Marijuana legalization
In states where marijuana is legal, growers are trying to adapt to plunging retail prices
Pot growers in states where marijuana has been legalized for adult consumption are grappling with the problems of supply and demand that have challenged other commodities. Wholesale U.S. marijuana prices dropped to $1,614 a pound in July, from a high of $2,133 a pound in September 2015, according to New Leaf Data Services, and while that has been great for pot consumers, growers are less enthusiastic, The Wall Street Journal reports. Axios broke that down into more consumer-scale prices, citing BDS Analytics.
As with food crops, beer, and other commodities, the $6 billion marijuana industry is breaking into niches, with indoor growers producing more uniform, consistent, and abundant pot crops and outdoor "sun grown" purveyors trying to win over more environmentally conscious and organic-focused smokers (though marijuana can't boast USDA organic certification because it is still illegal under federal law, the Journal notes). The swag, or low-quality pot, is used to make oils and edibles. You can read more about how the marijuana industry is dealing with freer markets at The Wall Street Journal.