Cannabis is now America’s fifth most profitable crop

With recreational cannabis now legal in 18 states, cannabis is a truly profitable cash crop. In November, Leafly Holdings, Inc. released its first-ever “cannabis crop report,” which “examined agricultural licenses and production in the 11 states where legal adult-use stores are open and operating.”

“Cannabis is medically legal in 37 states, but for the purposes of this report, we focused on adult-use states—the 11 states where any adult can go to a licensed store and buy cannabis—to operate become known to the general public,” the report’s authors wrote. “In these 11 states used by adults, cannabis supports 13,042 licensed farms that harvested 2,278 tons of marijuana in the past year. That total would fill 57 Olympic-size swimming pools or over 11,000 dump trucks stretching 36 miles — and it brings back $6,175,000,000 to American farmers every year.”

That figure of just over $6 billion “ranks (cannabis) as the fifth most valuable crop in the United States,” behind corn ($61 billion), soybeans ($46 billion), hay ($17.3 billion US$) and wheat (US$9.3 billion). ), but ahead of cotton ($4.7 billion), rice ($3.1 billion) and peanuts ($1.3 billion).

The report states that in five of the states where adult cannabis sales are legal — Alaska, Colorado, Massachusetts, Nevada, and Oregon — cannabis is actually the most valuable crop.

“In any of the 11 states that operate adult retail stores, cannabis ranks no lower than fifth in terms of agricultural crop value — often within two years of the first stores opening. In Alaska, the cannabis crop is worth more than twice all other agricultural products combined,” the report’s authors wrote.

The goal of the crop report, according to Leafly, is “to quantify annual cannabis production in operating states for adult consumption, just as the USDA’s Economic Research Service does for all non-cannabis crops.”

“The United States Department of Agriculture (USDA) tracks annual yields, prices, and estimated values ​​for nearly every commercial crop grown in America. But the USDA does not prosecute legal cannabis due to the plant’s Schedule I drug status,” the authors wrote. “This is just odd because in legal states used by adults, cannabis is consistently one of the most valuable crops in the field.”

“We also believe it is time to end the stigma attached to growing cannabis. Far too many state agricultural agencies and policymakers still treat cannabis growers with contempt,” they continued. “Some rights-to-farm laws specifically prohibit the cultivation of cannabis. Most cannabis farmers are required – by law – to hide their crops from the public, as if the mere sight of a fan leaf could induce a high. These unfair and unnecessary measures are being taken against a legal crop that is among the best crops in every state for adult consumption. Cannabis farmers are farmers, period.”

The report’s findings echo a study published last month. This research, conducted as part of the Marijuana Policy Project, found that the 11 states with licensed cannabis retailers for consumption of cannabis generated combined sales of more than $3.7 billion in 2021.

That number represented a 34% increase in sales from recreational cannabis in these states compared to 2020.

“The legalization and regulation of adult-use cannabis has generated billions of dollars in tax revenue, funded vital state-level services and programs, and created thousands of jobs across the country. Meanwhile, states that lag behind continue to squander government resources enforcing archaic cannabis laws that hurt far too many Americans,” said Toi Hutchinson, the president and CEO of the Marijuana Policy Project, adding that the results serve as “further evidence of this.” Ending cannabis prohibition offers huge financial benefits for state governments.”