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Do your part to grow the culture. Let our advertisers know that you saw them in Sativa Magazine. Atmos Rx Big Dans Genetix Bubble Bowls Cannaline CannaSense Cannaventure Seeds Celebration Pipes The Cure Collective Diffuser Beads Guardian Data Systems Happy Daddy Products Herbivore Designs Kasher Tools Kushed Clothing Mary Jane Mints Method Seven MTG Seeds National Cannabis Industry Association Shaman Genetics Stoner Couture Threefourink

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Sativa Magazine Online Issue No. 5 June 2013 President & Publisher Tiffany Greene Editor-in-Chief Michael Carter Managing Editor & Design Director Cheryl Addington Marketing Director Jason Osburn Art Directors Emily Cain Josh Clappe Heidi Hemp’ography Ramon Ramirez s. sakamoto Photographers Max Bortnick Heidi Hemp’ography Ramon Ramirez Executive Editors Mercedys M. Gloria Martinez Editor Christie Rears Writers Jade Christian Richard Drew Gina Epps Franklin Ewing Hippy KK Paul Josephs Darren Marcus Joe Martin Mercedys M. Emily Riopelle Karen E. Szabo Dr. Nguyen Van Falk All contents ©2013 Sativa Magazine. Sativa Magazine is published and distributed by Vanguard Click Publishing, Seattle, WA. Sativa Magazine does not condone or endorse any illegal use of any products or services advertised herein. All material is for educational purposes only. Sativa Magazine recommends consulting an attorney before considering any business decision or venture. We take no responsibility for the actions of our readers.

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Cannabis is legal... sort of.

Washington and Colorado voted to legalize the recreational use of Cannabis. However, the Federal Government chooses not to recognize this for some individuals. Now the power is shifting. It’s all in the numbers. We see the truth and we have stopped believing the lies. The truth is spreading. Many Cannabis users that quit long ago because of the stigma have now started feeling more comfortable about their use and are choosing to relax after work with some Cannabis, instead of alcohol. This is opening a HUGE market for investors and entrepreneurs to get out there and create/expand an industry that was forced underground. We need more jobs. This is just one of many great opportunities out there in which we can make that happen. Cannabis and hemp are going to be legal very soon, and there will be new jobs in the industry when that happens. Electricians, lawyers, growers, fertilizer manufacturers, manufacturers of equipment for cultivation, solar panels, testing and dispensing, soil companies, seed breeders — not to mention the plethora of jobs tied to the legalization of industrial hemp — I can keep going all day. Cannabis is a multi-billion-dollar industry, and when you add in the money generated for the companies that service the industry, those numbers skyrocket through the clouds. Many wealthy investors see a huge opportunity. With opportunity comes risk. I am going to give thanks to Microsoft for hiring so many Cannabis-loving hippies that retired as millionaires. They are driving a large part of the movement in Washington state. sativamagazine.com

I work in a creative field and Cannabis is my coffee. It gets my brain stirring. I’m sure many of you would struggle through your day without your caffeine. To each their own. When the state of Washington fully legalizes Cannabis in December, I hope many of you will start looking at real estate if Cannabis is your thing. I see a lot of positive change happening. That change is happening because of you. Because of the shifting belief in the lies that were spread for the past 40 years. We are done and we want our freedom. The drug war has failed and Cannabis is not what we’ve been told it was. You are in the middle of a generational change in opinion and attitude. Everything is about to change. Cannabis is a small piece of the new future ahead. The market is looking for talented ganjapreneurs like yourself to make this movement happen. I’m looking forward to visiting Colorado and staying at a Bud and Breakfast, traveling the local Cannabis retailers like a wine tour and finishing the night off dancing at the local Cannabis Cafe. That’s a future where I close my eyes and see a lot more smiles. I hope to see you take this journey with us. It’s going to be a bumpy ride. But you have to work hard for success and never give up. I hope to write about your successful business when it happens. :)

Michael Carter Editor-in-Chief michael@sativamagazine.com JUNE 2013 5


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JUNE 2013 columns Bright Shiny Objects

Bubble Bowls Dri-Shake Systems  Hippy KK & her sidekick take the bowls out for a spin.

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Start me up  Mercedys M. & Michael Carter — taking care of business.

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Our breeding heritage  Welcome Paul Josephs to his new monthly column.

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Who are Cannabis users?  Part Two of our in-depth look at the users and the shakers.

21

Colorado regulations update  Dr. Nguyen Van Falk keeps you abreast of new developments.

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Business Highdeas

The Need for Seeds

Business as Unusual Politicies

Medibles

Stuffed rolls  Hippy KK does is again. Your guests will love you.

Nuggshots.com

True Blueberry, Afghooey, Purple Dank, et al.   Raz says you must take the K-Train.

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features

The Cannabusiness Issue From a NORML Viewpoint  34 An exclusive interview with Kevin Oliver. Meet Dirti  37 Our new avatar wants to swap howdies. Fooling Mother Nature  38 Reaping extra harvests outdoors. Blinded by Science: Part Three  42 Beyond Mendel — advanced Cannabis genetics. Sex in the Garden: Part Three  44 Focusing on the goal. Hemp Potential  48 Industrial hemp is illegal because why? Top Ten Benefits of Legalization  54 Come; let us count the ways. And then do something! Creative Real Estate Opportunities  62 Cannabusiness needs room to grow. And that’s good news. Private Investors: Who Are They?  66 A probing look at the guys in the suits. Bank it or Bury It  68 Coping with the monetary realities of running a cannabusiness. Growing Your Future: Part Three  72 Flower power. How to keep ’em happy. Strange Bedfellows  76 Labor unions and the Cannabis industry. Pickup or Delivery  80 Dispensary or delivery service? A look at the pros and cons of each. Bug Off! Controlling Common Pests  84 More looks at unwelcome guests of all types. Can Sustainable Cannabis Compete?  89 Like anything else, organic comes at a cost. Is it worth it? 101 420 Females   What more can we say?


CV

ELEBRATION PIPES marks 40 ICTORY GREEN

IN 1973, Richard Nixon was just sworn

raging after 10 years of American invo and CELEBRATION PIPES were fi rst Christmas presents…what finer sacra


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n into his second term. The Vietnam War was still olvement. Gas was $0.38 /gallon. Gold was $110/oz. t created on Laie Point, Oahu as stocking stuffers for amental vessel for the herb than a golden bowl? Here we are 40 years later in 2013 and there are DOZENS of states that are either legal (HOORAY for COLORA DO & WASHINGTON) or medicinal with DOZENS more seeking sanity from PROHIBITION. Baby boomers suffer from all the classic aging symptoms and seek relief with the herb. CELEBRATION PIPES are still being made one at a time by the same craftsman with the same Gold that now costs $1,600 / oz. and the 40th anniversary pipe is VICTORY GREEN. Each LAVASTONEWARE piece is still handcrafted by DaPiper from his unique ceramic composite, fired to 2,300 degrees Fahrenheit, then meticulously plated in 22 Kt. Gold to reflect the heat and provide the fi nest burn and smoothest delivery of any pipe on the planet. The bowls exterior is plated in Gold, Platinum, Opal, Black Coral, Purple Haze, Hanalei Blue, or Rastafire and now VICTORY GREEN. Each pipe is encased in a velvet bag and presented in a custom gift box with a Certificate of Authenticity, signed and numbered. Over the years, CELEBR ATION PIPES have been commissioned to create pieces that are in the

collections of AEROSMITH, BOB MARLEY & the WAILERS, CECELIO & K APONO, CHEECH & CHONG, DARYL HANNAH, HUGH HEFNER, FLEETWOOD M AC, JEFFERSON STARSHIP, JESSE COLIN YOUNG, KA LAPANA, LOGGINS & MESSINA, KEITH STROUP, (founder of NORML), WILLY NELSON, WOODY HARRELSON, and ZIGGY MARLEY. To help complete the war on PROHIBITION, we are proud to support NORML for their tireless efforts lobbying all levels of Government to FR EE THE WEED. Each purchase of a VICTORY GREEN pipe sends a few more bucks to NORML that will someday lead to safe and sane LEGALISATION once and for all‌!!! GO TO : www.celebrationpipes.com or find us @ www. norml.org and order your collectors 40 th anniversary edition TODAY ! See you at DENVER 4/20/2013 Rally & Seattle HEMPFEST August, 2013. Aloha, DaPiper


bright shiny objects  hippy kK

Forget the bag — go for the bowl! After every harvest, JD and I never look forward to the messy task when it’s time to make the bubble hash. Water extraction is not only messy but can be very time-consuming. So, many thanks go out to Dogtown Innovative Products for creating a simple solution to our messy problems: Bubble Bowls drishake systems, or what is otherwise known as dry-ice extraction. Their motto speaks volumes, “Faster, easier, cleaner than bags” is by no means an exaggeration. The water extraction method used to take us hours; now that laborious process has been reduced to a fraction of that time. Bubble Bowl kits are available in single-stage, 160-micron; doublestage, 160- and 120-micron and triple-stage, 160- , 120- and 90-micron systems. A form-fitting lid, appropriate number of gathering cards and easy to follow directions are included in all Bubble Bowl kits. Interested in only a single bowl? Well, they have those too in 160- , 120- , 90- and 68-micron. As medible suppliers, it is imperative to have an ample amount of product on hand between harvests. However, using the water-extraction

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method never seemed to produce enough so a couple months ago, JD experimented for the first time with the dry-ice method. Using a bubble bag and a 2.5-gallon bucket, shaking it out onto a piece of large poster board which in turn caused an unknown amount of lost product by spilling over, the dry-ice method tripled our yield! So, needless to say, JD and I were thrilled to discover the no-mess, no-fuss, Bubble Bowls. Using the three-stage kit, following the enclosed directions, JD stacked the bowls accordingly, 160 into the 120 then those two into the 90-micron bowl. He placed the three bowls into a large mixing bowl to work as a catch basin. He filled the 160-micron bowl approximately halfway full with well dried, crushed trimmings, added one part dry ice to two parts trimmings, covered and let sit for two minutes. After the elapsed time, taking the entire stack of bowls, catch basin included, he shook it for one minute. Timed precisely, the yields were as follows: 160-micron, 10.2 grams; 120-micron, 10.5 grams, and 90-micron yielded no measurable amount. The same trimmings were

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Bubble Bowls® dri-shake systems

then run through a 220-micron bubble bag that produced an additional 4 grams. approximately 3 ounces of well-dried trimmings, produced 24.7 grams of dry-iceextracted bubble hash in about 7 minutes or less, start to finish. yields wouldn’t have been near that per run using water extraction and clean-up was a breeze. Simply wash with dish soap and hot water. Directions stated once clean, wipe mesh with a sponge and rubbing alcohol, but i didn’t find this step necessary. They cleaned up like

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new in the hot soapy water alone. out of pure curiosity, samples of each micron were taken to a local dispensary for THc testing. The results were as follows: 160-micron Bubble Bowl tested at 19.89 percent THc with 6.13 percent moisture; 120-micron Bubble Bowl, 19.91 percent THc with 11.08 percent moisture, and the 220-micron bag tested at 12.85 percent THc with a moisture level of 15.91 percent. Dogtown has created an easy-touse, durable product that produces

a higher yield over water extraction systems, backed by a 5-year warranty. once you try Bubble Bowls you’ll never go back to the bag. Visit their website for a full list of available products and pricing. www.bubblebowlkits.com Dogtown innovative Products, LLc 6616-D clark Rd. #101 Paradise, calif. 95969 office (530) 873-9985 Sales (530) 413-9331 Jd culpepper collaborated with hippy kk to bring you this review. S

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business highdeas  mercedys/carter

Start me up #1: A Mobile Cannabis Cup Imagine spending a day touring some of the best dispensaries your state has to offer. In between stops, customers relax on a luxury bus in comfortable seats with soft music playing while enjoying the company of other medical patients. In the week following their tour, these patients try samples received from each dispensary and vote on their favorites. Votes from patients who had enjoyed the various mobile tours could be tallied to determine a winner, thus concluding a Mobile Cannabis Cup for their local region. Patients could even provide feedback on the assorted strains they sampled to help build a local strain directory. The end of the Tour could involve a live event hosted by one or more of the dispensaries where other cannabusinesses, dispensaries, social-activist groups, and interested parties all come together to create an engaging event where patients would learn more about their options as consumers as well as enjoy an evening with likeminded individuals. Ideally these events would be hosted at a venue with a stage for live entertainment,

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bands, comedy acts, and perhaps even a dance floor. Like all cannabusinesses, the ganjapreneur who brings this highdea to life needs to be diligent in the research and following of the necessary regulations. For example, if the person or organization running the Tour wanted to offer a prize for the winner of the Mobile Cannabis Cup, the dispensaries could not be charged to take part of the event without running into the complex legal zone of conducting a lottery. Instead, the Mobile Cannabis Cup organization could receive bonuses from dispensaries for patient referrals and could be supported through other multiple revenue avenues. Sponsorship ad space could be sold on promotional materials and signage with most of the revenue streaming in from consumer ticket sales and booth space rentals for the main event. Available URLs: Judgeonabus.com trophybus.com weedwinner.com mobileweedjudge.com 420contestbus.com 420wheels.com cuponabus.com

cannabusjudge.com thebuscup.com #2: Adviser Crowd Funding With banks and other traditional financial institutions unwilling to do business with cannabusinesses, ganjapreneurs struggle to raise capital despite astonishing market growth projected over the next decade. Private investors are also hesitant to invest in even the most promising ideas for fear of losing their investment if the authorities decide to step in and shut down the company. Providing an avenue for investors to pool their money together to fund a cannabusiness would effectively minimize this risk. Additionally, they could hedge their bets by investing in a variety of cannabusinesses. In order to make this business highdea feasible, an infrastructure must be built. This necessitates building a professional website. Ganjapreneurs would create profiles containing their business plans and outlining their funding needs and investor incentives. Furthermore, investors should create profiles with their resumes, business interests, etc. In order to protect the business

JUNE 2013 13


developer and their ideas, investors would need to sign a nondisclosure agreement and invest at least $5,000 into the Crowd Fund before being able to access the profiles of businesses and start making investment offers. The ganjapreneurs then decide what investment offers to accept. The crowd funding company would then connect both interested parties and facilitate the process of arranging the partnership. Since there are a multitude of options, ganjapreneurs need to specify in their business plan what investors receive in exchange for their investment. Numerous avenues exist for making this relationship work such as offering paid positions within the company, a percentage of the profits for a specified amount of time or partial ownership of the company. Different investors in the same company could even receive unique compensation. There should not be a “one-sizefits-all� approach here. The goal is to create relationships that best match the expertise and interests of investors with the needs of budding cannabusinesses. The crowd-fund company will charge both investors and ganjapreneurs a fee for facilitating the arrangement and the services they offer to help it succeed.

