Outdoor cultivation will uproot the cannabis industry

Gardening is a big hobby in the US and farming is a huge industry. Cargill, ADM and CHS are agribusiness giants that generate billions in revenue and use hundreds of thousands of acres of land. Iowa, Minnesota, Nebraska, and California have large tracts of land dedicated to open-air farming. Wheat, cotton, peanuts, soybeans and tobacco continue to drive part of the southeastern economy. With state and federal legalization of the cannabis industry, outdoor growing will wipe out investments in indoor growing.

A recent article on Cannabis.net reported that someone in Brazil could retail marijuana for $0.30 an ounce. In the US, the basic cost of growing an ounce of weed is $29.50. This is done before it is sold to a manufacturer, who then makes a product and sells it to a retailer, who then sells it to a customer.

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Some industry leaders are touting the benefits of growing indoors. The entire growing area of ​​Tilray takes place exclusively indoors. So there is a lot of interest. But Hershey is the largest chocolate company and Bud Light is still the number one beer. Walmart, Amazon, Costco and Target as well as the largest retailers. Consumers are proving again and again that they want good taste at a good price.

So why is indoor use more prohibitive? Both share the same cost of labour, plants, water, insurance etc. Land costs vary. When growing outdoors, the bigger the piece of land, the bigger the harvest. When growing indoors, the larger the land, the higher the cost of the building and associated costs. Usually the upfront costs are huge. Add in the cost of building maintenance, fluctuating energy prices, and the limited size of your plants, and you have an expensive bud.

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The next big boost for the indoor industry is that they can grow year-round. But is it cost effective and worth it? Some of the largest agricultural states are Nebraska, Illinois and Iowa, which are known for harsh winters and shorter growing seasons. Canada’s bountiful harvest is not only sold domestically, but also exported to China, the United States and other countries.

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If you look at outdoor farming in the US and Canada, it’s a $1,296 trillion industry. And that’s a case for strong outdoor growing.