New York growers have too much weed on their hands

A recent report from Associated Press (AP) News examined the state of cannabis cultivation in New York and highlighted issues with current conditions.

In an interview, AP News spoke to grower Seth Jacobs of Slack Hollow Organics (and its Bud & Boro brand), who confirmed that he relies on a significant amount of cannabis due to the limited number of legal dispensaries. “We’re really under pressure here. We’re all losing money,” Jacobs said. “Even the most entrepreneurial and ambitious of us just can’t move a lot of product in this environment.” He explained that he has 100 “jars” of cannabis flower in stock, or about 700 pounds, harvested in 2022, and that he has 220 pounds of distillate were stored.

New York Gov. Kathy Hochul had forecast that the state would license up to 20 new dispensaries every month since early 2023. There are currently only 11 functioning dispensaries in New York statewide, although 300 licenses can be awarded to qualified applicants.

The result has led to a surge in unlicensed cannabis stores and transporters, but for obvious reasons, that’s not an option for growers like Jacobs. AP News states that legal cannabis products are estimated to be worth “hundreds of millions of dollars” and 80% of that is cannabis oil. Eventually, the bud grows too old to sell, even though growers like Jacobs store the product in temperature-controlled storage containers.

Tricolla Farms’ Brittany Carbone also told AP News she stockpiles 1,500 pre-rolls and 2,000 packs of edibles for the same reason. “What we really need is for more retailers to open up, and that’s actually going to give us a sustainable solution,” Carbone said.

Due to the ample stock of product in storage, Jacobs added that he does not intend to produce any additional distillates this year. Carbone also said that Tricolla Farms will reduce the number of its plants until more dispensaries are open.

AP News also cites problems prioritizing Social Justice applicants as another potential delay. The program included $200 million earmarked to support such companies, with $150 million coming from “private investment”. The news agency could not confirm private investment was made, but when he contacted state housing authority spokesman Jeffrey Gordon, he explained that the state’s “complex and unprecedented” task of evaluating potential pharmacy locations, establishing safe banking and much more, be a challenge.

The New York Office of Cannabis Management (OCM) recently approved 50 dispensary licenses, and there are plans to allow growers to partner with farmers’ market-style retailers to help sell the product. In an announcement in late May, OCM’s chief equity officer Damian Fagon predicted that this could happen “optimistically within a month.” The plan would be for at least three growers and one licensed retailer to host a farmers market event.

John Kagia, OCM Director of Policy, explained the benefits of these events. “We think that’s really important because it does two things,” Kagia said. “First, it allows growers to reach out to the consumers who will be buying regulated products in New York and allows you to tell your stories. Second, it allows you to sell products across the state much faster. So the idea would be that retailers are limited to the regions they are allowed to operate in, but growers can do so anywhere in the state.”

OCM spokesman Aaron Ghitelman also told AP News that the farmers’ markets would help alleviate the problem. “We know these growers are concerned about how to sell last year’s harvest while they decide if they want to grow a cannabis crop in 2023 and we will continue to support them as more dispensaries for adult use grow will sell their products,” Ghitelman said.