Oregon Senate votes to legalize interstate cannabis imports and exports

Cannabis producers in Oregon stand to benefit greatly from the proposed law, which could help resolve oversupply issues


Bethan Rose Jenkins, Cannabis News Writer/Editorial

Later this year, legislation to permit interstate cannabis imports and exports throughout Oregon will be pondered over by a team of lawmakers. This is based on a recent report by the Statesman Journal. Legislation of this kind would enable cannabis wholesalers who are operating within this state in the Pacific Northwest region to export pot products to various legal markets throughout the U.S.

A similar chunk of legislation was suggested back in 2017 by Oregon state Sen. Floyd Prozanski (D), who is introducing the latest bill alongside The Craft Cannabis Alliance. The previous proposal fell flat in the statehouse back in 2017, when Prozanski initially introduced it. Lawmakers haven’t come to a decision regarding the new legislation yet.

The Oregon cannabis market suffers from an over-saturation of cannabis products

Cannabis overproduction in Oregon was predictable. After all, the southern region boasts an idyllic environment for cultivation purposes. Anyone who owned a suitable plot of land and had a squeaky clean criminal record could become a licensed pot producer in Oregon, thus contributing to the cannabis supply glut.

The outcome is not so lucrative for Oregon’s cannabis farmers. Products are being filtered into the black market in desperate attempts to get rid of the excess weed that growers have lying around. What’s more, oversupply has forced producers to drop their rates for retail and wholesale cannabis. Profit margins have been slashed as a result.

Permitting interstate exports would reduce pot price declines

(Pictured) New Frontier Data’s senior economist, Beau Whitney

Cannabis producers in Oregon stand to benefit greatly from the proposed law, which would allow interstate exports. Permitting activity of this kind could help to distribute the oversupply of weed outside of Oregon’s borders. As a direct effect of this, producers could start from scratch and hike up prices with their next crop.

Allowing interstate cannabis exports in Oregon “would either slow or stop the price declines, because there wouldn’t be any more excess,” says New Frontier Data’s senior economist, Beau Whitney.

“It would create more of a market in which quality and branding and other things would come into play more so than just pure price,” Whitney added.

On the other hand, federal restrictions make it tricky for the proposal to be enacted into law without repercussions. It has been illegal to transport cannabis products over state borders in the U.S. since the plant was legalized in Oregon back in 2014.

Oregon’s revised piece of legislation still awaiting review

According to details of the new proposal’s draft language, cannabis product wholesalers will legally be allowed to transport their goods across state lines, so long as the recipient has come to an agreement with Oregon Governor Katherine Brown.

In the event that a wholesale cannabis producer in Oregon wanted to ship their goods to states that have forbidden cannabis production, sale, consumption, and distribution, they would not be able to. Transporting weed via airmail would be an additional red zone as part of Oregon Senate’s proposal.

A decision is yet to be made on whether or not the legislation will be enacted statewide.