Glass House Hits the Gas on 2026 Expansion, Adds 300,000 Pounds of Capacity

Burn After Reading The 30-second intel for operators and investors

Glass House Brands plans to add more than 300,000 pounds of annual cannabis biomass capacity in 2026 by finishing Greenhouse 2 in Q2 and building out Greenhouse 4 for markets outside California, citing federal rescheduling.

  • Operators: Glass House is moving earlier on supply, betting on rescheduling, a Medicare CBD pilot and export demand. Its CEO expects wholesale biomass prices abroad to be meaningfully higher than California's, so expect more competition for those markets.
  • Investors: Management is accelerating capital spending after a July federal raid and construction halt, tying growth to Schedule III, a Medicare CBD pilot and exports. The export and Medicare upside is expected by the company, not yet proven.
  • Do now: Review your own capacity and export plans against a Schedule III scenario, and note which UK, EU and Asia markets you could realistically supply, to see where Glass House would compete.
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California weed powerhouse Glass House Brands this week announced its 2026 expansion plans, which will increase cultivation capacity by more than 300,000 pounds of cannabis biomass per year. The plans include completing Greenhouse 2 at the vertically integrated cannabis company’s Southern California farm and building out Greenhouse 4, which will eventually produce cannabis for markets outside California.

The work at Greenhouse 2 was one-third completed last year. But a raid at the company’s facilities by federal officials in July, after which one worker died, prompted a temporary halt in construction and scaled-back production. Construction was originally scheduled to resume later this year.

“We are very pleased with and proud of our team’s ramp back efforts of the past six months for existing greenhouses along with early results from Greenhouse 2 expansion,” Kyle Kazan, chairman and CEO of Glass House, said in a statement about the development. “The Company is ready to put its foot fully back on the gas pedal. We anticipate strong growth in 2026 and beyond.”

Kazan cited several reasons for the accelerated expansion, including President Donald Trump’s executive order last month to reschedule cannabis under federal drug laws. At the same time, the administration announced a pilot program covering up to $500 in CBD products per year for seniors enrolled in Medicare.

“We are planning for the associated new business opportunities that we expect to come from cannabis rescheduling and the creation of the new Medicare reimbursement program for CBD,” said Kazan. “We remain confident that Schedule III under the current administration can provide cannabis export opportunities in the near term to Europe and other international markets. The wholesale biomass prices are expected to be meaningfully higher than those achievable in California.”

‘The Best Weed Glass House Has Ever Grown’

Glass House president and co-founder Graham Farrar shared more information about the company’s plans in a phone interview with IgniteIt. Once the 2026 expansion is up and running, he says, “we are going to grow the best weed Glass House has ever grown out of Greenhouse Two.”

The company was originally planning to finish the second two-thirds of Greenhouse 2 later this year, with work commencing in June or July. But early results from the completed section of the facility have led Farrar to reconsider the timing.

“We’re going to do it now, which is going to get us about an extra six months of production, because we really like the results that we’re getting out of the first third that we finished,” he explains. “And we’re back and running with more acres planted now than ever before in Glass House history.”

With the accelerated expansion, the company plans to have Greenhouse 2 finished and fully planted during the second quarter of 2026. In total, Greenhouse 2 will provide an incremental annual production capacity of approximately 300,000 pounds of cannabis biomass.

Glass House also announced that it would begin a light retrofit and buildout of the SoCal farm’s Greenhouse 4, with plans for production capabilities to target international CBD and hemp markets in the UK, EU and Asia.

“Every single one of those markets starts with the plant,” Farrar says, “and what Glass House has better than anyone else is growing that plant, better, at a larger scale, with more consistency and more efficiently than everybody else.”

He added that the company’s expansion plans also support the potential for growth from the federal government’s planned Medicare coverage for CBD.

“That is a $35 billion market right there that was not on our bingo card or on our radar at all,” Farrar says, “and all of a sudden it is.”


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A.J. Herrington
January 23, 2026
Cannabis journalist whose reporting on policy, business, science and culture has appeared in Forbes, High Times, Cannabis Now and HEMP.
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