Cannabis pie must be divided equitably

The New Mexican published an article celebrating the state’s cannabis industry reaching the $1 billion mark in recreational and medical cannabis sales (“Nearly 2 years since cannabis legalized, sales hit $1 billion,” March 6).

While that milestone is worth celebrating, it was met with resigned bemusement by many micro-producers like myself. Let me tell you why.

I moved to New Mexico four years ago for three main reasons: Jicarita Peak, acequia culture and the reefer saneness that has made New Mexico’s governmental regulation and support for the cannabis industry one of the best models for the entire country. As someone who has grown cannabis for 50 years, I looked forward to becoming a legal grower for the first time in my life. Two years ago, I applied to become a licensed micro-producer. It took more than a year to obtain my state and Taos County licenses, and this past year, I planted my first commercial crop.

I was very pleased at the quality of my sun-grown, soil-raised, handtrimmed, beyond organic buds, and so was everyone else. The laboratory that tested my buds said they were among the best-looking outdoor-grown cannabis they had ever seen. I looked forward to taking them to market and paying my first-ever gross receipts tax to Taos County with my first legal sales to licensed dispensaries.

And that’s where the excitement ended. I was forewarned by other growers that the market was unattractive, and my first meeting with a dispensary owner confirmed that. Although he was quite pleased with my flowers, the owner offered me $700 per pound for my three strains that tested above 25% THC, $600 per pound for two strains that tested 18-19% THC and nothing for the remainder. That works out to about $1.50 per gram for my best buds. We had this discussion in his dispensary where I could see he was selling cannabis of comparable quality to consumers for $10 to $12 per gram. That simply does not compute and has no parallel in the real world of retail markup for most consumer goods. A 50% markup at retail is in the ballpark for many consumer goods; a 500%-800%-plus markup isn’t in the same universe.

I believe consumers should be paying less than they are now paying, but even at $6 per gram, that is a 300% markup, and no one is buying cannabis of comparable quality to mine for that price. I also believe producers should be paid equitably for the six months of time, effort and expense necessary to produce superior flower. A fair price to the producer should be no less than 50% of the retail price. I hope I can find at least one fair-minded dispensary who agrees with me. We’ll soon see.

Putting cannabis flowers in high-tech baggies adds no value, but providing a legal retail marketplace does. That marketplace should fairly compensate producers and allow consumers to access reasonably priced product. We are nowhere near there now.

If I can’t find a fair market, I will be a one-and-done cannabis micro-producer with a great cabbage patch in Taos County this year. I really hope that won’t be the end of my own dreams and those of other small producers. We’re almost there, New Mexico.

It’s high time we shifted the rewards of this industry to producers who do almost all the work and to consumers whose legal smiles should be more affordable. It’s not just about the big bucks this industry can produce; it’s about the economic opportunity it can provide if the cannabis pie is divided more equitably. Here’s hoping that happens soon.