Marijuana America's Number 1 Cash Crop

I came across a news story that says marijuana is the top cash crop in the U.S, bigger than wheat and corn combined. If we can trust the numbers that have been released, $35 billion is produced annually. They are saying that the $35 billion equates to 10,000 metric tons.

The $35 billion is just going off "retail value" of a pound of pot. Producers cost of a pound is $1,606 and the retail is $2,400. So they are saying the average ounce goes for $150.00. Most people buy in smaller quantities, but I am trying to keep this simple.

Okay, so the argument that we have been hearing about for years is over the legalization of marijuana. I was curious so I looked at this from a business standpoint. Let's just say that pot was legal and they put a 10% sin tax on it (obviously the retail price would end up being higher and the tax would be higher, but again keeping it simple). Per ounce, the government would make 15.00. That would mean metric ton, the government would make $528,960. Let's put this into perspective people, when you do a little math here you will see that the government stands to make $5,289,600,000.

I don't know about you, but I think that this looks promising. Any thoughts? If you are interested in reading the story that I got the numbers from, I found it on AOL newslinks.

sounds like a lot of weed, i'd have that anyday compared to cornflakes :)

Yeah, it's a shame they cant just let it be, The savings in enforcement alone would pay off the national debt in a few years. I think the price of an ounce is more like 400-600 bucks, unless your talkin schwag!

(obviously the retail price would end up being higher and the tax would be higher, but again keeping it simple).

Just curious why do you think the cost would be higher?

I could be wrong about it being higher, but I am thinking that the stores and merchants, before they are going to sell it, they are going to look at the profit margin. If people on the street are willing to buy an ounce for $150 and that is with seeds and stems, merchants are going to be able to sell it rolled in smaller quantities and make a larger profit. Also, the cost of raising crops are not going to change so what the crop farmer is goingto be selling it for is not going to change. Now that it is legal it will go through a middleman and that is an extra hand in the pie to get his profit off of it.

That is kind of a rambling answer, but that is my train of thought.

Pot can be grown for next to nothing, the price would fall drastically if it were legal.

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Originally Posted by medicinal

Yeah, it's a shame they cant just let it be, The savings in enforcement alone would pay off the national debt in a few years. !

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Yep, this is why some of the smarter cities (San Francisco, Santa Cruz) out here in Cali have decriminalized it. It's not technically "legal" but is now the lowest priority for law enforcement. Trying to enforce the ridiculous marijuana laws just sucks away too much resources. So now, if a San Francisco cop sees one guy smoking a joint and another jaywalking, he's supposed to go after the jaywalker :jointsmile:

The main reason for wanting to regulate is the amount of marijuana that's on our streets available to children...They're going to sell it as cheap as they possibly can out of the stores to keep dealers from being able to outsell legitimate businesses. And finally, we could go to the store and get a bag of exactly the smoke we want...:stoned: As for the original poster, yes these numbers are very much correct. The report was compiled from government numbers, so the validity is very much so.

I actually doubt that the prices would fall much if weed were legalized. In fact, it might go up in some places. The prices in any given area have pretty much already been set and are based on supply, demand, and what the local population can afford. Look at a product like Adobe Photoshop, a full legal copy is something like $600+. For a shitty little cd. Sure, a lot of r&d etc went into it but a lot goes into other software that only costs $50. So why is photoshop so expensive, because that's what people will pay. Once it's been established that people will pay a certain price it's unlikely that they'll go down.

Look at the situation in the cannabis clubs out here in California. This is weed which is being sold legally and which has been grown legally. Not to mention the fact that a huge portion of the domestic crop is grown here. Yet, prices in the cannabis clubs are as much, if not more, than what you'd pay for illegal weed.

If weed has traditionally been sold for $50-60 an 1/8th, it is doubtful that a legal seller would want to sell it for much less. It has already been established that such a price is acceptable. Yes, if the price falls more weed will potentially be sold for potentially greater profit. But that would level off pretty quickly. If the price of weed were to be cut in half the consumption level would need to double or more(given all other factors remain the same) in order to get the same amount of profit. But how many people would really double their consumption simply because the price has fallen? My guess is not too many.

