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.

Cases: 155597

Reported Deaths: 2208
CountyCasesDeaths
Multnomah31877528
Washington21211212
Marion18468285
Clackamas13380175
Lane10258126
Jackson8395112
Umatilla765982
Deschutes595259
Yamhill378364
Linn359056
Malheur335158
Polk306442
Klamath279155
Douglas247454
Benton234416
Josephine234050
Jefferson195828
Coos149119
Union128419
Columbia126521
Wasco122126
Lincoln113220
Hood River106929
Morrow104914
Clatsop7756
Crook77518
Baker6567
Curry4296
Tillamook4142
Lake3766
Harney2736
Grant2231
Wallowa1424
Gilliam531
Sherman530
Wheeler221
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 3566914

Reported Deaths: 52158
CountyCasesDeaths
Los Angeles119192321435
Riverside2894503767
San Bernardino2866072874
Orange2612203917
San Diego2600913284
Santa Clara1106211777
Kern102627827
Fresno953931443
Sacramento932811472
Alameda806681242
Ventura77623844
San Joaquin665691101
Contra Costa62248681
Stanislaus56132946
Tulare47784758
Monterey42138328
San Mateo38998515
San Francisco34260412
Santa Barbara31805411
Solano30024164
Merced28915397
Sonoma28141298
Imperial26903591
Kings21955218
Placer19763232
San Luis Obispo19612227
Madera15467209
Santa Cruz14588183
Marin13136197
Yolo12834185
Shasta10985174
Butte10962160
El Dorado9095100
Napa903869
Sutter884597
San Benito576759
Yuba573337
Lassen560119
Tehama508152
Nevada396074
Tuolumne394659
Mendocino379643
Amador346341
Humboldt318033
Lake315641
Glenn222523
Colusa212813
Calaveras190547
Siskiyou174014
Inyo128737
Mono12114
Del Norte9875
Plumas6536
Modoc4524
Mariposa3957
Trinity3675
Sierra990
Alpine810
Unassigned00
Medford
Clear
39° wxIcon
Hi: 63° Lo: 30°
Feels Like: 39°
Brookings
Partly Cloudy
47° wxIcon
Hi: 57° Lo: 37°
Feels Like: 47°
Medford
Clear
39° wxIcon
Hi: 41° Lo: 18°
Feels Like: 39°
Medford
Cloudy
39° wxIcon
Hi: 62° Lo: 30°
Feels Like: 39°
Klamath Falls
Clear
38° wxIcon
Hi: 50° Lo: 23°
Feels Like: 38°
Very mild start to March
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events