Homegrown Pot Threatens Mexican Cartels

Washington Post: American Mom-and-Pop Marijuana Growers Are Cutting Into Profits of Foreign Traffickers

(Washingtonpost.com)  This story was written by Steve Fainaru and William Booth.

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Stiff competition from thousands of mom-and-pop marijuana farmers in the United States threatens the bottom line for powerful Mexican drug organizations in a way that decades of arrests and seizures have not, according to law enforcement officials and pot growers in the United States and Mexico.

Illicit pot production in the United States has been increasing steadily for decades. But recent changes in state laws that allow the use and cultivation of marijuana for medical purposes are giving U.S. growers a competitive advantage, challenging the traditional dominance of the Mexican traffickers, who once made brands such as Acapulco Gold the standard for quality.

Special Report: Marijuana Nation

Almost all of the marijuana consumed in the multibillion-dollar U.S. market once came from Mexico or Colombia. Now as much as half is produced domestically, often by small-scale operators who painstakingly tend greenhouses and indoor gardens to produce the more potent, and expensive, product that consumers now demand, according to authorities and marijuana dealers on both sides of the border.

The shifting economics of the marijuana trade have broad implications for Mexico's war against the drug cartels, suggesting that market forces, as much as law enforcement, can extract a heavy price from criminal organizations that have used the spectacular profits generated by pot sales to fuel the violence and corruption that plague the Mexican state.

While the trafficking of cocaine, heroin and methamphetamine is the main focus of U.S. law enforcement, it is marijuana that has long provided most of the revenue for Mexican drug cartels. More than 60 percent of the cartels' revenue -- $8.6 billion out of $13.8 billion in 2006 -- came from U.S. marijuana sales, according to the White House Office of National Drug Control Policy.

Now, to stay competitive, Mexican traffickers are changing their business model to improve their product and streamline delivery. Well-organized Mexican cartels have also moved to increasingly cultivate marijuana on public lands in the United States, according to the National Drug Intelligence Center and local authorities. This strategy gives the Mexicans direct access to U.S. markets, avoids the risk of seizure at the border and reduces transportation costs.

Unlike cocaine, which the traffickers must buy and transport from South America, driving up costs, marijuana has been especially lucrative for the cartels because they control the business all the way from clandestine fields in the Mexican mountains to the wholesale dealers in U.S. cities such as Washington.

"It's pure profit," said Jorge Chabat, an expert on the drug trade at the Center for Research and Teaching in Economics in Mexico City.

The exact dimensions of the U.S. marijuana market are unknown. The 2007 National Survey on Drug Use and Health estimated that 14.4 million Americans age 12 and over had used marijuana in the past month. More than 10 percent of the U.S. population reported smoking pot once in the past year.

Mexico produced 35 million pounds of marijuana last year, according to government estimates. On a hidden hilltop field in Mexico's Sinaloa state, reachable by donkey, a pound of pot might earn a farmer $25. The wholesale price for the same pound in Phoenix is $550, and so the Mexican cartels could be selling $20 billion worth of marijuana in the U.S. market each year.

"Marijuana created the drug trafficking organizations you see today. The founding families of the cartels got their start with pot. And marijuana remains a highly profitable business they will fight to protect," said Luis Astorga, a leading authority on the drug cartels at the National Autonomous University of Mexico, who grew up in Sinaloa in 1960s and recalls seeing major growers at social functions in the state capital, Culiacan.

Led by California, 13 U.S. states now permit some use of marijuana; Maryland is considering such a law. In many cities, marijuana is one of the lowest priorities for police.

To some authorities, the new laws are essentially licenses to grow money. With a $100 investment in enriched soil and nutrients, almost anyone can cultivate a plant that will produce two pounds of marijuana that can sell for $9,000 in hundreds of medical marijuana clubs or on the street, according to growers.

High-end marijuana grown under such special conditions often fetches 10 times the price of poor-quality Mexican pot grown in abandoned cornfields and stored for months in damp conditions that erode its quality further.

"What's happened in the last five years, it's just gotten totally, totally out of hand, as far as a green rush of people coming from all kinds of different states and realizing the kind of money you can make," Jack Nelsen, commander of the Humboldt County Drug Task Force in Northern California. County residents who have a doctor's recommendation can legally grow as many as 99 plants.

Authorities found and destroyed about 8 million marijuana plants in the United States last year, compared with about 3 million plants in 2004. Asked to estimate how much of the overall marijuana crop was being caught in his area, Wayne Hanson, who heads the marijuana unit of the Humboldt County Sheriff's Office, said: "I would truthfully say we're lucky if we're getting 1 percent."

