Do cannabis companies face consequences if they refuse to grow their own?

Home grows are the basis of the cannabis reform movement. Hence, many proponents and patients believe that with legalization it is important that individuals have the right to grow their own plants, especially in a regulated market. High Times looks at the proliferation of companies speaking out against home growing and how this can be detrimental to the community as a whole.

Luke Zimmerman Esq., A cannabis lawyer and lecturer at Oaksterdam University, said that growing your own home gives each person access to a unique relationship with cannabis. He added, “If everyone has the right to grow a limited amount of cannabis, this will be the final nail in the coffin to change the outdated paradigm of cannabis as a gateway drug.”

Not widespread but still worrying, cannabis companies have occasionally spoken out against homegrown laws in certain states. Conversations among some in the cannabis community suggest a level of suspicion as they believe that even more prominent names may not support home growth. However, these beliefs are largely formed on intuition rather than hard evidence.

Probably the most prominent opposition to home growing came from New York. In December 2019, Politico reported that the New York Medical Cannabis Industry Association (NYMCIA) had written to him in advance of the revelation of then-Governor Andrew Cuomo’s legalization plans in hopes of keeping home growing out of the Empire State. Members of the group at the time included Acreage NY, Columbia Care, Etain, MedMen, PharmaCann, The Botanist, and Vireo Health.

In a chapter entitled “The Mistake of Home Growing”, the letter quoted that the group spoke out against the measure, citing risks to public health and the ongoing unlicensed market, despite high medical costs and freedom of choice through home growing.

In 2021, New York passed its Adult Use Act that allows home growing.

In 2020, Make It Legal Florida’s petition for legalization contained provisions that would prohibit Floridians from growing their plants. Make It Legal Florida’s main backers were Parallel and MedMen, who invested $ 8.2 million in the campaign as of August 2019. MedMen was also one of the companies involved in the letter to New York leadership. At the time of filing this article, MedMen has not responded to High Times’ request for comment.

In April 2021, the Florida Supreme Court dismissed the petition over language it deemed misleading.

Lawyers and corporations are calling for home grows

Proponents cite several reasons why they support home growing. Often times, depending on the lawyer, the main reason is one or a mixture of:

• Plant history
• Economic Inequality / High Legal Fees
• Freedom of choice
• Distance to legal sources
• Unjust laws

Elana Frankel is a freelance media professional and author of Women and Weed. Frankel said citizens should have the right to choose whether to get their cannabis from the pharmacy, pharmacy, or their backyard. She compares growing cannabis to buying products. She grows herself at home and still shops in the store.

“Home growing is just one form of cannabis activism, the rebellion of prohibition injustice,” Frankel said, calling it “political gardening”.

Sheril Murray Powell, Esq. is a Florida-based attorney specializing in cannabis, agriculture, and nutritional supplements. Murray, who sits on various cannabis boards of directors in the U.S. and Jamaica, said home growing should be legal for several critical reasons. She cited the indigenous history of the plant and the fact that it was used around the world long before regulations came into force. She added that the ban on plants is not scientifically based and called the rules arbitrary. Finally, she said that patients’ individual needs require home cultivation.

“Individuals have different plant chemistry requirements for their chronic diseases, and individuals have different plant chemistry requirements for their endocannabinoid system,” said Murray. She also believes that home cultivation enables and guides people to make better decisions about what to put into their bodies.

While there are concerns that large cannabis companies, whether on record or otherwise, are against growing their own, the industry is far from united in its opposition.

In 2019, Kris Krane, then President of Multi-State Operator (MSO) 4Front, said he understood companies trying to make money. Still, he added that the opposition ultimately boils down to companies looking to generate the greatest possible revenue.

Marianne Cursetjee is CEO of Oregon’s Alibi Cannabis. The investor and advisor said western companies tend to support home growing. She told High Times that Oregon’s strong DIY culture also includes growing cannabis at home. Cannabis fits so much into the general aesthetic of their Portland community.

“I was at a backyard dinner party in Portland last night and the neighbor had a very nice looking cannabis plant that he was cultivating,” said Cursetjee. She added, “Not everyone has the time, interest, or capacity to grow crops, but this option is very important.”

Proponents of the cannabis community ethos may believe that big brands who resist home growing will have the repercussions in terms of lost sales or damaged reputations.

However, this does not seem to be the case so far. Some brands, like MedMen, have had intermittent issues, including recent stock declines of over six percent in the fourth quarter of 2021. Still, the company reported a 55 percent year-over-year increase and made $ 42 million in the most recent quarter. Others, like Cresco Labs, are considered a leading player in the US market. Cresco will announce its next quarterly report on November 11, 2021.

Zimmerman believes a negative blow could come, “but that will likely only be from informed consumers who took the time to understand the problem.” He believes businesses should embrace home growing so customers can understand the value of the pot they bought in store.

“I’ve grown for the past five seasons, and while I’ve learned a lot about the plant, I remember every year that it can take years to cultivate high quality cannabis, especially if you’re trying to cultivate on a scale. “, Explained Zimmermann.

While sales don’t seem to be affected by opinions about home growing, reputation with loyal consumers is still an issue for some operators. Dan Gower, the owner of Buddy Gardner Advertising, advises his cannabis customers to support home growing – most of them are on board to distribute helpful information for home growers.

“I remind all of my customers that this information is available anyway. So there is little point in being on the wrong side of history because you are trying in vain to protect your own profits, ”said Gower.

In conversations for other articles, analysts and operators told this reporter that they believed MSOs’ market dominance could wane with state legalization. When that period arrives, there is a belief that big brands could fall to more popular brands and regional leaders. While this is just a guess, it may be the only way for brands to face the financial consequences of defying home-growing or any other basic cannabis advocate ethos. Because right now, their opposition is proving to have little to no impact on their brand or bottom line.