A recent economic study was released predicting a 90% price decrease for Marijuana in California if Proposition 19 Passes. The fear is that this will undercut the predicted tax revenues and hurt farmers; this article, and a viewing of The Green Rush, will explain why those fears are unjustified and could actually hurt farmers if Proposition 19 is not passed. It will also touch quickly on why marijuana legalization will not lead the industry to be monopolized by big business such as Philip Morris.
Budweiser vs. Microbrewer
California has a rich history of brewing its own beer and making its own wine. We like to buy local. Sierra Nevada and Anchor Steam are two great examples of that. The Wine Country, deep in the heart of Northern California, specializes in bringing wine-lovers from all over the World directly to where the wine is grown and produced.
While National Brands will obviously do well in areas without a strong local industry, the free-market version of this is no different from the black-market equivalent of Drug Cartels vs. Local Growers. As other states legalize, U.S. Citizens in rural, mid-west areas will be better off buying from Philip Morris through a Liquor Store than a Mexican Drug Cartel through a Drug Dealer.
Under Proposition 19, Farmers will have choices between selling their crops to Big Business Distributors, Regional Distributors, or Directly to Vendors. They may also, like wineries, become vendors themselves. Independent Farmers will have to compete with Big Business Farmers the same as with the Food, Wine, and Beer Industries. It will be up to the consumer to decide, which in California, tends to go more local and Independent than the rest of the country.
Tax Revenue
Taxes under Proposition 19 will be set by the counties. The proposed proposition in Nevada for 2012, in which the State sets the tax rate, will tax the weight of marijuana, not the price. With a tax of $50.00 an ounce, a drop in price will have no effect on tax revenues for the State of Nevada. Counties and Cities in California will be able to do the same thing.
Farmers’ Profits
If prices fell under current conditions, it would be reasonable to say that would hurt farmers, however if Proposition 19 passes, conditions will change.
- Farmers will have another layer of protection from the law, and may be able to grow more plants safely.
- A price drop would decrease intensive of theft, thus insuring that farmers hold onto their entire crop (The Green Rush will emphasize the economic harm of theft).
- Farmers will be able to incorporate their marijuana crops with other farming activities due to the extra legal protection from the State. They can bring in chickens, grow gardens and other crops, even wine. They can create a food supply and other forms of revenue off the same land they are using to grow marijuana.
- Other farmers, currently struggling to make enough money of food production, will be able to add marijuana as an extra cash-crop.
The only people that Proposition 19 will hurt are Drug Dealers and Thieves, and possible (hopefully) the legitimacy of the Drug War. Liquor Stores and Dispensaries will most likely take care of the majority of dealing, benefiting both of them.
After the passage of Proposition 19, California voters will be able to keep The President and his management of the DEA accountable in the 2012 election, where their 52 Electoral Votes will be critical to the re-election of a Democratic Candidate. How the current administration deals with California’s Legal Marijuana Industry will greatly effect the Presidential Election, thus (hopefully) ensuring their compliance with State Sovereignty.
The Green Rush
How To Help Legalize Marijuana
Donate: Tax Cannabis 2010 (California)
Donate: Nevadans for Sensible Marijuana Laws
Vote Yes on Proposition 19 – November 2, 2010 – California
Jack Wagner is the Editor of The Free Independent-Sun. Born in Sonoma, California and currently residing in San Francisco, Jack set up The Free Independent-Sun on July 4th, 2009, after sleeping in and not making his usual trip up north for his hometown festivities. He figured he'd do something revolutionary to make up for it. In the Summer of 2010 Jack registered Seraf Media with the City and County of San Francisco as a Sole-Proprietorship. He is dedicated to articulating the finer points of the Revolution in order to bring about a Global Renaissance and Abundant World Economy. He also isn't afraid to get his hands dirty transplanting succulents. 
