Why Kentucky medical marijuana is so expensive

Medical cannabis prices in Kentucky, where legal MMJ sales began in December, are too high for some patients, lawmakers heard.

As of July 1, Kentucky MMJ patients are no longer allowed to purchase cannabis from out of state and bring it back into the state. As a result, some patients are now paying five times as much for similar products, WKU reported.

That’s what state lawmakers heard from cannabis patient Ricky Hunt, 60, who testified before the Interim Joint Committee on Agriculture last week, as WKU reported.

How much does medical marijuana cost in Kentucky?

Before the July 1 executive order from Gov. Andy Beshear banning out-of-state products in Kentucky – where dispensaries have had to temporarily close because of supply issues – Hunt would travel to Illinois, where a one-gram vaporizer cartridge could cost $24.

That same product costs $130 in Kentucky, Hunt testified, according to WKU. Average retail costs range from $40 per unit of edibles to more than $100 for vaporizers, according to state data.

That’s consistent with price trends in most immature markets, particularly in states that limit the number of business permits. It’s also consistent in states that have more production capacity, testified Sam Flynn, deputy general counsel at the Kentucky Office of Medical Cannabis.

Other states with more mature markets “produce more cannabis,” he said, as per WKU.

And according to statistics his office provided, Kentucky still has significant room to grow.

Will Kentucky farmers be allowed to grow medical cannabis?

State law limits Kentucky medical marijuana businesses to:

• 16 cultivators, only two of which can grow up to 25,000 square feet, for a total of 115,000 square feet statewide
• 10 processors
• 48 retailers, but only 17 are open

State lawmakers asked whether opportunities are being enjoyed by farmers in the state, which also has a robust hemp sector.

And patients appear to be enrolling slowly.

As of June, there were 26,000 medical cannabis cardholders in the state, out of an estimated 400,000 people who are eligible, Flynn said, as per WKU.

That’s a mild increase from the 24,000 patients enrolled at the end of last year.

State regulators received a total of 584 applications for the 16 cultivation licenses, according to state figures. Critics have questioned the integrity of a state lottery process, claiming that out-of-state operators “flooded” the state with multiple applications.

When will Kentucky cannabis prices stabilize?

Both the high prices and slow adoption are leading to criticism from advocates and lawmakers alike.

“We have got patients that are dealing with higher prices,” said state Rep. Ryan Bivens, according to The Cadiz Record.

“Maybe we just need to can this and open it back up so they can go to other states and buy this because I think we’re wasting a whole lot of money.”

According to Flynn, prices will go down once more cultivation capacity comes online.