What I could potentially see happening is a leveling off of prices across the country. You probably wouldn't see a situation like we have now where weed in San Francisco costs $60 an 1/8th and weed in Iowa costs $60 a 1/2. There might be some small regional differences to account for distribution costs but that is it. So, while the prices might go down a bit for some people they might go up for others.

Question for folks who've been to Amsterdam: What are the prices like there?

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Originally Posted by Fengzi

Yep, this is why some of the smarter cities (San Francisco, Santa Cruz) out here in Cali have decriminalized it. It's not technically "legal" but is now the lowest priority for law enforcement. Trying to enforce the ridiculous marijuana laws just sucks away too much resources. So now, if a San Francisco cop sees one guy smoking a joint and another jaywalking, he's supposed to go after the jaywalker :jointsmile:

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right you are:)
i'd rather face down a joint than a two ton car bearing down on me anytime.
I'm glad our local politicians feel the same.
Cars kill
I was at "medical marijuana week" here in San Francisco and we had an escort of police making sure we didnt get hit by cars as we marched down Market Street when the sgt. says " i should of brought my bong", while people were asking him for a light to light their joints with.
I decided to ask this officer to have his picture taken with me when three other officers asked if they could be in the photo also.
We then ended up in Golden Gate Park to symbolically plant 215,000 seeds in thanks of prop 215, which made cannabis legal in cali for medical purposes.
I have great photos of Ed Rosenthal(ask ed) and i with rakes, hoes(the garden kind), planting seeds. We had a whole burlap sacks of seeds we were handing out to anyone that wanted them.
I then proceeded to get Wavey Gravey all fucked up on a indica strain that i had harvested earlier.
You should really checkout San Francisco's medical marijuana week. Its a week long of cannabis related festivities and well recieved by the public.
San Francisco is just a truely outtasight place to live.
Hopefully ya'll from the southbay will make it up to the next "may day", here in the city.

dai*ma:stoned: sfca 94110

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Originally Posted by medicinal

Yeah, it's a shame they cant just let it be, The savings in enforcement alone would pay off the national debt in a few years. I think the price of an ounce is more like 400-600 bucks, unless your talkin schwag!

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I live in Kentucky-price of pot is cheaper for us rednecks.

The price would go way down, and you'd be able to grow it for yourself withoutany risks. As well, you'd be able to get all the imported stuff. The only downside would be if the governemnt let private companies sell weed, then they would start using additives to make it more addictive and we have tobacco all over again.

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Originally Posted by andruejaysin

Pot can be grown for next to nothing, the price would fall drastically if it were legal.

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Ya, but we're not just talking about growing pot anyways. We're talking about growing, maintaining, pruning, disposing of mass amounts of plant waste, drying, curing etc etc. It is an extensive process if done on a large scale industrial level. Not only that, but what do you figure several dozen 1,000 HPS lights on movers would cost electricity wise? I wouldn't dare say it would cost next to nothing, especially in warehouse size grows.

does the gov really need more money? look what they have done with what they HAD.

medicinal, hate to be the one to tell you this but if you havent already figured it out already, the national debt is never going to be paid off.
U.S. National Debt Clock
im sure that they would tax the crap out of it if it did get legalized just like they do everything else.

In my province we have the largest government operated grow op. You can also jump through hoops to grow legally for the gov't for $3 a gram

Chrissey how do u go about growing for the government.Even at 3 dollars a gram youd still make money if you grew alot.

buy the book Sell Marijuana Legally Book
support those blazing the trail for us. I haven't picked it up yet but am dieing to get my hands on it.

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Originally Posted by dawninthemorning

I came across a news story that says marijuana is the top cash crop in the U.S, bigger than wheat and corn combined. If we can trust the numbers that have been released, $35 billion is produced annually. They are saying that the $35 billion equates to 10,000 metric tons.

