Yo, yo, what up, fam? It’s your boy Dan here, droppin’ some knowledge about the Oregon cannabis scene. So, check it out. Them cannabis producers in Oregon be growin’ too much weed again this year. A new report just came out sayin’ that the state’s regulated pot industry been dealin’ with a major oversupply problem for years now.
Now, earlier this year, it seemed like Oregon was gettin’ its act together. The analysis showed that weed production was goin’ down compared to last year, which led to a lil’ increase in prices. But hold up! This new report from some state economists named Mark McMullen and Josh Lehner just dropped on November 20, and it says that this year’s fall harvest of outdoor bud pushed the total crop beyond what was produced in 2022. That’s wild!
Now, let me break it down for ya. Oregon’s cannabis cultivators been growin’ more weed than people can smoke for at least five years now. Last year, this dude named Mark Pettinger from the Oregon Liquor and Cannabis Commission (OLCC) said that the problem is partly ’cause it’s hard to predict how much weed gonna be produced. See, most of the weed in Oregon is harvested around October, but the planning for plantin’ happens way back in April. So basically, they ain’t got enough time to figure out how the previous year’s harvest gonna affect the market.
This oversupply situation ain’t no joke, my friends. It’s causin’ prices to plummet like nobody’s business. And sure, that might sound good to y’all consumers out there, but it’s hittin’ the cannabis companies real hard. They losin’ money left and right, strugglin’ to make ends meet. Beau Whitney, an economist from Portland, said that more than one-third of cannabis industry peeps are havin’ trouble payin’ their taxes. And debt? Oh man, that’s a whole ‘nother story.
The timing of this report couldn’t be worse. People out here straight up walkin’ away from their cannabis licenses or sellin’ ’em for next to nothin’. It’s a mess, y’all. Plus, the state ain’t gettin’ as much money from weed taxes as they thought they would. Delinquencies on taxes are goin’ up, and revenue from cannabis taxes fallin’ short of expectations. It’s a downward spiral, my friends.
So, what can be done? Well, some people think that Oregon regulators should limit the number of licenses or reduce production to drive up prices. But Pettinger from the OLCC says it ain’t that simple. He argues that the oversupply is partly due to intentional policy decisions and the fact that the feds still ain’t legalized weed nationwide. He says Oregon was hopin’ to become a net exporter once that happened, but nah, not yet.
Now, in the midst of all this chaos, two industry groups decided to join forces. The Oregon Cannabis Association and the Cannabis Industry Alliance of Oregon merged recently. They tryna create a united front to fight for reasonable regulations and future opportunities for the cannabis industry in Oregon. They got over 500 member businesses and wanna see this community thrive.
So there you have it, folks. Oregon be dealin’ with a major weed glut in 2023. Prices droppin’, companies strugglin’, and taxes fallin’ short. It’s a tough situation, but maybe with some unity and advocacy, things can start lookin’ up for the Oregon cannabis scene. Stay tuned, ’cause your boy Dan gonna keep you updated on all the latest happenings in the world of weed. Peace out!