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AVAILABLE URLS: cannvested.com investedadvisor.com investmentspread.com adviserinvetor.com advisershopping.com investinadvice.com 5000ideas.com gapvice.com cannabridge.com An Online Cannabis Networking Group Networking groups are a powerful tool, and for good reason. They allow professionals to connect with others in order to share leads, brainstorm, invest together, and receive discounts. An educational component is often built into such groups that could help educate members about important issues facing the industry as well as trends influencing consumer decisions. With stiff competition from rapid expansion of cannabusinesses and quickly changing regulatory structure, having access to such services will mean the difference between failure and grand success for even the most promising ganjapreneurs. Such a networking group would also provide benefits for the industry as a whole. It could present a united voice for affecting governmental policies. Additionally, it would create a backbone of

support for professionals struggling to overcome discrimination and stigmatization from working within the industry. Such a networking group will provide a mechanism for industry acknowledgement of sustainable, responsible and successful business practices. This network could begin online for free with a private Facebook page. As membership grows, you could eventually launch an interactive, user-friendly website and begin charging a small fee. Providing access to high-end, conferencecall software would allow members to connect on a whole new level. Educational materials could be showcased on the website, members could share their experiences in blogs, questions and concerns could be addressed in community forums. As the networking group expands, regional chapters could be formed connecting local businesses into a much larger arena. Industry professionals would likely jump at the chance to get an edge in this rapidly expanding industry, especially if the fees are kept small. The question is not whether the idea will become a success, but rather how long it will take for a ganjapreneur to step up to the plate and make it happen.

continued on page 99//

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the need for seeds  Paul Josephs

Our breeding heritage It is a great honor and thrill to have the opportunity to write a column exclusively about the fascinating and continually evolving topic of Cannabis breeding. The primary purpose of this column will be to assist growers with understanding how breeding works, highlight new trends and advances in the field, and showcase the thoughts of Cannabis-breeding experts. The goal is helping people with their own breeding projects. A good starting point is taking a look at how Cannabis breeding has arrived at the place it is now and speculate on what directions it might take from this point in time. Breeder’s palette Cannabis has a generous genetic diversity with which breeders can work their DNA magic, just as painters do with their palette of various colors and hues. An excellent plant to compare with Cannabis is maize, or corn. Both Cannabis and maize have a 2n chromosome count of 20, and both depend on the wind as the primary means of transporting pollen. Cannabis and maize exhibit a stunning diversity in their various forms, and have been bred by

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humans for millennia. This depth of genetic variation is of immense benefit to Cannabis breeders because there is so much to work with; color forms, cannabinoid profiles, branching structure, yield, maturation rate, and nearly everything else about the plant can be enhanced or diminished with careful selection of traits when breeding. Like maize breeders, people working with Cannabis can achieve incredible results after several generations of selective breeding. Modern Cannabis In the natural world, environmental pressures drives evolutionary change in organisms. This simplistic model provides a good perspective which helps with understanding how Cannabis breeding arrived where it stands today. Take out the word “environmental” and substitute “economic and political” and you have the driving forces behind modern Cannabis breeding. Granted we are not talking about natural selection and evolution, as breeding is most certainly humandirected selection.

The great outdoors The beginnings of modern Cannabis breeding in the United States began in the 1960s on the west coast. Growers collected seeds from imported Cannabis and grew them out to ensure that they had a steady supply that was not subject to the capriciousness inherent in the importation of Cannabis from other countries. Most of this original breeding material came from Mexico and Central and South America. There were notable exceptions to this in the form of Cannabis from parts of Asia and Africa. There is much in the way of anecdotal reports on various Cannabis internet forums relating to the activities of these early Cannabis breeding pioneers, and it is clear that they were using sound genetic science in their endeavors. The original American breeding stock was from landrace strains of Cannabis, that is, strains that were acclimatized to the regions they originated in and maintained their genetic diversity by being pollinated by multiple different plants being grown in the same vicinity. The early breeders’ first task was to evaluate the genetic potential of

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the strains they were working with and then stabilizing them to get more predictability for their breeding programs. Our friend Dirti can offer a great recent example of what the early Californians were up against. Dirti was given some seeds by a friend who told him that they were from “The best street herb I’ve ever smoked.” Street herb being imported Cannabis from somewhere south of the border. Dirti was intrigued and since he had the time and the space to play with, he grew out some plants from the seeds. The first generation he grew out was quite uniform, and though not exceptional, quite tasty and strong. Dirti assumed the seeds were an F1 generation that was probably open pollinated or had a hermaphrodite in the field — he did notice more than a few “bananas” (staminate flowers) in the buds — so he decided to pair up a male and female plant from that generation to make an F2 generation, just to see what would result. This batch grew out and exhibited a whole gamut of phenotypes from tall sativa-dominant ones to squat indica-dominant individuals and everything in between. They also had a high percentage of hermaphrodites. Dirti just shrugged, harvested the best plants, and scrapped the entire experiment. He already has great genetics to work with thanks to the early pioneers

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and today’s breeding wizards. Thankfully, the early breeders did not quit when facing this kind of instability in their early breeding projects. They didn’t have to deal with Afghan indica genetics popping up in seeds from Mexico back then, but the strains were still very unstable at the beginning. These early breeders often worked in loose-knit collective groups that were able to grow out large numbers of plants and select the traits they wanted to lock in and stabilize over several generations. They also deliberately infected plots with Botrytis cinerea, the dreaded grey mold, to see which plants were resistant that met their other criteria and should be incorporated into their projects. The great indoors By the end of the 70s, however, things were getting tougher from a law enforcement standpoint and these outdoor enterprises were increasingly more difficult to maintain. Indoor cultivation became more common every year. This development drove rapid innovations in horticultural lighting technology, plant nutrition, and accelerated Cannabis breeding at an unprecedented rate. Cannabis was then, as it is today, a major cash crop. Businesses that supplied horticultural lighting, nutrients, and

hydroponic systems gradually saw a steady increase in demand for high-quality products from new customers who often paid in cash and were very low-key and easy to deal with. The advent of indoor cultivation had a profound effect on Cannabis genetics that continues to this day. The economic and political pressures mentioned earlier were very strong. On the one hand, law enforcement agencies were given increasing authority to crack down on Cannabis cultivation, and on the other, the increasing quality and quantity of Cannabis grown indoors meant more and more money going to the growers. This proved to be a crucible for a remarkably rapid development of strains that met three main criteria. One, they had to be potent and tasty. Two, they had to have a high yield, and three, they had to be able to mature in the shortest time possible without compromising the first two factors. This fast time frame had two reasons, it meant less exposure to being busted if the crops were only around for a fairly short time and the faster the turnaround, the higher the profit. Those factors favored using a lot of Cannabis indica strains in the breeding programs to keep the size down, the potency up, and the finish time short. With the ability to

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emily cain

grow up to four generations from seed in a year — assuming one month of vegetative growth and a 60-day finish time — breeding could advance at an unheard-of rate, making stabilizing strains not nearly as long of a process as it was when growing outdoors. The medical era Despite the preponderance of indica genetics being used for commercial black-market Cannabis production, breeders also incorporated sativa strains to add the livelier high associated with them into their breeding stock to temper the couch-lock effect associated with many indica strains. This was because they were also breeding for their own stash, and customers always want something new and

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different. As a result of medical Cannabis, advancements have fostered a need for more diverse strains and breeders have been effectively delivering them at a steady rate. Breeders that once were limited greatly by what they could accomplish now have legitimate jobs working with large medical grow facilities and are able to thoroughly investigate and advance their understanding of Cannabis genetics. This is quite evident in the exceptional quality and quantity of strains found in today’s medical Cannabis dispensaries. The retail era This is an excellent place to wrap this up. Now that Colorado and Washington have become the first states to allow retail sales of

Cannabis, an entirely new dynamic will evolve. Though the medical Cannabis movement has greatly advanced Cannabis breeding, the new retail market will generate an unprecedented demand for a wide variety of strains, just as the beer industry has different markets and niches. The amount of money driving this demand will be impressive, and the level of research and development related to breeding will become much more professional. The current state of Cannabis breeding is simply amazing, and one wonders what this new era will generate. Future installment of this column will follow these developments, and keep you up to date on the directions the science and art of Cannabis breeding is taking. S

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Business aS UNusual

Who are Cannabis users?

Part two of a series While diligently editing articles for an upcoming edition of Sativa magazine on a train ride between southern oregon and Seattle, Wa, i struck up an interesting conversation with an older couple playing cards at a nearby table. The topic quickly turned to my work at the magazine and our goals. The man became increasingly hostile and angry about the growing acceptance of cannabis use in america. He explained that his unemployed son smokes multiple times a day, and makes watching stoner movies and playing video games his primary profession. To this man and countless other americans like him, his son represents a “typical” cannabis user — unmotivated, unproductive and unconcerned with becoming a citizen who is part of

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the solution to this country’s many challenges. Despite his hostility, i patiently explained that although his son and the stereotype he represents is a small sector of cannabis consumers, the majority are far more likely to fall in a demographic much closer to the father rather than the son. in fact, when looking at the raw data, most people would be surprised at what the statistics about frequent cannabis enjoyers actually reveal. cannabis is by far the most commonly enjoyed ‘illicit drug’ in america. in 2011, 22.5 million americans were “current” illicit drug users — defined as having partaken in illegal drug use within the last month — and 80.5 percent of these individuals consumed cannabis. over two-thirds

of all ‘current drug users’ — 14.68 million americans — consume cannabis and do not use any other illegal drug. These and all other statistics cited are from the results of the U.S. Department of Health and Human Services’ annual National Survey on Drug Use and Health in 2011, the most recent year survey result have been made available to the public. Unless otherwise stated, all statistics provided are for “current” cannabis users. Having a clear understanding of who exactly enjoys using cannabis is important for both businesses seeking to understand who their potential customers are, as well as for individuals looking to change public opinion by acquiring knowledge and building activism into JUNE 2013

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AGE ETHNICITY SEX EDU

{12–17} 12%

{18–24} 32%

{WHITE} 67% {30–50} 26%

{30–65+} 15%

{LATIN AMERICAN} 14%

{AFRICAN AMERICAN} 14%

{FEMALE} 40% {MALE

Percentages in graphic have been rounded for visual clarity.

their daily routine.

Age: Although Cannabis is perceived as a youth drug, only 44.25 percent of monthly enjoyers are younger than 24 years old. On the other hand, 25.5 percent are 40 years old or older. And use among elderly Americans is on the rise. Between 2002 and 2011, the percent of Americans between the ages of 50 to 59 who had recently enjoyed Cannabis jumped from 2.7 to 6.3 percent. Prominent national media sources including Forbes have

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begun documenting the causes behind this trend. Baby boomers, many of whom were heavy enjoyers in the past, are once again enjoying the herb recreationally as they enter retirement. A great number are also turning to it for help with the array of medical conditions which Cannabis can safely treat.

Ethnicity: Let’s play a little game. Members of which ethnic identity — whites, African Americans or Hispanics/ Latinos — represent the majority of

frequent Cannabis consumers? And which group is the second largest? Many will be surprised to realize that not only do a majority of all frequent Cannabis enjoyers identify themselves as white, but that two out of every three Cannabis users identify as white! Hispanics/Latinos comprise approximately 13.9 percent of Cannabis enjoyers, while African Americans represent only 12.9 percent.

Education: There are 30 percent more current Cannabis enjoyers with college

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eduCation

emPloYment

{no diPloma} 16%

{unemPloYed} 12%

{Hs Grad} 30%

{full-time} 48% {some ColleGe} 33%

{ColleGe Grad} 21% {Part-time} 20%

le} 60%

degrees than those who never graduated high school. in fact, a majority of cannabis consumers have completed at least some college coursework.

employment: Despite what most anti-cannabis fanatics think, frequent cannabis usage does not necessarily have a negative impact on one’s productivity. Unemployed cannabis users are a small minority, representing only 11.5 percent of monthly enjoyers. many would point at the 19.5 percent who are only employed

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part-time as evidence that frequent cannabis usage decreases productivity on a large scale. However, considering that most youths and college-aged adults are only employed part-time, if at all, given the demands of attending school, this evidence must be thrown to the wayside as well. So, the next time you’re on a train, or a plane, or stopped at a traffic light, look at the man or woman next to you. They may be on their way to work, or traveling to a business meeting — and chances are

{otHer} 21%

excellent that they will, at the end of their day, choose to unwind with a safe and natural herb that will ease their stress, lull them into a sound night of restful sleep and not cause the hangover, headache and health consequences of alcohol. and countless more benefit from the medicinal properties of this amazing herb. So, if you agree with us that education is a huge part of changing the conversation, go to the survey website, build your arsenal of facts, and go out there and change some opinions. it’s just like planting — one seed at a time. S

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politicies  Dr. Nguyen Van Falk

Things to know about Colorado’s Cannabusiness laws Everyone’s heard by now that voters in the Centennial State made history last November with the victory of Amendment 64 allowing adults 21 and older to possess a small amount of Cannabis for personal use. That’s clearly in the state’s constitution now. What was less clear was how the state would regulate Cannabusinesses. One of the biggest questions is how this market will be taxed. Washington State’s legalization initiative included taxes at every stage from growth to sale, and they’re now in the midst of figuring out their own regulations. Colorado’s amendment didn’t spell that out, though, which gave legalization opponents a window of opportunity to overturn the will of the people. In the end, the legislature reached a compromise and House Bills 1317 and 1318 regulating and taxing Cannabis were passed. Before you get to celebrating, there’s a lot that you need to know about these laws. It’s so much that you should strongly consider hiring a lawyer before you open for business on Jan. 1, 2014 at the

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earliest. See the sidebar on key dates to watch for as you plan to roll out your business. So without further ado, here are 10 key things to know about Colorado’s Cannabusiness laws: Residency requirement Either way, all business owners must have resided in Colorado at least two years prior to applying for a license. Only Colorado residents can own, work or invest in retail Cannabis businesses, and everyone involved will be subject to a criminal background check. Before applying for any license, it would be smart to send in a letter of intent first, since the State is giving first reviews to those who sent in their letters. Medical preference Existing medical Cannabis growers and dispensers have preferred status under this law. There are three main retail licenses, along with a fourth I’ll mention in a bit: the stores that sell directly to customers, the manufacturers who make products for these stores, and the growers who cultivate

