By German Lopez for Vox. We’re still not sure of the full impact of marijuana legalization, in terms of pot use and abuse, in the states that have legalized. But a report from Deborah Bonello for the Los Angeles Times shows one way that legalization for recreational and medical purposes is working:
The loosening of marijuana laws across much of the United States has increased competition from growers north of the border, apparently enough to drive down prices paid to Mexican farmers. Small-scale growers here in the state of Sinaloa, one of the country’s biggest production areas, said that over the last four years the amount they receive per kilogram has fallen from $100 to $30.
The price decline appears to have led to reduced marijuana production in Mexico and a drop in trafficking to the U.S., according to officials on both sides of the border and available data.
As Bonello reports, the drop in price — and competition from higher-quality US-made marijuana — is hitting drug cartels, too. So now they have to look to other opportunities, or look for ways to deal in high-quality cannabis, to make up for lost profits, or just accept the hit in their finances.