Too Much Pot in California Drives Prices Down

By Lori Preuitt
|  Thursday, Jan 27, 2011  |  Updated 1:01 PM PDT
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Lots of <a title=California sun and a welcoming political climate has medical marijuana types facing too much of a good thing." />

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Lots of California sun and a welcoming political climate has medical marijuana types facing too much of a good thing.

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It's been a very green year for marijuana here in California. Above average rainfall followed by a warm January is helping all crops in the Golden State to grow like weeds and that includes weed.

Marijuana growers say there is so much cannabis they are reporting the first glut in the medicinal marijuana market. Bring in the principal of supply and demand and you will quickly realize the bounty will mean much-celebrated discounts for users.

Every medical marijuana club is different, but outdoor growers used to get on average about $3,300 a pound. That has dropped to about $2,000 a pound now and could go as low as $1,500 a pound in the coming months. Indoor prices are more stable, but have also dropped from about $3,800 a pound to $3,000 a pound. That's a 30-percent decrease at the top, which will soon trickle down to the buyers.

The Green Cross, which is a delivery-only marijuana dispensary in San Francisco, is one of the places that is overflowing with pot these days.

"The great weather has played a great part in this year's crop that's probably the primary reason we have such an enormous amount of product," owner Kevin Reed said.

Reed said the along with the good weather, a friendly political climate is also responsible for the current glut in the market.

"It comes back from the Obama Administration's announcement of the lax policy on medical cannabis," Reed added.

The increase in product is pushing prices down. That's good news for patients who rely on medi-pot for relieving their pain, but it's cutting into the bottom line of people who make a living from growing cannabis.

"That's definitely the growers concern when they ask me that. Am I going to be able to sell it? And I'm chances are you're going to get a lot less than you thought you were going to get," said Green Cross worker Ben Creschini.

No one is saying it, but if growers can't find legitimate businesses to purchase their crop, they will likely turn to the illegal ones.

Remember, former Gov. Arnold Schwarzenegger made getting got with a little pot equal to getting a traffic ticket. The new rules went into effect Jan. 1, just in time for the glut in the market.

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