Oregon marijuana prices ended 2025 at a record low, $3.33 a gram, as total sales statewide fell to their lowest point since 2019.
The state’s marijuana industry has been struggling for years owing to a chronic imbalance between supply and demand. Growers reaped a record harvest last fall, 13.5 million pounds, which will put even more pressure on prices this year.
Oregon marijuana sales were down more than 20% last year from their peak in 2021, dropping to $926 million. Prices fell 40% in that time. The protracted decline has made life a constant struggle for the small businesses that sustain the industry.
There’s no sign of the market turning around. But even if revenues don’t grow, Oregon’s marijuana businesses may get a lifeline: Lower taxes.
Marijuana remains illegal under federal law and the U.S. classifies it as a Schedule I drug under the Controlled Substances Act. That describes drugs with “high abuse potential” and “no accepted medical use.” Other drugs in that category include heroin and LSD.
Last month, President Donald Trump told the U.S. Department of Justice to begin the process of reclassifying marijuana as a Schedule III drug. Drugs in that category include anabolic steroids and ketamine.
Companies selling Schedule I drugs can’t deduct most business expenses from their taxes. Those selling Schedule III drugs can.
That means marijuana businesses could start deducting standard expenses like rent, utilities, insurance and employees’ wages from their federal taxable income. There’s no timeline for how long the reclassification process might take, but the outcome could be very significant for Oregon marijuana businesses.
“It gives us the opportunity as businesses to really actually be treated like normal businesses,” Gabriel Parton Lee, general counsel for Oregon cannabis edibles company Wyld, told an Oregon legislative committee this month.
The tax savings could amount to tens of thousands of dollars for small businesses, and hundreds of thousands for large businesses. That could help cushion the blow as Oregon marijuana prices and sales continue to ebb.
Oregon businesses have been counting on Congress to make marijuana legal across the country, anticipating that could create a national market for the crop. That hasn’t happened and it doesn’t appear it will anytime soon — the proposed reclassification of marijuana won’t affect interstate commerce.
But Lee said the new federal rules throw a lifeline to Oregon’s industry.
“While it’s still not federal legalization, it’s still not enough,” he said, “it gives us the opportunity to create the progress that we need to allow us to stabilize as businesses and hopefully be competitive with the unregulated market.”
This is Oregon Insight, The Oregonian’s weekly look at the numbers behind the state’s economy. View past installments here.
Mike Rogoway reports on the intersection of community and technology, from the science of semiconductors to the impact of billion-dollar data centers in Oregon’s small towns. Mike has worked in communities…
Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement, (updated 8/1/2024) and acknowledgement of our Privacy Policy, and Your Privacy Choices and Rights (updated 1/1/2026).
© 2026 Advance Local Media LLC. All rights reserved (About Us).
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local.
Community Rules apply to all content you upload or otherwise submit to this site.
YouTube's privacy policy is available here and YouTube's terms of service is available here.
Ad Choices
