Oregon marijuana prices are at an all-time low.

Median retail prices fell to $4 a gram at the start of 2023, according to state regulators, off 16% from a year earlier. Last year’s decline continues a long downward trajectory that has reduced prices by more than half in the seven years since recreational marijuana became legal in Oregon.

“The Oregon recreational marijuana market is in arguably the weakest economic position it has been in since the inception of the program in 2016,” the Oregon Liquor and Cannabis Commission wrote in its annual report to the state Legislature last month.

Falling prices are great for consumers who weary of inflation’s effects on most other products, but abysmal for Oregon retailers and growers. State economists warned last month that tax collections are below forecasts. That’s not just because falling prices have reduced the state’s cut — amid the steep decline, struggling cannabis businesses are “unable to pay all their bills.”

Oregon collects a little more than $150 million in marijuana tax revenue annually.