Uneasy West Coast marijuana industry seeks broader trade amid vast glut

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An analysis by cannabis investor Aaron Edelheit determined California’s legal market lost nearly one-quarter of its total growing area after the start of 2022 — “a wipeout,” he called it.

By GENE JOHNSON, ANDREW SELSKY and MICHAEL R. BLOOD | Associated Press

Across the Columbia River in Oregon, where the state’s top marijuana regulator recently warned of an “existential crisis” in the industry, it’s an open secret some licensed growers have funneled product to the out-of-state black market just to stay afloat. “I’m at rock bottom,” said Jeremy Moberg, who owns CannaSol Farms in Washington and, like many growers, complains that the state’s 37% cannabis tax leaves virtually no profit margin.

In Senate testimony last month, Attorney General Merrick Garland said the Justice Department will soon announce a new marijuana policy. Drug policy experts say they do not expect it to go as far as permitting interstate commerce. That has helped some smaller growers thrive. But it would hamstring those who hope to compete in an interstate marketplace alongside larger, more efficient producers from Oregon or California, who face fewer restrictions.

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