New Mexico raises cannabis production limits as adult sale is used |
Less than three months before the start of legal sales of recreational cannabis in New Mexico, state regulators have increased production restrictions on adult-use cannabis growers. Under the emergency regulations that went into effect last week, most licensed cannabis growers are allowed to grow twice as many plants as previously allowed.
Kristen Thomson, director of New Mexico’s Cannabis Control Division, said the rule change is intended to help spur the start of the state’s newly regulated adult-use cannabis industry, which is expected to end sales of recreational marijuana by April 1 should begin.
“We have listened to producers, consumers and patients who are just as committed as the Cannabis Control Division to supporting a thriving New Mexico cannabis industry,” Thomson said Monday in a statement cited by NM Political Report. “Doubling the plant count for licensed producers makes sense to ensure everyone can maximize the benefits of a thriving cannabis industry.”
Under the emergency rules, which will remain in effect through July, cannabis growers with a Level 4 license are allowed to grow between 12,001 and 16,000 cannabis plants, while Level 3 license holders are allowed to grow 6,001 to 12,000 plants. Level 2 growers are allowed to cultivate 2,001 to 6,000 plants, and level 1 growers can cultivate 401 to 2,000 marijuana plants. Thomson explained the rule change in documents filed with the state’s Public Records Commission.
“The department considered demand estimates provided by applicants and licensees in the cannabis industry,” Thomson wrote. “Projected market demand shows that demand for regulated cannabis will increase year on year as more and more cannabis users migrate from the illicit market to the regulated market. Without an adequate supply of plants, the supply of medicinal cannabis is increasingly at risk.”
However, the emergency regulations will not increase plant limits for small producers. Operations of such small growers will remain limited to 200 plants, a legal cap that regulators are not allowed to override. The director said the department will seek a legislative solution that would allow micro-producers to raise production limits similarly.
“Justice and fairness are fundamental principles of New Mexico’s vision for the state’s cannabis industry,” said Thomson. “We will work with lawmakers and the governor to ensure these values are met and that micro-producers see increased plant count limits as soon as possible.”
Caps introduced to prevent overproduction in New Mexico
Plant restrictions for growers were incorporated into New Mexico cannabis regulations to prevent overproduction. Regulators feared a cannabis glut that would cause prices to drop dramatically, a scenario that could challenge small operators trying to break into the burgeoning industry.
But last summer, Linda Trujillo, superintendent of the New Mexico Regulation and Licensing Department, which oversees the Cannabis Control Division, warned that recreational marijuana supplies would run out once adult-use marijuana sales began in the state.
“It’s very likely that we’ll run out of cannabis in the first week, if not the first two weeks,” she said at a July 26 meeting of the Legislature’s Economic Development and Policy Committee they introduced adult cannabis sales.
Restrictions on cannabis production were first introduced as part of New Mexico’s medical marijuana program. Ultra Health, one of the largest medical cannabis producers in the state, has sued the state over the caps, arguing they are too low to serve New Mexico’s patient population. On Monday, the company said production restrictions on adult-use cannabis were also inadequate.
“Unfortunately, this increase may be too small, too late,” an Ultra Health spokeswoman wrote in a statement to local media. “Sales to adults starts in 74 days and it takes twice as long, five months, to fully prepare cannabis from seed to sale. We have a deficit today to care for 130,000 patients, so it is naïve at best to think that this new rule would alter the biological processes required to grow cannabis.”
Ben Lewinger, executive director of the New Mexico Chamber of Cannabis Commerce, applauded state regulators for considering potential shortages that would negatively impact those who rely on a steady supply of medicinal cannabis.
“Protecting patients and patient care is absolutely critical and has been a top priority in recent legislative and rulemaking processes, and we are grateful that the Cannabis Control Division is working to ensure patients of medicinal cannabis are not neglected as the condition evolves changes to legalize cannabis for adults,” he said.
But Lewinger questioned the rule change, saying doubling the cap on plants just weeks before legal sales begin “undermines the work of lawmakers and advocates” who advocated production restrictions to ensure fair access to participation in the new leisure -Enable cannabis economy.
“Building the infrastructure to double the number of plants could take months to years for most operators, and plants that are being laid in the ground today will not be ready in April,” Lewinger said. “Increasing the number of plants now will only help the very largest and well-resourced producers – it won’t help medical cannabis patients, and it won’t help new companies trying to break into the industry.”
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