Production costs per pound of marijuana in the U.S. in 2020, by legality

Published by Jan Conway, May 24, 2022
Legal cannabis growers spend more on production costs on average than illicit growers, due in large part to paying a cultivation tax of 154 dollars, in addition to testing costs of 40 dollars that illicit growers do not incur.

Estimated production costs per pound of legal and illicit cannabis in the United States in 2020* (in U.S. dollars)

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Release date

August 2020

Region

United States

Survey time period

2020

Supplementary notes

*Prices based on Caulkins 1,500-foot indoor model. Assumes 10,000 square feet of cultivation space producing 4,200 pounds of cannabis per year.
**Labor-intensive processes are estimated to cost roughly double for a legal grow because of time-intensity involved in tagging each plant with RFID tags, logging nutrients and measurements at various stages of the growing and harvesting cycles.

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