Hartford Business Journal

11 HARTFORDBUSINESS.COM | April 11, 2022 Currently, Connecticut hemp farmers have no special access to the state's adult-use market. They can apply for a micro-cultivation license but they will have to win a lottery and compete with the general public, unless they form a joint venture with a social equity partner. In the first lottery round, only two general and two social equity licenses will be granted to micro- cultivators, which can have 2,000 to 10,000 square feet of grow space. The state's four current medical marijuana producers — all large out-of-state operators like Massachusetts-based Curaleaf and Verano Holdings Corp. of Chicago — can apply for a hybrid license to serve both markets. They are also able to significantly reduce their hybrid license fee by establishing social equity joint ventures — a part of the law that was created to help diversify the industry. Smith said he predicts the major medical marijuana growers will produce almost all of the state's recreational cannabis. "The way we see it, 95% to 99% of the flower grown will be by out-of- state corporations, whether they're teaming with a social equity partner or not," Wentzel said. With existing expertise in growing the product, farmers like Goetsch and Smith say they would be able to get up and running quickly. That would help fend off any potential product shortages when adult-use sales kick off, possibly by the end of this year. "We're really set up for this — we're turnkey ready," Goetsch said. "We are the state's craft cannabis producers." Kaitlyn Krasselt, a spokeswoman for the Department of Consumer Protection, which regulates the cannabis industry, issued the following statement when asked about hemp growers' concerns and desires. "If lawmakers contemplate amending the law to allow licensed hemp growers to obtain cultivator licenses without going through the lottery process, they might want to consider whether such a policy shift would undermine social equity goals, the potential for market saturation and the issues that could arise as a result," she said. Legislator support Hemp farmers have some support at the state Capitol. State Sen. Cathy Osten (D-Norwich) said she'd like to see hemp farmers included in any discussion about growing recreational and medical cannabis in the state. She said she recently voted "no" on a General Law Committee bill that included a slew of suggested changes to the state's adult-use cannabis law because it didn't include language giving hemp farmers better access to the industry. "My opinion is they're not recognizing the value of the hemp industry as it relates to marijuana," Osten said. "I pointed out that both New York and Massachusetts have passed inclusion bills to allow hemp to be considered and have them be a part of the recreational and medical marijuana worlds relative to growing, distribution and retail." Despite concerns from state agencies, Osten said the inclusion of hemp farmers hasn't resulted in oversaturation in other markets. "My understanding is that the Department of Consumer Protection says if they include the hemp industry there will be a flooding of the market, and I do not believe that is true," said Osten. State Sen. Christine Cohen (D-Branford) said Connecticut should follow New York's lead. "Providing them with the legal standing to grow, rather than shelling out 100% of the work to large, multistate operators, is the right thing to do to support our agricultural community, our economy and our environment," Cohen said. Rebecca Goetsch, owner of Running Brook Farms in Killingworth, stands next to some of her growing hemp plants. Cathy Osten Christine Cohen What better banking's all about sm . westfieldbank.com Member FDIC Having a vision for your business is great. Adding our insight? Commercial Lending Term Loans n Lines of Credit n Commercial Real Estate Loans n Letters of Credit n SBA Loans You don't just want a loan. You want solid advice from an experienced business banker. You want a fair rate, flexible terms, and local decisions by a bank that's invested in your community and your success. That, plus a whole lot more, is what you can expect from Westfield Bank. How can we help your business? Call 860.265.3920. That's better.

• Cover