A trade group representing small cannabis farmers in New York are suing state regulators for establishing a commercial program and rollout they allege set them up for failure.
The complaint, filed by the Cannabis Farmers Alliance in Onondaga County Supreme Court, claims New York’s Office of Cannabis Management and Cannabis Control Board created a marketplace without an adequate number of retailers to sell their products, among other shortfalls, the Albany Times Union reported.
The lawsuit alleges regulators ignored operator concerns leading up to the December 2022 launch of adult-use sales and limited business opportunities for small farmers, many of which are now on the brink of failure.
The plaintiffs are asking the Office of Cannabis Management (OCM) to consider the impact on small farmers when making decisions about licensure.
New York’s recreational market, which was hyped for growth by politicos and regulators leading up to the launch, opened with only one licensed retailer.
Nearly two years after launch, 229 licensed retailers are operational in New York, according to state data, well short of industry expectations.
Momentum has picked up of late in the potential billion-dollar market after having stalled for more than a year amid:
The Farmers Alliance lawsuit also criticized the number of vacant positions within the Office of Cannabis Management and a lack of internal controls outlined in an internal audit directed by Gov. Kathy Hochul that ultimately led to the May resignation of the agency’s executive director, Chris Alexander.
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