With the passing of the Senate bill legalizing adult-use cannabis in New York City, there might be a sudden increase in the hemp operators to the high-THC side of the industry. Being considered as the first in the nation attempt to legalize and regulate the cannabis industry, New York Governor Andrew Cuomo signed the bill on March 31st.
Although the bill passed is slightly different from what the industry was expecting, it can dramatically change how the state's hemp industry is regulated.
According to the bill, all the rules related to cannabis and marijuana will be regulated by the new cannabis control board. However, farmers working with fiber and grain varieties will still be handled by the state agriculture authorities.
Moreover, this law could shift hemp flower producers towards the marijuana industry. To explain the logic behind this prediction, Kaelan Castetter, vice president of the New York Cannabis Growers and Processors Association, stated that because both, low and high THC flower production, will be regulated and taxed similarly, it would not make any sense to stick to low THC products.
While this would be easier for experienced hemp producers, Stephen Halton, CEO of CNY Hemp Processing Inc, stated that people from the illicit cannabis market might find it a little tricky as the transition would include producing thousands of crops in one go. This shift could flood the market with high THC products.
As a result, various studies show that the adult-use marijuana market in New York would generate an annual sale of $2.3 billion by its fourth full year.
If we talk about hemp-derived extracts like CBD, the state's health department came up with some rules for selling CBD-infused products. However, because these bills are not yet passed and might be under the new Office of Cannabis Management's review, CBD producers have to wait a little more.