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When we decided to start our own hydroponic farm, we were always open to the possibility of growing cannabis down the road

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Farm Girl Greens launched in Auburn, New York in late 2019 as a vertical hydroponic leafy greens operation supplying restaurants and farmers markets. The business remained profitable due to changing sales channels, fluctuating grant funding and rising energy costs, but the financial model was becoming increasingly difficult to predict.

When New York legalized adult cannabis and implemented a micro-business licensing structure, the regulatory landscape changed. The subsequent pivot was not sudden, according to co-owner Abby Lepak, but rather the activation of a long-considered opportunity. “When we decided to start our hydroponic farm, we were always open to growing cannabis,” he explains. “At the time, cannabis wasn’t legal in New York state, so our initial business plan was focused on leafy greens.”

© Green farm girls
Farm Girl Greens grow room showing off ZipGrow mobile tower trellis under LED lighting

Market volatility and margin pressure
The farm planted the first seeds in November 2019. By March 2020, the restaurant and farmers market channels had either closed or switched to takeout. “Running a business in the early 2020s was a challenge for any small business owner,” says Lepak. “We were successful in the beginning because of the grocery store supply chain and consumers wanting to buy directly from farmers.”

Farm Girl Greens focused on weekly home deliveries through a distributor as well as its own logistics. As restaurants reopened, sales shifted to food service accounts, reducing margins compared to direct-to-consumer channels. “It was profitable but not so predictable,” says Lepa about the green phase.

An additional outlet was operated by a non-profit nonprofit that supplied food pantries at retail prices by paying subsidies rather than consumers. “The food was free to the consumer, but the funding was unpredictable and then dwindled.”
Utility costs added further pressure. Rising energy bills prompted the farm to build a grant-funded solar installation. The system remains in effect today. “New York state is seeing energy costs double from one month to the next right now,” Lepak says. “Not just for companies.” Profitable but subject to fluctuating demand, unstable funding streams and rising operating costs, the green model became more difficult to plan.

© Green farm girls

A microenterprise license changes the model
Legalization introduced another option. Farm Girl Greens obtained a Micro Business License from the Office of Cannabis Management, New York’s governing body for adult cannabis. “The emerging market of adult-use cannabis cultivation has a bright future,” says Lepak. “The Bureau of Cannabis Management has taken steps to prevent large growers from flooding the market. Because we are a small grower and a predominantly female-owned business, we have been able to take advantage of training and fees at reduced prices and sometimes at no cost.”

The license allows cultivation, processing, distribution and retailing under one structure. For now, the farm is cultivating and shaking the flowers, using a third-party processor to extract them, and selling wholesale to pharmacies. As an indoor micro-business, the production covers 3,500 square feet of space and processes 1,700 pounds of cannabis per year.

Different crop, different system
Change required new infrastructure. The ZipGrow tower system used for leafy greens has been replaced with a high-pressure aeroponic recirculation system designed by Current Culture, along with a vertical rack from Pipp Horticulture.

“The leafy greens in our ZipGrow system didn’t require as much space and had a shorter seed-to-harvest cycle,” says Lepak. At peak production, the farm harvested the equivalent of 1,500 heads of lettuce per week while planting another 1,500 seeds.

Indoor cannabis works on a longer cycle, usually between 90 and 100 days. With a flower room currently in operation, the farm expects five harvests a year at full production. A second flower room is planned. Once built, a staggered planting schedule would allow ten harvests per year.

© Green farm girls

Higher margins, higher limits
Per square foot, cannabis offers stronger margins than leafy greens, Lepak says. But regulatory costs and add-ons dampen this advantage. “We expect margins to increase as cannabis legalization and additional fees decrease. These fees are very close to being cost prohibitive.”

Compliance-related packaging requirements and limited access to banking continue to weigh on profitability. Job applications have also changed. Leafy greens required a steady weekly workforce to manage the cycles and distribution of perishable crops. Growing cannabis involves less daily handling, but requires more concentrated work during the harvest and processing periods.

