The city of San Diego has agreed to allow a South Morro Hills hemp grower to transition to cultivating cannabis instead, a shift local operators say reflects the rapidly changing economics of California’s hemp industry.

While hemp and cannabis come from the same plant family and often look and smell alike, the distinction lies in their THC content. Hemp is legally defined as cannabis containing no more than 0.3% THC, the psychoactive compound that produces a high, while cannabis contains higher concentrations.

South Morro Hills 47, LLC applied last year for a conditional use permit to grow cannabis at 1319 Sleeping Indian Road. The business already held a local cannabis cultivation license since 2019, but needed the permit to begin cannabis operations.

The Oceanside City Council unanimously approved the permit on May 20, two months after the Oceanside Planning Commission also granted unanimous approval. The transition marks a major change for one of Southern California’s remaining hemp growers. Duane DeLarco, chief operating officer for South Morro Hills 47, said the company’s hemp business became increasingly difficult after Gov. Gavin Newsom issued an emergency ban on intoxicating hemp products. Since then, he said, the business has largely been limited to selling to out-of-state growers.

Read more at The Coast News Group