At 5,000 square feet, Flora Arbor is about as small as a licensed cannabis grower can legally get. That’s not the problem the company is trying to solve. “We’re a very small breed, which means we can control things very well.” he says David Myrowitz, director of cultivation. “It also means that we have to be successful in every round.” Three flower cells, collected in three weeks. There is no such thing as a bad lot to disappear into a larger average. Every shift counts, and the operation is built around that reality.

It starts in the pump room
Reverse osmosis water is fed into holding tanks, nutrients are mixed by an Agrowtek fertigation machine, and the entire system runs from a GCX controller that monitors moisture sensors, dissolved solids, and soil temperature in every room. Canopy sensors feed directly into HVAC, which Flora Arbor runs on Cultiva units. “If you talk to any grower, any grower, they’ll tell you the number one thing for successful growing is having a good HVAC system,” says David. “There is somewhere that we don’t have expenses.”

© Flora Arbor

Genetics and cells
Mother plants are removed every three to six months, so cuttings are always taken from young stock. The clones move from the humidity domes to a humidity-controlled room, then to the vegetables, where a crop-correction protocol runs several irrigation streams per day to encourage growth. Moisture sensors in the grow bags track each drying cycle, and daily watering patterns are revised based on the goals of the grow system.

The flower rooms have a double-level system, with taller plants at the bottom, shorter ones at the top, grouped to keep microclimates outside and an even distribution of light. The second mesh is lowered as the plants develop to give each bud site its own square and keep airflow moving through the canopy.

In a recent route, rooms from different phases of the cycle were working at the same time. Hawaiian Rain has been crossed with permanent marker, disk chips, cereal milk. David pointed to the development of crystals in the Hawaiian Rain cross, the citrus resin charge of Disco Fries, the height management challenge of pushing a cultivar as high as possible without burning them in the lights. “We try to have a nice spread of genetics, a nice representative of each flavor profile and effect, to make sure everyone can get something they like,” he says.

Crossing the finish line
Post-harvest is managed at home, by hand. The product is sorted on the cutting table A-Bd, B-Bud and cutting table, strictly separated, the grade on the label means something. The tiered structure also serves a second purpose. “We think it’s really important to make sure quality flowers are available to people of all means, not just people who can afford the premium,” says David. The three-week harvest cycle is Flora Arbor’s main argument for the consumer. Small batches, constant rotation, nothing stored.

“Every time you get a bag, it’s going to be fresh, freshly picked grass,” says David. “It’s not something that’s been sitting in some MSO’s vault for six months because they’ve collected 2,000 pounds and can’t sell it.” The bet is that in a market where no one has solved the consistency complaint, being small enough to catch all the cattle is more valuable than the economies of scale you allow to get there.

For more information:
Flora Arbor
1300 Abbott Dr, Elgin, IL 60123
847-504-8450
(email protected)
floraarbor.com

The consequences of the war in the Middle East are becoming more and more evident along the horticultural chain. Rising energy prices, more expensive raw materials and higher logistics costs are forcing suppliers around the world to raise prices. Looking ahead to the coming winter and the 2027 season, producers face difficult decisions: pre-order tickets, wait until the situation stabilizes, or risk further price increases. Globally, these rising costs are expected to contribute to higher inflation.

Energy prices
A direct consequence of the war in the Middle East is the increase in energy and fuel prices, although natural gas prices have not yet reached the peak seen in 2022 when the war in Ukraine began. Rising gas prices also affect electricity costs, both for growers with and without combined heat and power (CHP) systems, and CO₂ availability. In addition, horticulture suffers – and will continue to suffer – many indirect effects from the situation and higher energy costs.

Plastics
The increase in the price of oil directly affects the transport costs of the entire chain, from supply to distribution. Indirectly, it also affects the production of many horticultural inputs. Oil is an essential raw material for plastics, which are widely used in horticulture, such as trays, films and pots. Rising oil prices therefore directly increase the cost structure for both growers and suppliers. In addition, labels, packaging and printed materials are also more expensive due to the increase in the price of oil. An additional factor is the shortage of recyclable plastics. Suppliers are forced to raise prices or switch to daily prices.

Fertilizers
The fertilizer market is also affected, although fertilizers represent a relatively small part of production costs. Fertilizer producers face higher costs of energy, raw materials and logistics, which increases prices for producers. In addition, the price of sulfuric acid, which is necessary for the production of fertilizers, is increasing significantly. The war in Ukraine, together with export restrictions from Russia and China, makes the situation even more difficult.

