Skip to comments.Marijuana Top U.S. Cash Crop at $35 Billion
Posted on 12/18/2006 2:00:49 PM PST by kddid
U.S. growers produce nearly $35 billion worth of marijuana annually, making the illegal drug the country's largest cash crop, bigger than corn and wheat combined, an advocate of medical marijuana use said in a study released on Monday.
The report, conducted by Jon Gettman, a public policy analyst and former head of the National Organization for the Reform of Marijuana Laws, also concluded that five U.S. states produce more than $1 billion worth of marijuana apiece: California, Tennessee, Kentucky, Hawaii and Washington.
California's production alone was about $13.8 billion, according to Gettman, who waged an unsuccessful six-year legal battle to force the government to remove marijuana from a list of drugs deemed to have no medical value.
Tom Riley, a spokesman for the U.S. Office of National Drug Control Policy, said he could not confirm the report's conclusions on the size of the country's marijuana crop. But he said the government estimated overall U.S. illegal drug use at $200 billion annually.
Gettman's figures were based on several government reports between 2002 and 2005 estimating the United States produced more than 10,000 metric tons of marijuana annually.
He calculated the producer price per pound of marijuana at $1,606 based on national survey data showing retail prices of between $2,400 and $3,000 between 2001 and 2005.
The total value of 10,000 metric tons of marijuana at $1,606 per pound would be $35.8 billion.
By comparison, the United States produced an average of nearly $23.3 billion worth of corn annually from 2003 to 2005, $17.6 billion worth of soybeans, $12.2 billion worth of hay, nearly $11.1 billion worth of vegetables and $7.4 billion worth of wheat, the report said.
Gettman said the 10-fold increase in U.S. marijuana production, from 1,000 metric tons in 1981 to 10,000 metric tons in 2006, showed the country was failing to control marijuana by making its cultivation and use illegal.
"Marijuana has become a pervasive and ineradicable part of the economy of the United States," he said. "The contribution of this market to the nation's gross domestic product is overlooked in the debate over effective control."
"Like all profitable agricultural crops marijuana adds resources and value to the economy," he added. "The focus of public policy should be how to effectively control this market through regulation and taxation in order to achieve immediate and realistic goals, such as reducing teenage access."
Riley said illegal drug use was a "serious part of the economy," but he rejected the notion of an economic argument for legalizing marijuana. He said marijuana use was an "inherently harmful activity" with serious physical and mental health consequences. He said more American teens were in treatment centers for marijuana dependency than for all other drugs combined.
Imagine if it was taxed like tobacco.
Probably $100 Bil in tax revenue.
No such animal!
What's a dime bag going for these days?
"He said more American teens were in treatment centers for marijuana dependency than for all other drugs combined."
Where they will graduate with a whole new set of connections for other, harder drugs. Sending a kid to rehab for pot is like demanding they meet more drug users and find out about harder drugs.
I s'pose them country boys is still a-settin' on that sack of wildwood flower seeds!
Hoo-ray for American initiative!
Dave's not here, man!
Can you imagine if it was actually legal to grow marijuana? Each field would need to be surrounded by a 10 foot razor wire fence. It'd be as if beer grew on trees.
bump for later
And what % of those in "treatment" are there as a result of a court order? Probably close to 100 ...
LEGALIZE IT ALREADY!
Boy that ol WOD thing is really working ...
I imagine if marijuana were legalized, the price per pound would plummet, which could significantly reduce the $35B figure.
Just an observation.
In other words, perhaps the author of the study was a little toked up when he knocked it out.
Now if I could only remember wut I did with it.
"We beat the foreign competition coming from Central and South America!"
We don't make cocaine here.
Home Brew, Home Grown, Home Slice.
If it was taxed like Tobacco, it would be more like a couple hundred billion dollars.
Tobacco cost only contributes about 10% of the price of a cigarette, and taxes are about 60% of the total cost of the cigarette. So if the marijuana crop has a value of 35 billion, the total cost to the consumer if it was like tobacco would be 350 billion, of which about 190 billion would be taxes.
Drug warriors can't comprehend supply-and-demand.
It's Dave man, let me in!
That's so pathetic. I hate humanity.
outstanding tag line! cheech and chong would be proud!
We'd raid gardens on nights we camped out (in the backyard) during summer vacations, stealing cucumbers.
...they are'a changin'.
Except tobacco is actually a difficult to grow plant. Any idiot can grow smokable marijuana if they have the right seeds.
"of which about 190 billion would be taxes"
Then the cutting of law enforcement/prison/courts --- probably gets us up to $250/billion a year.
That's a balanced budget, or at least a hell of a big dent.
Imagine if all that Law Enforcement were directed at enforcing our immigration laws...
As I understand it, that's one of the problems with eradicating it..."Weed" IS a weed.
I was going to say that's a lot of bunk. But, I went to the rehab hospital for alcohol and ended up hooking up with a cute little cokehead and winding up all whacked out on cocaine before having to go back for more treatment. Not that I'd never done all that stuff before, but it makes it hard for me to argue with you.
Hell, tax that, too.
It all makes sense now.
No. That used to be the case but improved methods of cultivation have lead to far better domestic varietals. Also, the mexican drug lords etc. don't like to transport marijuana if they can transport coke instead because it's so much less bulky.
No, the opposite is true. The indoor stuff is probably the best due to the quality control issues.
You say 'psychotic episodes' like they're a bad thing.
"And what % of those in "treatment" are there as a result of a court order? Probably close to 100"
I wonder how many of those "treatment centers" kick back to the judge?
Bet you had fun for a few weeks, thoough.
I think we're winning the War on Drugs! ROTFL
Reminds me of the old Bloom County cartoon:
Senator Befellow: A farmer! A man of the earth! My heart bleeds for good folks like you. Going through hard times, are you?
Farmer: Nope, doin dandy.
Senator Bedfellow: Good! This is an excellent batch of corn you have here...
Farmer: 'Taint corn. It's dope.
Senator Bedfellow: Pardon?
Farmer: Here, take some home to the wife.
I remember $25/lb and they talk about gasoline prices going up!
Yeah they might be in those joke money machine treatment centers, but doing what? Attempting to break a psychological addiction. Hahahahaha!
$100 Billion in tax revenue on $35 Billion dollar industry???? Some interesting math, there.
On a product that can be produced at home by a consumer more easily than tobacco or beer.
That'll work just fine.
No wonder there is a class disparity in the USA.....someone's spending all their money on this....
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.