The green rush has an increased number of people looking to get into the marijuana market, hoping to cash in on the profits of this up and coming market place bubble. While new businesses are still trying to get their footing regarding the regulations and taxes, a new player has come out of the woodwork.
Native American tribes are preparing to enter the marijuana market, and California’s Pomo Nation revealed Thursday it has entered into a contract with Colorado-based United Cannabis and Kansas-based FoxBarry Farms to grow thousands of marijuana plants on its 99-acre rancheria just north of Ukiah.
The Department of Justice said in a December memo that it would not enforce federal laws regulating marijuana production and sales on American Indian lands as long as tribes follow similar conditions set for states that have legalized cannabis. Marijuana operations on tribal lands may not be subject to these huge tax burdens, meaning those that move forward in states that have already legalized some form of cannabis could offer prices below market rates and undercut their heavily regulated and taxed competitors.
Tribes will likely follow the same path they took with their casinos, where they seemingly had a small one-room gaming floor one day and a $350 million resort the next. It may take a while before a large number move into the cannabis industry. Younger generations, however, are seeing the value and want to move into the budding cannabis industry.