The Mexican traffickers' illegal use of public lands is a response to the dramatic increase in U.S. production, according to authorities and growers. In the northern woods of California, illegal immigrants hired by well-heeled Mexican "patrons," or bosses, lay miles of plastic pipe and install oscillating sprinkler systems for clandestine fields that produce a cheaper, faster-growing "commercial grade" of marijuana. Eric Sligh, the editor and publisher of Grow magazine in Northern California's Mendocino County, said the Mexicans use a fast-growing variety of marijuana and time their harvests to periods of low domestic production in the United States.

After establishing sophisticated farming networks in California, Washington and Oregon, the Mexican traffickers are shifting operations eastward to Michigan, Arkansas and North Carolina, federal agents say.

Like wily commodity traders, Mexican traffickers time their shipments to exploit growing cycles in the United States. They warehouse tons of pot south of the border to ship north during periods when demand peaks and domestic supplies are scarce, Mexican anti-narcotics officials said.

The traffickers are also engaged in an escalating race to achieve higher levels of tetrahydrocannabinol, or THC, the chemical ingredient that gives pot its potency. The THC content of Mexican marijuana seized at the southwest border jumped from 4.8 percent in 2003 to 7.3 percent in 2007, according to U.S. officials. Those levels are still less than half that of the highly potent marijuana found in places such as Arcata, where THC content often tops 20 percent.

Although most Mexican marijuana is still grown outdoors, Mexican security forces have begun to discover greenhouse operations, similar to those found in the United States and Canada. A Mexican army unit on routine patrol in Sinaloa arrested two men in a greenhouse the size of an American football field with more than 20,000 marijuana plants inside. The greenhouse was equipped with modern, highly sophisticated refrigeration, heating and lighting systems.

In the national forests and public timberlands of Northern California, Mexican growers shoot at U.S. law enforcement agents with growing frequency and use fertilizers and pesticides that pollute watersheds and start fires. A 90,000-acre blaze in Southern California's Los Padres National Forest in August began on a marijuana farm run by Mexican traffickers, according to authorities. The fields are so inaccessible that helicopters are needed to insert agents, who cut the plants with pruning shears, machetes and even chain saws before airlifting them to be destroyed.

This season, five teams from the Bureau of Narcotic Enforcement in California have seized 4.2 million plants worth an estimated $1.5 billion, a 576 percent jump since 2004.

Ralph Reyes, chief of operations for Mexico and Central America for the U.S. Drug Enforcement Administration, said intelligence suggests that the major cartels are directly behind much of the marijuana growth that is taking place on public lands. "The casual consumer in the U.S. -- the kid or adult that smokes a joint -- will never in their mind associate smoking that joint with the severing of people's heads in Mexico," he said.

But it has been difficult for U.S. authorities to prove the connection, partly because the individuals who cultivate the plants have no idea who they are working for and are able to give little information when arrested.

A Mexican grower in Humboldt County, who recently harvested 800 plants and asked not to be identified, said the pot farmers are usually approached by an anonymous boss, who puts up the money -- sometimes as much as $50,000 -- for the seed, fertilizer, hoses, camping equipment and food needed to live in the woods for three months growing "Maribel," as the Mexicans refer to the plants.

The grower said the patron pays the growers in cash or product, which they can then sell on their own.

"The mountain can eat you up," the grower said. "You're only thinking about the next day. You have to get up at 4 in the morning to water the marijuana, because the helicopter might come by when the sun is up, and if you water too late, he'll see the mist coming off the plants. You do this every day. There's no church on Sunday or anything like that. You have to be focused. You have to give everything for them."

[bcainw]

The answer is MERP: unlimited, untaxed, unregulated "self cultivation" by adult Americans. Get on our mailing list at the following link:


MERP Headquarters
The Marijuana Re-Legalization Policy Project (MRPP) = "MERP"
http://www.newagecitizen.com/MERP.htm

[dennybopdenny]

I'm amazed at the number of people who believe taxing marijuana is a good idea. Most who call for taxation of pot recognize that the government has no right to prohibit the growing and consuming of pot. Yet they would allow the kind of government control it would take in order to tax the stuff. Taxation of marijuana would lead to the corporate take-over of growing and distributing marijuana. The major players would probably be those involved in today's tobacco industry...not entirely different than the cartels that now control mexican pot.
Marijuana needs to be decriminalized. It doesn't need to be taxed. Those who refuse to pay tax on something they do not pay taxes on now will end up being criminals. Instead of fining and jailing pot smokers we will end up fining and jailing those who rightly do not want to buy it from corporations or to pay a tax on something they grow in their own home. It just means creating a new class of criminal.

