Pubdate: Sun, 25 May 2014
Source: Las Vegas Review-Journal (NV)
Copyright: 2014 Las Vegas Review-Journal
Contact: http://www.reviewjournal.com/about/print/press/letterstoeditor.html
Website: http://www.lvrj.com/
Details: http://www.mapinc.org/media/233
Author: David Ferrara
Page: 1E

EXPECTING POT TO BOOM WHERE IT'S PLANTED

Plants Could Yield Millions in Revenue With Minimal Water Use, Observers Say

Marijuana could become one of the biggest cash crops in Nevada when 
cultivation facilities open in the coming months, a UNLV soil and 
water scientist said.

"They're going to make a lot of money using very little amount of 
water," professor Dale Devitt said. "That's how you justify the use 
of water in the desert."

High-grade alfalfa grown on farms throughout Northern Nevada earns 
about $100 profit per acre-foot of water. Golf courses in Las Vegas 
make about $5,000 to $7,000 per acre-foot of water.

Devitt expects pot to dwarf those figures.

Marijuana is considered a drought-tolerant plant and doesn't require 
a significant amount of water to grow, said Derek Peterson, president 
of Terra Tech, an agricultural company that's applied for a marijuana 
cultivation license in Clark County. Terra Tech wants to open a 
50,000-square-foot cultivation warehouse under a Las Vegas-based 
subsidiary called MediFarm LLC.

Early next month, Clark County commissioners will decide which of the 
109 companies vying for medical marijuana licenses should be reviewed 
by the state Public and Behavioral Health Division. State approval 
would be provisional, and the county would decide whether to award 
business licenses.

If licensed, Peterson's company would grow marijuana using 
hydroponics, widely considered the most environmentally friendly 
method of plant watering. In hydroponics, the plant absorbs only the 
water it needs and water is constantly recycled through the system. 
There's no runoff and the only water lost is through evaporation.

Terra Tech has built cultivation facilities for marijuana companies 
in Colorado, Michigan, Washington and Massachusetts.

HARVESTING ALL YEAR LONG

Marijuana requires about 900 gallons of water per acre daily, 
Peterson said, and three-fourths of an acre of plants could be 
stuffed inside a 50,000-squarefoot warehouse.

That means MediFarm could use up to 330,000 gallons of water a year, 
nearly four times as much as the use in the average single-family home.

Still, Southern Nevada Water Authority officials say they don't have 
a strong grasp on how growing weed will affect water conservation in 
Clark County.

"This would be an opportunity for us to expand our knowledge of 
indoor agriculture," water authority spokesman Bronson Mack said.

Water authority officials have "no real hard data" to determine how 
much water will be used growing pot in the desert, but they have 
spoken with experts in Colorado to help better gauge potential 
demand, Mack said.

Peterson expects to produce up to 75 pounds of marijuana weekly, 
which could yield $15 million to $25 million in sales. But production 
costs at the warehouse would equate to about 35 percent of the sales 
- - more than $8.7 million annually, or around $730,000 a month - at a 
facility selling the most pot.

The average lease rate for industrial space in Las Vegas is about 54 
cents per square foot, said Brian Gordon, a principal with the 
research group Applied Analysis.

Electricity accounts for about 10 percent of the production costs. 
Peterson said he would use 70 percent to 80 percent less energy in a 
greenhouse, but state law restricts pot growers to warehouses.

"Anytime you talk about water consumption, you have to talk about 
electricity," Devitt said. "That's the majority of cost associated 
with moving water."

Controlled environment agriculture, as indoor growth is known, lets 
farmers harvest pot all year long.

"You're not stuck with producing plants according to the season," 
Peterson said. "So you have the ability to have multiple cycles of 
production throughout the year."

Marijuana could be grown using treated wastewater to cut costs, but 
experts said that's unlikely because of how little water it takes to 
bring pot to the market.

"You could manage almost any crop successfully with poor-quality 
waters if you know what you're doing based on science," Devitt said. 
"But the reality is the profit margin would be so significant that 
(farmers) would opt to just use potable water and pay the price."

GREATER POTENTIAL IN NORTHERN NEVADA?

Farmers will have to learn to master harvesting large swaths of marijuana.

"Having good, quality water would minimize the potential negative 
impact as to the growth of the plant," Devitt said.

Even a 50,000-square-foot warehouse is minimal when compared with 
farms that cover hundreds of acres in Northern Nevada.

"Clearly, water is a precious resource here in Southern Nevada. We'd 
be concerned about using it in any form," Devitt said. "If we're to 
become the medical marijuana center of the United States and have 
hundreds of greenhouses, that might become an issue, but right now 
we're talking about small operations."

State law allows for dispensaries and production facilities to buy 
from cultivation plants anywhere within the borders. But Clark County 
commissioners said any pot sold in the county must be grown in the county.

Devitt said marijuana would ideally be grown in a more conducive 
environment outside the state.

"At some point down the road, Las Vegas probably isn't the best place 
to be growing these plants," he said.

State Sen. Tick Segerblom, D-Las Vegas, who authored the bill that 
allowed pot businesses, said he wants to see marijuana grown as 
efficiently as possible, "given our water shortage and the fact that 
we have so much sun."

That could also mean having marijuana grown in more rural northern 
counties and shipped to Southern Nevada.

"In the early stages, it's not going to be that big of a deal," 
Segerblom said. "And over time those things will sort themselves out.

"As we go forward, we want to minimize electricity and minimize the 
water usage."
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MAP posted-by: Jay Bergstrom