The Oregon Liquor Control Commission (OLCC) may soon be allowed to deny the state’s cannabis cultivation businesses the necessary licenses to conduct operations. Regulators are pushing for this new rule, which would be effective dependent on supply and demand. Oregon – a Democratic-leaning state – is churning out more weed than it can sell and if licenses continue to be dished out with disregard to the glut, pot farmers will continue suffocating in their supply.

Black market dealers are bagging discounts on bulk purchases of cannabis, what with many cultivators feeding their surplus to illicitly operating cartels. The extra weed that’s been stacking up throughout Oregon has to go somewhere, after all. Should the Commission chooses to pass this bill, there will be less chance of oversupply which, ultimately, means that licensed cultivators won’t need to filter an abundance of weed into the black market in a desperate attempt to make ends meet.

Will Oregon’s cannabis cultivation bill gain House approval?

Oregon’s cannabis glut is likely a repercussion of the state’s recreational industry finding its footing as it progresses, albeit slowly, to a level of stability. A bill to halt the awarding of cannabis cultivation licenses until the glut is cleared has already passed the Senate and is awaiting approval or rejection in the House. The bill still needs to get a signature from Democratic Gov. Kate Brown, who has said she plans on giving it the green light.

Local cannabis businesses who are struggling to compete with corporate large-scale cultivators would benefit from the legislation. Unless it is signed into law, there is no limit to the number of cannabis cultivation licenses that can be issued in Oregon.

Retail prices affected by excessive cannabis cultivation in Oregon

According to figures released by the OLCC, as much as 2.3 million pounds of cannabis could be still be left over from what farmers reaped last year. Being surrounded by plenty of cannabis and not enough money has forced Oregon’s cannabis retailers to sell their bud for heavily discounted prices.

The Commission has distributed licenses to over 1,800 cannabis-related businesses and 981 cannabis producers. This is according to OLCC spokesman Mark Pettinger, who says that the Commission only intended on awarding between 800-1,200 licenses initially. Within the next few months, around 967 production licenses will also undergo State House approval.