Cannabis for both. The application fee for any of these is $500 if you have a current medical Cannabis license, compared to $5,000 for applicants who don’t, and those who don’t will have to wait at least nine months longer to open for business. Also, medical Cannabis license holders can convert over to retail or they can keep their existing license and add one for retail. If they do that, they must either keep the two operations physically separate or only sell to people 21 and older. Testing facilities There’s one exception to this delay for applicants who don’t have an existing medical Cannabis license, and that’s if they’re applying for the fourth type of business: retail Cannabis testing facilities. These are the research firms that will be testing and certifying the purity and potency of Cannabis, which can open Jan. 1 regardless of whether they had a medical Cannabis license or not. From seed to sale The state will be setting up a

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“Seed-to-Sale” tracking system that traces all retail cannabis from when it’s a seedling to when it’s sold as a product to a customer. They’ll require everything be tested for harmful contaminants like pesticides, poisons, molds and microbes like E. coli, as well as for THc potency, which will be needed for labeling. Speaking of labeling, every room on your premises that contains cannabis will have to be clearly labeled as such. taxation Every cannabis sale or transfer from a grower to a product manufacturer or retailer also has to verify that it was taxed at 15 percent of the average market rate. This is the excise tax on retail cannabis production. once it gets to the retail seller, they have to collect a 10 percent sales tax on all customer purchases, on top of existing sales taxes. This assumes, of course, that colorado voters will approve these taxes this fall: the state requires tax hikes be approved by voters, so this is the last real hurdle left. inventory restrictions growers eventually will be able to sell to third parties, but for the first nine months product makers and retailers can only process or sell cannabis grown in cultivation centers which they are licensed to own. Even once oct. 1, 2014 rolls

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H OT E R

P AG M

around, you can still only sell up to 30 percent of your current inventory to any given retailer. and it’s important to note that under the new law, incorporated cannabis collectives are banned in colorado. know your customer Under the law you have to check each customer’s iD – and not just for their date of birth – since colorado residents can buy up to one ounce of cannabis at a time while out-ofstate customers can only buy up to a quarter-ounce at a time. customers

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also will have to be physically present at your store for the sale to be legal, so no selling over the internet, no mobile distribution centers and no delivery sales. obscene gesture What’s likely to be the most controversial piece of these new laws is the treatment of cannabis-themed magazines like pornography, with stores having to keep all such publications behind the counter. obscenity laws aren’t new, but treating pot like hardcore porn

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Sa v e th e Da te!

Key dates to plan fo r as you consider cr eating your cannabusiness vent ure in colorado:

julY 1, 2013: colo rado sets its rules an d regulations for re marijuana businesse tail s. oCt. 1, 2013: Reta il applications begi n for current medic marijuana license ho al lders; also, non-med ical licensees can sti apply for marijuan ll a testing facility lic enses. jan 1, 2014: The fir st day stores with re tail licenses can lega open for business; al lly so, non-medical licen sees now can send letters of intent to ap in ply for a retail licen se. julY 1, 2014: Non -medical licensees fin ally can start to appl for retail licenses. Re y member to send in yo ur letter of intent first. oCt. 1, 2014: Reta il store owners who did not already ha medical marijuana ve licenses can officia lly open for businesses; also, retail stores ca n finally sell marijuan a grown in someone else’s cultivation ce nter.

certainly is, and several publishers have already threatened lawsuits against the state on First amendment grounds. no on-site sampling customers will have to wait until leaving the premises to sample or even open their purchases, which will have to be kept in child-resistant packaging and carried out of the stores the same way as liquor bottles, in opaque paper or cloth bags. There will be no cannabis coffee shops or bars, and for that matter no retailer can sell

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edible products that don’t contain cannabis – no, not even candy or soda. But at least you’ll be able to sell stuff like cannabis accessories and apparel.

likely is being repeated in municipalities throughout the state. check with your local government to see what additional taxes, rules and regulations they’re imposing.

local control Take everything written above with a grain of salt, since your local governments will have their say as well, and they may say “No.” according to a report in The Denver Post, as of mid-may the Denver city council was still trying to decide whether they would allow retail cannabis businesses or not, a process that

and this is only the beginning: specific rules for each class of license will be coming soon from state regulators, governing everything from testing protocols for researchers to serving sizes for edibles, from marketing, labeling and packaging to how clean and secure your store is. We’ll be sure to help make you aware of those once they’re released. S

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medibles  hippy KK

Stuffed Rolls Medibles are the most potent way to ingest cannabinoids and a great source of pain relief. Our monthly featured Medible recipe will pack Cannabis into your favorite sweet treat or main meal, providing you with a strong sedative effect that does not require continued dosing throughout the day. These main meal stuffed rolls are filling and good.

Yield: 24 stuffed rolls Prep Time: 60 min. Ingredients: 1 pound ground beef 1 medium onion, chopped 1 sm. head cabbage, chopped 1 packet French onion soup mix 6 tablespoons Cannabudder 1 24-ct. package frozen dinner rolls You will also need parchment paper and a rolling pin. 1 Two hours prior to making, remove dinner rolls from freezer, place on parchment paper to defrost. The dough should rise a bit during this time. What you will need: 1 lb. ground beef; 1 medium onion, chopped; 1 small head of cabbage, chopped; 1 packet French onion soup mix; 6 tablespoons Cannabudder; salt and pepper, 1 package (24-count) frozen dinner rolls; rolling pin; parchment or waxed paper.  2 Over medium heat, brown ground beef and onion. Season with salt and pepper. While meat is browning, chop cabbage. 3 Once meat is browned, reduce heat to medium-low. Add cabbage and Cannabudder.

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4 Mix well, then add onion soup mix. Mix thoroughly again to ensure all ingredients are wellincorporated. Cover and simmer for approximately 15 minutes or until cabbage is reduced, stirring occasionally. 5 Preheat oven to 350°F. On a flat surface using a rolling pin, roll out dinner roll dough to create a circular shape, approximately 6 inches wide and ⅛-inch thick. 6 Place several tablespoons of filling into center. 7 Bring the edges together, folding and overlapping the dough. Pinch together to seal. 8 Place on cookie sheet. Bake for 20 minutes or until golden-brown. Caution: contents are extremely hot! Allow rolls to cool for at least five minutes before serving. Stuffed Rolls make a great leftover meal. Keep refrigerated for up to seven days. They freeze well, either before or after baking, for up to 30 days. Good hot or cold; even better with a little bit of hot sauce! S

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For the last decade, WA NORML Executive Director, Kevin Oliver, has dedicated his life to the National Organization for the Reform of Marijuana Laws. Founded in 1970 by Keith Stroup, NORML’s mission statement is “to move public opinion sufficiently to achieve the repeal of marijuana prohibition so that the responsible use of marijuana by adults is no longer subject to penalty.” With a mission as strong as NORML’s, it comes as no surprise that this organization is the largest Cannabis advocate group in the United States. Ideally located in the nation’s capital, NORML’s headquarters can be found in Washington D.C., and has chapters in all 50 states, as well as internationally.

the public on how to take action, “setting a tone and moving forward that doesn’t reflect negativity.” WA NORML is a regular vendor at the Seattle Hempfest held annually the third weekend in August located at Seattle’s downtown Myrtle Edwards Park. There you’ll often find Kevin sharing a booth and yes, smoking Cannabis with representatives of High Times. As the only Cannabis-related vendor, it shouldn’t be difficult to locate Kevin at Spokane’s Pig Out in the Park. Being a non-Cannabis event in a conservative town no way hinders the amount of signatures he receives. Amazingly, they tend to double those received at Cannabis events.

Kevin Oliver attends state-wide meetings and both Cannabis and non-Cannabis events collecting signatures, educating

Oliver actively opposes the recent announcement of Washington’s DUID limit at 5 nanograms. Rightfully so, stating

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Sativa Magazine Exclusive Interview By Karen E. Szabo

Kevin Oliver:

From a NORML viewpoint “it all depends on how people treat their Cannabis. A regular Cannabis user can wake up with that in their system without ever using prior to getting into a vehicle.” There are 35,000 DUI arrest made in Washington annually putting the daily average at 96 with exceptions to holidays where it rises to 200 per day. It almost goes without saying, with such a minimal limit, one has to wonder if an exceptional increase of DUID arrests will be made. Even though Cannabis is not a toxin, it’s being treated as if it were. NORML has been the voice of the American people for the past 43 years, lobbying to decriminalize Cannabis. In 1999 they witnessed the first state to legalize medical Cannabis, something they had been advocating strongly for since 1972. Although celebrating the victory of Initiative 502, WA

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NORML is not letting their guard down, as much progress could be lost in the months ahead if we are not actively engaged in monitoring and impacting the forthcoming regulations which will shape the Washington Cannabis Industry for years to come. For those wondering how to get involved, he recommends researching on NORML website. Go in with eyes wide open, take action, research, learn and take an interest beyond its topic. Individuals can quick click Congress at USA.gov to show their support and, of course, keep talking about “the good stuff.” The staff of Sativa Magazine encourages our readers to join NORML and do all you can to end prohibition. Visit their website today to become a member or make a donation to help in our ongoing struggle for responsible Cannabis reform. S

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Meet Dirti

Dirti will become a common character here at sativa m agazine, so we’d like you to know a little bit about him. Dirti is an avatar for our collective experience in many things related to the movement, especially growing and breeding cannabis. Dirti represents the spirit of our magazine and of the cannabis movement in general. Dirti is a cannabis farmer who loves the earth. he has a very strong connection with the land and cherishes all things natural. Dirti practiced organic growing long before it was trendy — he never knew anything else — his parents are selfdescribed hippies who had him weeding the family garden in diapers. Dirti has been around for a while and has seen and done many remarkable things in his day. he has spent time in many places, yet he always returns to his piece of eden. Dirti is what some might call a leonardo da vinci of the land. he is constantly trying new things and has a knack for cobbling various and sundry items together to create whatever he needs for his garden. his farm is something to behold, with homemade wind generators and pumps, solar panels, cold frames, root cellars and other structures scattered about. at first glance his little farm has a ramshackle air to it; but, upon closer examination, everything is neat and well cared for. nothing is as meticulously well-tended as his cannabis garden, and visitors are always stunned by the health and vigor of his plants.

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HEiDi HEmP’ogRaPHy

his neighbors know him as a kind man who can be gruff at times, but has a huge heart and will do anything for someone in need. nobody knows how old he is; all he will admit to is being a capricorn. he can be found on saturday mornings selling his amazing tomatoes, chilies, onions and cilantro from his salsa garden at the local farmers’ market, greeting everyone with a warm, knowing smile and a twinkle in his eyes. when asked when his old-school heirloom cannabis strains will be offered at the market, he always laughs, shakes his dirty blonde dreadlocks with a toss of his head, and says “soon, my friend, very soon!” S

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

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Reaping extra harvests outdoors By Paul Josephs Illustration by Heidi Hemp’ography Cannabis responds to increasing night length by beginning to flower. To initiate flowering, indoor growers can simply set the timer to 12 hours on and 12 hours off. Growers can do the same outdoors by blocking the sunlight for part of the day, allowing for more than one harvest during a normal growing season. Sometimes it is nice to fool Mother Nature.

Forget 12 and 12 Indoor growers use the 12 hours on and 12 hours off cycle for three main reasons. One, it’s easy to set on a timer. Two, all Cannabis plants will respond to this light cycle by flowering. And three, it is cheaper to run only 12 hours of light than, say, 14 hours. Cannabis is an obligate photoperiodic plant. In simple terms that signifies that both Cannabis indica and sativa plants will not flower unless the period of darkness they are exposed to exceeds a certain amount of time. This amount of time is called the critical night length. Exposure to bright light during the night cycle for a duration of time will interrupt the hormonal flowering response to darkness.

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If the interruption occurs regularly, and the plant is already flowering, the plant will cease flowering and begin to grow vegetatively again. The critical night length varies somewhat for different Cannabis strains. In general, the further north or south from the equator the parentage originates from, the shorter the night period will need to be to initiate the flowering process. As a broad guideline, Cannabis indica landraces are found in northern latitudes, and Cannabis sativa is found in tropical latitudes closer to the equator. If Cannabis plants required the 12 hours of darkness that indoor growers use to induce flowering, plants would not respond until the autumnal equinox, which takes place every year around September 22nd north of the equator and March 20th for southern latitudes. Realistically, most growers are thinking about harvesting some cultivars around that time, and most finish by late October in the north and late June for our mates south of the equator. Obviously, the plants had experienced their critical night length threshold well before

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

this date. If the threshold is 14 hours, that night length occurs on August 12th in Boston this year. The Farmer’s Almanac is filled with good data for the outdoor gardener for determining dates, times, moon phases, and much more! Since it varies by strain, growers can’t be sure of the exact threshold without experimenting under lights or from past observation outdoors, but 10 hours of darkness is a good starting place.

Auto plants With auto-flowering strains multiple harvests can be achieved outdoors without artificially altering the length of daylight conditions. Auto-flowering strains possess genetic traces of Cannabis ruderalis and flower regardless of day length. This article is going to focus on strains that do not have this auto-flowering characteristic.

Methods Since there are many ways to keep the plants out of the sun for part of the day to allow early flowering, let’s examine and compare them. Moving. If the plants are in containers and are also located near a house or structure that is light-proof, they can be moved in and out daily. Obviously, this has a couple of drawbacks. Not only will moving plants twice a day put stress on the grower, his back and his schedule, the plants’ ability to grow evenly may be affected due to the stress of being moved. On the positive side, the house or structure may well be warmer than the outdoors at night, which allows the grower to extend the normal frost-free period on both ends of the season. The ability to move the plants is beneficial for protection from freak cold snaps and damaging storms. Covering. Rather than moving the plants into

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a dark space, one can create a darkened space of sorts to place over the plants. This could be as simple as putting bags over the plants, or as complex as creating a shored-up excavation that can be covered with boards and black plastic drop cloths. A MacGyver type tinkerer could devise a method like a roll-up garage door that automatically covers and uncovers the excavation on a timer. This concept could fit well with growers using a greenhouse or sun room, by covering the glass or plastic with dark cloths. Borrowing an idea from gardeners, using wood or PVC pipes to fashion tall rowcover frames over the plants which could hold a light-proof cover every day. Considerations for covering techniques relate to temperature, ventilation, and logistics. Covering plants with black plastic will cause the temperature to rapidly rise around the plants, quite possibly to lethal levels. A reflective covering will be safer, but not very stealthy if the grower is concerned about theft. Making provisions for allowing air exchange is important to allow for cooling, plant growth, and pathogen control. Like moving, the logistics of ensuring the plants are covered in time to allow an adequate night length every day can be tricky but at least covering techniques can be automatized with a little more of an investment and ingenuity.

