Florida is gearing up to begin accepting applications for cannabis cultivation licenses starting March of next year (2022). However, the licensing fee will be more than double the price of what an original cannabis license costs. The big question here is, why?
The Florida State Department of Health recently announced that they are opening applications for cannabis cultivation licenses. This specific application period and license is set aside for a single Black farmer.
How Black Farmers Can Qualify for a Florida Cannabis Cultivation License
Black farmers who want to join the Florida medical cannabis industry will be able to apply for one of the state’s medical marijuana licenses in March. This comes after an emergency rule was published this week by state health officials. The Department of Health stated that it will only accept applications from March 21st through the 25th of 2022.
Applicants can obtain a license under a few conditions. To qualify, their company must be an already registered business in Florida for at least five years. They also need to have a nursery certificate from the state Department of Agriculture and Consumer Services.
“I think it’s a big milestone that the state has got to a point [where] they’re in a solid regulatory environment now. They’re able to officially regulate the industry but simultaneously fulfill their statutory duties and start pushing out some of these licenses.”
Lockwood, via the News Service of Florida
Via Unsplash
This amendment comes more than four years after Florida originally passed legalization of medical cannabis use. The original law from 2017 required at least one license to be awarded to a Black farmer. However, this has yet to be enforced in practice.
Preparation for Broader Expansion in the Florida Medical Cannabis Market
Spokespersons for Republican Gov. Ron DeSantis say they have prioritized the licensure of a Black medical cannabis farmer. Furthermore, the governor’s representatives claim they are preparing for 19 more medical cannabis licenses. These will be “up for grabs” in the coming future.
Officials blame the delay on ongoing lawsuits and external legal challenges. Nonetheless, this is little compensation to Black farmers who have been restrained while Florida’s 22 currently active licensees have prospered in one of the nation’s most profitable cannabis markets; a market that’s arguably third to California and Colorado.
The Cannabis License is Twice as Much as the Original Cost
The fee for the cultivation license is a non-refundable $146,000. This is more than twice as much as the approximately $60,000 original fee for applications in 2017. This drastic change in cost has prompted the commissioner of Agriculture and gubernatorial candidate Nikki Fried to ask the state attorney general to look into it. However, this is still cheaper than purchasing a business license from an already established Florida cannabis company, which has been seen going for up to $50 million.
Via Unsplash
“The way that the state of Florida has handled the medical marijuana licensure process for Black farmers is completely unacceptable and discriminatory on its face. We should be leveling the playing field for Black farmers who have faced discrimination and other structural obstacles in the farming industry, not doubling their fees and creating additional regulatory burdens for them.”
Nikki Fried, via Florida Department of Agriculture and Consumer Services website
Fried plans to ask the state to alleviate fees as an attempt to assist newer, predominantly Black farmers join the industry without jarring cost barriers. Even so, there are implicit discriminatory challenges and entry barriers that have made it tough for Black cultivators to join the Florida medical cannabis market.
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