Coconut substrates
This year the substrate market, which is already under pressure, is also suffering the effects of the war. Although India has reduced petrol taxes to 3 rupees ($0.032) and abolished diesel taxes, the situation in Sri Lanka is completely different. As one of the main producers of coconut substrate, it is suffering from fuel and energy shortages as the country relies almost entirely on imports. The government has raised fuel prices significantly to cover import costs and aims to reduce consumption as much as possible. Measures include a four-day work week, fuel distribution via QR codes and even discussions about possible lockdown measures. Energy prices have also increased. Whether substrate production will be directly affected is not yet clear, but higher costs for suppliers are expected.

Shipping charges and delays
With global fuel prices on the rise, transportation costs are increasingly affecting both the supply of horticultural inputs and post-harvest logistics. Belgian carriers, for example, have raised the alarm. Isabelle De Maegt of the Belgian Transport Federation explains, “We are very concerned. The increase in diesel prices this month is having a significant negative impact on transport costs, which have risen by more than 6%. There is no other option but to pass this increase on to customers. Transporters cannot absorb these costs themselves, as the average profit margin in the transport sector is around 2%”. But other factors are also acting on price increases: French shipping and logistics company CMA CGM has revised its Emergency Fuel Surcharge (EFS) from March 27, 2026, citing higher fuel prices linked to geopolitical developments in the Middle East.

Investment decisions
Global greenhouse horticulture continues to develop and has good long-term prospects, but recent years have also brought major challenges. These include the loss of capital in North America due to the failure of several large vertical farms and greenhouse companies. Worldwide, the sector was also affected by the ToBRFV tomato virus. This year, several suppliers have cautiously reported positive developments, but geopolitics threatens to get in the way. Global uncertainty is driving up construction costs (glass, steel), and instability is not providing a solid basis for investment, delaying the final approval of several major projects worldwide. Also, fears of a new wave of inflation are driving interest rates higher.

“We cannot balance state budgets on the backs of one industry. Excessive taxation drives consumers back to the illegal market and shrinks the legal one.”

By Katherine Dailey, Michigan Advance

Genesee County Sheriff and Democratic gubernatorial candidate Chris Swanson was adamant. A 24 percent cannabis tax was approved as part of the 2026 budget Gov. Gretchen Whitmer’s (D) plan to fund road repairs across the state.

In a video posted to Facebook Friday evening, Swanson promised that, if elected, he would work to repeal the tax, saying it is “not fair and just” to an industry that provides goods and services, as well as jobs, to the state of Michigan.

Swanson’s campaign added in a press release that the tax “undermines the legal market and the intent of voter-approved legalization,” referring to the 2018 ballot initiative that legalized cannabis in the state of Michigan.

“As governor, I will work to roll back the 24 percent wholesale excise tax to ensure fairness and equity,” the press release continued. “We cannot balance state budgets on the backs of one industry. Excessive taxation drives consumers back to the illegal market and shrinks the legal one.”

“I’ve never been a fan of fixing budget issues by targeting one industry, and that’s what happened,” Swanson said in the video. “The people spoke. This is an industry that’s here to stay. And anything that tries to disrupt that is going to be non-negotiable for this administration. And we’re also going to keep it from expanding into the black market, where they can lead to other, more dangerous situations. So we’re going to make sure that this industry is taken care of.”

The tax narrowly passed the State Legislature in early October and came into force in early 2026, and has been heavily criticized…and even taken to court—the leaders of the cannabis industry— because they harm the industry and the small companies that make it up.

Swanson’s press release also quoted Robin Schneider, executive director of the Michigan Cannabis Industry Association, as praising his opposition to the tax, a law enforcement agency focused primarily on keeping the industry out of the black market.

“Candidate Chris Swanson came out publicly against a 24 percent wholesale tax,” Schneider said. “Now it’s up to us to build momentum behind the message that we’re brave enough to carry.”

Swanson also emphasized in the press release that he still plans to fund the kinds of infrastructure projects that cannabis taxes will fund.

“It’s about doing what’s right for Michigan. Even with the repeal of this tax, I’m 100 percent committed to funding all future road and bridge projects. That’s a priority, too,” he said. “Supporting a fair system protects people, strengthens small businesses and respects voters who have made their voices heard.”

Swanson has trailed Secretary of State Jocelyn Benson (D) in polls and campaign fundraising in the primary, but has continued to campaign ahead of the August primary.

This story was first published by the Michigan Advance.