Cannabis Prices Drop
The excess supply of legal cannabis in Oregon is having a significant impact on its retail price. This was concluded by a report released by the Oregon Office of Economic Analysis.
Since 2015, the retail price of cannabis in the state of Oregon has fallen dramatically, down around 50% from an average price of $14 to just $7 per gram. With both cannabis growers and retailers beginning to suffer from a dramatic fall in profit, they are now turning their attention to towards the booming potential of both hemp and CBD.
Applications for state licenses to grow hemp have increased more than 20-fold in the last three years. This puts Oregon second, only behind Colorado who remains the leading producer of hemp amongst the 19 states that allow an active hemp cultivation within the United States.
As we are beginning to learn, the market for CBD is evolving rapidly and with that, the demand for CBD and specifically CBD oil has risen sharply. Indeed, CBD usage has increased dramatically in the last 2 years, both in the US and overseas, and this pattern looks set to continue in the years to come.
Jerrad McCord, a cannabis farmer from southern Oregon who recently added 12 acres of hemp to his plantation, stated: “Word on the street is everybody thinks hemp’s the new gold rush”. Oregon has the ideal climate for growing cannabis and as a result, growers usually end up with a bumper crop that yields more than they can sell or even adequately store. However, under state law, none of that crop can leave Oregon.
With a decision also taken not to place a cap on the number of licenses for growers in the state, a situation has now arisen in which Oregon simply has more cannabis than it needs. It’s a problem few could have imagined when the voters of Oregon decided to say yes to legalized cannabis back in 2014.
“Now we’re starting to look at drastic means, like destroying product. At some point, there’s no more storage for it,” said Trey Willison, who this year switched his farming operation from cannabis to hemp. “Whoever would have thought we’d get to the point of destroying pounds of cannabis?”
Willison realized that he was selling way more clones than Oregon's market could support. The two-story building where he grew 200 pounds of cannabis a month now sits virtually empty, while the greenhouse he built to expand his cannabis business is now instead packed with hemp plants.
He now chooses to breed hemp plants genetically selected for their strong CBD concentration. He harvests the seeds and then extracts CBD from the remaining plants that are worth up to $13,000 per kilogram.
"The cannabis market is stuck within the borders of Oregon — it's locked within the state," he said, "But hemp is an international commodity now."
A selection of our products
Hemp for CBD on the Rise
Given the situation regarding cannabis in Oregon, more and more of their cannabis farmers are turning their attention to hemp; a crop that is already grown in 19 states across the country.
Growing industrial hemp is legal under federal law and the plant can be sold for use in things like fabric, food, seed and building materials. And in Oregon, there is now an increasing focus on the potential of CBD, specifically CBD extraction.