{"id":3538,"date":"2022-01-06T11:30:00","date_gmt":"2022-01-06T11:30:00","guid":{"rendered":"http:\/\/CAIiEOX1Pqawimq5dH3xYKvK-zoqGQgEKhAIACoHCAowvqX_CjDFtfgCMPHkpAY"},"modified":"2022-01-06T11:30:00","modified_gmt":"2022-01-06T11:30:00","slug":"rise-of-the-farmers-small-ny-group-becomes-cannabis-power-player-syracuse-com","status":"publish","type":"post","link":"https:\/\/thcinct.com\/?p=3538","title":{"rendered":"Rise of the farmers: Small NY group becomes cannabis power player – syracuse.com"},"content":{"rendered":"

One of the most influential groups helping set policy for New York\u2019s legal cannabis industry is led mostly by farmers with little prior political experience \u2014 but with early success in representing small to mid-sized marijuana businesses, the group is punching above its weight.<\/p>\n

The New York Cannabis Growers and Processors Association<\/a> consisted of five people and one paid lobbyist when it formed about three years ago. Today, the association stands at about 250 members, according to the group, and its board members point to several accomplishments within the state\u2019s cannabis legalization law as evidence of its increasing clout in Albany.<\/p>\n

Now, as state officials set policy for New York\u2019s forthcoming legal adult-use cannabis industry, a primary goal for the NYCGPA is to make sure small to mid-sized cannabis companies aren\u2019t derailed by overregulation or unfair competition against the large multistate companies currently supplying the state\u2019s medical marijuana program.<\/p>\n

And legislators appear to be listening.<\/p>\n

\u201cThey\u2019re definitely taking notes, and we\u2019ve seen that overall in the evolution of our work in Albany,\u201d said Andrew Rosner<\/a>, an association vice president. \u201cWe are an incredibly active association.\u201d<\/p>\n

Origins of the NYCGPA<\/b><\/p>\n

The NYCGPA\u2019s formation began with a chance encounter at a Cornell University conference on growing and processing hemp in fall 2018. Rosner, co-founder of NY-based hemp company HR Botanicals, switched seats to sit near an interesting-looking stranger named Allan Gandelman<\/a>, now the group\u2019s president.<\/p>\n

At the time, legislation to regulate hemp and hemp extracts were making their way around Albany. Rosner\u2019s concerns about the legislation were largely matched by Gandelman, the owner and CEO of Cortland-based Main Street Farms<\/a>, which grows and sells hemp, vegetables, and other products.<\/p>\n

\n
\"Beak
\n

Allan Gandelman, owner and operator of Head + Heal, a hemp and vegetable grower in Cortland. He is also president of the New York Cannabis Growers and Processors Association.<\/p>\n<\/figcaption><\/div>\n<\/figure>\n

\u201cWe saw that there wasn\u2019t really representation for growers and processors through a business association that could also speak for the industry and interact directly with decision makers,\u201d Rosner said.<\/p>\n

They talked about forming such a group, and after bringing in hemp-industry entrepreneurs Kaelan Castetter<\/a>, Ben Dobson<\/a> and Daniel Dolgin<\/a> to join them as board members, the group hired lobbyist Joe Rossi of Park Strategies<\/a> and formed the New York Cannabis Growers and Processors Association.<\/p>\n

\n
\"Joe
\n

Joe Rossi, a managing director at Park Strategies and leader of its cannabis practice group, stands outside his office in downtown Syracuse in September 2021. Brad Racino | bracino@syracuse.com<\/p>\n<\/figcaption><\/div>\n<\/figure>\n

Rossi first met Gandelman through mutual acquaintances in late-2018, the lobbyist told NYCI. At the time, Rossi was trying to learn more about the hemp industry after Congress passed the 2018 farm bill that federally legalized hemp and extracts, and Gandelman was in the early stages of building what would become NYCGPA.<\/p>\n

\u201cThey had five board members, now they have five committees,\u201d Rossi said. \u201cTo watch that grow from infancy to it\u2019s toddler age right now was probably the highlight of my professional career.\u201d<\/p>\n

The group\u2019s primary goal when it began lobbying state lawmakers was to ensure CBD remained a legal additive for food, drinks and other products, Gandelman told NYCI. But even then, members were positioning themselves to advocate for adult-use cannabis.<\/p>\n

\u201cThere was an immediate need, but also a much longer-term vision,\u201d Gandelman said. \u201cKnowing that all of us would eventually be getting into the adult-use THC industry \u2026 we wanted to make sure we were positioning farmers and small businesses in a place where we would have access to growing that crop.\u201d<\/p>\n

