When you hear the term “crop”, the first thing you’ll likely think of is crops such as corn, wheat, or potatoes. But if you’re thinking about cannabis, you’re actually not alone. In fact, it’s the world’s third-largest crop, behind only corn and wheat. And its potential is only just beginning to be realized. With the right incentives, the crop could become an industry of its own, with billions in revenue.
Marijuana ranks as the fifth largest crop in the United States. It beats out wheat, corn, soybeans, rice, hay, and other agricultural commodities.
Cannabis is the top cash crop in Alaska, Nevada, Massachusetts, Illinois, Oregon, and California. In these states, it supports more than 13,297 farms.
The legal cannabis industry continues to grow each year. Licensed producers harvest 2,278 metric tons of marijuana each year. These crops are sold at wholesale to retailers, and the revenue is received by farmers. But many state agriculture officials treat the marijuana industry with disdain.
While the federal government still refuses to recognize cannabis crops, many states have legalized the sale and cultivation of the drug. However, some right-to-farm laws prohibit the cultivation of the plant.
Legal cannabis in these states has a market value of about $6 billion annually. A recent study by the Marijuana Policy Project showed that the revenue generated by these companies will nearly double over the next two years.
The study was based on an analysis of tax figures from 15 states that allow the adult use of cannabis. Leafly and Whitney Economics developed the report. They collected data on the value of cannabis, its classes of quality, wholesale prices, and more.
The most valuable product in the cannabis market is the higher THC flower. Retailers are selling this flower because customers continue to believe that stronger weed is better weed.
The biggest challenge for pot businesses in Alaska is keeping up with the competition. To keep up, companies have to control every step of the business.
One company, Enlighten, is attempting to do this with an all-in-one facility. It has licensed growers, a retail store, and a manufacturing center. After a massive expansion funded by retirement funds, the company plans to pay off its debt in just two years.
Massachusetts is known for its cranberry crop, but cannabis is now officially the state’s top cash crop. According to a report by Leafly, in 2022 the cannabis crop in the state will be worth $361 million. That’s more than double the cranberry crop, which will only be worth $66 million.
Massachusetts has had a complicated relationship with cannabis. At one time, it was mandatory for farmers to grow it. However, in the 1930s, tension between proponents of cannabis and prohibitionists rose. There were 29 states that banned the plant by the mid-1930s.
The war on drugs affects low-income communities in a disproportionate way. Marijuana is a Schedule 1 drug, which means there is high potential for abuse. It’s also a drug that is still illegal under federal law. In fact, there’s still a federal tax on cannabis.
However, despite the federal ban, the legal market for cannabis in Massachusetts exploded in 2018. Retail sales grew by a whopping 68 percent in 2018. This boosted the value of the crop by $443 million.
However, it’s important to note that there aren’t enough legal retail outlets in the state. To date, there are only 33 recreational cannabis dispensaries. Even if there were more, they are located in rural areas, far from population centers.
As a result, consumers in the Bay State turn to the illicit market for a better product. Cannabis quality is a major concern for consumers. Some complain about seedy or mildewy buds. Luckily, there are now indoor grows that are perfect for growing high-quality weed.
While the adult use market is new in the state, marijuana has been used for centuries in Massachusetts. For instance, George Washington grew hemp at Mount Vernon. Hemp was also used to make fabrics.
In the United States, corn, wheat and soybeans rank as the most valuable crops. Cannabis, however, has the potential to become the largest cash crop in the nation.
The legal cannabis industry is a hugely growing market, and it is estimated that the crop will be worth around $5 billion a year by 2022. However, the federal government still classifies hemp as a Schedule I drug.
In order to legally produce hemp, producers must follow strict regulations and laws in the state of New Jersey. These regulations are enacted by the New Jersey Department of Agriculture.
The NJDA hemp licensing program has many requirements that must be followed, and all license holders must understand the terms and conditions of their license. Licenses are valid for one year from the date of issue.
To ensure that the production of hemp is in compliance with all regulations, producers must obtain a Certificate of Inspection from the USDA Farm Service Agency. This will help ensure that all quantities are maintained and that the plant is harvested within the legal limits for THC.
Hemp can be used for a variety of consumer products. It is most successful in loose, well-aerated loam soils. But it also requires significant management.
There are a number of other factors to consider when producing hemp. For example, it is important to test the soil pH for fertility levels. Also, it is crucial to maintain high organic matter levels. If the soil does not have enough fertility, it will be difficult to cultivate.
The New Jersey hemp licensing program has specific reporting requirements throughout the growing season. During this period, producers must report the hemp crop acreage to the USDA Farm Service Agency. They must also document measured levels of THC.
If you are a consumer of marijuana, you may be wondering: is cannabis the most profitable crop in California? The answer is yes, according to the Leafly Cannabis Harvest Report.
In the first quarter of 2022, adult-use cannabis farmers legally grew 2,834 metric tons of cannabis. This is more than enough to fill 57 Olympic-sized swimming pools, or about 2 billion joints.
However, this amount is still dwarfed by the wholesale value of other crops. For example, hay and corn bring in more wholesale money than cannabis.
Legal cannabis is the fifth most profitable crop in the U.S. behind corn, soybeans, wheat, and rice.
It is also the fifth most valuable agricultural crop in all 11 states with legal adult-use markets. These states include Alaska, California, Colorado, Hawaii, Illinois, Massachusetts, Nevada, Oregon, and Washington.
The cannabis market in California is estimated to be worth $6.5 billion by 2020. But this amount is less than half of the estimated street value. And while it is a lucrative business, it is also subject to a lot of regulations.
To calculate the marijuana crop’s value, the Leafly team multiplied two factors. First, they calculated the average price of marijuana in each state. Second, they determined the number of pounds of cannabis that were produced in each state.
They were able to combine this data with cannabis crop reports from the medical marijuana market and the adult-use states. Once they had the numbers, they created the Leafly Cannabis Harvest Report.
Although it’s still a relatively small part of the farm revenue, cannabis is a profitable crop in California. According to the report, licensed farmers harvest more than five million pounds of marijuana per year, which is enough to fill more than 36 dump trucks.
Obstacles to legalization
When it comes to legalizing cannabis, many countries are trying to break away from the dark side of prohibition. Germany is no exception, but its ambitious goal of having adult-use marijuana in its stores by 2023 is a far cry from a slam dunk.
The German government is putting forward a new proposal that would allow patients to grow their own cannabis at home. The law is not without its flaws. However, it is a huge step in the right direction.
One of the most exciting things about the proposed law is that it will be a boon to medical cannabis patients. Instead of having to pay hundreds of dollars a month for imported bud, patients can grow their own cannabis at home.
In addition to helping people in the community, the legislation also offers scientific study opportunities. Researchers can collect data to see how legalized marijuana affects health and wellness.
There are still many hurdles to overcome before this becomes a reality. For starters, there are several legal snags that need to be overcome.
For instance, the state has to collect signatures from at least 84,859 voters to qualify for the ballot. The bill also has to pass the House and Senate before it can even be voted on.
The bill would allow adults 21 years of age and older to grow up to six plants. It would also set a five percent excise tax on retail marijuana sales.
A study conducted in Washington State found that the legalization of adult-use marijuana didn’t have a measurable effect on teen marijuana use. Despite the promise of the law, teens are still having a hard time getting their hands on cannabis.