Could Medical Marijuana Bolster County’s Economy?

BEESLEY’S POINT — Could medical marijuana become a cash crop in Cape May County? Now that cannabis is legal in the Garden State for medical use only under tightly controlled conditions, could the weed be a boon to an entrepreneurial farmer?
Far fetched though it might sound, as the county moves into the future, seeking to carve niche markets for agricultural products, the pointy-leafed drug could mean riches for someone.
Dr. Richard Perniciaro, dean, Facilities, Planning & Research of Atlantic Cape Community College addressed Cape May County Chamber of Commerce Thur., Jan. 19 at Tuckahoe Inn with some economic projections into the uncertain future.
While citing niche markets, Perniciaro said, “Medical marijuana is out there. The state will have it out there. It’s an industry somewhere. In Colorado, medical marijuana is the largest cash crop in the state. It’s the second largest cash crop in California,” he said.
According to a Jan. 14 editorial in the Newark Star Ledger concerning medical marijuana, “Assemblyman Declan O’Scanlon (R-Monmouth) would add marijuana to the list of crops protected by New Jersey’s Right to Farm Act, which protects farmers from nuisance lawsuits and municipal zoning that target ordinary farming activities — such as the use of fertilizers and farm equipment. If passed, the law would nullify anti-pot rules adopted in towns such as Upper Freehold, Maple Shade and Westampton.”
Seizing upon Cape May County’s sandy soil as a favorable growth medium for grapes, the area is experiencing an increasing number small wineries. He also cited the interest in small breweries, such as one that recently opened at the county airport.
“You need to create an atmosphere where people take risks,” said Perniciaro. “Give people some help in doing that. The county and municipalities could step up and help folks get over hurdles,” he added.
He pointed to a large part of the county’s land that cannot be developed because it is wetlands.
“Government has to help you get past certain hurdles,” he added.
Perniciaro recalled a time in the early 1980s when he worked with Lower Township Administrator James Stump. At the time, Stump wanted him to find a tenant to occupy the former Everlon Building at the airport. It was never successful, and has been vacant for a number of years. It was supposed to be a job generator in the county.
The pent up need for new cars and computers, among other things, are likely to get people into the marketplace to “rotate through and help the economy,” said Perniciaro.
He pointed to Atlantic Cape’s student services computers that are about four years old. Cars, which are kept longer as prices escalate, must sooner or later, be traded in for newer models, which will bolster the economy.
Perniciaro said Chamber President Vicki Clark urged him to “be positive.” In that vein, he noted the summer of 2011 “wasn’t a Frank Sinatra (very good) year, it was good by all indications,” Perniciaro said. He based that statement on “leisure taxes” that were solid through July and August.
The employment picture last July showed 54,600 employed in the county with 19,200 of them in the leisure and hospitality industry. In 1990 the leisure and hospitality employment was 18,900.
“So, in the intervening 21 years the summer employment force was up 600,” Perniciaro said.
While tourism officials press for more vacationers, Perniciaro noted “only so many can be squeezed in” as motels, hotels, and roads carrying those tourists are maximized.
Last summer’s beach tag sales were up, he noted, but some resorts increased their fees, which could account for that improved cash position.
Traffic at the Egg Harbor Plaza on Atlantic City Expressway experienced its lowest traffic since the 1990s, he said.
“The conclusion, what I get, is that, in fact, we are not getting many more people. The people are spending a little more money. If that is the conclusion, 2012 is going to be a good year,” he said.
Getting visitors to spend more involved changing their habits. They might decide to rent mid-week, not through weekends, if rental properties offered value pricing, say, from Monday to Thursday.
As reported in the Herald earlier this month, Perniciaro pointed to the county’s declining population, currently 97,000 year round, compared to 102,000 in 2000. Such a dwindling number directly affects school districts and Atlantic Cape, which is experiencing fewer young students and more older students.
Looking ahead, Perniciaro projected a county population of 103,000 in 2040. The number was garnered from scrutinizing several forecasting agency reports. Some of them put the county population figure in 2040 at 87,000 while another was more generous at 115,000.
“We will not be catering to a much larger population as years go by,” Perniciaro said.
He projected “Mom and pops (small, family owned firms) will have a harder time making it. They will have to compete on value with companies that have more money to invest.”
Still, small businesses that seek and fill a niche market may survive where others fail, he noted. He cited a Hammonton farmer who seized on making his farm an agri-tourism destination. That means having visitors go to his farm as they would to an amusement pier either for the novelty of it, or to buy fresh produce that they may even pick themselves from the field.
While the county has many attributes, Perniciaro warned.
The upcoming season could well hinge upon a number of foreign factors, Perniciaro said. “Weather, Europe and Iran have to cooperate. As long as you have them out there…” anything could happen, he said.
During a question and answer session following his presentation, Perniciaro was asked if he thought the equine industry could be a part of the tourism picture.
It could be part of the niche market idea, he said. This county has available land “where others don’t.”
He cited Wildwood’s recent venture of allowing horses on the beach in the off season and the many residents who own horses as a factor that could help the niche market.
An unidentified woman said her 23-year-old son wanted to start a business, but in order to do so, had to put out $1,500 to the Department of Environmental Protection for a license that took 18 months to get.
“He could not do anything,” she said. “It took 18 months for him to get a license. He wanted to start a business. If you call and inquire, you get put on the bottom of the list. It’s great, but government needs to be working with us, not against us,” she said.
To close, Perniciaro related, “The New Jersey Turnpike took 18 months to build. Things have changed drastically.”