MONTPELIER — Vermont is taking a fresh look at how to make its regulated cannabis market more inclusive and sustainable for small local farmers and social equity applicants. The Cannabis Control Board (CCB), led by Chairman James Pepper, announced that a series of focus groups will soon gather feedback on several key topics to help guide a forthcoming legislative report.
Under Act 56, the board must recommend ways to “better promote the intent of the General Assembly to encourage participation in the regulated cannabis market by small local farmers and social equity applicants.” Pepper said the idea of lowering fees or restructuring the cannabis market is linked to creating real economic development for these groups. “Minor fee reductions are welcome,” he explained at the Aug. 27 meeting, “but they’re not really the thing that’s going to make a huge difference to the viability of a business.”
Other hurdles to success in Vermont’s cannabis market include product registration requirements and limited options for small cultivators to process and sell their own products. Pepper noted that some progress is happening each year, but a comprehensive report can provide lawmakers with a clearer roadmap for reform. One proposal under discussion is creating an official rules advisory committee to make changes to adult-use and medical rules in a systematic, transparent way.
Board member Kyle Harris emphasized the importance of hearing from stakeholders about how to get more flower and products to the retail cannabis market. Vermont has never used a tiered retail system, and Harris believes now is the time to explore what different tiers of retail might look like. A tiered system could open up new pathways for small businesses to enter the cannabis market and compete more effectively.
Funding is another focal point. The report will examine whether a portion of the 14 percent cannabis excise tax should be allocated to the Cannabis Business Development Fund and the Land Access and Opportunity Board. Previous working groups have recommended annual appropriations and dedicating 25 percent of excise tax revenue to the Land Access and Opportunity Board to help strengthen the cannabis market for small growers and social equity licensees.
Grants, professional assistance, and potentially direct-to-consumer sales are all on the table for discussion. By engaging diverse voices through focus groups, Vermont hopes to create a more equitable, resilient cannabis market that reflects the needs of its local communities.
Information about the upcoming meetings will be shared in the CCB’s newsletter and posted at ccb.vermont.gov.