December 17, 2025

Schedule III: The tax cut is the bait. The FDA is the hook.

Everyone is popping champagne over the death of 280E. And they should be. For the first time, this industry might actually get to keep a good portion of the money it makes.

But if you think Schedule III is just a free pass to lower taxes and higher profits, you aren’t paying attention. You’re walking into a trap.

The Party is Over. The Audit is Coming. Moving cannabis to Schedule III doesn't just change the tax code; it changes the referee. You are trading the IRS or local regulatory body for the FDA.

The IRS just wanted your money. The FDA wants your process.

Under Schedule III, cannabis is legally defined as a pharmaceutical. Do you know how Tylenol is made? It’s not made by "feel." It’s not made by a Head Grower who "just knows" when the plants are happy. It is made using Good Manufacturing Practices (GMP) and strict Process Validation.

"Vibes" Are Not Compliance In the FDA’s eyes, if it wasn’t documented, it didn’t happen.

You claim your process is consistent? Prove it.

You claim your environment was stable? Show the logs.

You claim this batch is identical to the last one? Where is the data?

If your strategy relies on tribal knowledge and manual spot-checks, you are already non-compliant. The days of "artisan" excuses are gone. In a Schedule III world, "craft" without data is just "liability."

Why AROYA growers are already safe

This is exactly why we built AROYA. We didn’t build it just to boost your yields (though we do that, too). We built it to turn "farming" into "manufacturing."

While the rest of the industry scrambles to retrofit their facilities for FDA scrutiny, AROYA partners are already sitting on years of validated data.

Automated Documentation: The FDA demands continuous monitoring. AROYA sensors track every variable—VPD, WC, EC, Temp—24/7/365. You don’t have to "create" compliance logs; AROYA is the log.

Process Consistency: You can’t validate a process you can’t control. AROYA gives you the steering wheel to replicate your golden batch, every single time.

Traceability: When the regulators ask what happened on Tuesday three months ago, you won't shrug. You’ll pull the chart.

The Bottom Line The tax relief from Schedule III is going to save a lot of businesses. But the regulatory hammer is going to crush the ones that are unprepared.

Stop running your business on vibes. Start running it on validated data.

Control the shift. Control the game.

Live webinar

Schedule III: Control The Shift, Control The Game

Schedule III isn’t just tax relief. It introduces federal oversight, validated processes, and a new standard for compliance. Learn how to prepare before audits begin.

Dec 30, 2025 11:00 AM PST

Register now

We get this feedback from operators every day. Especially those who have already lived through market compression. A group of Michigan cultivators put it plainly when they talked about what consistency has meant to their success.

You can hear it from them here. Check it out.

Daryl Reva
VP, Customer Insights and Impact