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New legislation could help 1,700 California growers ship cannabis to consumers

Jacob Shelton July 24, 2025

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Marijuana "mother" plants are grouped by each plant's strain April 19, 2019, at Pacific Reserve nursery and cultivation site. The mother plants, all female, are instrumental in creating the clones sold at retail joints. Male plants generally are discarded because they don't produce flower and pollinated female plants don't produce near as much potent flower. Marijuanaseedtosalemalevfemale

Washington D.C. – In a move that could reshape the cannabis marketplace for small producers, California Rep. Jared Huffman has reintroduced legislation that would allow the state’s smallest cannabis cultivators to ship products directly to consumers—both within state lines and, eventually, across them.

The proposal, known as the Small and Homestead Independent Producers (SHIP) Act, aims to safeguard small farmers and manufacturers in the event of full federal legalization. Under the bill, direct-to-consumer (DTC) shipping would become a legal pathway for producers cultivating less than an acre of outdoor cannabis or operating under similarly small indoor and greenhouse footprints. The bill would also cover cannabis product manufacturers with annual revenues below $5 million.

Huffman said the bill is a direct response to the increasing corporatization of the cannabis industry. “Larger, commercialized cannabis operators are infiltrating the market and squeezing out our local farmers in the process,” he said in a statement. “When full legalization is guaranteed, we must commit to not leaving our smallest family farmers behind.”

The SHIP Act would only take effect if the federal government removes cannabis from the Controlled Substances Act, a move still pending at the national level. But Huffman and his allies say it’s critical to prepare policy frameworks in advance—especially those that protect smaller players who have long struggled under a patchwork of inconsistent and often onerous regulations.

Since California first legalized medical cannabis nearly three decades ago, small growers—particularly those in legacy cultivation regions like Humboldt and Mendocino counties—have fought to maintain their livelihoods in the face of industrial-scale operations and complex compliance costs. Many mom-and-pop dispensaries and farms argue they’re being regulated out of the market altogether.

Advocates say the ability to ship products directly to consumers would help level the playing field by giving small producers access to broader markets, especially in rural or underserved areas where dispensaries are scarce due to zoning restrictions or local opt-outs.

Ross Gordon, co-founder of the National Craft Cannabis Coalition, warned that without DTC options, “federal cannabis legalization risks reinforcing [the] failures” of the existing market. He called the SHIP Act a “make-or-break policy” for small businesses.

While consumer advocates have praised the potential for safer, easier access to cannabis products, especially for patients, some worry about unintended consequences. The bill could accelerate pressure on independent dispensaries already struggling to stay afloat under California’s high taxes and regulatory burdens.

Still, the bill has drawn a wide coalition of support—from equity-focused organizations like the Minority Cannabis Business Association to regional alliances of craft growers across the country. Supporters argue it’s a rare chance to design a cannabis policy that puts small businesses first.

The bill is co-sponsored by Rep. Val Hoyle and awaits further action in Congress.

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