\n
\"aerial
\n

Cannabis is among the crops grown at Main Street Farms in Cortland, N.Y. N. Scott Trimble | strimble@syracuse.com<\/span><\/p>\n<\/figcaption><\/div>\n<\/figure>\n

While meeting with state legislators \u2013 both directly and via their lobbyist \u2013 the inaugural association members started building their coalition by reaching out to other hemp businesses around the state, Gandelman said.<\/p>\n

In the summer of 2019, New York\u2019s state legislature passed a hemp law allowing regulated businesses to sell CBD products and repealed some restrictions for industrial hemp cultivation. At that point, the association\u2019s membership had grown 10 times from its original size, and hailed the success.<\/p>\n

But the legislative newcomers would soon learn some hard lessons about New York politics.<\/p>\n

Politics As Usual<\/b><\/p>\n

Then-Gov. Andrew Cuomo held off on signing the hemp bill into law for about six months before authorizing the statute in December 2019.<\/p>\n

\u201cWe were naive a little bit, because we thought, \u2018Hey, we passed this bill, it\u2019s going to be smooth sailing,\u2019\u201d said Gandelman. \u201cWell, that\u2019s not what happened.\u201d<\/p>\n

\u201cIt just got really slowed down, and it took us a really long time to make any progress on it.\u201d<\/p>\n

\n
\"Governors
\n

New York Gov. Andrew Cuomo, center, attends a regional health summit on cannabis and vaping alongside governors from Connecticut, New Jersey, and Pennsylvania on Thursday Oct. 17, 2019, in New York. <\/p>\n<\/figcaption><\/div>\n<\/figure>\n

As New York City became the nation\u2019s early epicenter for COVID-19 in 2020, the focus in Albany shifted away from legalizing adult-use cannabis, board members said. But after working out how to apply lessons learned from the hemp legislation, it was ready to push its priorities for the Marihuana Regulation and Taxation Act<\/a> \u2014 signed into law in March 2021 \u2014 during that year\u2019s legislative session.<\/p>\n

Communicating with lawmakers the reasons their membership holds certain positions and providing them with data was important, said Castetter, a founding board member and former CEO of the now-defunct hemp-infused wine company Sovereign Vines. He\u2019s currently managing director of the Binghamton-based consulting firm Castetter Cannabis Group<\/a>.<\/p>\n

Lawmakers \u201cneed both qualitative and quantitative data,\u201d Castetter said. \u201cAn important piece of it is bringing stakeholders to tell their story, and explain to them in very personal terms how regulations and laws affect them.<\/p>\n

\u201cBut then they also need some sort of data, or proof, that this is going to affect a certain large amount of people.\u201d<\/p>\n

The association, which had mainly focused on cultivators, also expanded its purview to include cannabis retailers.<\/p>\n

\n
\"Cannabis
\n

The sun rises over a crop of cannabis at Main Street Farms in Cortland, N.Y., September 21, 2021. N. Scott Trimble | strimble@syracuse.com<\/span><\/p>\n<\/figcaption><\/div>\n<\/figure>\n

These legislative and growth strategies proved effective, and the group successfully pressed legislators to lower tax rates imposed on cannabis companies, and include distressed farmers as a qualification for social equity status, Gandelman said.<\/p>\n

On the heels of these victories, the approximately 250-member NYCGPA \u2013 which operates on an annual budget of about $100,000 \u2013 plans to throw its weight around as state regulators set rules for the state\u2019s newly legal adult-use cannabis sector, Castetter said. The group especially wants to ensure rules aren\u2019t too onerous for small to mid-sized businesses.<\/p>\n

\u201cThe base of our agenda, when it comes to advocacy, is \u2018let\u2019s not over-regulate this,\u2019\u201d Castetter said. \u201cWhen you over-regulate it, you are incentivizing economies of scale; i.e. the big players, and really only allowing room for them.\u201d<\/p>\n

NYCGPA is also amassing a diverse donor list, which includes businesses like cannabis tech company Dutchie, Syracuse-based law firm Bond Schoeneck & King and Michigan-based CPA firm UHY. (Disclosure: Advance Media New York, which owns Syracuse.com<\/a> and NYUp.com<\/a>, is a NYCGPA donor).<\/p>\n

NYCGPA isn\u2019t the only group currently advocating for cannabis businesses in the Empire State. The New York City Cannabis Industry Association<\/a> and Hudson Valley Cannabis Industry Association<\/a> formed in 2019. The New York Medical Cannabis Industry Association<\/a> represents companies operating within the state\u2019s medical marijuana program.<\/p>\n

