As the New York cannabis market continues to steadily find its footing among a number of delays, the state’s governor has vetoed a measure that would have provided solutions for growers with a surplus of product without means to sell it.

The legislation, sponsored by Sen. Michelle Hinchey (D) and Assemblywoman Donna Lupardo (D), would have allowed licensed growers to sell their products to tribal retailers. The sponsors, who respectively chair the state Senate and Assembly agriculture committees, shared that the veto by Gov. Kathy Hochul wasn’t a shocking move, despite the fact that the legislation was first approved back in June.

“We offered a way for some of the oversupply of cannabis grown by NY’s farmers to be sold to NY’s Tribal Nations,” Hinchey and Lupardo said in a statement. “Given the fact that this temporary measure would have expired on December 31st anyway, the veto is hardly a surprise.”

Broad Support Amongst New York Lawmakers

In September, lawmakers appealed to Hochul to emphasize the hundreds of farmers struggling to sell their crops because of the limited number of open dispensaries in the state. Sixty-six members of the legislature, about a third of New York’s state lawmakers, had sent a letter urging Hochul to sign the measure.

“Right now, there are over 200 cannabis farmers trying to sell their crops but only 23 dispensaries open statewide,” the bipartisan Senate and Assembly members wrote in September. “This has resulted in more than 250,000 pounds of unsold cannabis. Farmers who took out loans and leveraged all their assets to cultivate these crops are demoralized and facing financial disaster unless we act quickly to provide them with an alternate market.”

The legislation was formally transmitted to Gov. Hochul earlier in December, and she vetoed them on Friday, Marijuana Moment reports.

In their statement reacting to the veto, the sponsors also emphasized the pressing nature of this issue, saying that New York’s farmers “remain financially ruined by circumstances beyond their control,” adding that they will remain committed to helping these farmers and processors “that NY’s legal cannabis industry depends on in any way possible.”

A Long-Delayed Adult-Use Cannabis Market

It’s just one of many setbacks surrounding New York’s long standing effort to get the state’s recreational cannabis market up and moving. The Empire State first legalized adult-use cannabis in March 2021, but in the months since, the market’s full launch has been delayed by a slew of regulatory delays, legal issues and a hefty illicit market looking to fill the gap.

“Regulatory delays, lawsuits, and logistical and financing challenges have caused the state to miss its timelines and targets,” the September letter said. “However, cultivators are the group paying the steepest price.”

The market officially opened last December, and by the end of this year, New York is expected to have at least 37 adult-use dispensaries open for business.

While 2023 showed more progress than the years preceding it, lawmakers emphasized that growers are still suffering due to a surplus of products with nowhere to legally sell them. 

“New York’s cannabis farmers, who went out on a limb to help get the state’s legal market off the ground, should not be facing financial ruin because of regulatory delays,” the lawmakers said. “We should be giving them every possible opportunity to stay afloat while they await the development of the market they were promised.”

Largely, this year saw a number of lawsuits reach settlement, paving the way for more shops to open and for the trend to continue through 2024. Still, lawmakers in favor of the legislation argued that the continued delays are hurting the state’s farmers, who continue to wait for solutions as the market slowly inches forward.

“Crops were grown last year with the understanding that there would be a legal market for them to sell it… We are urging the governor to quickly sign this short-term solution, one that will help provide some measure of relief to what is quickly becoming an agricultural emergency,” the letter states.

Awaiting Solutions in the Midst of Farmers’ Woes

A sponsor memo attached to the bill references that growers were informed they would not be permitted to sell cannabis outside of state lines, though it also points out that they were expecting that New York’s “robust state market would exist during the conditional license time frame.” Crops are now losing their potency, color and terpene profile in storage, ultimately reducing their value if and when producers can finally sell it, the memo notes.

A New York grower’s showcase provided some relief for farmers with surplus products throughout 2023, leading to a total of 48 events with most open one or more days weekly. The current permit ends on Dec. 31, 2023, and while a possible extension was in play until recently, the future status of these markets remains undetermined.

While New York’s market continues to lag, tribal governments have stayed ahead of the curb, as the Saint Regis Mohawk Tribe accepted the first adult-use license applications just months after the state first legalized recreational cannabis in 2021.

