Drugs

Exactly How Cheap Will Marijuana Be In The Future?

Price drops are good news for consumers, not so much for producers.

Photo Credit: JeremyNathan / Shutterstock.com

As the cannabis industry continues to produce immense profits as one of the nation’s fastest growing job markets, it would stand to reason that opportunists would want in. Really, who could blame anyone who wants to work in the cannabis industry? The more, the better, right?

Well, perhaps not in the eyes of cannabis farmers. A report from the Wall Street Journal indicates that saturation within the cannabis industry has caused marijuana prices to fall within the competitive landscape. Since more states have legalized marijuana both medicinally and recreationally, weed has dropped an average from $15 a gram to $10 a gram.

From a wholesale perspective, prices have decreased as well. Following a peak in September 2015 of about $2,133 a pound, average whole sale prices across the country fell to $1,614 a pound in July, according to New Leaf Data Services LLC, which researches the U.S. cannabis market. That’s great for consumers, but not as positive for farmers.

This is why, as we’ve previously written, some cannabis farmers are turning to organic methods to differentiate themselves from the pack. Growers are using industry labels like “SunGrown Certified” and “Clean Green Certified,” as opposed to the traditional indoor practices that can soak up electricity and not conducive or beneficial to supporting the environment.

Since peaking in September 2015 at about $2,133 a pound, average U.S. wholesale cannabis prices fell to $1,614 in July, according to New Leaf. That is the sort of market decline that hit Midwestern corn and soybean growers in recent years after a string of record-breaking crops.

“The socially conscious, premium customer is going to want us because we’re sustainable,” Jeremy Moberg, an environmentally conscious grower in Washington, told WSJ. “It only takes me 30 seconds to convert somebody wearing Patagonia and driving a Prius that they should never smoke indoor weed again.

 

Brendan Bures is the Culture Editor at The Fresh Toast. 

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