New York's cannabis industry was supposed to be a model for equity, sustainability, and small-business success. Yet, as the market unfolds, independent farmers and small brands are struggling under mounting pressures, while unregulated products flood dispensary shelves. At the center of these challenges is cannabis inversion, the illegal practice of smuggling out-of-state cannabis into the supply chain, undermining New York's legal cultivators.
Many of these issues were addressed in a recent public hearing before the New York State Assembly, where Joseph Calderone, President of the Cannabis Farmers Alliance (CFA), provided testimony on behalf of New York's struggling cannabis farmers. The hearing revealed systemic failures that threaten the sustainability of the legal market, with CFA advocating for urgent reforms. (Read the full testimony here)
New York's cannabis farmers invested heavily to meet regulatory standards, expecting a fair market where local cultivators could thrive. Instead, many now face overwhelming financial strain, unsold inventory, and fierce competition from illicitly sourced products.
The Cannabis Farmers Alliance has been at the forefront of addressing these issues, working alongside organizations like the Cannabis Association of New York (CANY) to push for reforms that protect small and independent operators. (Learn more about CANY's advocacy here)
Key threats to the industry include:
To address these challenges, CFA has proposed several urgent policy changes, which, if enacted, could stabilize the market and ensure that local farmers and brands have a fair shot at success. These reforms include:
To protect the integrity of the market, farmers and industry insiders who witness illegal activity must take action. The New York State Office of Cannabis Management (OCM) has created an official system for reporting cannabis inversion and trade violations. If you suspect that illicitly sourced cannabis is entering the legal supply chain, you can file a formal complaint to help remove bad actors from the industry.
By reporting inversion activity, farmers, processors, and dispensary workers can help enforce the rules and protect their businesses from unfair competition.
New York's legal cannabis industry was designed to prioritize small farmers and independent businesses, but without immediate regulatory action, the illicit market and bad actors will continue to erode its foundation.
Organizations like the Cannabis Farmers Alliance and CANY are fighting for policies that ensure fair competition and financial stability for cultivators. (Support their advocacy here)
For a deeper dive into the challenges facing cannabis farmers and the proposed solutions, read the full testimony presented to the New York State Assembly: https://nyassembly.gov/write/upload/publichearing/001451/005946.pdf.
Now is the time for farmers, brands, and dispensary owners to take a stand. With stronger enforcement, better financial support, and continued advocacy, New York's legal cannabis market can still fulfill its promise of an equitable and sustainable future.