From a legal cannabis cultivation standpoint, it is truly an amazing time to be alive. Many countries still prohibit cannabis cultivation, however, a growing number of other jurisdictions now permit some form of cannabis cultivation.
More legal cannabis is being cultivated right now than at any other time in modern history and that’s a trend that will continue well into the foreseeable future as more countries reform their cannabis laws.
That is great news for consumers who will benefit from the growing bounty of legal cannabis offerings that are spreading across the globe.
Unfortunately, an increasing global cannabis supply is bad news for people who want to strike it rich by cultivating the cannabis plant.
Technology Will Lower Global Cannabis Prices
As with all agricultural crops, the cannabis plant is the focus of innovation by researchers and inventors all over the planet.
That is especially true now that a legal multi-billion dollar cannabis industry is spreading to every corner of the earth.
As cultivation innovations continue to be implemented by cannabis cultivators, and cultivation facilities and farms become more sophisticated, harvests will get bigger and better.
The more supply that enters the market, the lower the prices become. It’s a basic economic principle that is found in virtually every industry,and cannabis will be no exception.
With every passing year global cannabis cultivators will increase the size of their harvests as they dial in their operations and expand them.
What global cannabis prices will be in the future is tough to say with exact certainty, however, it’s a safe bet that cannabis prices will be considerably lower than they are today as megafarms boost their yields and are allowed to bring their harvests into more legal markets.
Cultivators Need To Plan Ahead
The days of putting a cannabis plant in a container and giving it decent nutrients and light and reaping financial glory are long gone. There will still be winners and losers, but likely more of the latter.
These days if someone wants to compete as a cannabis cultivator on a global level, they need to plan for what the cannabis industry landscape will look like in 10 to 20 years versus 1 to 2 years.
Cultivators that build their business models on the assumption that cannabis prices will remain close to prohibition street prices are setting themselves up for failure, and are failing to recognize the technological revolution that is occurring in the cannabis cultivation sector.
Trends in older legal markets provide a glimpse of what is to come, which is a global cannabis retail industry that is flooded with cannabis and cannabis products.
It behooves cannabis cultivators, especially smaller cannabis cultivators, to plan accordingly to ensure that they have the best chance to succeed in the cannabis space for the long haul.