Monterey County’s cannabis industry still struggling, committee reports.

The cannabis industry continues to wobble.

At a meeting of the County of Monterey’s Cannabis Committee on Thursday, April 2, Program Manager Michelle House and Accounting Auditor Kevin Tweedy gave updates on business tax collections and overall performance measures of the industry.

There are currently 49 active operators: 37 farms, seven dispensaries and five categorized as “other businesses,” including manufacturing, distribution or processing in unincorporated Monterey County. Of the 37 farms, five are nursery-only operations.

At least one business recently shut down, and no new land use permits have been approved for this fiscal year. The County revised its original revenue target from $3.5 million to $3.2 million for fiscal year 2025-26, with $3 million projected for 2026-27.

“We are still seeing farms close,” House said. “The revenue is probably going to take another little sweep down.”

The committee update also touched on what may end up being the county’s first fully outdoor commercial cannabis cultivation site. The project is scheduled to go before the Board of Supervisors on April 28.

If approved, an amendment to the Central Salinas Valley Area Plan would allow up to 20,000 square feet of outdoor cannabis cultivation. The landowner, John Cumming of King City, has been involved with the outdoor pilot program since its inception in 2019.

Officials in the County’s Cannabis Program, in cooperation with the Housing and Community Development, hosted a pilot project focus group to discuss pathways forward. The program has yet to see a successful outdoor cultivation project.