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New York’s rollout of legal weed shops has been a mess, to say the least. Designed to revolutionize the legal weed marketplace, New York has instead fallen short either by design or outside factors, including numerous lawsuits. 

One of the most significant ripple effects in this series of shortcomings is the immense impact on New York’s licensed growers. Farmers are sitting on one to two seasons worth of product, equaling an estimated 240,000-pound surplus. The situation has become so dire that many New York growers report living on dire straits, with some resorting to selling essential equipment to cover costs. 

New York’s Office of Cannabis Management (OCM) approved a grower’s showcase in July 2023 to help alleviate the issue. The following month saw the rollout of its first showcase. In total, 48 events took place. Forty-six licensed events are ongoing, providing legal access to New Yorkers—with most open one or more days weekly until the current permit ends on December 31, 2023. A possible extension was in play until recently, and remained undetermined. 

The Manhattan-Brooklyn Experience

New York’s Grower Showcases stretch across the state, from the five boroughs to the Finger Lakes to Buffalo and beyond. Saratoga Springs, a town 40 minutes north of the capital Albany and roughly an hour west from legal weed state Vermont did around $70,000 in sales during its first two days on September 3rd and 5th. The event gained popularity in the ensuing weeks before going on hiatus for a month in October to move indoors. The showcase reopened on November 11. 

Positive sales and foot traffic have been reported across many of the showcases. But that hasn’t been the case at every location. In Manhattan, the Hell’s Kitchen Cannabis Collective, a farmers market inside a retail space, struggled to attract clientele while remaining compliant with state law. With minimal signage options allowed, spotting the HKCC’s side street location among the sea of shops and restaurants was challenging. 

At the same time, it is easy to walk in any direction nearby and find bodegas and unlicensed boof shops selling their unlicensed pot. While the HKCC remains barely noticeable, the illegal competition is out and proud with LED lights, bold signs, and everything else that is synonymous with New York weed shops at this point. HKCC Founder Patrick Conlin told me in early November that the shop made door signs highlighting their licensed status. Otherwise, the shop is limited with legal marketing options. 

“We’re tucked away off the street, which is great for the community board,” said Conlin, who added, “Just putting letters on our door isn’t cutting it.”

When you find the location, it can be a welcome destination for enthusiasts and newcomers alike. Featuring several strains, edibles, and extracts from local small cultivators and producers, shoppers can get an idea of what New York small growers, including many minority-owned ventures practicing organic growing methods, have to offer. The location featured several growers events over the past few months, allowing buyers to interact with the featured cultivators. 

A potential saving grace for the HKCC could be its downstairs event space, which successfully hosted an industry gathering in November. If more events were to occur, the destination could find itself with a needed additional revenue stream. Another standout positive is HKCC’s small but dedicated staff. Speaking more about effects and terp profiles rather than industry sales jargon, the team provided an educated, refreshing tone more legal shops should look into adopting. 

A similar experience took place at Good Grades on Flatbush Ave in Brooklyn. The Black-owned Good Grades was warm in spirit but minimal in shoppers. Granted, it was Wednesday around 11 in the morning when I visited. Like in Manhattan, the limited signage made the shop blend into the string of retail stores along the block. Inside, the dispensary was large with lots of room, filled with a few art pieces and a wall showcasing various iconic hip-hop albums. The sales counter had two friendly, plant-passionate budtenders. When I arrived, an elderly couple and their budtender eagerly swapped edible recipes.

My assigned budtender and I talked about effects and a little about indica and sativa, which I could have done without. I hate hearing about that, but I get why it continues to be used. It’s often easier to explain a rather binary concept than terps or whole plant profiles to a newcomer. And most existing consumers use the terminology, so why rock the boat? That aside, I enjoyed the shop, but it didn’t leave any lasting impressions. Good Grades has since closed its Brooklyn location as part of its soft launch plan, and now operates a Jamaica, Queens location, the first legal dispensary in the borough. 

There was much to enjoy about the Manhattan and Brooklyn growers showcases. But the retail locations and city prices left me feeling underwhelmed and longing for a true farmers market experience. I don’t blame either shop here. They worked within the confines of what they were dealt. 

