Colorado weed prices are way down, so now’s your chance to score big (and give back to the industry that keeps you mostly sane)
The buzz in Colorado is that cannabis prices have hit an all-time low, according to the latest report from the Colorado Department of Revenue. The quarterly revenue report just came out, and let’s just say it wasn’t exactly filled with rainbows and unicorns. The report, which tracks the Average Market Rate (AMR) of different wholesale marijuana categories, shows a consistent decline in prices for the past four quarters. We’re talking record-breaking lows here, folks.
Now, the AMR keeps tabs on all sorts of marijuana goodies like cured flower, trim, seeds, clones, fresh whole plants, and even stuff designated for extraction. Pound prices for flower, fresh whole plants, and extraction trim have plummeted to historic depths. To put things into perspective, trim prices are currently only $4 above their lowest recorded price ever. Talk about a steal!
Last October, a pound of marijuana flower hit rock bottom at $658, and now it’s even lower at a mere $649 per pound. That’s the cheapest it’s been since Colora-do legalized recreational marijuana back in 2014. But hold your joints, because there’s a twist. The pound of flower for extraction has actually seen a 14 percent price increase from the previous quarter. This means that the base material for premium concentrates like live rosin and resin is going up in value. The price rose from $350 to $405, although it’s still a far cry from the peak of $901. Looks like the good stuff might cost a bit more in the future, folks.
Now, here’s the kicker. The drop in prices aligns with a decrease in dispensary revenue. It’s no secret that the past year has been tough for everyone, including the marijuana industry. Dispensaries experienced a staggering 21 percent drop in revenue from 2021 to 2022, and this year hasn’t started off any better. In fact, sales in January 2023 were down nearly 15 percent compared to the previous year and over 30 percent compared to 2021. Ouch!
Experts and economic forecasts suggest that the pandemic might have played a role in the industry’s peak. When everyone was stuck at home, working remotely or not working at all, sales went through the roof. But now, things are slowly settling back to normal, and sales are taking a hit. The governor’s office predicts that the marijuana industry will face challenges until next year or even longer. So, don’t expect those prices to stay this low forever.
In response to the decline in tax revenue, discussions are underway among cannabis industry lobbyists and lawmakers. They’re considering options like stricter regulations on hemp products and putting a cap on commercial marijuana cultivations. The goal is to weather the storm and manage the impact of reduced revenue from the marijuana sector. It’s a tricky situation, but they’re trying to find a way forward.
To address all these concerns, the Colorado Marijuana Enforcement Division has scheduled a meeting on March 28. They’re planning to discuss potential revisions to the state’s marijuana tax code and gather input from the public. So, if you’ve got some strong opinions or brilliant ideas, mark your calendars and make your voice heard.
Here’s our two cents. These rock-bottom prices won’t stick around forever. It’s like a sale at your favorite store—you know it’s not gonna last, so take advantage of it while you can. Maybe stock up on some essentials that have a decent shelf life. We’re just saying, it’s a golden opportunity to save a few bucks and keep your stash well-stocked.
