Legal cannabis is the 6th largest cash crop in the U.S.

According to the new Leafly report Cannabis Harvest Report 2022 published last month, cannabis prices in the United States have plummeted despite a year of historic inflation.

Adult-use cannabis growers in the United States cultivated 554 tons of cannabis more in 2022 than the previous year. Yet the value of the harvest has fallen by a billion dollars. Large-scale farming and the rise of crop technology, for example, have driven wholesale prices down to historically low levels in Colorado. Grams of flowers can be sold for $4 in Oregon.

How much legal grass does the USA grow?

According to the second annual report Cannabis Harvest Report 2022, adult-use cannabis growers produced 2,834 tons of cannabis last year in the United States. Cannabis thus ranks behind corn, soybeans, straw, wheat and cotton as the 6th most important cash crop in the US.

According to federal use surveys, these 2,834 tons represent only about a quarter of Americans' annual cannabis demand.

Growers in the western U.S. have apparently grown too much over the past year. Meanwhile, growers in the Midwest and East didn't grow enough to meet their region's demand. Because of federal prohibition, licensed farmers can't sell across state lines. But the illicit market does. This dynamic hurts legal farmers in the West, while overcharging customers in the Midwest and East Coast. Residents of Illinois and Maine, for example, pay some of the highest prices for cannabis in the country. Residents of Colorado, Oregon and California pay some of the lowest prices.

Our results suggest that Congress must do the will of 68% voters and send cannabis reform bills to President Biden this year. Americans want to vote with their dollars for longstanding, sustainable, artisanal cannabis, but they can't yet.

Several dozen farmers shared their experiences with Leafly, reflecting regional booms and busts in this fast-moving field. As a result, small farms would find it far more difficult than large corporations to maintain a healthy financial course.

«This year's prices have never been so low and, honestly, it's pretty tragic for all the small artisan farmers. A lot of people won't be able to afford to run their farms. Our community as a whole is in a bad financial situation,» explained Jason Gellman of Ridgeline Farms, one of the winners of the Emerald Cup 2021.

According to Gallup, approximately 68 % of Americans are ready to stop to the federal prohibition of cannabis and move to a regulated system.