The price-quality comparison wasn’t ideal. At HKCC, I got two eighths from two different growers for roughly $110 after tax. With the idea being a small business showcase, I naively thought there would be better deals. Maybe that’s on me, but usually, two eighths of long-unsold weed running a similar cost to a fresh half ounce is not going to win over many buyers. But, living in New York City comes at a premium, which applies to weed as well. So, here we are. 

I was excited by the aroma of a Lilac Diesel GMO I picked up. Unfortunately, the smoke was one of the more abrasive on the throat I can remember in recent memory. The Humboldt Headband from Bud + Boro was fine enough. I wish I could’ve tried more, but economic times are tight. The prices were a bit better at Good Grades, and the quality was equal or slightly more enjoyable than my HKCC picks. Two eighths cost a little more than $80 after three rounds of taxes applied. The Trainwreck by Alchemy Pure was fine and got me high with a smooth enough smoke. The Guava Jam from Rolling Green had a pleasant, fruity aroma and smoked well. 

Overall, the Manhattan and Brooklyn showcases felt like a 3 out of 5 star experience, with passionate people and decent enough flower. But city prices, minimal nature in the city, and strict marketing rules made the experience feel more like classic retail than the farmers market I had been hoping to find. 

New Paltz Provides a Refreshing Alternative 

Wanting more of a farmer’s market experience, I turned to New Paltz, a two-hour and change train ride away from New York City. New Paltz was the site of the first legal cannabis grower showcase in August 2023. Numerous New York weed buddies and sources referred the quaint college town to me, with a few essentially calling it the ideal showcase experience. After visiting in November, I largely agree.

Nestled inside the town’s municipal building for the cold months, the showcase featured several tables with numerous brands. Shoppers could buy usual items like flower, pre-rolls, edibles and a small number of concentrates from six or so vendors. Refreshingly, and much like the city showcases, these sellers waxed on more about consuming pot than hawking a brand. 

One of the top standout differences at New Paltz, besides the cool autumn air and nature, was menu transparency. Before even getting to the check-in desk, I was given a two-sided sales sheet featuring all of the products available and taxed and pre-tax prices.

Once outside New York City, the prices decline. That was the case in New Paltz, where several eighths went for $30 pre-tax. The most expensive item I picked up on my $258 tab was a $50 2g hash hole made by Luci. On the low end of the pickups, I snagged two glass pre-filled chillum pipes from Jane West at $10 a piece after tax. Patrick, the veteran behind the sales desk, won me over with his passion for the plant and the idea of picking up two reusable glass pipes for trips. I’m a sucker for reusable packaging. 

When it comes to drawbacks, New Paltz wasn’t without its faults. Like the other showcases, the flower quality varied and didn’t stack up to numerous unlicensed sources. Much of the New Paltz flower was extremely dry, which is sad because some of these strains probably smelled great when they were supposed to hit dispensary shelves. 

Unlike New York City, the price is justified or close to where it should be. A $30 price tag for a dry but still aromatic enough strain of Hella Jelly from Rize isn’t all that bad. Would I pick the $30 Hella Jelly over a fresh Strawberry Jelly from the Bronx’s New Roots Garden for double or more the price? Absolutely not. But after a year of aging on the shelf, Rize’s flower still provided a good smoke and a pleasant flavor. It may not win any Cannabis Cups, but I bet it would satisfy the cannabis curious, newcomers and those without deep understanding of how the plant can taste and smell. Is that ideal? No, but it’s a good intro point to finding fresh bud from these brands or other growers in the future. 

Farmers Showcase is a Solid But Far-From Perfect Effort

The New York Growers Showcase appeared to be a largely successful endeavor. Despite the positive feedback, its future remained in doubt just three weeks until the program’s end date on December 31, 2023. With the showcase always intended to be a stopgap sales pipeline for small state growers, uncertainty grew as the state approved existing medical operators and plans to approve hundreds more applicants in early 2024. The recent news followed New York settling its most glaring court case in late November. The state also opened its application window to non-equity applicants in early October. 

As additional dispensaries hit the market, the need for the grower showcase came further in doubt. But with three weeks left, many advocates, operators and lawmakers hoped to see an extension of some kind. Instead, on December 12, New York’s Office of Cannabis Management (OCM) announced the program’s termination at the end of 2023. The decision appears to have been abrupt and out of left field, as state Assembly Agriculture Committee Chair and Assemblywoman Donna Lupardo said she had assumed the program would be extended. 

