It seems like the production and sale of legal marijuana is a no-brainer. For decades the illegal sale of weed has been amazingly lucrative for a certain segment of society. (I know I grew up with a few.)

Marijuana Buds

So the legalization of the sale of this product (and subsequent taxation) should have provided a windfall for state and local governments, even as the federal government has chosen not to act on legalizing it at the national level. But there continue to be problems that have stalled this effort.

Below is a link to an interesting article on Fortune.com outlining some of the problems growers are currently experiencing in New York.

Pot farmers are going broke growing for a New York legal weed market that’s not taking off: ‘We’re all losing money’

There are a number of reasons this is occurring, but here are the top three:

• There are not enough dispensaries selling products. Farmers did their job and produced the product last year but the state has been slow to approve the opening of dispensaries to sell the product to the public. Farmers are hesitant to enter the growing season producing more products when they still have the product they grew last year sitting in the warehouse.
• Unlicensed (illegal) shops have opened across the state but since they are not part of the legal supply chain they do not buy from the licensed growers.
•  In other states, the presence of unlicensed growers has flooded the market with more products than the market currently consumes, so the net result is a price decrease as the licensed versus unlicensed growers fight it out for the consumers. (See California)

There are a number of other issues that still need to be addressed (like the dispensaries not being allowed to use the commercial banking system).   A lot of this pain can be alleviated if our federal government would address the issue in a legislative manner.

More to follow.

Are you a licensed marijuana grower? If so Triple K Irrigation can help you with your irrigation and fertilizing plans. Give us a call at 517-458-9741 and speak to one of our agricultural experts and learn how we have helped other growers across the country.