Oregon is Overproducing Cannabis and it’s not Good for Small Growers

May 31, 2018, Oregon

Cannabis legalization in Oregon is not that old (only two years), but the local cultivators have started to grow the surplus amount of strain. It is quite interesting to see that cannabis crop is grown in excess in a state when the plant is still classified as class I controlled substance as per federal laws.   

According to the numbers furnished by the state’s Liquor Control Commission that is also responsible to regulate local cannabis market, the local growers have produced one million recreational cannabis strains in excess this year.  

Numbers are not Conclusive  

The spokesperson of the commission has also made it clear that the numbers are not conclusive because they have derived the numbers by measuring the difference between the retail sales and the amount of flowers produced. He says that cannabis flowers are not only used in the making of retail products so the numbers can vary.  

Nevertheless, it is true that Oregon is producing more cannabis than its requirements and various indicators validate that.  

More Cultivators are Applying for Licenses 

Cannabis regulators in Oregon are constantly facing an influx of cultivation licenses application. Reports suggest that the number of licensed cannabis growers in the state is only growing in numbers since the legalization of recreational strain. More cannabis growers only mean one thing i.e. increased crop yield.  

Flower Prices Have Been Dropped by Half  

After a bumper harvest of last year, the rate of cannabis flowers has experienced a significant dip. In just a matter of few months, the price of one pound of the flower has been dropped from $1,500 to $700. This depreciation of cannabis is unheard of in any legalized market of the country and only points towards the fact that Oregon is overproducing the strain. 

Lizette Coppinger, the owner of a marijuana dispensary in the state, believes that this overproduction would push smalltime growers out of the market. 

Outdoor Crop is the Most Affected  

Experts have also noted that sunburned crops are the most affected by the surplus production of the strain. High-end buds grown in indoor facilities are more or less available at the same price. It is important to note that people with small cannabis farms are the major producers of outdoor crops. So, it is quite clear that they will bear the greater brunt of this unprecedented price drop.  

Inflexible Federal Laws Aggravates the Situation  

In the light of federal laws, it is always risky to move cannabis flowers interstate because the crop is an illegal commodity there. So, the transportation of cannabis from one legal state to the other is very much susceptible to the crackdowns of federal law enforcement agencies.  

If that wasn’t the case, then the overproduced strain of Oregon can be sold to the businesses in California who are facing a shortage of raw material after the legalization of adult-use cannabis in January.  

If the trend of overproduction continues in Oregon, then many small-scale cannabis farmers will revert to more beneficial cash crops.