Saturday, May 31, 2008

Speaking of 3rd Rails - Legitimizing Marijuana

In today's NYTimes online;
Medical marijuana is legal in California, but federal law still bans sales. Amid the uncertainty that this creates — including the occasional raid by federal agents — a full-fledged industry has blossomed, taking in about $2 billion a year and generating $100 million in state sales taxes, CNBC reported.

Setting up a clinic “can cost as much as a hundred grand,” Ms. Wells reports. The equipment, the cuttings from which plants are grown and office space all tend to be expensive. And from there, the costs only grow, mostly in the form of legal fees. Many clinics keep lawyers on retainer.

Nonetheless, “this is the business model of the future,” says JoAnna La Force of Farmacy, an herbal remedy shop in Southern California. Ms. LaForce says her business is close to breaking even (medicalmarijuanafarmacy.com).
The business model of the future won't just be about folks in California who want to self-medicate or even just to get high, rather, it'll be about locally cultivated and utilized Food, Fuel, and Fibre.