Oregon Again Sees Huge Marijuana Harvest

For the second year in a row, Oregon cannabis farmers have harvested more than a million pounds of usable marijuana.

Posted: Jan 3, 2019 1:23 PM
Updated: Jan 3, 2019 5:52 PM

SALEM, Ore. (AP) — For the second year in a row, Oregon cannabis farmers have harvested more than a million pounds of usable marijuana.

The huge harvest (more than 453,592 kilograms) is again driving down prices for consumers and putting pressure on growers who aren't getting the price they hoped for after a similar phenomenon in 2017, The Bulletin reported Thursday.

Oregon's cannabis market is limited to sales within the state's borders, yet the state of about 4 million people has 1,107 licensed active producers and another 900 producers seeking licenses from the Oregon Liquor Control Commission.

There is also no cap on the number of licenses issued by the state, but the commission did place a temporary freeze on new applications last summer to try to address the glut.

"Everyone is concerned about this," said Adam Smith, Craft Cannabis Alliance executive director. "You'll see people going out of business in the spring when it's planting time. There are far too many in the industry in distress. No one is making money here."

Growers harvested more than 2.5 million pounds (1.1 million kilograms) of cannabis in October. Of that so-called wet harvest, 1.3 million pounds (589,670 kilograms) of usable marijuana was logged into the Oregon Liquor Control Commission's cannabis tracking system as of December, according to the agency's latest report .

In 2017, the fall harvest reaped nearly 2.6 million pounds (1.2 million kilograms) of wet product and about 1 million pounds (453,592 kilograms) of usable marijuana.

Last year, cannabis farmers statewide cut back the amount they planted, while others didn't plant at all, and some surrendered their licenses, said Don Morse, a Portland cannabis consultant. As of Wednesday, 70 grower licenses were expired, and 57 licenses were surrendered, according to commission data.

There is one silver lining: People are buying so much pot that Oregon's marijuana tax collections have exceeded the forecast by 7 percent in the 2017-2019 biennium, according to the Oregon Office of Economic Analysis.

State economists noted that ongoing growth in sales volumes has been more than enough to make up for falling prices.

"Because of the federal illegality, there is not a balance between suppliers and demand," said Beau Whitney, senior economist and vice president of New Frontier Data, a cannabis market research firm. "If it was an open market and it was legal throughout the United States, there would be demand and prices would stabilize."

Prices for pot last year plunged as much as 50 percent, Whitney said. This year could see prices drop by 35 to 50 percent more, he said.

"There is no short-term fix for this," Whitney said. "You have a lot of supply in the system, and it will take a while for it to flow through the system."

Gov. Kate Brown said Thursday in a conference call with reporters that the discrepancy between state and federal laws remains the biggest hurdle for alleviating the oversupply.

The newly sworn-in Congress could push through changes to help growers, she added. The U.S. House is controlled by Democrats, including some who favor making marijuana legal at the federal level, such as Oregon Rep. Earl Blumenauer.

Brown said she also hopes that Congress will act to allow banks to do business with the marijuana industry.

"This Congress can be of incredible use to us," she said.

At the state level, Oregon State Sen. Floyd Prozanski, a Democrat from Eugene, plans to reintroduce parts of a 2017 bill that would have allowed Oregon to enter into agreements with California and Washington for coordination of marijuana-related businesses, The Statesman Journal reported this week.

Shipping marijuana by air would be prohibited and pot couldn't be transported through a state that didn't agree.

Brown said she wants to work with Prozanski and others on statutes that could alleviate Oregon's pot problem.

The numbers in the commission report also reflect the growing popularity of concentrates and tinctures over the dried marijuana flower — the "bud" that's traditionally been smoked for a high.

That dovetails with a study of consumer habits by New Frontier Data and MJ Freeway, a cannabis technology firm, The Bulletin said. The market share of concentrates has nearly reached parity with flower, growing 138 percent since 2015, from 16 percent of retail sales to 38 percent in October 2018, according to the study.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 387485

Reported Deaths: 5116
CountyCasesDeaths
Multnomah59768836
Washington41571393
Marion39592504
Clackamas32426376
Lane29856354
Jackson24672350
Deschutes23182185
Umatilla15087180
Linn14488178
Douglas13236286
Josephine10057240
Yamhill9665142
Klamath8979145
Polk813698
Benton605137
Malheur591586
Coos5573106
Columbia423855
Jefferson416865
Lincoln357252
Union336854
Crook330156
Wasco314846
Clatsop258335
Baker217531
Tillamook214345
Hood River211337
Morrow197025
Curry190136
Harney119332
Grant108314
Lake104016
Wallowa74713
Sherman1903
Gilliam1844
Wheeler1141
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 5060048

Reported Deaths: 74129
CountyCasesDeaths
Los Angeles152429427102
San Diego4047084319
Riverside3849455306
San Bernardino3718825944
Orange3329505675
Sacramento1674002423
Kern1565171781
Fresno1558992246
Santa Clara1511691922
Alameda1246581500
San Joaquin1070001833
Ventura1036461188
Contra Costa1032921045
Stanislaus912991413
Tulare856141082
San Francisco56614669
San Mateo56058629
Monterey52340625
Solano47422356
Santa Barbara47035548
Merced44807664
Sonoma42912412
Placer41881468
Imperial38128769
Kings35038358
San Luis Obispo31294358
Madera26005311
Shasta25917440
Butte25295309
Santa Cruz22028222
Yolo21451257
Marin18342248
El Dorado18166161
Sutter14494181
Napa13372104
Yuba1070088
Tehama10230129
Humboldt10043117
Nevada9914103
Mendocino848894
Lassen792355
San Benito775977
Tuolumne767790
Lake6990110
Amador573766
Siskiyou470954
Glenn455136
Calaveras435685
Del Norte371242
Colusa323519
Inyo254345
Plumas19127
Mono18294
Mariposa156718
Trinity98817
Modoc7475
Unassigned2430
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