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Oregon marijuana prices dive, driving up sales and tax revenue

The latest forecasts now say that recreational marijuana sales in Oregon will nearly be $543 million this year.
Credit: KTVB file
A measure to lift a ban on marijuana sales in the eastern Oregon town of Ontario has passed.

PORTLAND — State economists say rampant overproduction in Oregon's market for legal, recreational marijuana has produced a 50 percent decline in prices.

The Oregonian/OregonLive reported Friday that the widely documented collapse has been tough on farmers and retailers - but a boon for consumers.

RELATED: Ontario voters lift ban on marijuana sales

A new state analysis finds the price collapse sparked a big uptick in marijuana purchases and a corresponding increase in associated tax revenue.

Josh Lehner of the Oregon Office of Economist Analysis says lower prices are helping to drive the volume of sales higher and induce black and medical market conversions into the legal, recreational market.

Latest forecasts say recreational marijuana sales in Oregon will be nearly $543 million this year, up 29 percent from 2017 and well above economists' expectations. They're raising their forecasts even more in future years.

RELATED: Would-be pot retailers line up in Ontario before election