Cannabis Control Board: market grows but small producers face cash‑flow, regulatory and siting challenges

The Cannabis Control Board told the House Agriculture, Food Resiliency & Forestry Committee that Vermont’s legal cannabis market has grown rapidly but that many small cultivators lack business and technical supports and could be harmed by siting and setback rules for outdoor cultivation.

James Pepper, chair of the Cannabis Control Board, said the industry faces unique constraints because federal law prevents interstate commerce and blocks many standard business supports: “This is an industry like no other,” he said, describing limits on banking, federal loans and tax treatment.

Why it matters: The state’s cannabis excise and sales taxes generate revenue earmarked in part for prevention and education, and the Legislature built a policy goal into Act 164 (2020) to favor small, locally based cultivators. Board members warned that seasonal oversupply, lack of access to credit, and rapid market expansion raise business‑viability questions for small operators and social‑equity applicants.

Board and staff provided licensing and market…