A case study Dirti lives near Denver, Colorado. He knows that he has an average of 156 days to work with without a damaging frost — from May 1st to October 4th. He planted some seeds in late February and once May 1st arrived he placed them outside. Dirti checked the Farmer’s Almanac and knows that on May 1st daylight

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is almost exactly 14 hours and day length will increasing continually until June 21st. He doesn’t know what the critical night period is for the strain he’s growing so he brings them into his unused and darkened garage after 13 hours of daylight. [Sidebar- what constitutes daylight?] Later that night Dirti brings them back out. The routine continues and on June 30th, he brings them in for harvest and puts out the next batch of vegetative-stage plants. On August 29th, he harvests them and puts out his third batch of plants to flower. This last crop is dicey for his region, as the last frost-free day is expected to be October 4th. But Dirti is growing a mostly Afghan strain, and he knows they can handle mild frosts with ease. Since they go into the garage at night, he doesn’t really have to be concerned. Despite some really windy days and one big snowstorm, Dirti harvests this last batch on October 28th. The first batch had a pretty good yield, the middle one was the biggest, and the third was the smallest, but it turned purple from the colder temperatures.

Why bother? It does seem daunting to be able to do all this and still have a life, but it also affords the opportunity for up to three harvests in a temperate climate where only one is normally possible. Needless to say, in the case study presented above, the combined total value of the crops far exceeded the value of just one crop. It is possible to do this and with the creativity that many Cannabis growers possess, there are many ways to accomplish this that have not been covered here. Put on your genius MacGyver cap and get creative — has the lack of a pipe ever stopped a creative smoker before? S

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MAX BORTNICK

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What Constitutes Daylight? Cannabis needs an uninterrupted night period of a certain length to begin and continue flowering, usually 10 or more hours. What isn’t clear is at what point does the plant respond with light-reactive hormones that indicates when the night has begun and ended. For example, the sky lightens gradually for some time before sunrise and darkens gradually after sunset. Additionally, the full moon reflects quite a bit of light onto the earth at night. That the light needs to be of a certain intensity and duration to be able to alter the hormonal balance related to flowering in Cannabis is clear, but the exact value of that intensity and duration remains a mystery. This would be a great research topic which would benefit Cannabis cultivators of all varieties.

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

blinded by sciencE, part 3

beyond mendel: advanced Cannabis genetics

By Paul Josephs

Many of us remember planting seeds in grade school and learning about Gregor Mendel’s classic experiments with pea plants. Genetic inheritance may sometimes deviate from the clear-cut path shown with Mendel’s pea plants, however, making breeding even more interesting when a cross produces unexpected results.

A hypothetical scenario A few Cannabis breeders are hanging out and sharing their latest results with each other. One of them has some amazingly tasty and very different-smelling flowers that intrigue his fellow breeders. When asked about the parentage, however, he gets evasive. The questions persist; finally, he relents and invites them over to his place the next day. He shows them his prized pistillate parent, a famous cutting used often in the region. Despite his remaining reluctance, he finally shows them the pollen parent. The display of such an unlikely looking plant goes over like a joke to his friends, as does its complete lack of any special attributes. He shrugs in response to their uncertainty and explains that it

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accidentally pollinated his prized female but he grew a few seeds out to see, just for grins, what would result. Also, he admits being stunned by the quality of the progeny.

What happened? The clear-cut inheritance ratios expected when counting the number of plants with dominant and recessive traits expressed often do not occur. This phenomenon makes the art of breeding even more interesting as a process. Situations can also occur on the genetic level that do not follow the regular “rules” that Mendel’s peas did.

Linked genes When genes are located nearby on the same chromosome, they are often inherited together, even though they govern different traits. Some genetic traits go together, like eye color and wing length in fruit flies.

Sex-linked genes When genes are closely associated on the sex chromosomes X and Y, they are linked in a similar manner as the linked genes above — with the exception that they may not match up

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Illustration by wordle.net

when recombined. For example, genes linked to the X chromosome usually express most often in males, as the Y chromosome lacks the corresponding gene. Most sex-linked genes are associated with the X chromosome because X chromosomes are longer and carry more genes not likely to be carried on the Y chromosome. Often the expected ratios of all the offspring are normal, but expression of certain traits is seen only in the males.

dominance or semi-dominance, and can be seen when the offspring have intermediate expression. The offspring do not have ratios of either parental trait, but rather, a combination. For example, a plant with white flowers crossed with one with red flowers may produce progeny that all have pink flowers. Often, an F1 Cannabis hybrid will have traits like leaf characteristics that are a blend of both parents.

Gene interaction

This is a gene interaction similar to incomplete dominance in that the offspring exhibit

Sometimes genes interact and are neither completely dominant nor recessive in their expression. This is called incomplete

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Co-dominance

continued on page 94//

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SEX in the

The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Part Three: Focusing on the goal

In this installment of the series we will look at what we have accomplished so far and focus on our goal. We will look at the traits we desire in our new hybrid, evaluate where we are and begin breeding to stabilize these traits to ‘breed true’ thus creating a stable strain of our own.

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garden

By Paul Josephs Illustration by Josh Clappe sativamagazine.com

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

All of our friends really like the look of the purple calyxes in some of the F2 plants... Recap In the first two installments of this series we made a hypothetical cross between two hybrids with the goal of producing a strain that featured a compact growth structure, an intriguing taste and strong effect with purple coloration as a plus. We had flowered the second (F2) generation and took note of the progeny. We learned that there was a difference between the genetic makeup of a plant and it’s physical appearance.

Genotype and Phenotype Those are the scientific terms for the differences we saw in the first (F1) generation compared to the second (F2) generation. Genotype refers to the genes in the DNA, whether or not they are expressed and seen in the appearance of the plant. Phenotype describes what traits the plant exhibits and can be sensed — the physical appearance, smell, potency and taste of the plant or the flowers. In our F1 offspring we did not see one of our desired traits expressed — purple calyxes. The phenotype was green calyxes while the genotype had purple calyx genes as part of the DNA. In the F2 generation we saw two phenotypes expressed, green calyxes and purple calyxes in a 3-to1 ratio of green to purple, as a result of gene recombination.

Revisiting our goal All of our friends really like the look of the purple calyxes in some of the F2 plants. We had wanted that trait as a bonus. Now that it is there and is also desired by others we will strive to have that as a true breeding trait, one that

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consistently shows up in future offspring of this breeding line.

How can we do that? We saw from the results in our F2 progeny that the purple calyx trait is recessive meaning both genes in the calyx color gene pair must be purple color genes if the plant is to express that trait. If we choose a female with the purple calyx trait and cross it with a male that exhibits the same trait all of the resulting seeds will produce plants that exhibit that desired trait. We need to look at the 30 males that resulted in our F2 generation to see which have this trait. Six of them have distinct purple striping on the male flower calyxes. We can choose the one that best represents our goal and cross it with the female that also best represents the qualities we desire in our goal. This F3 generation will have our purple calyx trait doubled up and all of the seeds should produce plants with purple calyxes.

Bump in the road While we were looking for the best plants to make the F3 generation we noticed that one trait we desired in our goal was diminished in the selected parents. One of our goals was an abundance of trichomes and a strong effect. In part one we had chosen the King’s Conquest strain because of its potency. The female King’s Conquest plants that we let flower to maturity produced a soaring clear high. The male and female plants that exhibit the purple coloration we are using to lock that trait into the genetics do not seem to have as upbeat of a high, as an early sampling of the different phenotypes

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mom, Dad & the kids enjoy a quiet evening in.

indicates that the green calyx plants have a more energizing effect than the purple calyx ones.

What to do? one of our grower friends has some breeding experience and we consult with her to come up with some options. she thinks this isn’t an insurmountable problem but it may take a back cross to get the potency we desire combined with the purple trait we are about to lock into the next generation. go ahead and make the

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F3 cross to stabilize the purple calyx trait, she advises, but also keep some of the non-purple F2 plants with the strongest effect as clones for using in F4 generation crosses.

looking ahead in part four we will look at options to get as close to our goal as we can, by continuing this breeding line and starting another with a back cross. we will look at options for a prolonged breeding program. S

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

hemp potential

By emily riopelle & mercedys m. illustration by Heidi Hemp’ography

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such denial, however. according to the pBs documentary “marijuana timeline,” the production of hemp in colonial times was not only encouraged, but also required. in fact, in 1619, the virginia assembly required every farmer to grow hemp. what changed, and why is the u.s. government so afraid of what many consider a miracle crop, one capable of potentially rejuvenating our society?

hemp is one of the most versatile plants in the world. it is also one of the most misunderstood. Despite the common belief is that it is just a by-product of cannabis production, hemp is in reality a specific type of cannabis with less than one percent psychoactive thc content — far below what is needed to produce the “high” so greatly stigmatized in the united states today. Because this stigma continues, we are currently the only industrialized country that refuses to acknowledge the versatility, eco-friendliness and profitability of hemp. the hemp industries association lists 25 other countries that use hemp in various ways, including china, France, canada, india and Japan. the united states wasn’t always in

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the documentary speculates that the fear of marijuana in the united states began in the 1930s with the great Depression. the government promoted research that linked marijuana with violence and sex crimes; by 1931, 29 states had outlawed the plant. in 1937, the marijuana tax act outlawed both marijuana and industrial hemp. a few years later, the government found itself in a tough spot. world war ii presented a lack of imported hemp, necessary for cordage, parachutes and other military supplies. the u.s. Department of agriculture ironically launched a campaign titled “hemp for victory,” even giving out seeds to encourage hemp production. american farmers harvested 375,000 acres by 1943. although we have long since known that the use of marijuana does not cause violence or sex crimes and hemp contains too little thc to produce a high, both remain illegal to produce. even the former cia director James woolsey went on record attesting to the ignorance of outlawing such a beneficial crop: “the policy is not understandable in substantive terms… it’s very hard to find anyone in government that will justify this policy.” the plant grows easily in diverse conditions, requires no pesticides or chemicals and can be used to make many biodegradable products from food to fuel to fibers — all of which are far more

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

“The [hemp] policy is not understandabl to find anyone in government that will j environmentally sustainable the products we use today. The Hemp Industries Association breaks down the parts of the hemp plant into three parts: the bast, the hurd and the seed, all of which can be used to produce different products. Hemp fiber is derived from the outer bark of the stalk, referred to as bast. Long fibers can be used to make textiles, twine and cordage. Short fibers, or tow, are used to produce textiles, paper, auto parts and building materials. The core, or hurd, is 50 to 85 percent cellulose and can be used for paper, particle board, biodegradable plastics and animal bedding. The seeds of the plant can also be used as food or pressed to make oil. Basically, every part of the plant can be used to make an astonishing variety of products that can replace other, less environmentally friendly products currently in use.

Building materials Hempcrete is the most commonly used hemp-based building material, composed of hemp, lime and water. It sets and hardens like concrete, but wood frames are used for structural support. Other types of building materials can be composed of hemp as well, such as hempboard, a medium-density fiberboard that can be used for shelving or furniture. Materials made of hemp are extremely energy efficient: Hemp walls absorb carbon dioxide and add nitrogen to the soil,

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meaning they have a positive effect on the environment rather than a neutral or harmful one like most building materials. According to the Huffington Post, some other benefits of building with hemp include its resistance to mold, insects and fire. Alongside the oftenemphasized positive environmental effects, hemp-based materials also provide a healthier environment to live in, involving no harmful chemicals like formaldehyde or lead. Hemp already provides an eco-friendly and healthier building material for many homes in Europe. Although the United States lags behind in using this environmentally friendly, safer product, the hemp-housing movement is growing. U.S. companies such as Hemp Architecture and Hemp Technologies. The owners of the first U.S. hemp home told USA Today that it cost them just $133 per square foot to build, a price already on par with homes built with less environmentally sustainable methods, and which could be cut in half with domestic hemp production.

Textiles The long fibers of hemp can grow to lengths of over 15 feet, making them ideal for textiles. A 2005 study performed by the Stockholm Environment Institute found that hemp used less land and less water than cotton, which needs up to 256 gallons of water to make enough fabric for one T-shirt. Of course, this

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le in substantive terms...it’s very hard justify this policy.” – Former CIA director James Woolsey is only one factor which makes hemp more sustainable than any synthetic fabrics. Hemp does not require pesticides or herbicides like cotton does, so that equals no polluted waste water. Additionally, the Canadian hemp clothing company Effort Industry claims that hemp cloth lasts four times longer than cotton. According to experts at TheEcologist.org, the only major downfall of hemp as a clothing is its coarse texture; to compensate, some companies are using hemp in blends with more comfortable materials like silk. With such a blatant victor in the comparison, its little wonder the cotton industry diligently fights to continue hemp prohibition.

Paper Hemp has been used to produce paper for centuries. A draft of the U.S. Declaration of Independence was written on hemp paper. Until the 19th century, most paper was made from hemp. Trees take over 20 years to mature, while hemp takes only four months and absorbs four times the carbon dioxide. Hemp paper is naturally acid free, and hemp paper requires fewer chemicals to produce. Hemp can also be recycled up to seven times, rather than the four times possible with treebased products. According to a study done at Purdue University, experimental research has been done on the possibility of producing 100-percent-hemp paper; for now, it is too expensive to produce and turns little profit.

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That aside, hemp continues to be the choice material for specialty products in Europe, such as cigarette papers. We predict that deregulation of the hemp industry will spur new pulping methodology, which could cut costs by providing more pulp per plant.

Food Hemp seeds are one of the Earth’s best sources of high-quality, easily digestible proteins. Not only are they a complete source of all the amino acids the body needs — an exceptionally rare trait for plant-based products — they are also rich in omega fatty acids, high in fiber, and contain minerals including calcium, magnesium, potassium, sulphur and phosphorus. On top of this plethora of benefits, hemp is a versatile crop that can be eaten raw, sprouted, made into milk or tea and ground into a meal. Hemp is already consumed around the world in a variety of manners and is gaining recognition among health-conscious groups in America.

Personal hygiene products For the same reasons hemp is so nutritious to eat, it is extremely beneficial for skin and hair health. Many personal hygiene products produced from hemp oil are now widely available in supermarkets and drugstores. According to an article on LiveStrong.com, the omega-3, omega-6 and omega-9 fatty acids in hemp stimulate hair and skin growth. Those

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

polyunsaturated fatty acids, along with vitamin E, have a moisturizing effect. This makes the ingredient a healthy alternative in soaps and lotions to harmful chemicals typically used.