\n
\"Curaleaf
\n

Curaleaf opens a new medical marijuana dispensary in Edgewater Park, NJ, on June 25, 2021. The multistate operator is one of 10 registered medical marijuana operators in NY, and intends to enter the state’s adult-use recreational market in 2023.Michael Mancuso | NJ Advance Media for NJ.com<\/span><\/p>\n<\/figcaption><\/div>\n<\/figure>\n

Castetter said the group also wants to make sure the state\u2019s 10 registered medical marijuana operators<\/a> don\u2019t get a head-start over smaller businesses.<\/p>\n

He added that the association\u2019s stance is that they\u2019d rather have the state wait longer to allow retail sales than start sooner with a market initially dominated by large multistate companies moving from the medical program to adult use.<\/p>\n

Room For Everyone?<\/b><\/p>\n

Curaleaf<\/a>, one of New York\u2019s registered medical operators<\/a>, does expect to enter the state\u2019s adult-use market, but likely not until 2023, said Northeast Regional President Patrik Jonsson<\/a>.<\/p>\n

The company plans to triple the canopy size at its Ravena grow facility in Albany County to about 65,000 square feet over the next year or so to accommodate sales to both the medical and adult-use markets, Jonsson said.<\/p>\n

\n
\"Medical
\n

Medical marijuana plants grow during a media tour of the Curaleaf medical cannabis cultivation and processing facility in Ravena, NY, on Aug. 22, 2019.Hans Pennink | AP Photo<\/span><\/p>\n<\/figcaption><\/div>\n<\/figure>\n

However, he added that fears of companies like Curaleaf dominating New York\u2019s adult-use market are misplaced, since they lack the capacity to grow the amount of cannabis required to monopolize it. Jonsson said he thinks delaying legal sales would harm more small businesses than it would help.<\/p>\n

\u201cSome of the folks who are not looking to grow \u2013 a lot of these people who are looking to set up retail stores \u2013 will not be able to,\u201d Jonsson said. \u201cIt would only really benefit the stand-alone cultivators.\u201d<\/p>\n

Additionally, if medical operators transitioning to the adult-use market can start recreational sales soon, the state will collect more tax revenue to fund social equity programs in the industry, said Ngiste Abebe<\/a>, president of the New York Medical Cannabis Industry Association and vice president of public affairs for Columbia Care<\/a>, a New York-based medical cannabis company.<\/p>\n

\n
\"NJ
\n

Ngiste Abebe, president of the New York Medical Cannabis Industry Association, and vice president of Public Policy at Columbia Care, talks on a panel about The Feds – How DC decisions may affect local markets during the NJ Cannabis Insider’s conference at the Carteret Performing Arts Center. Thursday, September 23, 2021. Carteret, N.J. Aristide Economopoulos | NJ Advance Media<\/span><\/p>\n<\/figcaption><\/div>\n<\/figure>\n

Abebe also said it\u2019s important to get New York\u2019s legal cannabis market up and running quickly, since a slow start could encourage consumers and businesses to remain on the state\u2019s illicit cannabis market.<\/p>\n

\u201cThe role medical operators can play is to provide an early bridge\u201d to the legal market, Abebe said.<\/p>\n

In the coming months, decisions made in Albany will determine who will be able to start producing and selling to New York\u2019s adult-use market and when, and the NYCGPA will continue pushing policies and regulations favorable to small business, Gandelman said.<\/p>\n

\u201cThat is the goal here,\u201d he said, \u201cto build out our small business infrastructure and supply chain.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

One of the most influential groups helping set policy for New York\u2019s legal cannabis industry is led mostly by farmers with little prior political experience \u2014 but with early success in representing small to mid-sized marijuana businesses, the group is punching above its weight. The New York Cannabis Growers and Processors Association consisted of five people and one paid lobbyist when it formed about three years ago. Today, the association stands at about 250 members, according to the group, and its board members point to several accomplishments within the state\u2019s cannabis legalization law as evidence of its increasing clout in… <\/p>\n","protected":false},"author":1,"featured_media":3539,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[2],"tags":[],"class_list":["post-3538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured"],"jetpack_featured_media_url":"https:\/\/thcinct.com\/wp-content\/uploads\/2022\/01\/rise-of-the-farmers-small-ny-group-becomes-cannabis-power-player-syracuse-com.jpg","_links":{"self":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/3538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3538"}],"version-history":[{"count":0,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/posts\/3538\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=\/wp\/v2\/media\/3539"}],"wp:attachment":[{"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thcinct.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}