Utah Picks Eight Growers for Medical Marijuana Program

Utah’s Department of Agriculture announced the eight companies that will be able to legally grow medical marijuana for the first time, though the decision to award a smaller number of licenses raised concerns regarding supply.

While the new law allows Utah to award up to 10 licenses, state officials say they chose to only hand out eight to avoid an oversupply of cannabis.

Christine Stenquist, director and founder of advocacy group Together for Responsible Use and Cannabis Education (TRUCE), said she is concerned eight cannabis growers will not be able to fulfill high patient demand in Utah.

“We’ve waited years for these big steps to happen. But we’re not giving the patients the care they need with restricted grows and dispensaries,” Stenquist said.

A total of 81 applicants were vying for the competitive spots. Each license will cost the awardees $100,000.

Andrew Rigby, the Department of Agriculture’s medical cannabis program director, said the decision to only award eight was made “to avoid an oversupply of product, while still maintaining a healthy diversity of cultivators for purposes of competition of product quality and patient pricing.”

The department will soon begin accepting applications for an unlimited number of medical cannabis processing licenses. Rigby said licensed cultivators will be allowed to apply for processing licenses, too.

Awarded companies Standard Wellness Utah and Wholesome Ag have grown medical cannabis for other states, including Ohio and Connecticut. Other licenses run smaller operations, like Oakbridge Greenhouses, a family-owned greenhouse in West Valley City.

Other awarded licensees are: Dragonfly Greenhouse, Harvest of Utah, True North of Utah, Tryke Companies Utah and Zion Cultivators.

Growers aren’t expected to start planting immediately. Licensees will need to pass background checks and finalize their contracts with the state.