Planet Money
So you want to sell marijuana across state lines
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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