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RE: A Marijuana Stock I'm Watching
$500 per pound is profitable if you are a corporation with machines doing most of the labor... Great comment & valid points... Thats why we invest
$500 per pound is profitable if you are a corporation with machines doing most of the labor... Great comment & valid points... Thats why we invest
$500 per pound cannot pay the bills when there is a $5000 /100 plant up front annual fee, plus taxes of $8? per ounce. It literally all goes to the government and rentier. Only chance is for those who have clear title to the land outright, or another way to pay agricultural bills, like, say, a vineyard.
Lets say you know what your doing and you get 5-10lbs a plant 1 time a year... @ 100 plants that is either 500 or 1,000 lbs a year. Lets say you are in Oregon and its closer to 5. At $500.00 per 500 lbs that is 250,000 and after tax of $5,000 & $8 per oz of $64,000 you still can earn near $200,000 per year. I am guessing it is still more profitable than growing potatoes
If post harvest prices stay around $500, I agree. Broccoli growers would love those margins. Or, artichoke growers in Monterey, who seem to have the perfect climate, and are ready and willing to switch on masse.
Last year's prices in January were closer to $100 (untrimmed), restaurants in Garberville closed up, and the local coin dealer had oodles of precious metals for us to choose. Maybe it will be different this time? I think we're going to need to see a bunch of people get out before the prices stay remotely constant, and I don't think we're there yet. Lots of places for sale in Willits, but the prices haven't really dropped yet. Maybe by this spring? Seems so inevitable somehow.