Packaging materials Most plastics on the market today are made from petroleum, but plastics can also be derived from plant cellulose. Some parts of the hemp plant contain up to 85 percent cellulose, making hemp the greatest cellulose producer found on earth. Numerous methods have been developed to make biodegradable hemp packaging materials, including plastic and cellophane. Hemp packaging was common until prohibition in the late 1930s, and today remains rare in the United States, although it can be found quite commonly in Europe. Until prohibition ends and an affordable, domestic hemp supply can be used in the manufacture of such products, Americans will have to continue let our dumps fill up.

Fuel The fathers of the U.S. auto industry never envisioned their products running on gasoline. Why waste an unsustainable resource when fuel can be cultivated in an environmentally sustainable manner? Henry Ford not only built a car out of hemp fiber, but it also ran on hemp fuel. When Dr. Rudolf Diesel developed an engine capable of running off of vegetable oil in 1895, hemp was one of the sources he foresaw

powering his engine. To date, over 30 million miles have been driven on U.S. roads using engines powered by hemp-biodiesel, which can be used in an unmodified diesel engine; however, this renewable energy is virtually unavailable to U.S. consumers today. Federal regulations prevent domestic hemp production and minimize research and development capable of creating a profitable business venture off of this amazing resource, forcing consumers to use the more environmentally damaging and dangerous petroleum alternatives.

Looking forward With over 25,000 known uses for hemp, opportunities abound for using it in our attempt to create a more sustainable, healthier lifestyle for all. This must be a critical priority for our society. With the spread of Western values around the world comes a consumer economy that currently has drastic effects on the environment. Natural resources are disappearing. The air is so polluted in some regions it is unsafe to go outside at certain times. People are getting sick from contaminated water supplies, which are already shrinking drastically. Hemp has the potential to address these problems, and so many more — how long are we going to continue letting these opportunities go to waste due to prohibition? S

Online Resources Learn all about hemp from one reliable source: www.Hemp.com USA Today article about the first hemp house built in the U.S.: http://content.usatoday.com/communities/greenhouse/post/2010/09/ hemp-houses-built-asheville/1#.Uahkx0C1GXu U.S. Department of Agriculture Hemp for Victory full promotional film from 1942: https://www.youtube.com/watch?v=jokV8xlJTNE Lotus Eco Elise: https://www.google.com/search?q=lotuc+eco+elise&oq=lotuc+eco+elise&aqs=chrome.0.57j0l3.3367j0&sou rceid=chrome&ie=UTF-8 The documentary Standing Silent Nation http://www.pbs.org/pov/standing/video_hempforvictory.php#.Uahk_kC1GXt

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

sativa magazine’s

Top 10 Bu si ne s s B e nof ef its Legalization list

By Jade Christian

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At the state level, Cannabis has become increasingly deregulated. California legalized medicinal Cannabis in 1996 and since then 17 states and the District of Columbia have passed similar legislation, yet Cannabis remains a Schedule One controlled substance at the federal level. While many people have called for national legalization, President Barack Obama still opposes it. But there is hope. Colorado and Washington legalized recreational use in the 2012 election and two Congressmen have introduced similar legislation at the federal level. These initiatives should be applauded and legalization should be pursued aggressively at every level. Not only would this end a longstanding statist encroachment on civil rights, it would also help to revitalize a strained economy. The Cannabis Industry is already budding but legalization would help business flower in the following ten ways. #10: Enables ganjapreneurs to undercut criminals Prohibition just does not work. Harvard economist Jeffery Miron, who specializes in the economics of drug use, estimated that in 2008 the United States’ illegal Cannabis market was worth $18.15 billion dollars. Clearly the U.S. government is not preventing sales with Cannabis prohibition. Instead it is empowering a criminal monopoly. Granted, there are otherwise law-abiding people who participate in the industry and are criminals only in the legal sense but there are also extremely violent organizations that cash in on prohibition. Legalizing Cannabis would undercut those organizations’ stake in the market by recognizing the right of lawabiding people to participate in the business of Cannabis. With the passage of medical Cannabis laws in 18 states and Washington, D.C. along with legalized recreational use in two of those states, this process has already

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • begun. In fact, the legislation passed by Colorado and Washington are estimated to remove $2 billion annually from the coffers of drug cartels, according to the Mexican Institute for Competitiveness.

#9: Fewer tax dollars wasted on the failed war on drugs The White House requested $25.6 billion for the National Drug Control Budget in 2013. Of that sizable pie, a gluttonous $9.4 billion slice goes to domestic law enforcement and $4.5 billion goes to the prison system. While that budget umbrellas all drug control, a study released by the Cato Institute in 2010 when the budget was $15.1 billion, estimated that the government would reduce its expenditures by $8.7 billion – 57 percent – by legalizing Cannabis. It’s not that hard to believe. Consider that of the 1,841,200 drug-related arrests the Bureau of Justice Statistics estimated that occurred in 2007, 47.4 percent of them were for the sale, manufacture, or possession of Cannabis.

#8: Abolishes a legislated trade deficit According to a 2013 report by the Congressional Research Service, there are no active licenses from the Drug Enforcement Administration to manufacture industrial hemp in the United States and as a result “all commercial hemp products sold in the United States are imported or manufactured from imported hemp materials.” The language of the Controlled Substances Act mandates this trade deficit by only permitting domestic businesses to manufacture and sell hemp-based products made with imported hemp. According to the same report, Americans import more than $11.5

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million worth of hemp seeds and fibers. Legalization would give American farmers an opportunity to compete with foreign producers by driving down higher costs caused by transportation expenses.

#7: Revolutionizing the economy The versatility of this crop is astounding. A Congressional Research Service report estimates that there are 25,000 hemp products on the global market. Hemp is a uniquely competitive high-yield crop. According to the report, “industrial hemp production statistics for Canada indicate that one acre of hemp yields an average of about 700 pounds of grain, which can be pressed into about 50 gallons of oil and 530 pounds of meal. That same acre will also produce an average of 5,300 pounds of straw, which can be transformed into about 1,300 pounds of fiber.” Although it’s difficult to know the total retail market for hemp-based products in the U.S., the CRS report estimated it to be $452 million. Legalizing the domestic production of hemp would likely lead to the market’s expansion. It would present the possibility for a marvelously versatile and efficient cash crop to increase the sustainability of the economy. Instead of cutting down trees, hemp could be substituted to make paper products. In lieu of ravaging agricultural land with intensive cotton farming, fabrics and textiles could be sourced from hemp. The list of industrial, culinary, and medical applications are endless.

#6: Bringing the banks on board Despite a widespread industry operating in accordance with state regulations, Cannabis businesses face stiff discrimination from banks and credit card companies in obtaining loans and being

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able to process electronic transactions. CBS 60 Minutes reported that “the Justice Department has let it be known that if financial institutions do business with medical marijuana centers, they could be at risk for civil or criminal prosecution under the Controlled Substances Act or federal money laundering statutes. It’s made it difficult, if not impossible, for dispensaries to get loans, open company bank accounts, or process patients’ credit cards.” CNN reported that as a result many companies in the Cannabis industry, even ones that don’t sell Cannabis, are forced to deal exclusively in cash. This causes all sorts of problems. Not only does it make it tougher for companies to operate, it also makes them vulnerable to larceny. Impressive as they may look, fat stacks of cash make easy targets for thieves. Additionally, cash transactions are more tedious to keep track of which makes it difficult for state governments to appropriately regulate and tax those companies.

#5: Venturing higher with new capital Venture capitalists invest in auspicious startup companies. The arrangement is a mutually beneficial one since budding entrepreneurs get the funding they need to get off the ground and investors get equity in the business. This drives innovation, helping ideas to germinate and flower into lucrative business endeavors. Funding for Cannabusinesses is a rare commodity today, despite the explosive market potential. Nevertheless, as the article“New Private Investors” in this edition of Sativa Magazine explores, this is slowly changing. Some brave capitalists are entering uncharted territories by publically investing in budding cannabusinesses. For example, the Seattle-based holding company

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Privateer Holdings has raised $5 million from investors so far.

#4: No more mooching by Uncle Sam According to the Bureau of Justice Statistics, 2,700,282 pounds of cannabis were confiscated by the FBI, DEA, U.S. Customs Service, U.S. Border Patrol and the U.S. Coast Guard in the 2003* fiscal year, omitting what is confiscated by non-federal entities. Seizures take place throughout the country every year equating to millions of dollars in revenue losses. Legalization would end this thereby minimizing the risks associated with the market, increasing product security and decreasing financial losses *2003 is the “most recent” year for which the BJS provides seizure data.

#3: Increasing the transparency of a previously smoky market Prohibition has made the Cannabis industry far more dangerous to consumers because illegal markets by nature aren’t transparent. It is very difficult to openly share information about criminal merchants and their products. This provides no private incentive for socially, economically and environmentally sustainable business practices and creates information voids that jeopardize consumer well being. Legalization would change this. It would increase consumer awareness and open businesses to market pressure to standardize and legitimize their operations. Just look at the rapid growth of industry analysis and information sharing tools in states with legalized medicinal Cannabis. According to Forbes, the first and only acquisition by Private Holdings was the

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purchase of Leafly, a website that’s been described as the “Yelp of Cannabis”. So far, Leafly has 50,000 reviews of the medical benefits and side effects of 520 strains of cannabis. It also has reviews of dispensaries and interactive maps to help people find dispensaries nearest them. As if Leafly didn’t do enough to increase the industry’s transparency for the benefit of consumers and ganjapreneurs alike, Forbes reported that Privateer Holdings wants to invest in “a testing lab to keep strains consistent, clean and well-labeled.”

#2: Secures standard tax rights from the IRS Businesses pay taxes just like people do except that businesses can claim deductions based on their expenses. This separates a business’ expenditures from its taxable revenue, greatly minimizing the taxes due the IRS. This not only helps businesses earn a profit, but also incentivizes owners to invest in their businesses, which is good for the economy as a whole. Unfortunately, cannabusinesses operating in compliance of state regulations do not get to enjoy the right to deduct business expenses like companies in federally legal industries. Ganjapreneurs are able to reduce the impact of this discrimination by having other sources of revenue that do qualify for deductions. But, as Forbes pointed out, the 2012 case of Olive v. Commissioner set a precedent where any business that only sells Cannabis “faces the very real possibility that it will be required to pay tax on 100 percent of their revenues.” These financial woes are compounded at the state level because many states use the federal code for their taxes as well. To the casual observer these obstacles might sound

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trivial but, according to Forbes, “of all the federal enforcement efforts, taxes hurt most.”

#1: Job creation Unsurprisingly it is hard to find information about how many jobs would be created by national legalization. Any predictions would be largely unreliable given the endless number of variables such as how many states would have thriving marijuana markets, how much production would be corporatized, if production were corporatized, whether Big Pharma or Big Tobacco would control the market, etc. But, there is abundant information about job creation on a local level within the Cannabis Industry. For example, the Phoenix Business Journal quoted a study that found Arizona’s “budding industry could employ more than 1,500 Arizona workers and provide $74 million in income to those households.” Not all new jobs created by the Cannabis industry will be working directly with the herb. The New York Times reported that the Colorado-based newspaper, The Independent, charges $1,100 for a full-page advertisement in ReLeaf, the 48-page pullout supplement devoted to Cannabis. The paper ended up using that revenue to hire one new reporter and promote three employees to full-time status (given the daunting economic situation of most newspapers, that’s pretty sensational). There are countless other examples of the job creation that the industry’s legalization would yield, from lawyers specializing in Cannabis law to accountants offering their expertise to budding enterprises, not to mention the array of industries which could explode once domestic hemp production is permissible. It’s pretty safe to say that national legalization would create jobs, lots of jobs, for law-abiding, tax-paying everyday people. S

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

By Paul Josephs Illustration by Emily Cain

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Creative

REAL ESTATE Opportunities

in the Cannabis Industry

Generating revenue by working within the legal framework of medical and recreational Cannabis regulations is possible in more ways than ever before.

The need for space

It’s a tired cliché in relationships, but it has fresh meaning here. There is a demand for adequate spaces for the cultivation, processing, extraction and other processes associated with Cannabis. This demand is not always easy to satisfy, as many landlords have reservations about the industry. For those who do not, there are plenty of opportunities out there. This article will examine several scenarios where a property owner could profit from a friendly approach.

Small scale residential opportunities

Since the passage of Amendment 64 in 2012, Colorado residents enjoy a unique position

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which allows any adult 21 and older to legally grow Cannabis for their own consumption. It is not a carte blanche to run a big operation. However, the new law states that an individual can only grow three plants in a vegetative state and three that are flowering at any one time, for a total of six plants. Medical Cannabis regulations in other states grant different plant counts for patients to grow, if they are allowed to do so at all. Even where it is allowed for medical or recreational purposes, not everyone is able to do so. Some adults may not wish to cultivate in their own homes for a variety of reasons, but still desire to grow Cannabis. Many renters may have a landlord that does not allow cultivation in their properties, or the entire apartment building may have a policy of no Cannabis cultivation. Some homeowner associations may attempt to forbid it in their neighborhoods. What options do these individuals have? JUNE 2013 63


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One option is to rent a space in which to cultivate. A quick search of Craigslist with “MMJ” in the housing section will be quite revealing. Many potential renters want to know up front if there are landlords who are friendly to the idea, and landlords who are comfortable with it also advertise that friendliness. Renters are sometimes willing to pay extra for that opportunity, similar to the situation with pets and cigarette smoking. Some ads are for basements with separate entrances that can be used as an apartment with room for a grow tent or two. Another creative rental idea is converting a heated garage or outbuilding into a grow space, with the ventilation and lighting already in place so all that is needed is the allowed number of plants to be brought in and grown. This way the homeowner can live at their property while making additional income from an unused garage or outbuilding rented out to one or more growers.

Commercial property opportunities

Many vacant commercial buildings could also

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be utilized for the cannabis industry by leasing them to dispensaries and retail operations for growing, or for activities such as running a testing laboratory, an extraction plant or for medibles production. In the Denver area the going rate for Cannabis-related rentals is currently hovering around $6 a square foot for industrial space. A smart investor needs to ensure that the electrical service is adequate for the high demands of Cannabis renters. Although many warehouses are equipped with some high bay HID lights, this is not sufficient for the density of HID lights a commercial grow will require. Consulting an electrical engineer prior to purchasing or leasing a large commercial space is very important, as everything must meet electrical code requirements. Commercial buildings that were used for manufacturing or industrial processes may have an adequately large electrical service already in place. Investors will have a distinct advantage if they understand the unique demands that a largescale cultivation facility will require. Buildings with lots of ventilation and an oversized cooling capacity already in place will demand much

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less investment in renovations than a simple warehouse would in order to be appropriate for the specialized needs of a grower.

