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 White House has done the first a series of scheduled meetings with cannabis industry and research stakeholders To discuss a new enforcement policy for CBD products.

Representatives from the Office of Information and Regulatory Affairs (OIRA) under the White House Office of Management and Budget (OMB) spoke with Panacea Plant Sciences CEO David Heldreth on Wednesday to learn more. Awaiting Food and Drug Administration (FDA) review of cannabidiol.

Marijuana Moment caught up with Heldreth shortly after he finished attending the remote meeting, which is one of several discussions on the topic that OIRA has organized after last month’s release of a memo on the FDA’s policy review.

“Members of the FDA were present, but they were not identified other than the host. They opened the meeting by not revealing anything about the policy or when it’s going to come out and essentially not going into detail,” he said. “Then they opened the floor to me.”

Heldreth said he raised questions about the legality of a new one Centers for Medicare and Medicaid Services (CMS) initiative to cover certain hemp-derived CBD and THC products It was launched on Wednesday.

“Current FDA policy is that CBD cannot be a food additive or supplement (which is generally recognized as safe), and therefore all CBD products are technically illegal outside of vaping and smoking,” he told federal officials. “I told them they were putting the cart before the horse. This current CBD policy needed to be updated before we started a legal CBD reimbursement program.”

“Then I argued that if the policy changes it should be more than CBD isolate,” Heldreth said.

“Recent federal legislation set a THC limit of 0.4 mg per container/serving for cannabinoid extracts, but rather than the 0.4 mg THC limit for oral consumption of stem, seed, and hemp microgreens or leaves that is maintained at industrial hemp’s 0.3 percent THC level. I believe FDA policy for CBD should adopt this and define hemp leaves and microgreens as foods and as food additives. should include a policy that supports them.

He said that as a citizen of the Cherokee Nation, he expects officials to follow federal laws to make detailed inquiries about the tribes.

“I’m glad the White House held the meeting, but I don’t think there’s going to be much in this process,” Heldreth said, noting that he attended similar meetings with FDA officials in 2020 about CBD policy and “nothing changed” at the time.

“The reality is without congressional action to address the drug exclusion law, it’s difficult to legalize CBD,” he said. “However, I think items like hemp leaf will be out there and provide options.”

OIRA will also meet with Trent Woloveck of multi-state cannabis operator Jushi Holdings on Wednesday, as well as Mackie Barch of Story Cannabis and Iowa hemp farmer Earl Ramey on Thursday, and Brett Goldman of OCan Group, LLC next week.

All of this comes less than a month before changes to federal hemp laws are set to significantly shake up the industry, with a ban on most consumable cannabinoids containing THC taking effect in November. As part of the original law, the FDA was responsible for publishing a list of known cannabinoids, however He missed a deadline set by the congress to fulfill this obligation and it is not clear when that list will finally be issued.

Some have speculated that the enforcement policy guidance OIRA is reviewing is related to the executive order President Donald Trump signed in December to move marijuana from Schedule I to III of the Controlled Substances Act (CSA), which also included provisions to create a pathway for CMS CBD health care coverage.

CBD oriented plan—which A coalition of anti-cannabis groups led by Smart Approaches to Marihuana (SAM) now wants to block it in federal court—will also allow a certain amount of THC in the products, but the agency has said the planned rules could change if federal hemp policies change, under the law now set to take effect in November.

Participants would have to ensure that the CBD comes from a “law-compliant source and high-quality farm,” prepared as an oral solution, and tested for cannabinoid content, so that available products contain no more than 0.3 percent delta-9 THC by dry weight and a total of 3 milligrams of THC per serving.

CMS said that centers participating in one of three models that receive substance access beneficiary engagement incentives (BEI) “will be able to consult with eligible beneficiaries about the use of eligible hemp products to improve symptom control.”

Details about the rules for the CBD pilot program came weeks after a co-founder of the Charlotte’s Web hemp company, which has partnered with CMS, had already told the agency. ended federal health insurance plans for cannabidiol.

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While CMS issued a previous final rule this past April specifically stipulating that marijuana, as well as CBD derived from federal law hemp, are ineligible For coverage of the Medicare Advantage program and other services, the agency is revising that policy.

CMS already announced some changes as part of a rulemaking process filed late last year, It affects “marketing and communications, drug coverage, enrollment processes, special needs plans and other programming areas.” for the insurance programs it oversees. One of these changes concerned the coverage of cannabidiol.

Meanwhile, regarding the marijuana components of Trump’s December executive order, Attorney General Pam Bondi ordered a quick end to the cannabis redistricting proposal, which would not federally legalize it, but would remove some barriers to research and allow state-licensed marijuana businesses to take federal tax deductions known as the Internal Revenue Service (2S)80E Service. This proposal to reconsider, however, is still pending.

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.