The question is whether or not cannabis is the most profitable crop in the United States? If you ask a number of people in the industry, you will get a variety of answers. Some will say that if the laws were changed to legalize the cultivation of weed, it would become the most profitable crop, while others will suggest that it would be cheaper to grow it illegally. What are your thoughts?
Rapeseed is the most valuable cash crop
Rapeseed is a plant that belongs to the Brassicacea family. This family contains many species of plants that are important to human life. Some of the crops in this group include canola, soybeans, and wheat.
The study examined the potential for development of rapeseed as a versatile multi-use crop. To evaluate the extent of IPR in relation to the development of rapeseed, a search for patents was performed, covering the years 1999 to 2017. For the purpose of the analysis, OECD (2005, 2008) guidelines were followed. These guidelines include a full text search for titles and abstracts.
The number of plant variety rights granted for new rapeseed varieties has been increasing over the past decade. However, there are legal barriers to patenting rapeseed. A limiting factor is the absence of a European Patent Convention that prevents a monopoly over a particular variety.
Rapeseed has been a major oil crop in Europe. It is one of the most commonly used oil crops in the world, accounting for approximately 63% of oilseeds harvested worldwide. As an oil crop, rapeseed has multiple uses. Besides edible oil, rapeseed is also used for feed, forage, and biodiesel. Moreover, it has some biological activities against weeds and plant parasitic nematodes. In addition, rapeseed feeds contain manganese, iron, and selenium.
While a significant increase in rapeseed adoption globally may be expected, it is not yet assured. It may be necessary to further develop rapeseed genetic diversity in order to maximize its value. Currently, EU GMO policies limit rapeseed cultivation and might hamper optimal use.
A large amount of data were collected to assess the development of rapeseed in the EU. Specifically, the study assessed the number of patents for rapeseed and its applications, as well as the number of plant variety rights for rapeseed. Alongside these numbers, other factors were considered. Among them were the area of cultivation, the revenue generated per acre, and the rate of yield.
Federal marijuana prohibition
Marijuana has always been one of the most profitable crops in the United States. It has also been a boon to farmers in the Midwestern states. While federal prohibition has caused many challenges, the industry has still made millions of dollars. But the industry also faces uncertainty and inequalities.
While there is no definitive answer as to where cannabis originated in the United States, it is thought to have been sourced from Central America. In the early twentieth century, it was mainly imported from Europe and Mexico.
Cannabis was also cultivated illegally in the South. However, during the late nineteenth and early twentieth centuries, cannabis was rarely grown in the United States.
During this time, most of the marijuana produced in the country was imported from Mexico and Britain for the pharmaceutical industry. Despite a national campaign to eradicate feral cannabis, the plants remained in the wild.
By the mid-1930s, the federal narcotics agents eliminated 23,586 metric tons of feral cannabis. This included 26,000 tons in 1938.
The Cole memo, a document issued by the Department of Justice, outlined a number of changes to the marijuana policy. These included a decrease in arrests for simple possession, and a reduction in the number of scheduled substances.
However, the memo also raised potential issues for the marijuana industry. First, it paved the way for federal enforcement of the cannabis policy. Second, it sparked a wave of activity at the state level. Third, it generated media attention.
Finally, it highlighted the fact that there was no accepted medical use for cannabis. Yet the Cole memo was not the first to outline the government’s policy on marijuana.
Not enough to meet demand
In the legal cannabis world, cannabis is the most profitable crop. But is it enough to meet demand?
While the legal marijuana industry has been growing steadily, the resulting demand has created supply imbalances. Consequently, the price of marijuana is lowering. That’s good news for consumers. The bad news is that many retailers are demanding better deals.
According to the latest data from the Portland Business Journal, the median price for usable cannabis has declined by 20 percent. This isn’t surprising, as the region’s farmers aren’t yet producing enough to satisfy the market.
In order to find the best answer, the Leafly News team conducted research to determine the most cost effective crop. They analyzed the prices of cannabis in each state, as well as the quality of the product. Interestingly, the cannabis harvest in Alaska was the most lucrative of all the crops studied.
Its value was more than twice the value of the average agricultural product. Meanwhile, the rapeseed or canola crop’s worth was $60k per square kilometer.
While the Leafy team did not cover the medical cannabis market, it did analyze two other factors that were more relevant to the adult use market. One was the “cannabis molecule” and the other was the best way to grow the plant.
The report estimates that the legal marijuana harvest in the U.S. is worth $5 billion per year. Combined with legal sales from the remaining states, that figure is expected to exceed $18 billion in 2020. Despite the gloom and doom of the cannabis industry, several states have started implementing regulations to ensure that the legal market gets off to a good start.
Legalizing weed is cheaper than illegal weed
In the wake of Proposition 64, legalizing marijuana, many believed that prices would plummet. After all, a slew of entrepreneurs and marijuana growers would be flush with cash. But, according to research conducted by the CATO Institute, prices have hardly changed since then.
While it’s true that some consumers are willing to pay extra for features like fancier packaging and testing certification, most aren’t. They simply can’t tell whether a product is legal or illegal. The most important consideration is how low the black market price is.
Legal weed is usually more expensive than the black market. That’s because of overregulation. As a result, many of the legal cannabis companies divert their product to the black market.
This creates a financial incentive for disobedient users to head to the black market. It also means that a persistent black market isn’t going to go away. Instead, it may become even more widespread. And, of course, it increases the presence of Mexican drug cartels.
There are several factors that influence the price of weed. Some of these are based on the geographic location of the product. For instance, California’s marijuana is more expensive than Oregon.
Another factor is the state’s tax regime. Taxes can be very high. Depending on the state, retailers may be subject to as much as 37% in retail taxes. Growers are also subject to taxes.
Even if prices drop, the total revenue of the marijuana industry could decrease. If marijuana were taxed like alcohol, it’d generate about $6 billion a year.
Still, the total number of marijuana consumers might increase modestly. Young customers, who don’t have serious medical conditions, might be able to buy more.