Related opportunities

Real estate scouts who do the legwork and look for properties for dispensary and related businesses to rent or buy have opportunities here. In states like Washington and Colorado where retail sales of Cannabis will be possible in the near future, there will likely be a rush to acquire properties for the cultivation and sale of Cannabis when regulations are finalized. Consultants who understand the physical needs of a commercial growing operation will be in demand as well. Knowing the local and national building codes for their region is a huge benefit to the potential investor. Attorneys who understand the intricacies of the local Cannabis laws and regulations will also be important to consult with before making the plunge.

stance toward Cannabis, there is no absolute protection from action by government agencies. Risk is part of the landscape for the foreseeable future. The biggest operations are the likeliest targets, but no one is exempt from the Federal laws regarding Cannabis in the United States today. No, not even the kindly older gentleman down the street who grows three plants in a closet so he can alleviate the pain from his severe arthritis.

Conclusion There are opportunities and risks associated with any investment in the blooming Cannabis industry. Those who take the greatest risks now may reap the largest rewards, but they also stand to lose the most. Many immensely successful industries that exist today had similar uncertain beginnings. Not every generation has an opportunity like the repeal

Risk factor

Until the U.S. Government changes its

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of a prohibition, but we are all witnessing the very beginning of one right now. S

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the

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By Mercedys M. Illustration by Josh Clappe The Cannabis industry is exploding. Harvard Economist Jeffery Miron estimates the blackmarket industry sales to top $18 billion a year. The legal industry is a small fraction of that today, but MMJ Business Daily predicts it to grow to $6 billion by 2018. The mad dash for capitalizing on this booming industry has begun in earnest. Ganjapreneurs are coming out of the woodwork, launching legal ventures at unprecedented rates. But with banks and financial institutions unwilling to do business with them, ganjapreneurs needing startup capital have only a few options besides finding private investors through networking. The Arcview Group brings together over 50 experienced investors seeking to invest in cannabusinesses operating in federally legal sectors of the industry. These “angel investors” are free to make deals in groups or independently. Like other similar groups, the company operates off of membership fees from investors and companies rather than by charging a finder’s fee. Cheryl Shuman operates Green Asset International’s $100 million fund for investing in ancillary products in the Cannabis industry. Green Asset focuses on investing in the medicinal and social media sectors of the industry. This investment opportunity is paired with Shuman’s top-notch marketing services. The lucky companies chosen receive immediate

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access to a wide network of celebrities for personal endorsements and securement of product placement with huge corporations. Privateer Holdings matches investors with upand-coming cannabusinesses. You may have already heard of Brendan Kennedy, Christian Groh and Michael Blue — the three main players on this team — who made national news recently by launching their private equity firm. In April, 2013, they began hearing pitches from cannabusinesses hoping to be chosen to receive a chunk of the $5 million the firm seeks to invest in the industry. The Weed Scene strives to match ganjapreneurs with interested investors. Their website has an application for the matching service, but few details are provided on how the actual process works. Proceed with caution if you decide to explore this avenue. Wecanna and WeedFundYou, simply put, are crowd funding for the Cannabis industry. Have a great idea, but no money to get it going? Pitch it on Wecanna or WeedFundYou and inspire your friends, family and the general populace to help you make it happen. The idea is simple: Be inspirational and provide great gifts for those willing to throw a little money your way to make your vision a reality. This is not an investment platform, but allows anyone continued on page 94//

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

By Karen E. Szabo Illustration by Josh Clappe

F

or average businesses — and even the not-

so-average ones — financial institutions by the hundreds can provide customers with appropriate banking needs and merchant card services. Contrast this abundance with the options available to those working in the Cannabis industry, however, and you find quite the opposite. Cannabusinesses are often left to deal strictly on a cash-only basis, in turn opening them up to additional risks.

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

At a time when most big names won’t, there are several elite companies paving the way to provide cannabusinesses with the financial services they need—so you can leave the cash hunt and proverbial digging of holes in your backyard to your dog. We summarize the details of services provided by several cannabusiness-friendly companies below. Guardian Data Systems of Thousand Oaks, Calif., has the motto, “We’ve got you covered like no one else.” This is no exaggeration; Guardian Data Systems provides more financial services than any other to high-risk clients, regardless of their industry of choice. These services include merchant accounts/ automated teller machines (ATMs), pointof-service (POS) systems, payroll and sales tax reporting, bookkeeping and accounting services and check-cashing verification and guarantee, to name a few. Their most recent announcement, that they would provide nocredit-check business cash advances for the Cannabis industry, was quite the attention grabber, however. If your cannabusiness is in need of up to $250,000, consider visiting their website for more information. Go to the bottom of their homepage to follow the four easy steps to see if your cannabusiness qualifies. Best of all, repayment is based on a monthly sales percentage rather than a fixed amount. Finally, a lender flexible enough to work with their customers rather than leaving them financially strapped. Guardian Data Systems is bound to offer services you’re in need of, for a complete list of services provided, visit their website. Or, for more details, check out their ad in Sativa Magazine. MarijuanaPOS.com of Los Angeles, Calif., is a fairly new business, offering anyone in

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the Cannabis industry the ability to accept debit and credit cards at competitive rates, without the need to hide behind the screen of another industry to avoid losing services. MarijuanaPOS.com offers such services as credit card payment processing, loyalty programs, dispensary management solutions and more. For more information, contact their Marketing Director, Jesse Cretaro, at (310) 8925343. Direct Bancard of Livonia, Mich., is another merchant card provider willing to assist cannabusinesses. They offer a 60-day no-obligation trial period with no setup or annual fees, and also products such as check verification, POS card readers and wired or wireless terminals. Direct Bancard allows you to spread out the payments for your terminal over a 12-month period. Also, the owner can keep the equipment regardless of whether the cannabusiness changes its services to a different merchant card provider. As long as the owner’s relationship continues with Direct Bancard, they offer 100 percent warranty coverage on terminals, which can be replaced if damaged or outdated. Visit their website for a complete list of services offered. Greenhouse Payment Solutions of Denver, Colo., founded by Chris Mills, offers a “Point of Banking” system, commonly referred to as a “Cashless ATM.” Instead of dispensing cash, transactions are processed much like a Point of Sale purchase. Funds are automatically withdrawn from the buyers bank account, directly deposited into the merchants designated account. As members of the National Cannabis Industry Association, Mills and his business partner, Craig Anthony, work to make the ever-evolving Cannabis

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industry more mainstream by providing professional merchant payment solutions. For more information on their services, visit their website. You can also contact Chris Mills directly at (720) 327-0229 or info@ greenhousepaymentsolutions.com, or Craig Anthony at (720) 413-3203 or greenhouseps@ gmail.com. PaySafe Solutions tries to give merchants peace of mind by providing a safe way to conduct business transactions without having unnecessary large sums of cash on hand. TogglePay is the newest, most reliable way to pay for a purchase: Both buyer and seller have 24/7 access to their accounts, seeing transfers and deposits in real time with no interchange fees. Users have the ability to transfer funds from any bank account or a debit or credit card into their TogglePay account, in addition to transferring funds to other users. Recurring direct deposits and automated clearing house payments can also be set up. Other benefits to using TogglePay include mobile and online access, and alerts and notifications that can be set up with specific criteria—for example, if you want to be alerted when your account balance reaches a specific dollar amount, or know instantly when funds are received. For extra security, TogglePay can be “toggled” on and off as necessary. Setting up an account takes only a few minutes. Visit their website for more information. As an experiment, cold calls were made to several well-known, larger financial institutions, speaking specifically to the new accounts manager. Explaining to them that an account for a dispensary needed to be opened, the responses were as follows:

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Bank One — Sorry, we cannot accept your business. PNC Bank — No. Bank of America — No. An especially combative response came from Wells Fargo in the context of dealing with a dispensary: “We don’t deal with your kind.” When I asked why, “What is ‘my’ kind?”, the agent responded, “The type that deals in illegal activities.” Two days later, another call was placed to the same Wells Fargo agent, but describing the business somewhat differently — this time, in the context of being a farmer. Interestingly, without any hesitation or questions regarding the nature of the farmer’s crops, the agent remarked that Wells Fargo would be happy to open a new account, as long as a Federal Employer Identification Number and State Identification Number were provided. With all this said, consider leaving the backyard alone — put your shovel in the shed — and start researching the options mentioned to help keep your money secure. Besides the companies discussed here, other possibilities are small local banks and community credit unions. Cannabusinesses located in Colorado in particular might want to look into Colorado Springs State Bank. CreditCards. com previously reported that this is the only bank within the state that willingly accepts customers in the Cannabis industry. So do your research to find the company that best meets your needs, but do not become resigned to forever being treated as a second class citizen. The industry is expanding rapidly, and money talks. Sooner or later the tide will turn and major financial institutions will be competing for our business. S

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Growing your future Part Three: Flower Power

By Paul Josephs Review In part one we determined where and how to set up a growing space. We started seedlings in part two. Now we are ready to flower our plants and enjoy the rewards!

Beauty sleep In part two we learned about the different species of Cannabis, and that hybrids with Cannabis ruderalis in their genetics will flower automatically regardless of the length of time the lights are on or off. If you are growing this type the plants will show their sex soon and will be ready to harvest only 60 to 75 days from sprouting. For the rest of us, we will need to switch the artificial day/night cycle to a 12-hour-on/12-hour-off cycle. Cannabis is an annual herb and flowers in nature in response to the shorter days of Fall before finally dying and releasing seeds to grow in the spring. Why 12 and 12? This is the standard photoperiod cycle that is guaranteed to induce flowering. Since this is our first grow, we should do what always works.

Day at nighttime? Since we have artificially illuminated setups, we can choose when our ‘day’ and ‘night’

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occurs. Some growers like to have the day or lights-on cycle at night. If we work a day job and can’t spend time watering and tending our plants, consider having the lights off while we are at work. It is important that the room has no light leaking in when the room is dark or there might be negative consequences, such as delayed flowering or hermaphrodite flowers, which we will discuss later. The choice is ours for how we wish to structure the day/night cycle. One item that is crucial for success is a timer. We should definitely not forego using a timer and rely on ourselves or someone else to turn the lights on and off at the right time every 24 hours, okay? Trust me on this one.

Determining the sex Using the terms male, female and hermaphrodite is the common way to distinguish the sex of flowering Cannabis plants. Male Cannabis plants have clusters of drooping staminate calyxes that release pollen when they mature. Female Cannabis plants have clusters of pistillate calyxes that house the ovary. The pistils, or ‘hairs’ that come out of the calyxes, readily distinguish the female flowers. Hermaphrodite Cannabis flowers have both pistils and stamens and can self-pollinate

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and will also pollinate neighboring plants. this is not a desirable trait and naturally occurring ‘herms’ should be discarded immediately. most varieties of cannabis will ‘show their sex’ after a period of vegetative growth, but not all. sex is shown at branching points, or nodes. there are always two short spear-like growths called stipules at these junctions that can be confused with early flowers, and it is next to these that very early flowers can appear. at the earliest, primordial stage the male and female structures are nearly identical. the male primordial flowers have a beak-like shape and often sit on a tiny stem. the primordial female flowers are also beak-like but will usually have a pair of tiny pistils emerging from the top. if we are not sure what the plant is going to be, wait until we have changed the light cycle. after a couple of weeks or less of the new light cycle the sex should be obvious. males tend to flower and mature sooner than females. unless we plan on breeding, the males should be discarded before they release pollen and make our crop full of seeds.

Change the diet most growers switch from a balanced or high n (nitrogen) fertilizer formula, usually with the word “grow” in the name, to a formula with higher p (phosphorus) and k (potassium) percentages, usually with the word “bloom”

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in the name, when they switch the light cycle to 12/12. Flowering cannabis plants use more p and k and less n. go easy on the fertilizer, though. it seems natural to think that if a little fertilizer helps flowering then a lot will be even better. think again. use about one-third of the recommended amount of fertilizer. we can experiment later after we get a few grows under our belts. one thing that sometimes happens as the plants mature is the yellowing of the larger fan leaves, usually from the bottom up. this is normal, but can be alarming the first time we see it happen.

Watch them mature we noticed that the growth rate of our tiny sprouts was pretty slow at first and then the plants really took off and grew fast. Flowering is similar. the process seems almost painfully slow at first and then accelerates. some varieties will stretch or lengthen in this phase, especially plants with a lot of cannabis sativa in their genetic background. if we feel they are going to reach the maximum height allowed in our room or tent, we can bend the highest growths horizontally. a bent coat hanger or stiff wire zip-tied loosely to the stem works well for this, and will keep the buds from getting burned by the bulbs. Different strains will mature at different rates. the breeder of the seeds we used

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will almost always give a range of time from switching the light cycle to harvest. at a minimum, we should allow at least six weeks of flowering. most cannabis indica dominant strains require six to nine weeks. cannabis sativa dominant hybrids generally take longer — up to ten weeks and sometimes 12 or more. use the recommended times as a guideline, and watch the plants for signs of maturity.

When to harvest once about half of the pistils start to wither and change color it is a good time to stop fertilizing. this will allow any excess nutrients to be used and make for a mellower smoking experience. a good time to harvest is when three-quarters of the pistils have withered.

drying, trimming and curing we cut the plants down at the base and remove the large leaves. they will need a cool and dark place to hang for about seven to ten days. if we are done using our grow room, this could be a great place to hang our stalks. any dark, cool place without a draft will be fine. we don’t want a lot of air movement as that will dry the buds out too quickly. the best way to dry the buds is slowly and naturally as they hang upside down. we want the chlorophyll to convert into simple sugars but not dry too quickly and impart a harsh, green taste.

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once the stalk and buds have become mostly dry, but still have a bit of moisture in them we should trim the buds. we are ready to trim when the narrower stems just barely snap when bent sharply. we will use scissors to clip the branches from the main stalk, and then trim the leaves that extend past the calyxes on the buds. these trimmed buds can be trimmed at the stalk and placed in mason jars or paper bags closed at the top. keep the closed jars or bags in a dark, cool spot. these trimmed buds are still curing and need to be allowed to ‘breathe’ a couple of times a day. this is accomplished by opening the jars or bags for a few minutes and allowing moist air to escape and new fresh air to enter. usually a week or two of this treatment will suffice to cure the buds nicely. they should smell like quality cannabis and be almost completely dry. this way they will be in prime condition for some time before drying out completely and losing some of the aroma and taste.

enjoy your reward there is nothing quite like sampling cannabis we have grown ourselves. it is very rewarding and satisfying. now that we have successfully grown our own we can do so with confidence again. the more confidence we gain, the more we can experiment with different techniques and develop the style that best suits our situations. congratulations! S

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The membership and strength of labor unions in the United States has been diminishing steadily on a national level since 1954, when the percentage of workers belonging to unions peaked. Since this time, unions’ attempts to increase membership have met with very little success. Given the inherent challenges created by the discrepancies between state and federal regulations in many parts of the country, many are wondering if unionizing Cannabis workers could help protect the emerging industry while boosting union membership. One union, The United Food and Commercial Workers International Union (UFCW), has been particularly active in lobbying for the medical Cannabis industry. What can unions such as the UFCW offer the growing Cannabis industry, and how can Cannabis workers, in turn, help unions?

