The state is looking to greatly expand its marijuana market through additional grows
New Jersey has begun to notice that the recreational marijuana market has been taking a downturn in recent months. In an attempt to boost the industry and encourage minority participation, state regulators have decided to end the cultivation license cap. The Garden State has now undoubtedly become a free garden for many interested in the activity.
The initial two-year period established by the legalization law indicated that the number of large cultivation licenses was limited to just 37. However, that restriction expires on February 22, opening many more doors for those interested in being part of the lucrative market.
The state’s Cannabis Regulatory Commission (CRC) has the power to renew that limit. Still, members have decided not to proceed in order to encourage the growth of a developing market, as well as the diversity it has been committed to since the launch of the recreational cannabis market. The CRC expects participation to increase as only 17 cultivation facilities have opened in the state to date.
That is the fewest among 15 other states surveyed by the agency. According to the Commission, New Jersey would need at least “850 more” to reach the national average. In April 2022, adult-use sales began, and since then, companies have been providing their services so that cannabis consumers get the best quality possible.
Much of the dominance is credited to multi-state operators (MSOs) who already had medical cannabis businesses before full legalization came to the state. Additionally, CRC officials acknowledged that New Jersey may have the smallest ratio of cultivation capacity to the population of any state in the US.