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California - With the possibility of a marijuana legalization measure on the 2016 ballot, economics experts and local representatives are weighing in on the idea of Humboldt brand pot. "After prohibition, who knew Jack Daniels would do so well?" 1st District Supervisor Rex Bohn said. "Anything can be replicated anywhere, but the best products come from the right climate and the right expertise, which I think we have plenty of."
Bohn cited Lost Coast beers and Fox Farm soils as two brands that originated in Humboldt County and gained recognition on the national market. He also said anyone could replicate a product anywhere, but certain locations have the advantage. "Look at Napa Valley. Wine is just grapes in a bottle, but they have the right climate for it," Bohn said. "The same goes for sourdough bread and marijuana."
Bohn said all eyes are on how Colorado and Washington are dealing with marijuana legalization. "Hopefully, by the time it gets to the ballot, Colorado and Washington will figure out what worked and what hasn't," he said. "They're good guinea pigs." Erick Eschker, a Humboldt State University economics professor and co-director for the Humboldt Institute for Interdisciplinary Marijuana Research, said that while he is not for advocating marijuana legalization, he could think of two extreme cases that may come with legalization -- the rosy scenario and the doomsday scenario.
"On the one hand, the economy does just fine," he said. "If it becomes more legal, meaning on a federal level, Humboldt could maintain prevalence. It could also be that case if forward-looking officials allow large scale production which can produce at lower cost." He said a lot of the effects of statewide legalization depends on how things are zoned within the county.
Eschker, whose research interest is measuring the impact of marijuana on the local economy and the impacts of possible legalization, said in order for production to not leave the area, the county would have to meet the demand for a cheaper, less potent, lower grade product. "The county needs to figure out if it wants to let go of the premiere weed," he said. "Although, it could have both." Eschker said in the doomsday scenario, marijuana growers leave the county to move closer to Los Angeles, San Francisco and Sacramento.
"Along with production leaving, you also have population decline, and we would be like the rest of rural America." he said. "In that doomsday scenario, we may not know it, but we may be heading down that path already." With population decline comes loss in property value, loss in real estate value and a decreased demand for services, Eschker said.
"Many people working up here are here because they are from the cities and enforcement is harder in the woods. If it becomes legal, that advantage is gone," he said. "The decisions we make now in terms of production and what we allow is critically important. If we don't let the industry thrive here, they'll go elsewhere." Bohn said economists can only speculate at best. "Never underestimate the purchasing power of someone who wants a name brand," he said.
HSU economics professor Beth Wilson, a member of the institute, said she was part of the marijuana task force when the county began working on an economic development plan for the county. "There is still a large contingent that is not interested in going the direction of a Humboldt brand name," she said. "Many are trying to focus on all the other things that the county has to offer. As long as there's still resistance in the community, I don't think branding is going to go anywhere."
She said Southern Humboldt residents claim the market prices for marijuana already dropped after Proposition 215 passed and legalized medical marijuana in the state. "The 'mom and pops' haven't been able to make ends meet, and the small outdoor grows didn't really survive," Wilson said. "What was left over were the large outdoor grows and the ones controlled by drug cartels. It makes it difficult for smaller farms." Wilson said that even if the state were to legalize marijuana, big tobacco companies wouldn't swoop in if it's still illegal on a federal level because they couldn't sell outside of California.
"If marijuana is legalized on a federal level, allowing for interstate commerce, then maybe a Humboldt brand would make a difference," she said. "Someone in the Bay Area or L.A. may not be as excited for Humboldt marijuana as someone in Chicago because it's already been growing in California for a while now. But because it's illegal, it's very difficult to get any information on whether that would really be the case." Fifth District Supervisor Ryan Sundberg, who serves on the county's marijuana subcommittee that drafted a recent proposed ordinance on regulating grows, said he wanted the county to address the neighborhood impacts of small grows first. "We want to get this one done and passed and then move on to larger grows," he said. "All the energy is focused on neighborhood impacts."
Sundberg said he wants to have something passed before the next growing season begins. After that, he said, large production marijuana grows will be addressed. "Large outdoor is such a different animal," he said. Sundberg said he thinks the legalization of marijuana will hurt the local economy "no matter what." "How bad that pain is depends on how creative we get," he said. "But there's probably always going to be a black market anyway."
