What might have seemed like a left-field—and illegal—concept just years ago, became a reality last summer when New York State rolled out its Cannabis Grower’s Showcase (CGS) program. These “weed farmers’ markets” were designed as a temporary solution for licensed cannabis farmers who were unable to sell their harvested crops due to a slower-than-anticipated rollout of statewide dispensaries. There were only 22 adult-use dispensaries just before the 2023 harvest season—yet growers were still sitting on the prior year’s products without a legal means to sell.
The showcases were approved by the Office of Cannabis Management (OCM) mid-July to begin in August and run through the end of the year. The announcement didn’t leave much time for planning, but resilient farmers and grassroots efforts banded together and the first market kicked off August 10 in New Paltz, in the lot of the former village hall.
The concept seemed like a win, and in practice, it appeared to be. Farmers and brands saw profit where losses were anticipated. A total of $4.8 million in sales was reported through the end of the year. The state saw increases in tax; towns in tourism. Consumers were able to access cannabis directly from growers, and out in the open—a step toward evolving public perception from the prohibition mindset to one of curiosity and understanding.
Jens Verhaegh, founder and farmer of Supernaturals NY, who specializes in cleanly grown pre-rolls, had a presence at six showcases including the New Paltz event. “The showcases were a great idea, they really brought together the cannabis community—farmers worked together to create a true connection with customers, who were excited to meet growers, learn, and see the product they were buying,” Verhaegh says.
Supernaturals currently operates under an Adult-Use Conditional Cultivator license at their farm in Accord. The brand, which currently has distribution among 12 dispensaries across the state, has plans to relocate to a New Paltz farm and hopes to obtain a license that allows them to sell retail there. “We’re currently able to cultivate an acre of cannabis, which is roughly 3,000 plants, and we’re able to minimally process,” Verhaegh explains. “Our current license doesn’t allow us to sell directly, but we just applied for a new license that would limit our allowed canopy size, yet allow us to process, distribute, and retail from our farm.” Until then, the showcases offered an opportunity to sell directly to consumers.
However, the CGS guidelines allowed three farmers for every one processor per market, so, one dispensary needed to participate for every three farmers—and the farmers far outnumbered dispensaries. ”We weren’t sure how we’d get in,” Verhaegh explains, “but Rick Weissman, who runs High Falls Canna and organized the New Paltz market, invited us—it was a privilege to be there out of the gate. And then great businesses like Legacy Dispensers showed up for multiple markets so that even more farmers could join in.”
Legacy Dispensers is a Capital region-based mobile dispensary that delivers as far south as Montauk. CEO and Founder Matthew Robinson is in the process of opening his first-brick and-mortar location in Colonie—Legacy Dispensary. “When they opened the showcase applications, we immediately started submitting,” Robinson explains. “Rick at High Falls Canna helped us start in New Paltz and everyone there just rocked it. We got accepted to the next three—Schuylerville, Grandville, and Copake—and kept showing up. We wanted to just keep adding as many farmers in as possible; these guys needed to have their products out there.”
Robinson says Legacy participated in a total of 22 showcases—12 per day. They ran instant fulfillment, meaning farmers would bring product and take orders, then Legacy would run the point-of-sale transactions. To accomplish this, Robinson had to hire 40 employees, each working approximately 20 hours per week.
“We didn’t get much rest; it took a lot of work to find good people fast and then train and manage them. But the pros outweighed the cons,” he says. “Customers had the chance to meet farms, dispensaries could gain trust, farmers could sell their products. There were some challenges but overall it went smoothly. If the state allowed it to continue, people would still be attending. I’m still getting calls from customers who hoped it would continue.” A coalition of Mid-Hudson elected officials called on the state to extend the CGS licenses to no avail.
Between hiring staff and setting up tabled booths, a sizable up-front cost was required for participants—one that can’t be written off as business-related expenses. Because cannabis sales aren’t federally legal, the 280E Internal Revenue Service Code enacted in 1982 prohibits businesses involved in marijuana sales from deducting typical business expenses.
“We can’t write off those expenses, but we did benefit from the exposure,” Robinson adds. “I support the OCM getting dispensaries open, but a dispensary needs time to build a brand. People now know who Legacy is—they met our staff, and they know our story. We’re a no-judgment dispensary that came from the legacy market, meaning we started before it was legal and transitioned over. That opportunity is why it was important for us to help this community right back. Your legacy is what you leave behind, that’s what we’re focused on.”
The showcases did, however, provide a break on retail mark-ups, which offset some costs. Dispensaries require a 100 percent makeup on wholesale costs; the showcase required only a 50 percent markup. “Obviously we had more expenses,” Verhaegh notes, “so the slightly larger portion we earned was spent on staffing and marketing, but it helped. We’re just continuously pivoting. But it’s a changing industry, and that’s the nature of farming anyway—to roll with it and adjust.”
One more anticipated obstacle to overcome was weather, as harvest season became the holiday season. This is where host locations like Honey’s Cannabis in Gardiner came in. Owner Courtney Beaupre opened Honey’s in August 2022 to sell CBD body care, edibles, and accessories, with the intention of eventually becoming a dispensary. Beaupre worked with Legacy and High Falls Canna to set up Gardiner’s CGS and became an indoor site host in November.
“I was first involved with the New Paltz showcase, just selling accessories and a little bit of CBD, because I didn’t want to encroach on farmers who needed to move all that product,” Beaupre says. “But when I became a host it was a great opportunity to sell products while still supporting seven farmers and two manufacturers. And it helped us as a small business to get a look at what products sell, how many people were coming in—sort of a dry run.”
Like Verhaegh, Beaupre also sent in an application in hopes to obtain a retail license. “We’re hoping to find out soon whether we’ll get our dispensary license; they changed the policy to a lottery, so even though we’ve done all the prep and paperwork, it’s up to chance. But it’s important to move forward with dispensaries. Even though there was advocacy to keep the CGS going, it didn’t continue.”
After our interview, Supernaturals and Honeys both received their lottery placements for licenses: 963 and 1,608 respectively, out of 2,233 in the queue. “The state reports that this is only the order in which applications are reviewed, and not licensed,” Beaupre says. “However, realistically we understand that they’re only giving out 250 licenses to this group and being in the bottom half of the queue means they may likely not even review our application. It’s incredibly disappointing that regardless of the roots we’ve created in the cannabis community in the Hudson Valley, and the work we’ve put into creating this dream, it all comes down to luck of the draw.”