Next steps remain unclear. A compromise with OCM could take place. So too could a state bill, though it’s unclear if Governor Kathy Hochul would sign the measure. While the uncertainty looms, the fate of the thousands of remaining pounds of overstock sit, wasting away. By the time this article posts, some may be on their final days of freshness. And with that overstock dying, I suppose the state could further justify jettisoning the program. 

Whatever happens from here, I hope the state program has a place for some type of farmers market, especially in outdoor communal spaces where people can mingle, smoke and get to know their neighbors and the plant. But after the latest OCM decision, I can’t say I have much faith. I don’t know if it’s OCM or New York politics at-large, but something stinks. It stunk when the state failed the formerly incarcerated. It stunk when the state failed minority applicants. And now it stinks when the state fails the farmers one more time. 

Whether they be OGs, tryhards, chads or whatever, these growers got dealt a bad hand by the state. Then, while gasping for their metaphorical last breaths before drowning, they get thrown a lifeline, only to watch the rescue boat sail away with the inflatable ring skipping across the top of the ocean until fading into the horizon. 

Here’s hoping the future involves legal farmers markets, providing ongoing platforms for New York’s small pot growers and craft enthusiasts. And if not, here’s hoping the underground market continues its similar endeavors. Someone has to do it, right? 

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Regulations and red tape make it hard to sell cannabis in New York. Currently, just over a dozen licensed retailers are actively operating in New York. By introducing a marijuana farmers market, more retailers could sell their products as regulators continue to work to license and set up more legal brick-and-mortar storefronts. Officials say the cannabis farmers markets could start “within a month.” 

The announcement comes after a town hall event last Thursday for cultivators organized by the Cannabis Association of New York (CANY) in conjunction with the state Office of Cannabis Management (OCM). During the meeting, attendees discussed how a farmers market could both offer businesses a sale model while giving consumers a safe place to shop. Over the last year, lots of cannabis was grown, but much of it needs a place to be sold. The farmers market aims to solve such concerns. 

OCM Chief Equity Officer Damian Fagon said at the event that regulators hope to get the farmers markets ready to open “optimistically, within a month,” New York Cannabis Insider reported. According to OCM Director of Policy John Kagia, the rules for what will be called the “New York Cannabis Growers Showcase” program haven’t been released yet. However, Kagia says that there are “several issues that we’re still working through internally, but we have the authorization here to discuss it.”

The farmers market, aka New York Cannabis Growers Showcase, plans to have a minimum of three growers and at least one licensed retailer hosting farmers market-style events in authorized municipalities. On-site consumption will not allowed, at least at first, as that would mean additional permits obtained from the state Department of Public Health, so customers will have to enjoy back home. Alcohol is also not allowed. So, while the farmers markets offer help for sellers, New York is a long way away from providing fun, communal spaces for folks to enjoy cannabis, as one might enjoy a beer with friends at a bar. 

However, farmers can try to obtain municipal approval to hold the farmers markets on their own property, which could provide communal gatherings. Additionally, they could try to sell at events like concerts and festivals, which sounds like a fun step in the right direction. 

“We think this is really important because it does two things,” Kagia said. “One, it allows the growers to get in front of the consumers who are going to be buying legal regulated product in New York, and allows you to tell your stories. Two, it allows you to sell product much more quickly across the state, so the idea would be that the retailers are going to be confined to the regions where they’re authorized to operate, but the growers would be able to do this anywhere in the state.”

The idea for the marijuana farmers market pilot program comes after New York Gov. Kathy Hochul’s (D) administration stepped up its efforts to transition folks to the legal market, which, under current restraints, is difficult for both sellers and consumers. For many, buying on the black market, even if it’s illegal, offers better, more affordable products, demonstrating that if New York wants a thriving legal market, they have a lot of work ahead of them. 

As part of efforts to persuade people to buy legally, a public education campaign was launched last month, pushing people to buy from licensed shops, relying on scare tactics of the dangers of buying illegally, and reminding folks that legal weed ideally means equity programs. 

In March, officials announced that they are doubling the number of conditional adult-use marijuana licenses that can be approved from 150 to 300. Hochul also introduced legislation to crack down on vendors selling on the black market. Hochul visited one of the few currently operating cannabis retailers in February — but did not buy anything. 

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