A new lawsuit filed in Onondaga County Court has put New York’s cannabis market under the microscope, with a group of small cannabis farmers accusing the state of violating its own laws and creating an environment that disproportionately harms local growers. The plaintiffs, represented by the Cannabis Farmers Alliance, argue that the state’s regulatory approach is leaving small operators struggling to survive while bigger, illegal players thrive.
New York’s Cannabis Landscape Under Fire
The Cannabis Farmers Alliance, a coalition of around 120 farmers from across New York, claims that the state’s cannabis rollout is failing its smallest growers. The lawsuit names the New York Office of Cannabis Management (OCM) and the Cannabis Control Board as defendants, accusing them of neglecting the needs of small farmers in favor of larger, more established operators.
According to the plaintiffs, the state’s market has inadvertently created two classes of cannabis operators: those who are trying to follow the law, and those who are exploiting the system without facing any consequences. Dean DiPilato, a lawyer representing the farmers, described the situation as creating “two classes of operators,” one of which is unlawful and thriving while the other, the law-abiding farmers, are left behind.
Small Farmers Struggling to Stay Afloat
The lawsuit highlights a growing frustration among small cannabis farmers who are finding it nearly impossible to remain financially viable. Despite New York’s cannabis market boasting $800 million in sales since it opened last year, many small growers have not seen any return on their investment. Licensing regulations severely limit how much cannabis these farmers can grow, which, according to the Cannabis Farmers Alliance, has led to 97% of small cannabis farms operating at a loss.
The market’s rapid expansion—mainly in the retail sector—has not translated into success for small farmers. These growers are stuck with a broken system that doesn’t take their needs into account when making decisions about the cannabis market’s future.
- Key issues raised by the lawsuit:
- Small growers are struggling to turn a profit.
- The state’s regulatory approach is seen as favoring larger operators and illegal markets.
- 97% of small cannabis farmers are reportedly operating at a loss.
The Cannabis Farmers Alliance argues that the state’s Cannabis Control Board, which oversees the legal cannabis market, has failed to address the needs of smaller producers. They claim the state is more focused on expanding retail outlets than on stabilizing the market for local growers.
The Impact of Licensing Regulations on Small Farmers
One of the core issues at the heart of the lawsuit is the state’s licensing structure, which has left small farmers with limited capacity to grow and sell cannabis. With only a select number of licenses available, many smaller operations are unable to scale up to meet market demand, especially as large retail stores and illegal operators dominate the space.
These regulations, while designed to ensure a controlled and legal market, have inadvertently put many small cannabis farmers at a disadvantage. The laws were meant to protect the market, but according to DiPilato, they have done the opposite, creating an uneven playing field where the larger, illicit operators are not held accountable.
Calls for Change in the Market Structure
The Cannabis Farmers Alliance is not only seeking damages but also requesting a declaratory judgment from the court. This could potentially force the state to reevaluate its regulatory framework and create a fairer, more sustainable market for small cannabis farmers. The group argues that the state needs to do more to ensure small farmers are not pushed out in favor of larger, non-compliant operators.
“There needs to be a recognition that the market is being controlled by people who aren’t following the law, and it’s hurting those who are,” DiPilato stated. For many of these farmers, the lawsuit represents a last-ditch effort to save their livelihoods and ensure that New York’s cannabis market can be a viable industry for small-scale producers.
A Market at a Crossroads
The lawsuit marks a critical moment for New York’s cannabis market. While the state has made strides in legalizing cannabis, small farmers say the promises made during the rollout have yet to be fulfilled. Instead of fostering a robust, fair industry for all, the current state of affairs has left many farmers feeling neglected and unable to compete.
As the case moves forward, all eyes will be on the Cannabis Control Board and the OCM to see how they respond. Will New York’s cannabis regulations evolve to accommodate small farmers, or will the market continue to favor larger operators at the expense of local growers?
