We all know that cannabis use has become mainstream as of late, but many of us forget the federal prohibition still in place. With legalization, the wholesale prices for cannabis grown outside have dropped from between $1,200 and $2,000 to less than $400 a pound today. This is still more expensive than other commodities, such as corn, which fetches $50 a pound, or gold, which is more than $1,800 an ounce.
Prices for recreational marijuana vary from state to state. In Michigan, the average price per ounce dropped to $95.12 as of Monday, while in Colorado, the average price per pound has declined 51% since the fourth quarter of 2020. The primary reason for the decrease in price is the glut of weed on the market, along with the added excise tax, which is $335 a pound. This is a huge factor for small farmers, who are struggling to keep up with the demand.
Recently, the New York City Sheriff’s Office and other agencies confiscated more than 600 pounds of weed as part of a two-week crackdown. This is a huge amount of weed, and it is a testament to the amount of marijuana being sold both legally and illegally. It also highlights the need for tighter regulations and enforcement to ensure that cannabis is being sold responsibly.