The $35 billion is just going off "retail value" of a pound of pot. Producers cost of a pound is $1,606 and the retail is $2,400. So they are saying the average ounce goes for $150.00. Most people buy in smaller quantities, but I am trying to keep this simple.

Okay, so the argument that we have been hearing about for years is over the legalization of marijuana. I was curious so I looked at this from a business standpoint. Let's just say that pot was legal and they put a 10% sin tax on it (obviously the retail price would end up being higher and the tax would be higher, but again keeping it simple). Per ounce, the government would make 15.00. That would mean metric ton, the government would make $528,960. Let's put this into perspective people, when you do a little math here you will see that the government stands to make $5,289,600,000.

I don't know about you, but I think that this looks promising. Any thoughts? If you are interested in reading the story that I got the numbers from, I found it on AOL newslinks.

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you're assuming that the market would stay the same if weed was legal. it wouldn't. the vast majority of clandestine growers would be done for, and a new business model would have to be built. folks would grow it on their patios, but still not that much. i think you'd have big tobacco perhaps in the best situation to capitalize; prices would plummet; still, yes, the govt. would make a ton of cash; i just don't want my weed-tax funding war

Quote:

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Originally Posted by dawninthemorning

I could be wrong about it being higher, but I am thinking that the stores and merchants, before they are going to sell it, they are going to look at the profit margin. If people on the street are willing to buy an ounce for $150 and that is with seeds and stems, merchants are going to be able to sell it rolled in smaller quantities and make a larger profit. Also, the cost of raising crops are not going to change so what the crop farmer is goingto be selling it for is not going to change. Now that it is legal it will go through a middleman and that is an extra hand in the pie to get his profit off of it.

That is kind of a rambling answer, but that is my train of thought.

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no way; the costs of keeping a grow secret, and the danger of being caught growing or dealing, are enormous. prices would drop dramatically; i'd still grow myself, but just out on the patio :)

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Originally Posted by Fengzi

I actually doubt that the prices would fall much if weed were legalized. In fact, it might go up in some places. The prices in any given area have pretty much already been set and are based on supply, demand, and what the local population can afford. Look at a product like Adobe Photoshop, a full legal copy is something like $600+. For a shitty little cd. Sure, a lot of r&d etc went into it but a lot goes into other software that only costs $50. So why is photoshop so expensive, because that's what people will pay. Once it's been established that people will pay a certain price it's unlikely that they'll go down.

Look at the situation in the cannabis clubs out here in California. This is weed which is being sold legally and which has been grown legally. Not to mention the fact that a huge portion of the domestic crop is grown here. Yet, prices in the cannabis clubs are as much, if not more, than what you'd pay for illegal weed.

If weed has traditionally been sold for $50-60 an 1/8th, it is doubtful that a legal seller would want to sell it for much less. It has already been established that such a price is acceptable. Yes, if the price falls more weed will potentially be sold for potentially greater profit. But that would level off pretty quickly. If the price of weed were to be cut in half the consumption level would need to double or more(given all other factors remain the same) in order to get the same amount of profit. But how many people would really double their consumption simply because the price has fallen? My guess is not too many.

What I could potentially see happening is a leveling off of prices across the country. You probably wouldn't see a situation like we have now where weed in San Francisco costs $60 an 1/8th and weed in Iowa costs $60 a 1/2. There might be some small regional differences to account for distribution costs but that is it. So, while the prices might go down a bit for some people they might go up for others.

Question for folks who've been to Amsterdam: What are the prices like there?

