SPRINGFIELD, Ill. (IRN) — As the state of Illinois continues to collect millions in tax dollars from marijuana sales since legalization in 2020, craft cannabis growers say they continue to encounter obstacles.
Illinois has issued 88 adult-use cannabis craft grow licenses so far, but just a few are operational.
Scott Redman, president of the Illinois Independent Craft Growers Association, said his industry is struggling with capital and finance being the main obstacles. He would like to see lawmakers relax some regulations to make it easier to start a craft cannabis growing operation.
“Illinois has one of the highest levels of taxation on cannabis,” said Redman. “We are not complaining about that as much as we are asking that be delayed for these smaller businesses so they can get up and running over a period of time and then the tax starts to kick in.”
Building a craft grow facility will cost anywhere from $6 to $8 million. That is if a grower can clear real estate, zoning and special use permit hurdles.
Dan Schmalshof, a board member with the IICGA, said a lot of growers are feeling the pinch.
“We’ve seen licenses when these were awarded valued at $5 million dollars and now they’re selling for under a million because people don’t have the capital to stand them up,” said Schmalshof.
Illinois’ social equity program provides cannabis licenses to applicants who meet certain criteria, including an arrest or marijuana conviction that is eligible for expungement.
As of last year, the Illinois Department of Agriculture had issued 342 total adult-use cannabis licenses to craft growers, infusers and transporters.
The state’s first cannabis craft-to-grow store opened for business in Rockford last October.
By KEVIN BESSLER for the Illinois Radio Network
