Good research paper about the economic effects and legalization effects of hemp

Introduction

Hemp is an old plant which its usage can be traced back to the prehistoric time of human beings. Hemp also referred to as Cannabis sativa has been continually used over the times of human civilization since pottery was invented over 10, 000 years ago. Among the oldest artifacts which have known to exist before the ancient history of human beings, is the tiny pieces of fabric made from hemp which has amazingly endured more than eight thousand years of weathering, because the plant is environmentally friendly. The plant has been used in the food, paper and textile industry, personal care goods and as building materials for over five thousand years.
In the ancient times, during the 300 B, both Rome and Carthage and Rome wriggled to have a political and commercial power over the plant and the spice trade routes across the Mediterranean. Hemp was later renamed and referred to as cannabis sativa during 100AD. Successive research studies which were done later indicated that Cannabis sativa had medicinal properties. Hemp’s usage continued on until it received a major boost in 1791, when the first president of the U. S realized the significance of the plant, by setting hemp duties and encouraging its domestic market; describing it as a necessity. Nonetheless, hemp farming was to receive a big blow in 1937 when the marijuana Tax Act was adopted, prohibiting hemp farming (Ashoka, “ Industrial”).
Later on in 1998, hemp farming received a boost though in Canada, when the Canadian government legalized commercial hemp farming. As previous studies have indicated the significance of the plant, various US states have received debates on whether the hemp farming should be legalized and encouraged. This paper examines the effects of legalizing Hemp farming, including the economic, and the legalization effects.

The effects of legalizing domestic hemp farming

Commercial Hemp farming has been associated with Green Economy that is founded on the forecasts that the plant’s multi-industry alongside its complex though steadying nature will be capable of offering high revenue for the dependable farmers in each state which has Hemp plantations. The states for each recognized hemp agricultural industry may be instituted under a free and open market competition and competition. It is supposed that the traditional and historical states which initially engaged in the production of hemp fiber particularly in the eastern parts of the country will resurface. This will offer new job opportunities in the old hemp farming industry. The economically overwhelmed economies will witness a boom as an essential state involved in the production of national energy (Gillentine, “ HIA”). The industrial hemp’s medical intoxicant grade may be grown on the higher elevation and productive and the higher elevation lands. The areas within the mountains which have been conventionally producing the excellent intoxicant hemp should be preserved.
The economic facets of hemp comprise of the revenue which it brings to the key stakeholders in the industry. These stakeholders include farmers, the governments and the traders. The tax revenue received from the cultivation and sale of Hemp has the power to generate income to farmers and revenue to government. As compared to the tobacco industry, Hemp offers a good example which indicates how hemp forms a steady economic boost. The hemp agricultural farming is a multi-billion dollar sector which is valuable to the country.
The process of regulating hemp is convoyed by the costs which may be intensely limited by authorizing the production and sale of hemp; the states may save a lot of money each year from the expenditure which involves the prosecutions, arrests and the corrections of convicted individuals. Furthermore, the legalization of domestic farming of hemp would result in an increase in employment opportunities for both the retailers or distributors, and the farmers. This involves the farming activities, sales and the spin-off industries which deal with industrial hemp. For example, the commercial production of hemp in the U. S. took place in the agriculturally fertile Delta Valleys and Imperial of California (Robin, “ California”).). The hemp farming in these regions, established desirable results and even proved to be a tough competition to the booming cotton industry, which was generating approximately 3. 4 billion dollars annually (Valerie 5). Nevertheless, there is a leeway for the cotton farmers to oppose the efforts to legalize and develop the hemp industry.
There has also numerous economic benefits with the tourism industry attributed to the hemp farming. The developed coffee and beverage shops, and paraphernalia shops, may easily boom effectively as a result of the economic effects of hemp. This also indicates an increased revenue source to the state. The famed wine industry of California is a good reference point to the hemp commercial industry, as it generates approximately 52 billion dollars annually (Valerie 6). The large sums of tax revenue generated from the commercial activities of hemp may be used to fund essential development projects or to enhance the infrastructural grid of hemp farming. The job opportunities, accessible and enhanced health facilities alongside other social amenities which lack adequate funding may benefit, from the legalization of domestic hemp farming (Robin, “ California”). Instead of relying on federal grants, the state governments may generate funds to fund these aspects.
The economic influences related to the hemp industry are salient and must be profoundly considered to define its impacts on the cultivation of hemp. The domestic hemp industry is confronted with the political, health and social-related reasons which focus at instituting procedures against the process of legalizing cannabis. Nonetheless given the quantity of support which Hemp farming has received, it appears irrational to oppose it because it has economic benefits to the community. Economists are resolute to uphold their social values in case of petite economic changes, rather than any opposition. The reason behind this is the long-term paybacks which may be convoyed. The drug cartels continuously make a great percentage of their own proceeds from unlawful activities in the cannabis market in the United States (Nadelmann 28). If the domestic farming of hemp is legalized, the act will assist avert mass destruction and murder which is initiated by the drug cartels. As a result, there will be a boost to the economic growth since the revenue will not be spent articulating regulations, but rather will be ploughed back to the economy.
Lastly, from an industrial point of view legalization would offer various benefits over a great deal of resources which are currently utilized in the U. S. The legalization of marijuana would allow for the reintroduction of hemp into the society, more so during these hard economic times. Hemp is a cannabis plant which is grown solely for industrial use; it causes no high to any one when smoked. Hemp is mostly used to produce textile based products. Its fibers are noticeably strong that it renders it ideal for the production of various products such as fabric, rope and paper. Hemp is more productive than cotton; it has a higher yield per acre and has a maturity cycle of 100 days as compared to cotton’s 160 days. Hemps seeds offer more protein as compare to soybeans and the use of Hemp for paper is very productive; an acre of hemp produces four times the quantity of paper produces by an acre of trees, yet it has a fat maturity rate as compared to trees(Ashoka, “ Industrial”). Furthermore, hemp has the potential of producing cellulose, which is easily converted into biofuel. With the present economic crisis, hemp can be a good source of revenue. However, the U. S. currently imports hemp from countries which do not have probative laws on the cash crop such as China and India. The legalization of marijuana, would not only allow domestic farming of hemp which would bring its importation to an end but would also create massive job opportunities.