© Green farm girls
A member of the Farm Girl Greens team transplants seedlings (left) and inside a Matrix Media ZipGrow tower channel (right)

Looking back
Despite the transition, Lepa says he would still start with green leaves. “I enjoyed learning the process of indoor growing and selling at farmers markets,” she says. “Being a grower that delivers product directly to a consumer was a joy for me.”

Farm Girl Greens is selling its ZipGrow tower inventory as it consolidates its cannabis growing operations. “We have a total of 630 towers and associated lights and are willing to sell 450 towers, 180 towers or all 630 together,” says Lepak. “The eight-foot towers are mounted in 21 racks of 30 units. Complete system purchase of all 630 towers includes additional climate control equipment at no additional cost: CO2 generator and vertical V-Flow fans.”

Those interested in buying towers can go directly to Lepak (email protected).


A video tour of the Farm Girl Greens farm setup

© Green farm girls
Complete design of the ZipGrow tower system inside the farm

For more information:
Green Farm Girls
Abby Lepak, co-owner
(email protected)
www.instagram.com/farmgirlgreens

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cbdMD welcomes White House call for fair treatment of hemp-derived products

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cbdMD welcomes the Administration’s call for Congress to ensure fair treatment of hemp-derived products under federal law and calls for immediate action to revise hemp regulations to ensure fair treatment of hemp products under federal law.

In a letter to congressional leadership this week, the White House Office of Management and Budget identified hemp reform as a priority strongly supported by the Administration. The petition calls on Congress to ensure fair treatment of hemp-derived products by maintaining access to appropriate full-spectrum CBD products, and by maintaining Congress’ intent to reduce products that pose health risks. The administration also urged Congress to pass a responsible federal framework or at least extend the current implementation period to give lawmakers time to get policy right. The request builds on the president’s previous public statements urging lawmakers to protect access to full-spectrum CBD products that millions of Americans rely on.

“We are encouraged to see the administration so clearly championing the responsible, scientific hemp products that consumers depend on every day,” said Ronan Kennedy, CEO of cbdMD. “cbdMD has always believed that the future of this category is built on quality, transparency, and clear rules that separate them from bad actors. A federal framework that protects consumer access, promotes safety, and provides certainty to companies that provide certainty is what this industry and the people it serves deserve. We applaud the policymakers who are working to achieve this outcome.”

“We believe CbdMD is purpose-built for this next phase of the market,” added Kennedy. “Our focus remains on serving our customers with reliable and effective products, supporting responsible regulation and building long-term value for our shareholders as the category continues to evolve. Along the way, we will continue to evaluate the opportunities this evolving environment holds.”

For more information:
cbdMD
cbdmd.com/










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Applications For Missouri Marijuana Microbusiness Licenses Will Open Next Month

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“We have a lot of tutorials, and we also provide a step-by-step guide. Anyone could sit down and make the app. I don’t think it’s challenging.”

By Rebecca Rivas, Missouri Independent

Application window win one of Missouri’s 77 micro-business marijuana licenses through a lottery selection it will be open from July 13 to 27.

The selection lottery is scheduled for Sept. 9, and the Missouri Division of Cannabis Regulation expects to issue licenses in December, according to a press release issued Monday.

Microbusinesses are marijuana facility licenses issued to entities and individuals designed to allow marginalized or underrepresented people to legally participate in the marijuana market.

Lesley Turek, the division’s capital manager, has been traveling the state this month to educate people about the application process.

“I really feel that microenterprise graduates are, first and foremost, a community of people who help each other,” he said. “They’re the ones who are driving this program forward, so I’m looking forward to meeting new people and sharing as much as I can about the program. It’s a great program.”

Much of what is being worked on is the new rules that went into effect at the end of May…In 2024 the proposed cannabis regulators will remove a large number of licences Because of unconstitutional property deals.

The new rules, he said, allow regulators to conduct extensive scrutiny before licensing, rather than after. Furthermore, they give a more in-depth explanation of what it means to “have and operate the majority” of the License, which is a requirement in the Constitution.

Regulators are mandated to communicate directly with majority owners and require applicants to complete a compliance course before applying and after receiving a license.

