Vermont Cannabis Growers Say Market is 'Unprofitable' for Smaller Producers

The group is asking the state to allow direct-to-consumer cannabis sales.

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Vermont cannabis growers are sounding the alarm on the state's market, warning legislators that conditions have become untenable and unprofitable for smaller producers.

The Cultivator Working Group of Vermont Growers Association sent an open letter to Vermont state lawmakers and cannabis regulators to call attention to "unfair laws."

"A crisis is unfolding in Vermont’s cannabis market, caused by its obsolete retail-centric market model that exists in the law. As Beau Whitney, a leading cannabis economist, broadly defines it, 'The result is a system where licensed businesses struggle to survive while the illicit market continues to thrive. One glaring example of this regulatory mismatch is the retail-centric model,'" the group wrote.

It said Vermont's cannabis retail policies have created a shortage of available shelf space that negatively impacts producers’ ability to distribute their products.

"As a result, producers are exiting the market at a disproportionately higher rate than other license types, and the market is increasingly failing to meet consumer demand, posing a significant threat to the market's future," the group wrote, noting that 161 cultivators have relinquished their licenses since 2022.

The group is advocating for the state to allow family farms and small agricultural producers to sell their products directly to the public through Community Supported Agriculture (CSA) programs, farm stands, farm-to-table restaurants and local stores.

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