Utah Postpones Announcing Winners of Cannabis Cultivation Licenses

In 2019, more than 80 medical marijuana growers had spent months vying for Utah’s 10 coveted cannabis cultivation licenses. As it turned out, they would have to wait a little longer. The Utah Department of Agriculture and Food postponed announcing the cultivation license winners for the state’s medical marijuana program. Originally, officials were supposed to announce the winners on July 15, but that date came and went.

Cannabis Cultivation Licenses

Growers who applied for cultivation licenses paid a $2,500 application fee. If they became one of the lucky 10 to receive a license, they then had to pay an additional $100,000 a year to renew it. The law allowed outdoor cultivators to grow a maximum of 4 acres, while indoor crops could not exceed 100,000 square feet.

The Utah Department of Agriculture and Food accepted applications from both in-state and out-of-state cultivators. However, state officials indicated that in-state applicants would be prioritized during review. Specifically, the state wanted to license businesses that could scale quickly as demand grew, keep costs low, and cultivate crops free of mold or pesticides.

Out-of-State vs. In-State

So far, eight cultivation applications had come from out-of-state growers, which made some local entrepreneurs nervous. Utah hemp processor Darren Johnson remarked that,

“Does it bode well for me? No, but they want it to be seamless. They don’t want hiccups. And I get that.”

Even so, he saw the potential of the medical marijuana market and explained that “Once (medical marijuana) becomes less taboo and people opt for that over an opiate-based drug, we’re going to see more demand and a stronger market.”

Medical Marijuana Growth Potential

Utah officials estimated that 100,000 patients would sign up for the new medical marijuana program. However, Melissa Ure, a senior policy analyst with the state Department of Agriculture and Food, said that number was more than double what the agency expected.

Conversely, Justin Arriola of Together for Responsible Use and Cannabis Education thought the state was underestimating the market. In fact, his group anticipated patient counts of 180,000. Ultimately, time would be the determining factor as the Utah medical marijuana industry developed.

Richard Oborn, director of the state health department’s Center for Medical Cannabis, projected that medical marijuana sales would generate $5.4 million in 2020 and $16.2 million in 2021. State officials were expected to start awarding the 10 cultivation licenses later that month, and they were also set to decide on medical marijuana processor applications.