the same time I’m honored to be able to help document that history. Chip: Who could have predicted cannabis at Canada would have just skyrocketed and plummeted so quickly? Nick: Right. Chip: You know, who could have predicted that Oklahoma, once one of the most conservative places about cannabis in the country would become the best and most premier place you know, to cultivate cannabis in the country? Nobody thought that was going to happen. Nick: Right. So let me — Chip: It’s incredible where it’s turning. Nick: Yeah. Let me ask you this, Chip. So what can we learn, as a country, what can we learn from Canada’s missteps so we don’t follow in the same footsteps? Chip: Well you know I think we’re already doing the exact same thing. We just weren’t able to have publicly traded companies that could directly trade cannabis on the NASDAQ, right? And any like, insulary type businesses that were allowed to be publicly traded, those were all you know, over the counter, OTC trading stocks. So I think that is really what kept the US investment schema from exploding. But essentially, we still have the same exact elements that were going on in Canada, that are going on here, going on here today. Which are just like, some incredibly savvy people that know how to manipulate the market. That know how to manipulate venture capital groups or family offices. And you know, for instance, the typical cannabis “investment.” There’s two types. There’s one, it’s just like, me, you, and my brother all get together and we decide we want to do a cannabis operation so we throw in our money and make it. Nick: Kind of the friends thing — Chip: Friends and family thing. The bootstrap. And man, sometimes like, you come up with million