US (OH): With product oversupply, industry balks at proposal to increase grow space

Ohio’s licensed medical cannabis growers say there’s too much green.

They say patient numbers in the state’s program appear to have almost peaked. But with new grow space that has come online in the last two years, there’s now an oversupply of cannabis, industry groups say. One grower has said his unsold inventory is approaching expiration, but he’s unable to sell at a level that would recover his costs to produce it. Growers are only using 40% of total cultivation space permitted by the state, the industry says.

The industry is hoping to defeat parts of Senate Bill 9, which aims to overhaul several aspects of the Ohio Medical Marijuana Control Program, including increasing grow space and processors. The legislature hasn’t updated the medical cannabis law since it created the program in 2016.

“SB9 would expand the number of cultivation licenses in Ohio at a time when we already have a major oversupply of cannabis,” Close said. “This threatens to destroy the industry, which would harm patients and kill 6,000 jobs.”

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