The Future of California Cannabis Depends on This Key Resource

The $7 billion legal marijuana industry has a big problem: water waste.

california cannabisAccording to a recent report by Bioscience, "an estimated 22 liters of water or more per [marijuana] plant per day are applied during the June-October outdoor growing season."

When you multiply that by the average outdoor marijuana planting density of 130,000 plants per square kilometer, you arrive at roughly 430 million liters of water per square kilometer of marijuana crop.

That's 1.4 acre-feet of water per acre of crop, or roughly twice the amount of water it takes to grow an acre of grape vines - no small amount of water.

But there's a flipside...

"When grown responsibly, cannabis uses significantly less water than some of California's other agricultural staples, such as almonds," said Hezekiah Allen, executive director of the California Growers Association, to Leafly on July 20. "And [when grown responsibly] it offers a considerably higher profit margin," he added.

Authorities have taken notice of the problem and are now cracking down on cannabis growers' water use ahead of California's total legalization.

How will that affect California cannabis growers and companies? Let's take a look...

Where Does Your Water Come From?

In an effort to balance environmental issues with marijuana's projected $20.2 billion market, California is introducing a new batch of rules and regulations specific to marijuana growers' water use.

"Growers won't be able to plant where there's not enough water to support their crops - something that could spell disaster for cultivators who rely solely on water from watersheds."

Starting in 2018, most cannabis growers in California will have to use recycled water. In Sonoma County, one of the largest cannabis-growing counties in the state, indoor growers will have to use 100% renewable energy.

In addition, regulators will now be permitted to restrict cannabis cultivation if they can prove it's causing environmental harm.

For some growers - particularly in California's agricultural epicenters like the Emerald Triangle - growing is about to become "particularly tricky," according to Allen. "Growers won't be able to plant where there's not enough water to support their crops - something that could spell disaster for cultivators who rely solely on water from watersheds."

Collect a Colossal Payday Thanks to California's Legal Cannabis - Click Here Now to Learn How to Position Yourself for Windfall Profits

Most cannabis companies will be forced to spend a pretty penny updating their systems for compliance. While rainwater is free, the cost of a rain catchment system could cost anywhere from $250,000 to $300,000 for just one farm, according to Leafly.

But one company already has water conservation methods in place - and you can invest in it.

In fact, we've been recommending this one since 2016 - and we're ramping up our recommendation in the new year. It's one of our favorite marijuana "pick-and-shovel" plays for 2018 as it's poised for a 15% sales surge over the next year.

And while other cannabis companies struggle, these new water laws may help it make even more money.

Here's how...

This Pick-and-Shovel Marijuana Company Is "Growing Green"

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Scotts Miracle-Gro Co. (NYSE: SMG) stock has been on an absolute tear in the last five years, having gained 188% (with dividends included) during that time - easily beating the total return of the S&P 500, which gained 109% over the same period.

And now, the company is set up for another boost as it benefits from California's new water regulations.

Scotts is not just a worldwide leader in lawn and gardening care, it's also a worldwide leader in hydroponics equipment.

Hydroponics is the method of growing plants without soil by using mineral nutrient solutions in a water solvent - a popular and highly effective way of growing cannabis, especially in densely populated areas.

Hydroponic systems only require about 10% of the water needed to produce the same volume of plants as conventional methods, according to Farmers Weekly, making it the ideal way to save water.

For California companies looking to comply with the latest regulations, turning to hydroponics will be a no-brainer. And with a $565 million stake in the industry, Scotts Miracle-Gro should see a huge boost in sales on top of an already excellent year for the company.

Make no mistake: A surge in sales revenue will easily translate to gains in the stock price. You definitely want to own shares of SMG now because you may not see them at a better price.

Top Three California Pot Stocks to Watch Now for the Biggest Gains

In a recent interview, marijuana stock expert Michael A. Robinson shared his insight on California's upcoming total cannabis legalization and delivered details on the huge gains you could enjoy... if you learn how to take advantage.

By getting in on the ground floor of these exceptional opportunities, you could have the chance to pocket life-changing windfalls thanks to this historic event.

Michael has his sights set on three stocks he expects to skyrocket following this crucial announcement. Get the details here.

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