On the back of popular NFL Sunday games, 60 Minutes ran a segment interviewing a California licensed grower (the largest in the state) who was a victim of following the rules in his state while other growers were shipping to black-market states for higher margins. It remains illegal, to ship across state lines, but markets on the east coast are willing to pay higher prices as the demand exceeds the supply and western states are awash in weed (marijuana).In the period before a full federal mandate, there is a large gap in logic for many of the rules governing the seed to sale process, and the inconsistency in laws state by state. A clip below outlines the segment.
Certainly, these kinds of gaps in logic will improve the business overall, but the concern here is that prices have fallen so dramatically while the laws don’t really help the growers, causing higher prices for the consumer. This is a common problem when regulators come in and don’t grasp a business that has been operating for decades. It is clear the black market will continue to operate for many years to come until legislation brings uniformity to the regulation and hey, isn’t that what the federal government is all about: Regulating interstate commerce?