Conclusion

The industrial production of hemp may be grown with none or petite psychoactive properties of cannabis sativa by using low-THC varieties. Many people have argued the benefits of hemp products such as oils and fiber, and its superior strength and length of fiber, as well as the amazing quality of oil for both feed and industrial uses and numerous of other uses. Despite these arguments, world production has progressively fallen; intensely since the ancient times. Production decline may be gesturing that economic benefits are also on the decline. As a result, states in the US should adopt a large scale adoption of the legalization effort, as it has numerous benefits. Commercial hemp farming has been associated with Green Economy that is founded on the forecasts that the plant’s multi-industry alongside its complex though steadying nature will be capable of offering high revenue for the dependable farmers in each state which has Hemp plantations. The states for each recognized hemp agricultural industry may be instituted under a free and open market competition and competition.

Work cited

Ashoka, Logan Yonavjak. ” Industrial Hemp: A Win-Win For The Economy And The Environment.” Forbes. Forbes Magazine, 29 May 2013. Web. 14 Dec. 2013.
Gillentine, Amy. ” HIA: Hemp Industries Association: Industrial Hemp Trade Group, Education & Industry Development.” HIA: Hemp Industries Association: Industrial Hemp Trade Group, Education & Industry Development. 30 Nov. 2012. Web. 15 Dec. 2013.
Robin Wilkey. “ California Legalizes Industrial Hemp, With A Catch.” TheHuffingtonPost. com, Inc. 10 mar. 2013. Web. 15 Dec. 2013
Valerie L. Vantreese. “ Industrial Hemp: Global Markets and Prices.” Department of Agricultural Economics, University of Kentucky, Lexington, KY 40546-0276, 2007. Print.