I don't know, it seems kind of far fetched to me. And I think the dam and hasn't really increased, but the people trying to grow and make money off it has since pot was legalized. So now the market is flooded with mediocre homegrown. The outdoor market that this article seems to be referring to "small farmers" are mostly jumping on the "free money from outdoor pot" bandwagon and havent yet realized that no one is going to pay several thousand dollars for their shitty outdoor.
Yeah. If this article is actually true, I view it as a temporary problem. Not everyone who starts a microgrow op will sell anything. Most won't. Especially if it's shitty. Once they realize that, the scale will shrink. Here is something I submitted a long time ago that you might enjoy, regarding how weed comes to be good or bad.