NM Cannabis Chamber of Commerce

In this exclusive Q&A for Cultiv8 Culture, Publisher Whitney Bustillos sits down with Ben Lewinger, the executive director of the New Mexico Cannabis Chamber of Commerce. As a prominent voice in the state's rapidly evolving cannabis industry, Lewinger brings a wealth of knowledge and insight to the table.

From navigating the complexities of legalization to fostering economic growth and advocating for equity, Lewinger has been instrumental in shaping New Mexico's cannabis landscape. In this conversation, Whitney delves into key topics such as industry trends, challenges, and opportunities, providing readers with a behind-the-scenes look at the cannabis sector's impact on local businesses, communities, and the state’s economy.

Let’s dive in as Ben shares his expertise, experiences, and vision for the future of cannabis in New Mexico.

Q: Industry Landscape:How has New Mexico's cannabis industry evolved since legalization, and what challenges and opportunities do you see for businesses operating in the state?

A: In some ways it has evolved, in other ways it may feel like we’ve taken a step or two back. I don’t think anybody was expecting, and our regulators certainly were under resourced, for the sheer volume of cannabis business licenses that were issued so quickly in our state. Gratefully, we had a 10-year regulatory head start thanks to our medical cannabis program, which served as a model for other states, but that was barely 30 VICE and a dozen or so independent manufacturing licenses, compared to the 3,071 total approved licenses as of early December. The biggest challenges, particularly for small and medium-sized businesses, are that our industry is super competitive, highly regulated, and thanks to 280e, way more expensive and complicated to be part of compared to other industries. The opportunities are all connected to businesses digging in and really understanding their target consumers. For retail, that means owning the market in your small radius. For cultivators, it means great genetics, grown perfectly, at the lowest price point possible. For extractors, it means bringing novel products to market that are flawless. For everybody, there is no room for error.

Q: Economic Impact:What role has the cannabis industry played in boosting New Mexico's economy, particularly in terms of job creation and revenue generation?

A: Right now, there is roughly $70 million in the state’s General Fund. While it won’t compete with oil and gas or the film industry, this is brand new money for a cash poor state. All credit is due to the business owners who have put it all on the line to participate in this industry that remains federally illegal to this day. In addition, local communities like Hobbs ($2.15 million), Farmington ($1.04 million), and Jal ($393,000) have new funding to do with as they please. Cities and counties across the state, particularly those that have embraced the industry (or have close proximity to Texas) have the opportunity to make life better for their residents. A fully mature cannabis industry in New Mexico is expected to employ roughly 11,000 people, making it the 15th largest in the state by workforce. That’s huge and we’re moving towards that goal more quickly that anybody could’ve guessed.

Q: Regulatory Environment:How does the Chamber work with state and local governments to address regulatory challenges and ensure compliance within the industry?

A: The Chamber is most active at the state level, working with the Governor’s office and legislators to pass common-sense laws, and with the Regulation and Licensing Department and the Cannabis Control Division, to promulgate rules based on those laws. We also work closely with other cabinet-level agencies, like the Environment Department and the Department of Economic Development, to help understand what the promise of a fully thriving cannabis industry could do for our state. I wish we had more capacity to work at the city and county level across the state, but we have to be most active where we can do the most good. This also means helping to ensure that our industry self-regulates as much as possible.

Q: Community Engagement:What initiatives does the Cannabis Chamber support to foster community engagement and dispel lingering stigmas around cannabis use?

A: The stigma is alive and it continues to hold us all back. The best way to undermine the stigma is to bring lawmakers and other leaders and stakeholders into our businesses. We have to continue to fight for our right to be here, which means reflecting that we’re a legitimate industry that puts the health and safety of consumers first. It’s hard, but we have to operate in the light, which means a high level of self-accountability for our industry.

Q: Advancing Innovation:How are New Mexico's cannabis businesses innovating, whether in cultivation, product development, or sustainability practices?

A: This is a good question for cannabis businesses!

Social Equity:What efforts are being made to ensure social equity in the industry, particularly in providing opportunities for minority-owned businesses and communities disproportionately affected by past cannabis laws?

Social equity is quite literally built into the foundation of how our state legalized cannabis. By having an open system, with few barriers to entry, everyone has their shot. Micro licenses, in particular, are designed so that everyday New Mexicans can meet the industry where they are. Still, we’re seeing businesses that are undercapitalized popping in and popping out of the industry just as quick. We’re currently working on using funding from the Cannabis Excise Tax to create a grant and loan program specifically for Micros. As a good friend once said, “small business is the life raft for capitalism.” That’s certainly as true for the cannabis industry as anything else.

Q: Future Outlook:What trends or changes do you anticipate shaping the New Mexico cannabis market in the next five years, and how is the Chamber preparing its members to adapt?

A: In order to ensure that our industry stays open for new operators five, 10, 30 years into the future, we need to get the industry under control now. That means sufficiently resourcing the Regulation Licensing Department to perform their basic duties, as well as making sure they’re able to expediently address the huge illicit grows that keep popping up. It also means releasing a safety valve in the form of a 12-month pause of certain new license types, not including Micros. Another big challenge is going to be federal re-scheduling. Of course, we’re proponents of DE-scheduling cannabis, but big pharma is a powerful lobby. While operators should receive immediate relief by not being subject to 280e, there will certainly be several new layers of compliance and expenses. Eventually, we’ll have interstate commerce and New Mexico cannabis and cannabis products will compete on a national stage. The trip between here and there, though, will not be an easy one.