Syracuse, N.Y. – A coalition of New York cannabis farmers has initiated legal proceedings against the state’s Office of Cannabis Management and the Cannabis Control Board, alleging that the current regulatory framework has grossly disadvantaged local growers, leaving them to contend with severe financial hardships. This lawsuit, lodged in Onondaga County Court, underscores the growers’ claims that state officials have disregarded laws designed to safeguard smaller agricultural operations in the burgeoning market.
Represented by the Cannabis Farmers Alliance, approximately 120 farmers across the state, including around 25 from Western New York, attest that the rollout of the cannabis market has heavily favored larger, often illicit, operations. This legal challenge argues that the state has failed to stabilize the market for smaller growers and curb the proliferation of illegal cannabis sales statewide.
Dean DiPilato, a partner at Centolella Law representing the group, criticized the state’s regulatory approach, highlighting a bifurcated market. According to DiPilato, this division aligns unlawful operators who exploit loose regulations against law-abiding farmers who struggle to compete under stringent conditions.
Despite the Cannabis Control Board announcing $800 million in cannabis sales since the market’s inception last year, the financial boon has largely bypassed these small-scale farmers. Hindered by restrictive licenses that limit crop production, many of these growers find themselves in a precarious economic position.
The Alliance has presented data suggesting a dire situation where 97% of small cannabis farmers are operating at a loss. This imbalance has raised concerns about the sustainability of small farming operations in a market that seems increasingly geared toward larger retail interests.
DiPilato further emphasized the state’s obligation to consider the impact on these smaller entities when shaping cannabis laws and policies, an aspect he claims has been grossly neglected.
As the legal debate unfolds, the farmers are seeking a declaratory judgment to address these disparities and force a recalibration of the state’s cannabis regulatory framework.
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