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your COMPLETELY out to lunch, and your economic forecast is based on total misunderstanding:

1. weed is easy to grow, and remember, if it's legal we're talking fields and fields of it in Nebraska, like corn; big conglomerates would be in the position to mass produce and sell cheap. you would buy a pack of joints just as you would buy a pack of cigs; and i think it could easily be as cheap as tobacco. there would still be a place for specialty growers, but i don't think you get how dramatically the market would change. take a look at alcohol during prohibition and i think you're on the right track.


it would be funny to see all the hydro shops go out of biz, and no longer be able to say "oh, our customers are growing tomatoes indoors" :)


what you seem to totally miss is that SUPPLY would change by 100-fold, perhaps a 1000-fold. demand would go up as well, since folks that would avoid it because it's illegal no longer would, but the SUPPLY and the ease of sale is the main issue. you're still thinking in terms of it being an illegal substance

the photoshop example is also nuts. you're not paying for the plastic disc, you're paying for the complex and specialized software, which took an immense amount of effort to develop, plus there aren't many direct competitors


and you're still missing the point with the med-cannabis shops; they still have to get their bud through clandestine arrangements; they don't have fields of weed out back, if they did, the prices would be far different

and again with amsterdam: they don't have massive fields of green either; growers still have to keep things on the down-low for the most part. there's a difference between decriminalization and legalization. in DAM you can have 5plants but i don't believe the big seed companies and coffee-shop growers have a license to grow as much as they wish; i could be wrong there, though, not sure

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Originally Posted by deftdrummer

Ya, but we're not just talking about growing pot anyways. We're talking about growing, maintaining, pruning, disposing of mass amounts of plant waste, drying, curing etc etc. It is an extensive process if done on a large scale industrial level. Not only that, but what do you figure several dozen 1,000 HPS lights on movers would cost electricity wise? I wouldn't dare say it would cost next to nothing, especially in warehouse size grows.

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AHHHHHHHHHHHHHHHHHHHHHHHHHHHHH, how dense can you be? HID lighting buisness would be blown to shit


no one is going to grow inside, just like no one really uses hydro to grow basil in their fucking bedroom

just remember, FIELDS OF WEED. central california, kansas, nebraska, plenty of places in this country that could grow tons of weed. it is a very hearty plant.

ok, i can't take it anymore; please wake up everybody, you're still thinking about it as if it were something you need to hide

The price would still be the same if the government or any company can get 150-200 per ounce thats what they will sell it as.The Canadian Government is selling their weed for 150 ounce and its shit weed.As far as growing it outside in your backyard good luck with that one,because once some high school kids find out you wont have a crop left people would still have to grow inside.As far as having fields and fields of weed in Nebraska how much is gonna be left when harvest comes around.You would have to build massive green houses and security which all costs money to implement and take care off so say goodbye to cheap weed.So if you want cheap weed your going to grow it in your basement otherwise youll be buying it from companies or government who are in it to make money.

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Originally Posted by fishman3811

The price would still be the same if the government or any company can get 150-200 per ounce thats what they will sell it as.The Canadian Government is selling their weed for 150 ounce and its shit weed.As far as growing it outside in your backyard good luck with that one,because once some high school kids find out you wont have a crop left people would still have to grow inside.As far as having fields and fields of weed in Nebraska how much is gonna be left when harvest comes around.You would have to build massive green houses and security which all costs money to implement and take care off so say goodbye to cheap weed.So if you want cheap weed your going to grow it in your basement otherwise youll be buying it from companies or government who are in it to make money.

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I think this is the most realistic thing that's been said on this thread. In Manitoba we have the largest gov't grow op and they are underground in an old mine. If weed goes legal or at least decriminalized there is money to be made by the gov't and for the weed industry we have.
You walk in and drop off a resume to grow weed for the gov't and you have included 10 years experience growing, show pictures, notes, and include samples and you'll get a job, hell they'll probably give you a fancy title.
Not to mention that the gov't would probably buy weed of certain standards off private growers. Not to mention some investers with the buck to do it are going to jump on the wagon for their chunk of dough. Think of all the cigarette companies out there, gov't regulated but still open for companies to put out new brands, and employ new people.
Then there's the fact that you will still have a source of steady loyal customers due to reputation, and the fact that people hate giving the gov't cash even if it is just tax.
Plus how many people are going to come out of the closet and take up smoking once it's legal. Weed could compare to alcohol and tobbacco, look at the possible un tapped market and possibility for eveyone.

Squirmy babe, gotta go

Oh yeah around hear an ounce of good weed goes for $200