Financial relief in sight for NY Cannabis farmers with $128 million Senate plan
New York State’s beleaguered cannabis growers may be breathing a bit easier today.
That’s because details of the cannabis relief fund were included in the New York State Senate 2024 (one-house) budget plan released on Tuesday.
The plan, which in tandem with the state Assembly budget blueprint will be presented to Gov. Kathy Hochul for final approval, contains three main components:
- $60 million for cannabis farmer loans.
- $40 million for cannabis farmer grants.
- $28 million for cannabis farmer tax credits.
Columbia County cannabis farmer Tessa Williams, owner of Empire Farm 1830, said she was on cloud nine after hearing the news from NY Cannabis Insider.
“The swift action taken by Senators (Michelle) Hinchey and (Jeremy) Cooney, advocating for financial relief for our cannabis farms, is a beacon of hope in these challenging times,” Williams said.
“This bill not only takes action toward correcting the missteps of the program rollout,” but also “offers a lifeline to growers teetering on the edge of bankruptcy,” she said.
The plight of New York cannabis growers was due in large part to the slow rollout of retail cannabis dispensaries across the state.
Several hundred retail outlets were expected by this point in time — nearly three years after recreational marijuana use was legalized — but only 80 are actually up and running. Though the pace of approvals has definitely quickened since the first of the year.
Some growers have expressed concern that because of their outstanding debt and huge inventory buildup from the last two years, they’re scraping to find the money to put seeds in the ground for 2024.
It’s been estimated that about 300,000 pounds in unsold marijuana was still hanging around last year due to the lack of licensed retail outlets.
“If the proposed legislation moves forward, it would be much-needed help for us farmers,” said Marcos Ribeiro, who (along with his wife Kathleen) owns the East End Flower Farm in Suffolk County. “I’ve literally spent my life savings, and now I have nothing to fall back onto.”
It would also be beneficial by allowing small operators to possibly buy equipment that could be used for production, he said.
Albany-based attorney and lobbyist Matt Leonardo, who represents the state Cannabis Farmers Alliance, said he was “cautiously optimistic” there will be “relief for cannabis farmers in the final budget.”
While noting he has yet to see the companion bill put out by the New York State Assembly, Leonardo said, “this is a strong starting position in the Senate.”
Leonardo also pointed to the Senate’s plan to repeal the excise tax on medical marijuana, along with its support of the governor’s proposal to repeal the cannabis potency tax, which he labeled “an utter failure.”
The potency tax, which harkens back to former Gov. Andrew Cuomo, would under the Senate plan be replaced by a permanent, new wholesale tax that would be phased in over a multi-year period.
The rate was not specified, and will likely be worked out in conjunction with Hochul, who has proposed a flat 9% tax on wholesale sales of marijuana products.
The Senate plan also gave full-throated support to the Hochul administration’s recently announced battle plan to combat the black market sale of cannabis products, including increased enforcement powers given to local authorities, as well as to the state Office of Cannabis Management.
Assemblywoman Donna Lupardo, D-Binghamton, chair of the Assembly Agriculture Committee, who has championed the plight of pot farmers along with Hinchey, told NY Cannabis Insider that the Assembly budget blueprint contained a total of $80 million in grants and loans for cannabis farmers.
It’s somewhat less than the Senate plan, she noted, but this is “just a starting point, and it shows people that we’re paying attention.
“The goal is to get part or all of this over the finish line,” she said.
The final state budget, arrived at after negotiations with the executive branch, is due by March 31.