News Moderator - The General @ 420 MAGAZINE ®
Source: Times-standard.com
Author: Catherine Wong
Contact: Contact Us - Times-Standard Online
Website: Brand name pot? Legalization measure raises economic questions - Times-Standard Online
Bohn cited Lost Coast beers and Fox Farm soils as two brands that originated in Humboldt County and gained recognition on the national market. He also said anyone could replicate a product anywhere, but certain locations have the advantage. "Look at Napa Valley. Wine is just grapes in a bottle, but they have the right climate for it," Bohn said. "The same goes for sourdough bread and marijuana."
Bohn said all eyes are on how Colorado and Washington are dealing with marijuana legalization. "Hopefully, by the time it gets to the ballot, Colorado and Washington will figure out what worked and what hasn't," he said. "They're good guinea pigs." Erick Eschker, a Humboldt State University economics professor and co-director for the Humboldt Institute for Interdisciplinary Marijuana Research, said that while he is not for advocating marijuana legalization, he could think of two extreme cases that may come with legalization -- the rosy scenario and the doomsday scenario.
"On the one hand, the economy does just fine," he said. "If it becomes more legal, meaning on a federal level, Humboldt could maintain prevalence. It could also be that case if forward-looking officials allow large scale production which can produce at lower cost." He said a lot of the effects of statewide legalization depends on how things are zoned within the county.
Eschker, whose research interest is measuring the impact of marijuana on the local economy and the impacts of possible legalization, said in order for production to not leave the area, the county would have to meet the demand for a cheaper, less potent, lower grade product. "The county needs to figure out if it wants to let go of the premiere weed," he said. "Although, it could have both." Eschker said in the doomsday scenario, marijuana growers leave the county to move closer to Los Angeles, San Francisco and Sacramento.
"Along with production leaving, you also have population decline, and we would be like the rest of rural America." he said. "In that doomsday scenario, we may not know it, but we may be heading down that path already." With population decline comes loss in property value, loss in real estate value and a decreased demand for services, Eschker said.
"Many people working up here are here because they are from the cities and enforcement is harder in the woods. If it becomes legal, that advantage is gone," he said. "The decisions we make now in terms of production and what we allow is critically important. If we don't let the industry thrive here, they'll go elsewhere." Bohn said economists can only speculate at best. "Never underestimate the purchasing power of someone who wants a name brand," he said.
HSU economics professor Beth Wilson, a member of the institute, said she was part of the marijuana task force when the county began working on an economic development plan for the county. "There is still a large contingent that is not interested in going the direction of a Humboldt brand name," she said. "Many are trying to focus on all the other things that the county has to offer. As long as there's still resistance in the community, I don't think branding is going to go anywhere."
She said Southern Humboldt residents claim the market prices for marijuana already dropped after Proposition 215 passed and legalized medical marijuana in the state. "The 'mom and pops' haven't been able to make ends meet, and the small outdoor grows didn't really survive," Wilson said. "What was left over were the large outdoor grows and the ones controlled by drug cartels. It makes it difficult for smaller farms." Wilson said that even if the state were to legalize marijuana, big tobacco companies wouldn't swoop in if it's still illegal on a federal level because they couldn't sell outside of California.
"If marijuana is legalized on a federal level, allowing for interstate commerce, then maybe a Humboldt brand would make a difference," she said. "Someone in the Bay Area or L.A. may not be as excited for Humboldt marijuana as someone in Chicago because it's already been growing in California for a while now. But because it's illegal, it's very difficult to get any information on whether that would really be the case." Fifth District Supervisor Ryan Sundberg, who serves on the county's marijuana subcommittee that drafted a recent proposed ordinance on regulating grows, said he wanted the county to address the neighborhood impacts of small grows first. "We want to get this one done and passed and then move on to larger grows," he said. "All the energy is focused on neighborhood impacts."
Sundberg said he wants to have something passed before the next growing season begins. After that, he said, large production marijuana grows will be addressed. "Large outdoor is such a different animal," he said. Sundberg said he thinks the legalization of marijuana will hurt the local economy "no matter what." "How bad that pain is depends on how creative we get," he said. "But there's probably always going to be a black market anyway."
News Moderator - The General @ 420 MAGAZINE ®
Source: Times-standard.com
Author: Catherine Wong
Contact: Contact Us - Times-Standard Online
Website: Brand name pot? Legalization measure raises economic questions - Times-Standard Online
