they've got the water rights. >> reporter: grower nate morris thinks the best way to remain competitive is to market humboldt pot as a premium brand. would you like to see this whole area become sort of the napa valley of cannabis? >> that would be a great outcome to me. anything that prevents complete economic catastrophe sounds great to me. >> reporter: morris says he grows medical marijuana primarily for research, determining which strains of cannabis are best for specific ailments. he supports prop 19 and actually hopes that legalization will drive prices down. >> if you're talking about a crop that is currently selling at $3,000 a pound it can come down two-thirds and you're still talking about $1,000 a pound. >> reporter: and that's plenty for family farmers to make a living. whatever the fate of prop 19, the momentum is clearly headed in the direction of a more tolerant attitude. governor schwarzenegger just signed a law that downgrades possession of an ounce of marijuana from a misdemeanor to an infraction, much like a parking ticket, with no jail time or criminal record attache