An Oregon bill could stop new cannabis production licenses for two years

That's because Oregon has an oversupply of cannabis. Making recreational cannabis prices decrease.

Posted: Apr 30, 2019 11:45 PM
Updated: May 1, 2019 10:12 AM

GRANTS PASS, Ore. — A new Oregon bill could allow the Oregon Liquor Control Commission (OLCC) to refuse new cannabis production licenses for two years. The bill is a response to Oregon's current oversupply of cannabis, which has caused recreational cannabis prices to decrease.

"Prices have plummeted to historic lows," said Michael Johnson, COO of Siskiyou Sungrown. At the current rates, it's costing some cannabis farmers more money to grow and harvest the plant then they can get when the sell it — meaning they are operating at a loss.

"Things have really peaked around 2018. There are over a thousand producers on the recreational side in Oregon," said Johnson. He maintains that his company is still doing well, but a lot of small "Mom and Pop" farmers are really struggling. 

"There's a lot of licenses being given up because the farms aren't making it," said Fred Tamayo, the owner of Southern Oregon Cannabis Connection.

Some shops have had to lower the price of cannabis because they get too much supply. The result is a good price for customers, but increasingly poor return for the growers. The new bill now moving through Oregon's legislature was created to help the struggling farmers. 

"You know, for a short term fix I think it's not a bad solution," said Johnson

Tamayo, on the other hand, has mixed views on the proposed legislation. "It's negative for me because if I want to expand my business — because I have stores, I am unable to do that," he said.

At the same time, Tamayo understands the struggle because he is also a cannabis farmer. "As they narrow it down and not give more licenses to farms, farmers have a better chance of making it."

Johnson believes that Kate Brown will sign the new legislation if it passes the House, but he said that this should just be a temporary solution. "With all new industries we are going to see these kinds of highs and lows."

Oregon Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 4335

Reported Deaths: 157
CountyConfirmedDeaths
Multnomah118161
Marion98126
Washington74718
Clackamas31711
Deschutes1270
Umatilla1213
Linn1189
Polk10012
Lane773
Yamhill707
Jackson670
Benton565
Clatsop450
Jefferson440
Klamath440
Malheur320
Coos310
Douglas270
Wasco261
Josephine241
Hood River220
Lincoln170
Columbia160
Morrow120
Curry70
Union60
Tillamook60
Crook60
Wallowa20
Lake20
Sherman10
Harney10
Grant10
Baker10
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 117215

Reported Deaths: 4305
CountyConfirmedDeaths
Los Angeles572192448
Riverside8155342
San Diego7554269
Orange6574150
San Bernardino5501208
Alameda351597
Santa Clara2819143
San Francisco258743
Kern237639
San Mateo218884
Tulare200489
Fresno188236
Imperial179829
Santa Barbara166912
Contra Costa150637
Sacramento143958
Ventura116434
Kings11375
San Joaquin98235
Stanislaus75029
Monterey57110
Sonoma5664
Solano54622
Marin50115
Merced3017
San Luis Obispo2781
Placer2289
Santa Cruz2172
Yolo21324
Madera1143
Napa1133
Humboldt1023
El Dorado960
San Benito882
Butte511
Sutter462
Del Norte460
Nevada421
Shasta394
Mono371
Mendocino300
Yuba301
Lake260
Inyo201
Glenn170
Mariposa161
Calaveras150
Amador100
Siskiyou80
Colusa70
Lassen50
Tehama51
Plumas40
Tuolumne40
Alpine20
Sierra10
Trinity10
Unassigned00
Medford
Clear
62° wxIcon
Hi: 87° Lo: 53°
Feels Like: 62°
Brookings
Clear
56° wxIcon
Hi: 69° Lo: 52°
Feels Like: 56°
Crater Lake
Clear
65° wxIcon
Hi: 78° Lo: 48°
Feels Like: 65°
Grants Pass
Clear
66° wxIcon
Hi: 84° Lo: 51°
Feels Like: 66°
Klamath Falls
Clear
65° wxIcon
Hi: 82° Lo: 46°
Feels Like: 65°
Warm and dry through midweek
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events