[azzir325]

Marijuana didn't create the drug cartels. US law did. And I believe they did it on purpose to maximize profits and to hell with the people who get hurt or killed in the so called "war against drugs." It's money, not morality, which made and keeps the drug laws on the books.

[secularsurfer]

USA! USA!

[rdm1963]

Our government needs to be lead by the people not,controlling their every action,If what you do only concerns you and causes no harm to other let that be between you and your maker,and if your action cause you to see your maker before expected so be it.Some people state that legalizing weed would only make you a drug addict,that is plain false,that's like saying one sip of beer makes you an alcoholic,self control is in one self. I have smoked weed in my life from time to time but did not like smoke in my lungs,the effects helped cope with stress problems but I didn't like smoke in my lungs,each time I felt It was time to stop,I just quit,No big side effects just a little ****** having to cope my problems without it,Nothing like I've seen my friends who tried to stop tobacco smoking going threw ,it was easy just stop no heavy withdraw,I believe our politicians are only trying to make money and power for themselves,It is a crime what they are doing to our society,one day the people may take control of our government,instead of them controlling us.I plan to run for some type of office. No time in history,until now is it been possible for the people to fully run their own government,I don't plan to tear or do away with any branch,actually I will be the only elected official that will never make a correct decision or incorrect decision,people with a social security number and voting number will be required to vote on matters the day before their elected official vote.Legal voters could and should determine this country's destiny.

[ToddSicklinger]

The drug that is used most in America is alcohol.

Alcohol has been used heavilly since before the revolution and it is a far more harmfull drug than marijuana.

Almost no one dies because of marijuana use, however, more people die from alcohol abuse than from all illeagal drugs combined.

[RedMayor]

"While the trafficking of cocaine, heroin and methamphetamine is the main focus of U.S. law enforcement, it is marijuana that has long provided most of the revenue for Mexican drug cartels."
It's ******** stats like this that make the legalization effort so difficult. One pound of cocaine costs around $12,000 while a pound of really good grass goes for about $3000, according to web sources. Unless these cartels are selling more than four times the amount of marijuana than cocaine, which is possible but improbable, then this stat was fabricated. Consider how much room a pound of grass takes up opposed to a pound of cocaine, and the profit margin- I am surprised that Mexico even bothers growing weed in the first place.
Hey, want to stop these cartels and help our economy?
Legalize today and there will be jobs tomorrow. Guaranteed.
American citizens will be out there plowing the fields by dawn.

[AvangionQ]

Considering our deficit now exceeds our GDP - see debt clock, we should be acting as though in need of new taxable revenue sources and seeking wasteful expenditures to cut, such as our second prohibition - the long since failed `War on Drugs`, as well as the tax funded corporate run prisons so stocked full of non-violent offenders ... that we have such a vast untapped resource necessitates the need to legalize and tax ...

[AttentionDeficit]

It is time for jury nullification in marijuana trials.

It's time to legalize it. Or, at a minimum, let adults legally grow their own. I bet that there are many who would gladly pay $100 for a yearly permit.

I would think that it would be very good for the hydroponics equipment industry, too

[malcolmkyle]

Like it or not, there has never been and nor will there be a drug-free society. The use of addictive or recreational drugs is a natural part of human society. Nobody here is claiming that any substance is beneficial for either the individual or society. It is true however that certain substances help the soul heal and relieve pain, while others provide short-term relief from a monotonous existence at the risk of possible long-term health problems.

An important aspect of Individual freedom is the right to do with yourself as you please, as long as your actions cause no unreasonable or unnecessary suffering or direct harm to others. Many among us may disagree with this, and they should be free to belief what they wish, but the moment they are willing to use force to impose their will on the rest of us, is the exact same moment that the petty criminals/dealers, the Mafia, drug barons, terrorists and corrupt government officials/agencies enter the equation. The problems created by self harm then rapidly pale into insignificance as society spirals downwards into a dark abyss, while the most shady characters and 'black-market corporate entities' exponentially enrich themselves in a feeding frenzy likened to that of piranhas on bath-tub meth.

[berlinfoto-2009]

Quote
THE WAS ONCE A TIME WHEN ANYONE COULD GO TO his corner druggist and buy grams of morphine or heroin for just a few pennies. There was no need to have a prescription from a physician. The middle and upper classes purchased more than the lower and working classes, and there was no moral stigma attached to such narcotics use. The year was 1900, and the country was the United States.(Troy Duster) THE LEGISLATION OF MORALITY.

