Pubdate: Mon, 21 Jan 2013
Source: Seattle Times (WA)
Copyright: 2013 The Associated Press
Contact:  http://seattletimes.nwsource.com/
Details: http://www.mapinc.org/media/409
Author: Shannon Dininny, The Associated Press
Page: B7

WILL POT BE YAKIMA VALLEY'S NEXT BIG-MONEY PROJECT?

Now That It's Legal, Will It Flourish?

Biggest Question Is Federal Government

YAKIMA - Irrigation canals line Washington's Yakima Valley east of 
the Cascade Range, transforming a desert landscape into one of the 
most productive agricultural regions in the world - including crops 
for some of America's biggest vices.

Thousands of acres of wine grapes dot the landscape, contributing to 
Washington's No. 2 rank for premium-wine production behind 
California. Farmers grow more than two-thirds of U.S. hops for big 
beer companies and craft brewers alike, and a large tobacco field is 
flourishing on a valley Indian reservation.

Now that Washington voters have legalized marijuana, will a region 
long recognized as one of the country's leading fruit bowls, best 
celebrated for Washington apples, become known as the vice belt? Not 
necessarily.

Too many unanswered questions remain about the new law, from how the 
state will regulate it to whether entrepreneurs or large corporations 
should lead the way. And the biggest question: the federal 
government's role going forward.

Marijuana remains illegal under federal law. Many states have 
approved it for medical use, but only Washington and Colorado have 
legalized recreational use.

The Justice Department has not said whether it will try to block the 
two states from implementing their new laws, passed late last year. 
For that reason, key land-grant universities that typically aid the 
agriculture industry by researching such things as pest control and 
crop yields - but rely on federal funding to do so - are avoiding the 
marijuana industry altogether.

In addition, marijuana is a crop that can't be insured, and federal 
drug law bars banks from knowingly serving the industry.

Any combination of those factors makes farmers leery of planting 
marijuana in the near term, said Bob Young, chief economist for the 
American Farm Bureau Federation.

"At this stage of the game, it poses tremendous problems for 
growers," he said. "Quite frankly, I'd tell one of our members to 
approach this with great caution."

Both states are in the process of developing rules for a legal 
marijuana industry. In Washington state, a Liquor Control Board that 
privatized liquor sales statewide last year on orders of a different 
voter-approved initiative now is tasked with developing rules 
governing pot cultivation, processing and sales.

Of the three licenses the board will authorize - grower, processor, 
seller - the rules for producing marijuana raise the most complex 
issues, according to Randy Simmons, project manager for the Liquor 
Control Board.

How many farmers should be allowed to produce marijuana to meet 
demand, and how big should their crops be? Where should they get 
their seeds? Should a crop be grown indoors or in fields outside?

Dozens of marijuana experts, who have been growing plants for medical 
use or in secret for illegal use, are educating state officials about 
the potential for the crop. Probably 95 percent of those people 
choose to grow their plants indoors, despite higher costs, to control 
light and temperature, improve quality and increase yields, Simmons said.

Indoor crops generally allow for up to three harvests per season, 
compared with just one harvest for an outdoor crop, and allow for 
easier security measures.

As Simmons put it, "Somebody out picking a handful of grapes isn't 
going to get stoned. So if we go through this process and determine 
outdoor grows are OK, we have to determine security standards."

Security is a concern for Gail Besemer, who grows flowers and 
vegetables near Deming, Whatcom County, and has expressed interest in 
a producer license.

Besemer has three hoop houses - essentially temporary greenhouses - 
but could see expanding slightly to grow marijuana for a local 
clientele. However, "I'm concerned about druggies invading my 
property - ne'er-do-wells invading my property to steal, to get free 
dope," she said. "Security would be an issue."

Besemer, in her 60s, said she has never grown marijuana or used it, 
but can see potential for the crop.

"My family is not particularly excited about me being interested in 
this. But if someone has an integrated farm, growing a number of 
different crops, I would think it would be a high-profit plant," she 
said. "Taxation and security might get in the way of profits, and it 
might end not being so profitable.

"I'll just have to wait and see about the regulations," she said.

The Colorado Farm Bureau opposed the law there and says none of its 
members has expressed interest because they are unwilling to take the 
risk, according to Nicholas Colglazier, director of public policy.

Few traditional farmers, like Besemer, have expressed interest in Washington.

Simmons acknowledged that there are still many unanswered questions, 
but said answers will come with new state regulations this year. But 
he said he could envision an industry that allows for both boutique 
growers with higher-quality marijuana and large outdoor growers to 
get a cheaper product on the market.

"You're always going to see people looking for specific strains and 
varieties," he said. "It's like drinking Budweiser or a microbrew."
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MAP posted-by: Jay Bergstrom