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By Paul Josephs Illustration by s. sakamoto/photo by Emily Cain

Struggling unions

Union membership in the United States is declining for a number of reasons. One large factor is the existence of right-to-work laws in 24 states that prevent unions from requiring membership dues from workers in unionized industries in those states. This reduces the amount of money coming into the union coffers. The changing nature of the workplace environment has also had a detrimental effect on union membership. Large US manufacturing industries — a traditional union stronghold — are struggling to compete with cheap labor in other countries. Additionally, many young people entering the workforce do not see themselves working for the same company or industry for their entire working careers and, therefore, do not see the need to join a union. The UFCW is the nation’s largest retail union with 1.3 million members, and they have taken the forward-thinking step of forming a Medical Cannabis and Hemp Division. The

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UFCW is a good match for the Cannabis and hemp industries as they represent workers in food, healthcare, retail and textiles. The UFCW once had thousands of members in the medical Cannabis industry — mostly in California — but federal government raids on dispensary businesses there have put a dent in that number.

Emerging industry

Meanwhile, as union membership continues to decline, a new industry in the form of medical and recreational Cannabis, and hemp production and its affiliated businesses is experiencing very rapid growth. Unions see this as a newly emerging industry that is struggling for legitimacy and protection from the US Department of Justice, and it’s an industry that will potentially create hundreds of thousands of jobs generating billions of dollars. The UFCW, in particular, has put a great deal of effort and resources toward promoting legislation at both the state and federal levels, and for good reason: These very workers are potential union members. JUNE 2013 77


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Despite Colorado having approximately 30 percent fewer unionized workers than the national average, the UFCW invested a lot of time and energy in actively promoting the passage of Amendment 64 in that state. The unions realize that if reforms to Cannabis laws continue in other states that have friendlier attitudes toward unions, their potential membership will increase accordingly. New York currently has a 23.2 percent union membership in a comparatively large workforce, and has a bill in the legislature to allow medical Cannabis. States such as New York that do not currently recognize legal medical or recreational Cannabis are big prizes for unions looking to increase their membership from emerging businesses.

Unusual circumstances breed trust

Normally, unions and business owners do

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not see eye-to-eye on many matters, but the Cannabis industry benefits from union support at both the local and national levels. Unions offer a legitimacy that the Cannabis industry needs, and the emerging Cannabis industry offers a chance for struggling unions such as the UFCW to increase their membership numbers. Many Cannabis business owners welcome the support that union lobbyists offer the legalization movement, while, at the same time, employees feel somewhat safer because of this same support.

Pivotal time

What Cannabis business owners and employees need more than anything from unions is protection from and support against U.S. Department of Justice actions that block Cannabis-related businesses. The UFCW and other unions cannot directly prevent punitive actions by the federal government, but they do

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continue to lobby hard for the support of legal medical Cannabis and hemp cultivation. By helping to implement change in government policy they can offer protection in that manner. Unions not only have far more resources to accomplish change in governmental policies, but also the experience to do so than the lessorganized emerging Cannabis industry. One fear that some business owners and employees share is that by affiliating with a union such as the UFCW, they might draw unwanted attention from the very same federal government agencies they seek protection against.

Looming conflict

There may well be a honeymoon period for Cannabis workers, business owners and unions in the beginning stages of this alliance, but that will surely change if Cannabis is redefined by the federal government and the Cannabis industry gains national acceptance. Then the unions will focus on their primary role of protecting the workers from unsafe work environments, helping ensure fair wages, benefits and job security among other worker advocacy roles. This is something not every employer will support, because costs related to employees will rise if they are unionized. But eventually facing these issues is far better than not having any employees at all because of the unfriendly legal environment.

Potential benefit

Both the unions and the Cannabis industry stand to gain much from this alliance. If the movement toward legalization and regulation of Cannabis is successful, it will bolster the entire US economy. A thriving Cannabis industry will create thousands of desperately

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Unions not only have far more resources to accomplish change in governmental policies, but also the experience to do so than the lessorganized emerging Cannabis industry. needed jobs, and unions will work to attract these new employees as potential members. In a time when outsourcing many jobs is a common reality, it would be a welcome change to see large numbers of new jobs created in our country with a sustainable resource. With a legal Cannabis industry, foreign competition will not be a big issue because it is a rapidly renewable domestic product that has multiple applications in the US and great export potential for many associated products.

Down the road

Cannabis and unions are indeed an unlikely alliance, and this is a crucial time for both parties. Unions need a stronghold to prevent their continual decline, while the Cannabis industry needs protection, legitimacy and unification. This partnership could prove beneficial for both groups down the road — but first, that road must be built. S

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

By Karen E. Szabo Illustration by Josh Clappe

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Dispensaries can be found across the 18 states that have legalized medical Cannabis, and will soon be present in our nation’s capital as well.

Dispensaries offer Cannabis and Cannabis-infused products on a large scale to registered patients.

R egulations in 15 of

those states also allow for some type of

Cannabis delivery

service, leaving patients with at least two options for obtaining medicinal

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Cannabis legally.

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For ganjapreneurs passionate about the medicinal properties of Cannabis who want to quit working for “the Man” by opening up shop, this presents a dilemma. Perhaps you’ve narrowed down your options, but you’re still unsure if owning a dispensary or Cannabis delivery service is right for you. We can’t answer that question for you, but we’ll let you in on a well-kept secret about the differences in tax regulations governing the two types of cannabusinesses, which may make the decision a bit easier for you. For the dispensary entrepreneur, the fact is: Dispensaries provide numerous types of quality Cannabis readily available to choose from. Cannabis is normally categorized on three “shelves,” as follows: Top Shelf — best quality, premium buds, largest THC percentage, highest in price; Middle Shelf — very good quality, somewhat lower THC percentage, slightly smaller buds, reasonably priced; Bottom Shelf — least expensive, lowest quality, usually small and/or broken-up buds, relatively low THC percentage. Dispensaries also offer products such as concentrates, tinctures, clones, edibles and clothing to promote/advertise their facility. Some even offer specials, such as member loyalty programs in which a discount is received on a purchase after accumulating a specific amount of points or a free pre-rolled joint if your visit takes place at 4:20. Unknown fact: By law, dispensaries are not tax exempt and must pay all local, state and

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federal taxes, as other businesses are required to do. The IRS has enforced a 40-year-old law adopted to deter illegal businesses, allowing zero tax deductions for dispensaries or known affiliated cannabusinesses. The only two illegal businesses exempt from this law are prostitution and contract killing — they can actually claim all operational business expenses! In most cases, a dispensary will be tied into another type of business, for instance, patient care. Doing so allows some of the dispensary expenses to legally overflow into the patient care part of the business and therefore be tax deductible. But if operating as a singular entity — namely, only a dispensary — there is not a single deduction available. In simple math: Income, less cost of goods sold, equals tax responsibility, which cuts into profits. For the entrepreneur who seeks to open a cannabusiness but is deterred from the dispensary side, a medical Cannabis delivery service may be the option for you. Fact: A home-based delivery service can easily be set up and is more secure than a brick-andmortar storefront. As long as you have ample supply of product available, chances are you can meet your patients’ needs. Discretion is advised: Don’t advertise on the side of your vehicle, but blend in with everyday traffic. Never carry more product than what is to be delivered and don’t open yourself up to continued on page 96//

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BUG OFF! Controlling common pests part two: greenhouse and outdoor gardens

By Paul Josephs Select photos by Heidi Hemp’ography

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I

n the May issue we looked at unwelcome visitors to the indoor grow room in the form of damaging pests. This month we will examine some challenges faced by outdoor and greenhouse growers unique to their growing environment. While both the indoor grower and the outdoor and greenhouse growers share common scourges such as spider mites, the indoor growers can be thankful that they don’t have to deal with a herd of elk rampaging through their outdoor Cannabis garden, or an army of slugs launching a damaging night raid in their greenhouse or back yard.

Last month In part one of this two-part series the common pests that affect indoor gardens were covered in detail. These pests are spider mites, fungus gnats, thrips, whiteflies, mealybugs, aphids and root aphids. Refer back to the April issue if you have not already read part one, the control methods are the same for these indoors or out. It is worth reiterating that care must be taken

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not to allow pyrethrum-containing products to be used if there is any chance they can enter bodies of water as they are toxic to fish and other aquatic life. It is also important to keep in mind that since no products are approved for use on Cannabis due to its illegal status at the federal level, one must make the assumption that products explicitly approved for use on food crops, herbs and spices are the only ones that should be used on Cannabis plants. Read the labels carefully; if there is mention of ornamental plants but not vegetables, herbs, and spices, it is not considered safe for human consumption.

Bad guys in the great outdoors In addition to the slugs and elk mentioned in the introduction there are quite a few bad actors to be found outdoors. Problematic mammals include mice, rabbits, squirrels, deer, and many others that love to eat plants. Two molluscs that can be very damaging are slugs and snails. If seed production is the goal, birds can become a foe rather than an insect-devouring ally when harvest time

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

nears. insects of concern include grasshoppers, beetles, and insect larvae.

trouble in the greenhouse most of the animals listed above are not a problem in a greenhouse except for mice. if a deer or other large animal gets into a greenhouse the plants might well be the least of a grower’s problem. insects and molluscs can be a real problem for the greenhouse, however, and, because of the year-round mild environment, some of them can achieve a tenacious presence. the insects that plague greenhouses are the same as those that cause problems indoors for the most part, and methods for their control are discussed in part one. if one is growing in the ground under glass or plastic, some of the grubs and borers that are a problem outdoors may also be a problem.

mammals we are operating in their territory now so some precautions need to be implemented. Fencing off the entire garden or individual plants with chicken wire or hardware cloth — welded wire mesh — can be effective, but expensive. if the garden is in a fenced yard, many furry critters will be deterred, but if there are deer around, the fence needs to be sturdy and tall as they can jump up to eight feet, and if word gets out there are girl scout cookies on the other side they may well make the leap. smaller mammals like mice can compress themselves in a remarkable way — anyone who has seen them vanish under a door

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at a full scurry can attest to this — so traps are probably best for eliminating them. however, given the choice between some tasty peanut butter and a cannabis stalk, the mice will usually go for the planters and not the plants. Besides utilizing physical barriers, there are other options in the form of repellants. if fencing is not feasible, you can try using materials that deter animals by their odor or taste. many gardeners swear by using bars of aromatic soap hanging around the perimeter of the planting area. human hair in nylons reportedly works well too. along the lines of top predator smells, ‘zoo Doo’ in the form of big-cat poop is offered by some zoos as a very effective deer repellent. if you live in an area that has mountain lions, make sure that particular big-cat poop is not in the mix to avoid attracting them. predator urine can be obtained from sportsman stores and is effective against deer, rabbits and other destructive mammals. many people use mothballs or camphor to deter small mammals, but they are toxic and, therefore, not recommended. spraying plants with a mixture of raw eggs, hot sauce, and water keeps many animals from chewing or feeding on plants. this is best suited to the vegetative stage of growth for obvious reasons.

Birds many birds love to eat the same bugs that eat our plants, so for the most part they are great to have around. however, if the goal is to

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harvest valuable seeds, that relationship will sour in the fall when they figure out that the colas are packed with concentrated balls of nutrition for them. putting up netting around the plants will discourage or eliminate this behavior.

molluscs slugs and snails may be part of an adorable nursery rhyme, but they are definitely not cute when they leave slimy trails and big gouges on the stems and leaves of a valuable plant. these are the special operators of the garden, raiding at night when it is cool and damp, inflicting lots of damage to plants, and then stealthily taking cover as the sun comes back up. thankfully there are some simple ways to deal with them. like many hard-fighting soldiers, they love beer, so give them a little saucer of suds level with the soil by the base of the plants and they will belly up, dive in, and literally party like there’s no tomorrow. all the grower needs to do is empty it out and fill it up again. another somewhat effective way to deter them is to wrap some bare copper wire around the base stem — loosely — and they often will turn back. while mulching around the base of plants is very beneficial to the plants by keeping the soil cool and moist, it also provides a prime location for slugs and snails to retreat to during the day. many other pests such as grubs and beetles also love mulch as a hiding place, so it might be best to put coarse sand around the stems — this will lacerate slugs and snails and is not inviting for

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other pests to hang out in. another lacerating material to place around the base of plants is diatomaceous earth, but as this is pure silica, it should not be breathed in. wear a dust mask when working with this material and be aware it works most effectively when dry. a great way to deter many crawling pests from climbing up the stem and wreaking havoc is tanglefoot. this product is environmentally friendly and when spread around the base stalk of the plant will deter or trap anything that tries to cross it. wear disposable gloves when applying it to avoid creating a sticky mess to wash off afterwards.

Bugs in addition the common indoor pests that love to consume cannabis leaves, sap, and roots that are also commonly encountered outdoors, there is also a new set of challenges in the form of grasshoppers, beetles, leafminers, borers, and caterpillars to be aware of.

Grasshoppers these can be tricky to deal with. sometimes they just seem to be lounging on the plants as they pass through, but they definitely can cause damage. in large numbers they can decimate a crop. spraying the plants with hot pepper wax may help deter them. Birds will eat them if they are around, as will praying mantis adults. if the plants are in a fenced yard and are large, poultry will consider

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

grasshoppers to be a special treat, as well as virtually any insect, larva and mollusc they encounter. poultry are not to be allowed near young plants for they most likely will scratch them out of the ground, nibble at, or eat them outright. on the upside, they also provide a potent fertilizer. the locust variety is particularly destructive for well-documented reasons and deserves the plague description when they move in huge swarms. if you are facing this threat, plants must be covered with durable screening to protect them.

