A pair of Democratic congressional lawmakers have introduced a bill intended to help small marijuana growers compete against large corporations when cannabis is federally legalized—proposing to give them the ability to ship and sell products directly to consumers within and across state lines via the U.S. Postal Service, and commercial carriers.
The legislation—titled the “Small and Homestead Independent Producers (SHIP) Act—is being sponsored by Reps. Jared Huffman (D-CA) and Val Hoyle (D-OR). This is a revised version of an earlier measure that was filed in the previous two session but not adopted.
Congress has been working towards ending the cannabis prohibition. However, some businesses are worried that they will be unable to compete when it comes to the multi-state operators with their resources and infrastructure. They could also threaten to consolidate the industry once federal regulations open.
SHIP Act is a law that aims to minimise risk while maximising opportunities for small farmers and producers.
Huffman stated in a Tuesday press release that “larger, commercialized cannabis operations are infiltrating and pushing out local farmers.” We need to be prepared to assist these small business owners when the federal cannabis prohibition is repealed.
He said that his legislation ensures people can send their products directly to the consumer, helping small businesses grow and farmers remain afloat. We must not abandon our small family farmers when full legalization becomes a reality.
It has undergone some changes compared with the original proposal, including the requirement that “any private or interstate commercial carrier” that transports cannabis verify that the recipients are over 21.
The bill clarifies that federal law preempts state laws on marijuana in the context of interstate commerce. States that ban cannabis may continue to do this, but they cannot prevent marijuana from being transported across their border. Federal law would preempt states that have legalized marijuana, “to the degree such laws prohibit the interstate and intrastate shipment or delivery of cannabis to a person whose possession or use of cannabis is permitted under state law.”
Finally, the latest version includes a new section that would amend U.S. postal laws by stipulating that the “Postal Service is authorized and directed to permit the transmission in the mails, under regulations to be prescribed by it, of cannabis.”
Huffman noted that “the federal government failed to keep pace with the changes in our economy for many years and cannabis has been the unfortunate victim.” The current federal prohibition standards have become outdated and this bill is needed to prepare for their repeal. “My bill will ensure California producers and farmers can ship directly to the consumer, protecting our local agriculture and small business up and down North Coast.”
In the past, direct-to consumer models were beneficial to small farmers on traditional agriculture markets. This allowed them to sell their products without using third-party retailers or distributors that require extra spending.
After marijuana has been descheduled by the federal government, SHIP Act could extend marketing opportunities to cannabis.
The cracks are evident in the state’s experiment with cannabis legalization. Small and craft producers have been pushed out of the market, access to safe products for patients and consumers is decreasing, and industry control is being concentrated into a small number of hands, according to Ross Gordon, a co-founder and policy analyst of the National Craft Cannabis Coalition.
Without direct-toconsumer shipping federal cannabis legalization could reinforce these failures, he warned. The SHIP Act will determine the fate of the small cannabis business in California, and throughout the United States.
Frederika McClary Easley said, “regulation of marijuana has unfortunately not equated adequate access.”
According to her, “many consumers and patients are forced to navigate deserts of plants that were created as a result of municipal opt-outs or zoning regulations.” The SHIP Act is designed to help address these issues while prioritizing small craft producers’ access, which will positively impact their sustainability and success. MCBA supports this federal piece of legislation which recognizes craft-growing and small business as being the foundation of the booming industry.
According to the text of the law, “small growers of cannabis, and small manufacturers of cannabis products located in States where such cultivation and manufacture are legal, can ship or sell cannabis, or cannabis-related products, by using United States Postal Service, or other private or commercial interstate carriers, to individuals located either in the State they reside in, or in another State, in which the possession of cannabis, or cannabis-related product, is allowed by the individual.”
The term “small cultivator” is used to describe those that grow less than one acre (or 22,000 sq. ft.) of mature flowering cannabis plants in greenhouses, or no more than 5,000 sq. ft. of indoor cannabis cultivation.
Manufacturers would be considered small operations if their gross revenue was less than $5,000,000. This includes all of the cannabis products they manufacture.
Genine Coleman, executive director of Origins Council and NCCC founder, said: “California’s independent and homestead farmers face existential obstacles to their success.” Without addressing the crisis of market access facing producers in the United States, consumers and patients are at serious risk of losing their access to essential products and genetics. Rep. Huffman’s leadership is appreciated in the introduction of SHIP Act which provides a solution for this crisis.
This bill has also been backed by National Cannabis Industry Association, Drug Policy Alliance, Parabola Center Marijuana Justice Veterans Cannabis Coalition, and others.
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Meanwhile, in March, California officials unveiled a report on the status and future of the state’s marijuana market—with independent analysts hired by regulators concluding that the federal prohibition on cannabis that prevents interstate commerce is meaningfully bolstering the illicit market.
Gov. Gavin Newsom (D) did sign a bill in 2022 that would have empowered him to enter into interstate cannabis commerce agreements with other legal states, but that power was incumbent upon federal guidance or an assessment from the state attorney general that sanctioned such activity.
Following a review of the policy proposal, however, California Attorney General Rob Bonta’s (D) office ultimately determined in 2023 that the state could put itself and its employees at “significant legal risk” of federal enforcement action if it were to authorize interstate marijuana commerce.
The bipartisan bill that Congress reintroduced to the Senate in April, aimed at ending federal prohibition of marijuana in those states which have already legalized this drug in their state laws also allows for interstate commerce.
Mike Latimer is the photographer.
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