Marijuana, was totally unregulated, cocaine was legal and could also be purchased in the drug stores. THERE WAS NO DRUG CRIME, AMERICA WAS NOT A POLICE STATE.

THE MAKING OF DRUG LAWS IS THE MAJIOR WAY AMERICA HAS BECONE A POLICE STATE.

[babooph]

Finally made in the US success story & not for a big corporation & in spite of the govt.-it has it all !

[sdcazares1980]

It's now time to end this asinine War on Drugs.

[TheVarsityClub]

I watch this documentary a while back on Showtime titled "America's war on drugs, the last great white hope." or something like that. Anyways, the theme of the film was basically how the war on drugs is big business so the chances of the war on drugs being "Won", is slim to none.

Another little tidbit of information I found interesting, the leading contributors and force in the anti-legalization of weed is the booze industry and the precription med. industry.

So one might conclude from that nugget, the legalization of weed is not really a moral issue as it is a money issue. They don't want you swapping out your med's and booze for weed.

[jwesel1]

Nothing beats the taste of home grown. And they don't have preservatives.

[AttentionDeficit]

Let me get this straight...the federal government is going to declare that it can ignore the will of the peoople? Huh.

[jamesharris1]

Let me get this straight....a state government is going to declare that it can ignore federal law? Huh.

[wtw9]

Taxing is not the answer, and further down the road this idea that the government controls the growing of hemp for revenue purposes will keep cartels in business, because more than likely your retarded leaders will make the taxes and fees too high for the poor, who will continue to buy it illegally. Have some common sense about this people. A federal license to grow your own, say at a rate of about $300 for so many plants would allow people of any income level to have themselves a garden. Not some big huge multi-thousand dollar mess which will make the rich the only ones who can get into the "growing business". Hemp is already legal through THE WORD as stated in the BOOK OF DIVINITY, and it doesn't mean the government can charge some outrageous fees for a right that is already yours, given by God.

weed out the prohibisionist and drop a dime to a psycho. Rat soup comes with your flavor pro-bees! pinging down ip's and shut em down track those packets and adjust his/her headers and don't leave without gleaming that DB bob! can a old techie get a hey man brothers and sisters?

[clayton_cleverly]

My favorite argument is that it poses a greater threat to the children. Poses a greater threat to children HOW? 26 MILLION Americans have used this stuff in the last year. It is present and prevalent in EVERY state in the union. How in the world would regulating, controlling, and demanding ID from those who would purchase it, just like alcohol, make it more dangerous to children?!

Is she saying with utmost confidence, that the Mexican Cartels have taken to checking the ID's of their customers as do liquor stores in America? That is a stunning revelation, I'll have to rethink my position on them!

Foolishness. In a society as free as ours, it is utter foolishness and futility to attempt to control a substance such as cannabis or alcohol. The abject failure of alcohol's Prohibition in the last century is a singular piece of evidence that our FORTY YEAR 'War on Drugs' is doomed to failure. Is there anyone who thinks the WoD is actually keeping ANYONE who wants to smoke from smoking? Please, let us have no illusion. So what is the purpose of the $40 BILLION/year effort to control an uncontrollable substance? (how else would you describe a substance banned by law, but used by nearly 10% of the population in the last 12 months?)

Or is it controllable? Once we legalized, regulated, and TAXED alcohol again, the legends of moonshiners and rumrunners have faded. Yeah there are still those who brew there own, but it's a niche market now, with beer brew kits available on the internet!

NO, drugs aren't good for you, but Prohibition is WORSE. With 26 million users in this country, and only 3 million (already occupied) prison beds, what would we do with them all if we managed to 'win' the WoD tomorrow? And who wants to pay for their three hots and a cot? I don't. They can work, they DO work, but they spend their lives with one eye looking over their shoulder.

The VAST majority of us are hard-working, tax-paying, home-owning, child-rearing American CITIZENS, who simply wish to relax with an alternate intoxicant to alcohol or cigarettes. A couple of points:

Alcohol KILLS 75,000 Americans/year, and addicts 15% of those who use.
Cigarettes KILL 450,000 Americans/year, and addict 30% of those who use.
Cannabis kills ZERO Americans/year (aside from drug raids/cartels and prison sentences), and can cause dependence in 10% of those who use.

So cannabis is non-lethal, AND less addictive, but its the one that's illegal?

Nobody wants to get high and drive, or go to work (and if they do, they should go to jail or be fired, just like anyone who drinks and does those things). We just want PARITY for a substance that is demonstrably, and objectively less harmful than alcohol or cigarettes.

That stuff will kill you, ya know?