Beetles Beetles are another pesky pest with which to contend. they can fly into the garden or crawl in. some beetles are destructive to plants and others will eat pests, and often it’s difficult to differentiate between the two types. Japanese beetles and their larvae are very destructive. there are traps available that are specific to attracting Japanese beetles. covering plants with screening will keep many destructive insects at bay.

insect larvae these are immature forms of flies, butterflies and moths, and beetles, commonly known as maggots, caterpillars, and grubs. their huge appetites make them very destructive. there are several ways these larvae eat plants: leaf chewing and eating, root destruction, and stem tunneling. the chewers to be concerned about are

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caterpillars for the most part. chewing the leaves can be discouraged by spraying with hot pepper wax and other disagreeable natural concoctions made from garlic, aromatic oils like peppermint, rosemary, and neem oil. take care to use any spray on a small test area to ensure that there are no adverse effects from their contact with leaves and stems. some oils and other homemade products may burn the leaves and stems in the hot sun. once again, a physical barrier in the form of screening is often the most effective deterrent. root eaters consist of a variety of grubs that burrow below the soil surface and feed on roots. they can be controlled with biological controls like predatory nematodes, fungi, and bacteria. these are discussed in part one of this series, but to recap, products such as mosquito dunks, og Biowar, and Botanigard wp utilize natural organisms that suppress, kill, or consume larvae. tunnelers or borers are larvae that enter the stalks and chew their way around inside them. they seriously disrupt nutrient flow inside the stems, allow other pathogens to enter the plant, and can cause the entire plant to die or fall over. Borers in cannabis flowers are very destructive and make a disgusting mess of plants. unfortunately, there is not much that can be done to control them once they get into the plants, but ladybugs will eat their eggs to coNTiNUED oN PagE 95//

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cannaBis cannaBis can sustainaBLe cannaBis coMPete in washinGton? An article in The Seattle Times on May 13th, 2013 brought up the concern over the large carbon footprint created by indoor Cannabis production. Even with the large percentage of hydroelectric power in Washington, the amount of electricity used is difficult for many people to justify. Can Cannabis grown in greenhouses compete with large-scale, indoor grow facilities? DuBious Distinction

Grow BiG, or Go hoMe

no other plant is grown indoors exclusively under artificial illumination for commercial production at anything remotely close to the scale of cannabis. some crops need supplemental light in greenhouse production, but not exclusively under artificial light for the entire crop cycle. ask a tomato grower if he would grow crops under exclusive artificial light and he’s likely to laugh in your face. the energy cost would drive the price to ludicrous levels. the fact that cannabis flourishes under direct sunlight makes the artificial light requirement very high; most indoor growers prefer at least 40 watts per square foot to achieve maximum growth. cannabis is grown under lights because when it is illegal that is the safest way to do it to avoid getting caught. that and the fact that it is much easier to secure a building than an open field have kept this cultivation model the standard.

let’s look at the cost of lighting a 10,000-square-foot area indoors for largescale retail cannabis flower production. let’s assume that there needs to be room for workers to move around and that there is going to be a lot of overlap from the number of lights required. at a spacing of one lamp every 25 square feet, the number of 1000w hps lamps is 400. at the seattle area average of 9.2 cents per kilowatt-hour, that is going to cost $36.80 per hour to run. For the grower running a 12-hour-day cycle that’s $441.60 every day. this cost does not include surcharges, taxes and any other add-ons by the utility company and local government. add the electricity needed for fans, commercial air and water chillers, dehumidifiers, and everything else needed to power a grow operation and the cost increases from there.

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The Cannabusiness Issue • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Let’s assume that around a two-and-one-half pound dry yield of Cannabis flowers can be realized with every lamp each flowering cycle of 70 days. This yield estimate is definitely on the upper limit, but achievable with the right strain and cultivation skill. This yield will allow 1000 pounds a cycle. That 70-day cycle allows for 5 cycles in a year and 5000 pounds a year. If we add 10 percent to the electrical costs to cover equipment other than lights, the annual bill would be $177,302.40. That’s $35.46 per pound in electrical cost for the flowering stage alone. Factor in the costs of growing clones up to a good starting size, and that number grows further. Growers use much less light intensity for the cloning and vegetative cycle, usually one-fourth, but run the lights for 24 hours a day. The area required will need to be similar in size to allow for large vegetative plants, so with a similar-sized facility dedicated to growing pre-flowering plants, another $15.53 is added to the electrical cost for a total of $50.99 a pound. The total electrical cost for one year to produce 5000 pounds is $254,950.00.

Greenhouse scenario one Let’s now look at growing Cannabis in a 10,000-square-foot greenhouse. It makes sense that this would work best in the eastern half of the state, such as around Spokane, where there are many more sunny days than in the Seattle area. We are also going to allow that the greenhouse season will be similar to that used outdoors, so that we will not have to use lights to lengthen short winter days and have to heat the greenhouse for very long, if at all. In Spokane, the frost-free dates are between May 2nd and October 3rd, for a 154-day season. At the northern latitude that Spokane is situated, a 10-hour, night-length threshold for flower induction occurs on July 27th. This allows

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68 days for flowering. Greenhouses require fans and likely some cooling, but the electrical costs are minute compared to growing under lights. With numerous large fans and some evaporative coolers, the electrical cost should run about $12.00 a day, for one season/ cycle that adds up to $1848.00, compared to $30,912.00 for one cycle under artificial lights. The yield is a bit tricky to calculate, as there are so many variables, but it is certainly reasonable to expect a yield comparable to indoor cultivation. Outdoor growing in full sunlight allows for really large plants that are not subject to the point-source limitations of artificial light. [see Inverse square law graphic on the next page] Since most greenhouses are enclosed, the glazing material will reduce the available light from 8 to 20 percent from the value that unfiltered sunlight allows, depending on the material used. This makes it reasonable to consider the yield will be the same as the indoor scenario.

Greenhouse scenario two There is an alternative to one crop in a natural growing season using a greenhouse. That option is to use a greenhouse that allows light deprivation. See the article “Fooling Mother Nature” in this issue for a detailed explanation of light deprivation. With the 154-day season described for the Spokane region above, a grower can grow and harvest two crops with a 70-day cycle. Manufacturers of light deprivation greenhouses, such as Forever Flowering Greenhouses in Grass Valley, California, offer greenhouses that can be sealed off from light, yet still allow air exchange to the outside. Forever Flowering Greenhouses also offer retractable coverings, which would allow full sunlight and fresh air to reach the plants during the daylight cycle. Such techniques would allow for a shorter

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inverse square Law, Light As one of the fields which obey the general inverse square law, the light from a point source can be put in the form e=i/r² where e is called illuminance and i is called pointance. 4πr² sphere area

intensity at surface of sphere

S 4πr²

S

source strength The r energy twice as far 2r from the source is spread over four times the 3r area, hence one-fouth the intensity.

I

=I

I 4 I 9

flowering cycle and, therefore, two harvests in the same season. the yield may not be as large per cycle because of the size of the plants being smaller — they will not have the 86 days to grow before flowering initiates like in scenario one above — but the combined total will be larger. the energy expenditures for the flowering cycle will be comparable to scenario one. one advantage to the two-crop option is that two fresh crops will be made available, versus one if light deprivation is not utilized. one disadvantage is that plants will have to be grown at another facility for the first cycle,

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with artificial light, to be of sufficient size for flowering. the second crop can be grown in another greenhouse during the spring and early summer, and then transferred to a lightdeprivation greenhouse.

what Does the Future LooK LiKe? the indoor option has the ability to produce 80 percent more in a year than greenhouse scenario one, and 60 percent more than scenario two, but at a very steep energy expenditure. cannabis policy makers should consider this when deciding the manner in which cannabis is cultivated. there are fixed costs associated with all three methods of cultivation that will remain the same, but if the carbon footprint is considered on a cost per cycle, the greenhouse option is vastly greener, so to speak. as competition drives the price of cannabis down, the indoor method will hit the breakeven point well above the cost of greenhousegrown cannabis. considering that scaling up greenhouse size is easy and still costs much less to run, the greenhouse option is by far the most cost-effective and sustainable choice. one concern many consumers will bring up with one or two crops a year is the matter of freshness. this shouldn’t be a problem with cannabis. well-cured and stored cannabis will stay fresh for many months. some strains actually improve with long cures and storage. so long as the quantity needed for the winter and spring months are harvested in the summer and fall, this should not present a problem. when cannabis is legalized nationally, the states that had the foresight to allow sustainable greenhouse cultivation while also ensuring the security of the crop will be very well-positioned. and any state that figures out how to regulate growing outdoors in fields securely will dictate the market value for the entire nation. S

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Beyond Mendel //continued from page 43

characteristics that produce a phenotype not seen in either parent; rather than intermediate, it expresses both at once. For a good visual example, consider spotted or striped offspring. A red flower crossed with a white one might have offspring that have areas of white and areas of red — perhaps a white flower with red spots — but not a complete blending, such as with pink flowers.

Cannabis With the increasing advent of Cannabis breeding and growing into the mainstream, breeders have an easier opportunity to grow plants in larger numbers, in addition to exploring how less predictable means of inheritance manifest in their plants. Although not as simple as in the examples with flower color above, thorough record keeping and lab analysis of cannabinoid profiles and other chemical factors like terpenes can provide a better understanding of Cannabis

breeding. Breeders usually base their work on the phenotype when making selections for breeding — understandably so — but the fact remains that traits in the genotype can be lost when making a series of crosses based solely on external appearances. Further investigation will allow a deeper understanding of the complexities of the Cannabis genome, to the benefit of all.

Conclusion We’ve examined a lot of concepts in this series, ranging from the basic to the more esoteric aspects of genetics and Cannabis breeding. Knowing what these terms mean will be invaluable when researching lineages and planning breeding projects of your own. One additional breeding concept to add to the mix is this: sometimes crazy ideas are wildly successful. Feel free to think, and breed, outside of the boxS

Investors //continued from page 67

to support your venture in exchange for gifts, and gifts alone. This is a viable alternative for companies with smaller startup capital needs and could prove useful in helping you get off the ground far enough to be seriously considered by investors. But don’t go contacting these investors yet. With only a handful of companies lending within the Cannabis Industry, competition is sure to be stiff. A less-than-stellar first impression will make it exceedingly difficult to later persuade these investors to work with you. So, before you even think about approaching investors, make sure you’ve done all your homework.

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Perform an in-depth industry analysis to ensure your business idea is innovative. Write a detailed business plan that demonstrates your knowledge of the industry. Prepare your pitch — make sure it’s engaging and concise — and have a scaled-back version you can deliver passionately in 30 seconds or less. Find business partners and, ideally, investors who can round out your team and lend expertise and credibility to fill in any gaps. Basically, be as well prepared as you can before approaching any investor — and especially the big names; you’ll likely get only one chance to truly wow them.S

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Bug off //coNTiNUED FRom PagE 88

prevent further spread.

Conclusion greenhouse growers can exercise much more control over the growing environment because of their enclosed nature. screening the air intake and exhaust openings will keep many pests from entering in the first place. outdoor growers have a more challenging environment as many factors are realistically beyond their control. the benefits of free and abundant light, constant fresh air and nutritious soil make outdoor growing an excellent option if it is available. since the advent of agriculture farmers have faced

the challenges presented by pests. like all farmers, cannabis growers face many uncertainties, and have to accept that many factors are beyond their control. as tempting as spraying hazardous and toxic insecticides may be to the grower, they do not discriminate between beneficial and harmful pests, and are potentially harmful to humans, animals, the environment and cannabis plants alike. some are illegal to use on a crop meant for human consumption. the best options to protect against nasty pests are physical deterrence, repellants and beneficial insects and organisms. S

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Pickup or delivery //continued from page 83

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respectively. Also keep in mind the most attractive fact of all; that is, expenses with the exception of advertising are all tax deductible. Now that you know the differences in tax structure between these two cannabusinesses, put them on a scale and weigh them out, to see where the best bag for the buck is that will allow you to provide patients with quality care. Will that be pick-up or delivery? Regardless of the type of cannabusiness in your plan, one should always consult an attorney — each state has varying laws, and it is imperative these are known and followed. S

support your local farmer

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i

unnecessary risks. Keep minimal cash on hand and know your state’s quantity limits. Never accept non-registered patients. It is best to keep Cannabis in transport in a lockbox in your trunk, never the cab of a vehicle. If this piques your interest, several sites offer a complete how-to guide for starting your own delivery service. MarijuanaBusinessNews.com offers the “MarijuanaBusinessNews.com Medical Marijuana Delivery Handbook” for $60.00; price includes shipping and handling. Amazon. com and Barnes & Noble both offer the digital version of Robert Caulkin’s “The Mobile Caregiver’s Handbook,” for $9.99 and $13.75,

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CannaSense Campaign 2013 National Tour for Cannabis Freedom We the People deserve to know the truth about Cannabis and to take back the quality of life that this immoral prohibition took from us. We as a Nation must accept and embrace the industry and health opportunities that ending prohibition will provide.


Highdeas //continued from page 12

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facebook.com/MsKatieMae

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NUggSHoTS.com

BY raz

true errY BlueBerrY true Blueberry is a mostly indica hybrid that provides a pleasant and long-lasting high when smoked. this product has a sweet fruity smell and tastes like blueberries. dutch Passion’s version of Blueberry, which was derived from the original Delta 9 Collection, won first place in the 2000 High times Cannabis Cup in the mostly indica category.

afGHooeY visually, it’s a favorite. flowers are colored with beautiful shades of purple. taste is reminiscent of kush and can be a bit harsher than others when smoked. Purple dank is nice without being too heavy. mellow mental effects.

PurPle dank GroWn BY various

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Great early buzz — it’s light and keeps you focused. a dense bud structure and fine red hairs. The smoke tastes and smells fabulous, setting this strain apart from other mush strains. Definitely a must-try, if only just to know it’s a great kush favorite. if you like evil berry/black berry, or just an og kush, this strain is a must for you!

kusH BerrY

afghooey is a great strain for when you want to relax, and take your mind off of everyday stress. afghooey is also good for relieving depression and helps slightly with insomnia. recommended mainly for stress and insomnia.

k train will make your senses go wild and your body beg for more. it smells of spice, orange, sour, and citrus, with fresh coffee undertones. this is some serious medicine and will provide the user with a head-numbing, body-thumping experience that will make them happy and uplifted. as a medicinal, this strain is ideal because it lasts a solid three hours and stops pain and stress, increases appetite, and decreases anxiety. Walls become fascinating.

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Cannabusiness: Opportunity Knocks b2b trade magazine for legal Cannabis Sativa.  

Sativa Magazine June Issue. The number one b2b Cannabis trade publication that has a little something for everyone. Keywords: legalization,...

Cannabusiness: Opportunity Knocks b2b trade magazine for legal Cannabis Sativa.  

Sativa Magazine June Issue. The number one b2b Cannabis trade publication that has a little something for everyone. Keywords: legalization,...

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