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Planet Money

So you want to sell marijuana across state lines

Nov 29, 2023
23:49
Snipd AI
In Oregon, there is an excessive and unbalanced supply of marijuana, leaving tons of weed in fields. The sales price for legal marijuana has dropped due to oversupply. However, federal law prevents selling across state lines, creating sticky business problems. The podcast explores the challenges faced by marijuana farmers, the restrictions on businesses, and the legal barriers of selling marijuana across state lines. It also delves into a lawsuit against the state of Oregon, discussing the Commerce Clause and the hope for exporting Oregon marijuana.
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Podcast summary created with Snipd AI

Quick takeaways

  • The oversupply of marijuana in Oregon has caused a significant drop in prices, impacting the profitability of marijuana farmers who have had to reduce their production.
  • Federal regulations, which consider marijuana illegal, create numerous challenges for marijuana businesses, including limited access to support services, banking restrictions, and the inability to engage in interstate trade.

Deep dives

The Glut of Marijuana in Oregon

In Oregon, there is an oversupply of marijuana, with farmers growing 8.8 million pounds of weed this year, resulting in nearly a pound per person. However, the lack of buyers has caused the price to drop significantly, affecting marijuana farmers who have had to reduce their production. The inability to sell the excess weed outside of Oregon due to federal and state laws has created unique business problems, such as the inability to trademark products or access federal business support. Federal regulations also restrict banking services and prevent interstate trade. Matt Orchua, a former marijuana trafficker turned legal businessman, is now suing the state of Oregon, stating that restrictions on selling Oregon marijuana outside of the state violate the Commerce Clause in the US Constitution, which gives the federal government the power to regulate interstate commerce.

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