New Jersey’s cultivation cap has expired, but real estate problems remain

The law legalizing cannabis in New Jersey originally went into effect in 2021 with a grower cap set at 37 licenses. Adult sales began in April 2022, but at the time only seven growers were licensed to supply cannabis to 13 dispensaries across the state. Last month, the Cannabis Regulatory Commission (CRC) let the cap expire on February 22nd.

“The market is developing and we don’t want to hinder that. The New Jersey canopy is currently only 418,000 square feet – well below the average for other legal cannabis states,” said Commissioner Maria Del Cid-Kosso. “New Jersey currently only has one cultivation license per 197,000 residents. The national average is one license per 31,000 residents. We have plenty of room to grow. We expect that removing the cap will open the space for more cultivators, ultimately leading to cheaper prices and better access for patients and other consumers.”

As of March 2, the CRC has licensed 17 operational grow facilities. But despite the change in the cultivation license cap, many communities in New Jersey have opted out of adult use of cannabis. A year ago, the Ashbury Park Press reported that nearly 400 cities had decided against locating cannabis businesses. Co-founder and president of New Jersey-based Premium Genetics, Darrin Chandler Jr., told MJBizDaily that finding potential real estate opportunities is “almost impossible” and described the prices as “astronomical.”

On the patient side, New Jersey is still the only state with a medical cannabis program that doesn’t allow patients to grow at home. Many bills have been introduced in the past to allow home cultivation so medical cannabis patients can grow for personal use. Bill S342, sponsored by Sen. Troy Singleton and Sen. Vin Gopal, would allow patients to cultivate at home. However, a Politico report says opposition from Senate President Nick Scutari is a significant obstacle to the bill.

The New Jersey industry continues to attract outside cannabis companies. Brands like Al Harrington’s Viola products are expanding stateside this month, beginning March 24 in RISE pharmacies. According to Harrington, he wants to expand his brand to support the local community. “I want to make sure we educate our community and arm them with knowledge to understand the cannabis plant and the benefits it brings,” Harrington told Business Insider.

Similarly, Raekwon of the Wu-Tang Clan is preparing to open Hashtoria Cannabis Lounge in Newark, New Jersey. “I look forward to seeing you!!! @hashstoria is coming to brick town!!!!! This will be the best consumption lounge on the east coast. This will be monumental! Hail to the mighty green! Be strong, be wise and be the best version of you!!! #newjersey #cannabis #hashstoria,” Raekwon recently wrote on Instagram.

Recently, the CRC held a public comment period to discuss its draft cannabis use rules, which end on March 18th. This includes restrictions on the sale of food on site, but allows food to be delivered or taken away from outside and a ban on tobacco and alcohol sales on site.

In late February, the New Jersey Attorney General released an updated drug testing policy for law enforcement. Under the new overhaul, law enforcement officers will only be tested for drugs if they show up intoxicated to work. “Agencies are required to conduct drug testing whenever there is a reasonable suspicion that a law enforcement officer is engaged in the illegal use of a controlled dangerous substance or is under the influence of a controlled dangerous substance while on the job, including unregulated marijuana or cannabis. ”