As more states move to legalize marijuana and seek tax and other economic benefits from the drug, small-scale artisanal marijuana growers are being squeezed out, according to The New York Times.
In Washington, where recreational weed sellers will legally open up shop later this year, some medical marijuana dispensers fear they'll be driven out of business, the Times reported.
The Times reports that it has been legal to sell marijuana for medical reasons for several years in the state, but that the market has not been regulated, making it difficult for the state to figure out how to bring them into the fold.
"In the 16 years since medical marijuana became legal [in Washington] an entire ecosystem of neighborhood businesses and cooperative gardens took root, with employees who could direct medical users to just the right strain; there are now hundreds of varieties with names like Blue Healer, Purple Urkle and L.A. Confidential, each with a variety of purported medicinal benefits," the Times reported.
"Medical users could also start gardens in their backyards and keep large amounts of marijuana at home. It was all very folksy, and virtually unregulated, which the authorities say led to widespread abuses," according to the Times.
Hilary Bricken, a Seattle attorney who deals in the marijuana business, told the Times she is telling her medical marijuana dispenser clients to "prepare for the end."
As mom-and-pop pot stores are being forced out in Washington, other states are making it difficult for poor pot growers to break into the business, the Times reported. In Illinois, a state Department of Agriculture proposal would make it so that aspiring medical marijuana sellers would need roughly $500,000 just to get started.
The fees include $5,000 for an application, which is nonrefundable, according to the Times. Another $30,000 for a permit, $25,000 per year to renew the permit and proof of $400,000 in assets.
Those seeking entry into the cultivation market will have to pay even more, the Times reported. That high cost could mean more expensive marijuana for customers. Even in Colorado, where medical marijuana dispensers have been able to transition into recreational sales, tough regulations are prohibitive.
