With cannabis prices down nearly 50% in Michigan over the past year, state regulators are seeking public input on what to do next.
On September 14, the Cannabis Regulatory Agency is hosting a public meeting in Lansing to ask for opinions on whether they should issue a moratorium on grow licenses, eliminate excess grower licenses and increase the number of businesses an individual can hold interest in.
“The agency has been hearing concerns that the supply of marijuana produced by licensed growers exceeds, or may soon exceed, consumer demand,” said the CRA, in a release. “The concerns include that the wholesale price of flower is lower than the cost of production – or will be when harvests are highest in October.”
Between July 2021 and July 2022, the average retail price for an ounce of flower has declined 48% in the medical market and 44% in the adult-use market, according to the CRA release.
During that same time period, the release states the number of plants have increased as follows:
- Immature – 48%
- Vegetative – 295%
- Flowering – 69%
The CRA also says active grower licenses have increased by 65%, and retail licenses have increased 34%. For these reasons, the agency is considering action.
On the other side of the argument, The Michigan Caregivers Association released a statement that said the proposed fixes will shut down competition in the industry and lead to hyper-consolidation, crushing small businesses and caregivers.
“First they came at us with legislation to enact their “Big Weed” monopolies, and when that failed, they tried confusing and deceiving municipalities,” said George Brikho, president of the Michigan Caregivers Association. “Now they are exploiting the chaos caused by their failed regulatory regime in an attempt to allow the corporate interests to gain control. The CRA would never come in and bail out the little guy. This is an outrage.”
Brikho said subsidizing massive marijuana corporations will set a terrible precedent moving forward.
“The caregivers provide a superior product and can supply the state of Michigan,” he said. “Let these wannabe weed barons go to another state and try to victimize them. We don’t need them here.”
Questions for consideration are as follows:
- Would you support a change in the law to place a moratorium on the issuance of grow licenses? If so, under what conditions? If so, for what period of time?
- Should the agency eliminate the excess grower license established in the administrative rules, as authorized by Sec. 8(2)(a) of the MRTMA [MCL 333.27958(2)(a)]?
- Should the agency promulgate a rule as authorized by Sec. 9(3)(d)(3) of the MRTMA [MCL 333.27959(3)(d)(3)] to authorize an individual to hold an interest in more than five marijuana growers or in more than one marijuana microbusiness after January 1, 2023?
Members of the public will have the opportunity to participate in the discussion in person or via Zoom on Wednesday Sept. 14, at 9:30 a.m. For meeting information, click here.
