There are only a handful of countries worldwide where marijuana has been legalized. Yet, the United Nations (UN) estimates that globally the trade of marijuana amounted to $150 Billion annually. With this amount of money involved, it is safe to say that dabbing on marijuana business would be a very lucrative business. In fact, the legalization of the use and trade of recreational and medical marijuana in Canada in 2018 has earned this country $6 Billion in revenue this year.
Some of the strongest support to the advocacy to legalize marijuana came from the health sector due to the herb’s documented medical uses. Marijuana contains more than 100 active compounds that are collectively known as cannabinoids. Each of this active compound can interact with the body’s natural endocannabinoid system, which affects various aspects of life including the maintenance of homeostasis, emotional equilibrium, and even circadian rhythm. Through these effects, marijuana can help the body maintain physiological and cognitive wellbeing. As marijuana became domesticated, different strains have been developed containing different proportions and amounts of these cannabinoids. The proportion of cannabinoids determine the effects of the marijuana strain on the cannabis. As a consumer, it is best to learn about your personal needs and different effects of cannabinoids since no strain of cannabis has the same effect. The strains can benefit different buyers in many ways possible.
INDOOR OR OUTDOOR CULTIVATION OF MARIJUANA – WHICH ONE IS BETTER
If you are planning to cultivate marijuana for a living, planting marijuana outdoors is still the cheapest way to go about it. However, we cannot recommend this. It is more difficult to maximize yield and maintain the quality of your crops if you chose to plant outdoors. This is because you subject your crops to the climate and to the pests.
Indoor cultivation of marijuana is more costly in terms of operations. However, the facilities for indoor cultivation of marijuana provide the optimum environment to ensure maximum yield of your crops.
GLOBALLY, HOW PROFITABLE IS MARIJUANA?
All that said, with the research and knowledge about the medicinal value of marijuana, this plant remains illegal in various corners of the world. As such, the $150 billion worldwide revenue from was primarily pocketed by syndicates operating in the black market. Only a very small portion has been actually earned by legally operating companies. Given this, you can only imagine the immense viability of growing marijuana in countries where it is now legal. In the US alone, legal trade of cannabis has yielded a whopping $8.5 Billion. With the legalization of marijuana only happening in the last few years, the industry of marijuana is at its infancy. So starting up a business today would mean that you would be one of the pioneers.
Among the businesses within the marijuana industry, marijuana cultivation seems to be one of the most popular and most lucrative. In the US, marijuana cultivation is expected to grow even bigger with the up and coming passage of the U.S. Farm Bill of 2018. This bill seeks to remove hemp and marijuana among the list of plants/crops containing controlled substances. With this step, cannabis companies will be able to grow more hemp with ease.
The legalization of marijuana remains to be something that many developed countries are pioneering. As such, farmers in countries like the US and Canada still have little to no competition in terms of global trade. Marijuana naturally grows in tropical and humid countries. However, most countries in the tropics have prohibited the use and even possession of marijuana and marijuana-based products. With this kind of mindset, it is very likely that companies in countries where marijuana is legal will dominate the global marijuana production and trade. If you are a person living in a country where marijuana is legal, you are in the best position to start a business since the possibility of dominating this industry is very high.
PROFIT IN CULTIVATION OF MARIJUANA
I guess the best way to illustrate how much you can actually profit from marijuana cultivation is to show you the profit of some marijuana companies. The amount of money that farmers earn by supplying various dispensaries in the US is affected by the size of the company’s operation.
To help you imagine the amount of profit you can earn, let us take the state of Washington as our sampling site.
The top 5 producers of marijuana in the state of Washington as a sample, the fifth placer actually made $28,031,838 in 2018. The number one company made $200,662,980 in 2018. On average, in that year, all the 990 growers in Washington State earned $1,057,383. The top 10% of companies that operate farms for marijuana on the other hand made $8,232,026 on average. For the bottom 90%, the average profit for 2018 was $268,253.
As you witness with the 2018 average profits of growers of marijuana in Washington State, the bigger the company, the higher the amount they earned. Whereas the smaller players, are not exactly losing. The average earning of $268,253 in 2018 is actually very good for a small farming company.
Cultivation of marijuana is rapidly becoming more industrialized. Whereas a few years ago, marijuana is being planted in secrecy due to its prohibition, now, the government supports people such as yourself to start your very own marijuana business. With a passion for this herb and some technical knowledge (which you can learn), you can start cultivating marijuana as a business.
