Working with legislators to secure funding for revolving loan fund and Seed-to-Sale Tracking relief
(ALBANY, NY) – The cannabis industry continues to suffer from the ongoing challenges of product inversion and market instability. With unregulated brokers flooding New York with federally-illegal, out-of-state products, distillate prices are falling in New York and rising in California. These disruptions to the supply chain remain unaddressed, creating ripple effects that threaten the viability of small and medium-sized retailers, processors, laboratories, and cultivators.
To that end, the Cannabis Farmer’s Alliance (CFA) is advocating for critical measures that will balance the market and ensure equity across the supply side and retail tiers.
CFA is seeking to establish a $5 million revolving loan fund for the capital needs of cannabis farmers. Farmers have tremendous difficulty accessing traditional banking. Farmers have had to mortgage homes and borrow against personal assets in order to stay in business. Unlike retailers, who can get their products on consignment from vendors, farmers must pay all costs up front. There is a dire need to pay for greenhouses, equipment, fencing, security, and other capital costs to ensure a continuous supply to the market. By creating a revolving loan fund, cannabis farmers can utilize state resources to expand credit capacity while making the state whole for any funds loaned.
CFA is also seeking to transfer the cost of compliance for the Seed-to-Sale tracking system, through the state’s vendor BioTrack, from farmers and processors to the Office of Cannabis Management. The entire market benefits from the requirements of Seed-to-Sale tracking; it is critical to market integrity. However, ONLY the supply side bears the cost of this requirement. The state is placing the full cost on those least able to afford it.
Assemblywoman Donna Lupardo, Chair of the Assembly Agriculture Committee, said, “We have tried to no avail to provide assistance to NY’s cannabis farmers, where financial losses have been staggering. Including funds in the state budget to assist with capital costs and easing the financial compliance burden for the Seed-to-Sale tracking system will strengthen New York’s cannabis industry as a whole. We will continue to advocate for fairness across the entire industry during this year’s budget negotiations.”
Senator Michelle Hinchey, Chair of the Senate Agriculture Committee, said, “We have a fundamental obligation to stand up for New York’s cannabis farmers, who have been left in a financial hole through no fault of their own. We’ve been pushing in every way possible to get them the support they need, and we’re carrying the fight into this year’s budget process to advance measures that will help keep our farmers in this sector in business and strengthen New York’s cannabis industry.”
The post Cannabis Farmers Call for Support in State Budget appeared first on EMPIRE REPORT NEW YORK 2025® NEW YORK’S 24/7 NEWS SITE.
