Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

US (MI): Moratorium proposed on new cannabis grower licenses to address plummeting prices

Lobbyists for Michigan’s largest cannabis operations are calling on lawmakers to impose a moratorium on new growers to help prevent prices from continuing to plummet in the adult-use market. The proposed moratorium would prevent the Michigan Cannabis Regulatory Agency (CRA) from approving new grower licenses.

Prices for legal cannabis have hit all-time lows in Michigan, largely because the market is saturated. As a result, growers and dispensaries are often selling their products at or below cost, and some businesses are closing down.

The average price for an ounce of adult-use flower dropped from more than $512 in January 2020 to $117 in August, a 77.1% decline, according to the CRA. During the same period, nearly 1.5 million cannabis plants were growing, compared to about 400,000 a year earlier. The number of active grower licenses surged 65% between July 2021 and July 2022.

To impose a moratorium on new growers, three-quarters of Michigan legislators would need to vote in favor of the proposal. That’s because the 2018 ballot proposal to legalize adult-use cannabis called for unlimited licenses.

To read the complete article, go to www.metrotimes.com

Publication date: