The cannabis industry in New York has seen both advancements and unexpected hurdles. One early hurdle was an oversupply of cannabis that left farmers with thousands of pounds of unsold product due to delays and slow rollout of retail dispensaries.
In response, New York’s Office of Cannabis Management (OCM) launched the Cannabis Growers Showcase (CGS) program in 2023. This initiative aimed to help farmers move their products and educate the market about new offerings. Initially, it was a temporary fix; however, due to the success of the CGS, the introduction of Senate Bill S9679 seeks to make these showcases a permanent fixture.
Birth of the Cannabis Growers Showcase in New York
The CGS program was conceived as a lifeline for cannabis cultivators who were struggling to get their products onto retail shelves. Retail dispensary licenses were delayed several times due to litigation and other factors, leaving farmers with an abundance of unsold cannabis. The OCM created the CGS program to facilitate direct sales and education, creating a valuable bridge between growers and consumers.
Initially, the CGS was designed to sunset on January 1, 2024. This temporary nature allowed the OCM to review its effectiveness, identify potential challenges, and make necessary adjustments. Despite its temporary status, the program left a lasting impact on the industry, helping cultivators sell their products, build brand recognition, and educate consumers about the benefits of legal cannabis.
By the end of the program, the CGS had approved, according to a memo attached to the bill 60 showcases, involving 106 licensees, including Adult-Use Conditional Cultivators (AUCCs), Adult-Use Conditional Processors (AUCPs), and Conditional Adult-Use Retail Dispensaries (CAURDs).
The initiative not only helped farmers sell their products but also brought together various stakeholders, including local municipalities and law enforcement. The program ensured that patrons stayed out of “illicit” shops that have proliferated across New York, leaving the legal market in dire straights.
Senate Bill S9679 Making the Showcase Permanent
Given the success of the temporary program, Senate Bill S9679 aims to make the Cannabis Growers Showcase a permanent feature of New York’s cannabis landscape. The bill provides the OCM with the authority to draft new regulations to update and improve the CGS program, ensuring its long-term viability.
Senate Bill S9679 proposes the creation of a Cannabis Showcase Event Permit. This permit will allow licensed retailers to hold showcase events in partnership with growers or processors. Each event will require a separate permit, ensuring that the temporary nature of the showcases is maintained, and preventing any unfair market advantages.
The bill outlines that the OCM will need to draft comprehensive regulations to establish a successful and permanent program. These regulations will cover:
- Application Process: Clear guidelines for submitting, reviewing, and approving applications.
- Compliance Enforcement: Mechanisms to ensure adherence to regulations and protect public health and safety.
- Transparency: Inventory and sales reporting mandates to track and trace cannabis products, facilitating product recalls or quarantines if necessary.
- Permit Fees: Reasonable fees to cover the costs of reviewing and processing applications.
Role of the Cannabis Growers Showcase in the New York Cannabis Industry
The CGS program has played a crucial role in shaping New York’s cannabis industry. By providing a platform for direct interaction between cultivators and consumers, the program has facilitated education, brand recognition, and market orientation.
For farmers, the CGS program has been a game-changer. It has provided them with a direct channel to sell their products and generate much-needed income. The ability to educate consumers about their offerings has also helped build brand loyalty and recognition.
Consequently, consumers have benefited from the CGS program by gaining access to a wide variety of cannabis products. The showcases have provided a legal and safe alternative to purchasing cannabis from illicit sources. Additionally, the educational aspect of the showcases has helped consumers make informed decisions about their purchases.
The Cannabis Growers Showcase program has provided a valuable platform for cultivators to move their products, educate consumers, and build brand recognition.
Furthermore, with Senate Bill S9679 introduced, this program will permanently enhance New York’s cannabis landscape, thereby bringing long-term benefits to farmers, consumers, and local communities.
As we look to the future, the permanent establishment of cannabis farmers markets promises to create a more vibrant, transparent, and regulated market. Moreover, by addressing the challenges and building on the successes of the temporary program, New York can continue evolving in the cannabis industry.
