ONONDAGA COUNTY, N.Y. — The New York Office of Cannabis Management and Cannabis Control Board have been named in a new lawsuit filed by a group of cannabis farmers who claim the state's rollout has left many of them facing a financial cliff.
The Cannabis Farmers Alliance represents about 120 farmers all across the state including about 25 in Western New York.
The lawsuit filed in Onondaga County Court last Monday accuses the state of violating its own statutes, failing to keep the cannabis market stable for small growers, and not doing enough to prevent illegal cannabis products from being sold throughout the state.
"Really what New York has created is two classes of operators, an unlawful one that's taking advantage of the market and the people who are trying to follow the law, but are getting left behind," said Dean DiPilato, a partner at Centolella Law.
Just last week, the state's Cannabis Control Board said the New York market had seen $800 million in sales since launching last year.
Those sales have not led to returns for DiPilato's clients however, most of whom are small farmers who are limited in how much cannabis they can grow because of licensing regulations.
The Cannabis Farmers Alliance says that dynamic means 97% of small cannabis farmers in New York are operating at a loss.
"It's fine to keep opening up retail stores to create demand, but the law says you need to look at the impact on the small player OCM when you're making your decisions and they're not doing that," DiPilato said.
