Demand for pot is soaring in states that legalized recreational use.
Grow houses are popping up all over the place, and it won’t be long until traditional farmer’s get into the act.
Global demand for food continues to climb, and prices are sensitive to supplies.
Pot versus grains – An economic no-brainer for the farmer.
As acceptance spreads a hedgingmechanism for price will become necessary.
Until 1996, marijuana was nothing more than an illegal drug in the same category as many other opiates and other narcotics. While pot has been part of the social fabric for many decades, the fact is that pot remained underground as it gained in popularity starting in the 1950s. In the United States pot was an illegal substance, but in countries like Holland marijuana was legal for both medical and recreational use. In 1996, California became the first state in the U.S. to legalize pot for medicinal use, and since then many other states have followed suit. In 2017, medical pot is legal in 29 states and recreational in five. On July 1, 2017, dispensaries in the state of Nevada followed Colorado and are now selling pot for recreational use. Demand in Las Vegas has been so high for the first week of legalization that many dispensaries are worried they will run short of supplies.
While there are still questions about the differences between Federal and State laws when it comes to the sale of marijuana, the trend of legalization appears too strong to stop at this point, and it will not be long before the weed is available for both medical and recreational use in all fifty states. From the States perspective, the potential tax revenue from sales of the weed come at a time where municipalities are in desperate need of funding. On the Federal front, it is becoming more difficult for the U.S. government to stand in front of the will of voters and States’ rights. Given the buoyant demand for pot and its price, marijuana is fast becoming the most popular agricultural product, and that could result in some unintended consequences in the years to come.
credit:seekingalpha.com