The microbusiness program was passed by voters in the 2022 constitutional amendment to legalize recreational marijuana.

In Missouri, there are seven categories in which people can qualify for a micro-business license, ranging from lower income or living in an area considered poor, to past arrests or incarcerations related to marijuana offenses.

Applicants pay a $1,500 application fee if not selected. The Missouri Lottery will select 77 license applicants to open dispensaries or cultivation facilities. The goal is to fill the remaining gaps in the minimum 144 micro-business licenses mandated by the Constitution.

Turek believes the application is relatively simple and something people can complete on their own, unlike the much more complicated application for comprehensive licenses.

“We have a lot of tutorials, and we also offer a step-by-step guide,” he said. “Anyone can sit down and do the app. I don’t think it’s a challenge.”

The part that most people often don’t understand is everything that comes with owning a marijuana facility.

“It’s very expensive, it’s very regulated, and so it’s challenging,” he said. “I want to make sure people have a clear understanding beforehand so they can make a good decision whether they want to apply for this program.”

A big part of his presentation was that the majority of the licenses should be owned by and eligible people. They must have more than 50 percent of the authority to direct the decisions made with the license.

“It’s more than a percentage of ownership,” he said. “It’s really about being able to have that control over it.”

It also talks about the designated contact, and why in the new rule the regulators will require that the designated contact be the applicant or the eligible person with the majority of ownership.

The designated liaison role was conceived as a way to ensure clear communication between the state and licensees.

Instead, state regulators discovered it many named contacts have kept real applicants in the dark about business and licensing. Applicants are locked into agreements that limit their voting power and profits in the business.

That’s why the state now requires pre-application training, a three-video online course to ensure applicants understand “potentially predatory practices,” regulators said in response to public comments during the rulemaking process.

The press release It says those who need help with eligibility requirements or application forms can contact the facility’s application services (email protected).

Educational dissemination events for micro-enterprises

Personal forums:
June 22 – 6:00 pm to 8:00 pm – Kansas City

Webinars:
June 24 – from 11:00 a.m. to 1:00 p.m
June 29 – from 18:00 to 20:00

Registration is required for in-person and virtual sessions. Interested participants can register at Microenterprise education. Additional information on the microenterprise program is available here cannabis.mo.gov.

Those requiring assistance with eligibility requirements or application forms may contact Facilities Application Services at (email protected).

This story was first published by the Missouri Independent.

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RAND estimates Indiana adult-use cannabis could yield $180M in annual revenue

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Two new RAND reports commissioned by the Richard M. Fairbanks Foundation outline the policy options and financial commitments facing Indiana as the state debates whether to change its cannabis laws amid restrictions across the country.

Reports show that 44% of Indiana residents live within 50 miles of a licensed dispensary in a neighboring state, and 96% live within 100 miles, as three of Indiana’s four states have legalized adult-use cannabis. At the same time, intoxicating hemp products containing the same psychoactive compound as marijuana are available at gas stations, convenience stores and grocery stores throughout Indiana with limited oversight.

Cannabis use in Indiana has doubled in the past decade, with a significant increase among adults 26 and older. RAND estimates that 1.3 million Hoosiers used cannabis in 2024 and spent $1.8 billion on marijuana products that year. Indiana recorded more than 13,000 cannabis-related arrests in 2024, with more than 90% for possession and more than 75% for non-cannabis related charges. The state spends $10 million to $20 million annually on cannabis law enforcement.

Rather than recommending a specific policy, the RAND reports outline four broad options: maintaining prohibition, reducing criminal penalties for possession, legalizing medical cannabis, or legalizing the adult recreational use market. Legalizing adult-use cannabis would generate about $180 million in annual state revenue, roughly 1 percent of the state’s general fund, well below some previous projections and less than half of the $385 million in combined cigarette and alcohol tax revenue Indiana will collect in 2025, according to the Indiana Department of Revenue.

Legalization would also entail significant upfront costs, and ongoing regulatory costs could reach the low tens of millions of dollars annually, outweighing the savings from reduced criminal justice spending. RAND identifies 14 policy considerations important to establishing legal markets, each with its own public health and state economic implications.










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