This means that prices in constitutional states collapse drastically

The weed glut has become pervasive in many constitutional states, causing the price of weed to drop drastically. The problem is more pronounced in New York, which has produced about 300,000 pounds of weed this year in anticipation of introducing the recreational market.

If weed is stored for too long, the buds will begin to break, causing the weed to lose value.

Photo by OlegMalyshev/Getty Images

In the last two years, Colorado weed prices have plummeted 51%, according to a BDSA report. Wholesale weed prices are down 36% and 46% in Massachusetts and Missouri, respectively.

Things are even worse in Michigan, where prices have fallen a whopping 75% over the past two years. From a high of $400 an ounce, the price is now around $100. Industry officials in Michigan are urging the state agency to impose a moratorium on cultivation licenses to stem the oversupply problem.

Cannabis economist Beau Whitney told Politico that market dynamics mean cannabis companies are “doomed to fail” from the start. To make matters worse, the industry is grappling with several other setbacks such as a high tax burden, financial and insurance services, and real estate services, as well as fierce competition from the unregulated market.

Even as the industry continues to suffer endless misery, there seems to be one winner in all of this: cannabis users.

This article originally appeared on MyCannabis.com and has been republished with permission.