New Mexico grants first adult cannabis cultivation license

Efforts to legalize adult cannabis in New Mexico made new strides this month as regulators issued the state’s first license to grow recreational marijuana. Tony Martinez, the CEO of Mother’s Meds, announced in a statement last week that the New Mexico Regulation and Licensing Department licensed the company to operate as a cannabis grower on Nov. 1.

The company will join 34 other cannabis producers previously licensed by the Ministry of Health to grow medical marijuana, many of which will also grow adult cannabis. On Wednesday, a spokesman for the state’s ministry-overseen Cannabis Control Division (CCD) confirmed that the license had been granted pending a background check of applicants.

“Mother’s Meds has obtained a cannabis producer license and that license will come into effect once all background check requirements are met,” said department spokeswoman Heather Brewer in a statement cited by the New Mexico Political Report. “Cannabis Control is excited to begin licensing and looks forward to public announcements and new company celebrations as the division works to build a thriving adult cannabis industry in New Mexico.”

Martinez praised the “hard work, diligence, and adaptability” of the company’s employees and the “business-friendly attitude” of San Juan County for the first cultivation license issued to Mother’s Meds doing business as Lava Leaf Organics. He added that the company “will continue to comply with all CCD rules and regulations” while it gets cannabis production going.

Instead of hiring a significant number of employees, Martinez said the company will operate through contracts with professionals in the cannabis industry.

“My least loved part of business is appreciating another person’s efforts and talents; This model allows people more control over their destinies and working with us, not us, ”Martinez wrote in a statement. “I believe this will enable our community to attract and retain more talented professionals than our competitors.”

More than 1,500 additional cultivation license applications in New Mexico are pending

Since the CCD began accepting applications for adult cannabis producers in August, more than 1,500 potential applicants have embarked on the detailed and time-consuming process. More than 1,000 applications have been made for licenses to operate micro-businesses limited to growing no more than 200 cannabis plants at a time.

“We’re off to a good start,” John Blair, assistant superintendent of the New Mexico Regulation and Licensing Department, told local media earlier this month. “I don’t know if we could have foreseen the demand other than knowing that there really does seem to be a lot of excitement across the state.”

State regulators continue to take requests, and Blair noted that regulators have not set a limit on the number of licenses issued, a practice common in many jurisdictions with legal marijuana production.

“We have no limit on the number of people we license for any of the cannabis companies,” he said. “If a million New Mexicans wanted to get a license, we’d license a million people.”

However, filling out the application is not an easy process. Johnathan LeDuc, an applicant seeking medical and recreational marijuana production in Los Alamos, said the CCD required him to provide a social and economic equality plan, government ID, current business license, fire inspection report, zone permit and proof Submit the company premises, a site plan, a water and energy use plan and a demonstration of water rights.

“It’s a pretty daunting process. The application is very, very thorough and there are many steps and requirements, ”he said. “In principle, I was only able to submit my application provisionally.”

No guarantee of success

Although there is no limit to the number of licenses that can be issued to grow cannabis for adults in New Mexico, obtaining a license does not guarantee successful business. AJ Sullins, a New Mexico resident who owns cannabis businesses in several other jurisdictions and is now filing marijuana production in his home state, said market forces and production costs are likely to result in many business failures.

“There will be some people who have been licensed and their costs exceed their income because they haven’t planned low-cost production,” he said. “And they will begin to consolidate or wash out within three years. I saw the same thing in Arizona. “

Sullins added that even companies with multi-million dollar investments can struggle to compete with large cannabis operators from multiple states.

“There are about a big player or two out there who absolutely dominate the market,” he said. “I hate to use the word, but I almost ‘monopolize’ the market. The competition at the top is definitely stiff. “