Marijuana Business Factbook 2019

200 Marijuana Business Factbook 2019 Chapter 3 | Financial & Operational Data: Wholesale Cultivators © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Illinois: Startup costs in Illinois are modest relative to other states, although application and license fees in the state are significant. Oklahoma: The state intentionally set the barriers to entry low to create a business-friendly environment. All application and license fees are set at a very reasonable $2,500. This has allowed some growers to get started with less than $50,000 in upfront capital. NATIONAL WHOLESALE CANNABIS PRICING INSIGHTS Though cannabis is not often considered an agricultural commodity in the same way as wheat or cotton, it very much is. Marijuana cultivators are confronted with the economic realities of the rising commoditization of marijuana every day. The wave of recreational and medical marijuana legalization that’s swept across the United States in recent years brought massive change to the cannabis industry, and wholesale cultivators have felt it more than most. The scale and level of sophistication with which marijuana can now be produced is unprecedented, and the fundamental law of supply and demand has had a marked effect on price. In mature markets ― Colorado especially ― growers need to possess a high level of organization and operational efficiency to turn a profit. But it’s not all doom and gloom, as the unique state-by- state nature of cannabis markets and growing mainstream acceptance of marijuana use means new opportunities will continue to arise for the foreseeable future. The following information ― provided by the data firm Cannabis Benchmarks ― provides a look at cannabis wholesale price trends across the country. Unless otherwise noted, prices reflect settled transactions between legal market participants for both medical and recreational cannabis.