This post was originally published on this site.
Join NY Cannabis Insider for its next industry meetup in Buffalo on May 14, 2024. Tickets available now.
The tens of millions in losses suffered by New York’s 289 licensed cannabis growers may not be recouped anytime soon — if ever.
That was made certain on Friday when NYS Assemblywoman Donna Lupardo and Sen. Michelle Hinchey essentially threw in the towel on their efforts to include millions in cannabis relief money in the state’s 2024 budget.
The legislators, who chaired the agriculture committees in their respective chambers, said in a joint statement they were “very disappointed” they couldn’t push their relief package over the finish line.
“Despite our best efforts, the state budget will not include the much-needed Cannabis Farmer’s Relief Fund,” the legislators said. Due to “limited retail outlets” and “very few places to sell their crops” in 2022 and 2023, “farmers have been left in the red.”
“While we appreciate the effort to close illegal stores, making way for more locally grown products,” they said, “it is too late for many farmers who can no longer afford to stay in business.”
“They worked it like crazy,” noted lobbyist Matt Leonardo, whose Albany firm Hinman Straub represents the state Cannabis Farmers Alliance. “They were real champions of our cause, but they couldn’t get it past the executive branch.”
As previously reported by NY Cannabis Insider, the push for a cannabis Recompense Fund — to the tune of $128 million in grants, loans and tax credits in the Senate budget bill, and $80 million in grants and loans proposed by the Assembly — first ran aground during a three-side budget walk-through in March.
There was no exchange of information or discussion about either of the one-house budget bills containing cannabis money.
Not surprisingly, Joseph Calderone, CFA acting president, was quite dismayed and accused the budget team for Gov. Kathy Hochul of turning their backs on the state’s cannabis growers.
“The governor is courting further disaster in this market by abandoning the supply side during its time of need,” Calderone told NY Cannabis Insider. “Hopefully, we can work with our legislative champions, Assemblywoman Lupardo and Senators Hinchey and (Sen. Jeremy) Cooney to establish non-fiscal relief post budget.”
“But my fear is that, by failing to act now, the governor has condemned the market to further dysfunction,” Calderone said.
One farmer who thought the stars were perfectly aligned to get cannabis relief in 2024, Kate Miller, owner of Peregrine Toke in Sharon Springs, said she was “absolutely astonished” by the turn of events.
“It’s been a long battle that we started over a year ago,” she said, “and we really thought everyone was on board with this, and that the message was getting through that people were starting to go under and were facing mortgage foreclosure.”
Much of the leftover 200,000 to 300,000 pounds of biomass and flower from the last two growing seasons were turned into distillate, Miller explained, but the price of distillate, which goes into making vapes and edibles, has dropped dramatically.
“It’s half what it was a year ago,” she told NY Cannabis Insider. “We’re still waiting for any payout because if the orders don’t come in, then the distillate just sits.”
“The absence of seed funding for this season, coupled with the challenge of managing aging inventory while pleading for financial support, is deeply disheartening,” said Tessa Williams, owner of Empire Farm 1830.
“While New York State forecasts staggering revenues of $26 billion over three years, the reality for farmers is dire,” she said.