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The price of marijuana has dropped drastically in the last few years, and many analysts attribute the fall to the legalization or decriminalization of cannabis by several U.S. states. Currently, the use of both recreational and medicinal marijuana has been legalized in the states of Alaska, Colorado, Oregon, and Washington.
Following the laws of economics, the increased marijuana output from U.S. growers has flooded the market to the extent that prices paid to Mexican pot farmers has plummeted. As one example, the Los Angeles Times reported on December 30 that the amount paid to small marijuana growers in the Mexican state of Sinaloa has dropped from $100 to $30 per kilogram over the last four years. Juan Guerra, Sinaloa’s agriculture secretary, told the Times: “People don’t want to abandon their illicit crops, but more and more they are realizing that it is no longer good business.”
California became the first state in the nation to legalize medical marijuana in 1996, when voters passed a proposition to that effect. Colorado legalized the sale and possession of marijuana for non-medical uses through the passage of Amendment 64 on November 6, 2012. This legalized the private cultivation of up to six marijuana plants, with no more than three being mature. So the period since the legalization of marijuana in Colorado closely coincides with the price drop in Mexico.
