Noah and Marlena Fishman co-own Zenbarn Farms.
General Assignment Reporter
Noah and Marlena Fishman co-own Zenbarn Farms.
Federal policy toward cannabis is shifting.
Last week, cannabis approved by the the federal Food and Drug Administration and licensed by states for medical use was immediately downgraded to Schedule 3 of the U.S. Controlled Substances Act. The Trump Administration also says it moving to fully reschedule cannabis later this year.
Cannabis’ status under federal law is now “downgraded for the first time since 1970, unlocking long-awaited tax benefits for state-licensed medical cannabis businesses and researchers in the 42 states and Washington, D.C., with medical cannabis programs,” according to mjbizdaily.com.
“It represents partial progress rather than a full transformation of cannabis law,” states a post from Zenbarn Farms, a medical and recreation based cannabis business in Vermont.
Moving to Schedule 3, Zenbarn said, “medical cannabis operators may now become eligible for standard business deductions.”
“This potential improvement in profitability creates crucial room for businesses to reinvest in their patients, their staff, and product quality,” the post states. “Nationally, the benefits will be uneven. The operators who benefit most will be those in states with large, active medical programs or those heavily focused on medical patients.”
Reclassification, according to an April 23 news release from the U.S. Office of Public Affairs, “expands access to approved therapies and supports state-regulated medical marijuana programs.” The move follows President Trump’s Dec. 18 executive order on increasing medical cannabis and cannabidiols research.
“The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options,” Acting Attorney General Todd Blanche said in a statement. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information.”
Under the direction of Trump and Blanche, the Drug Enforcement Agency is “expeditiously moving forward with the administrative hearing process — bringing consistency and oversight to an area that has lacked both,” DEA Administrator Terry Cole said in a statement. The DEA will hold a new administrative hearing beginning June 29 on the proposed rescheduling of cannabis, according to the news release.
Zenbarn described Vermont being “currently a recreational-first market.”
“Our medical program is small, and most consumers shop within the adult-use system due to barriers in medical access, such as costs and qualification limits,” the post states. “For medical operators in the state, such as Vermont Patients Alliance and Zenbarn Farms, this change does matter in a targeted way. The shift offers potential tax relief on the medical side of the business, granting more flexibility to price products affordably for patients and reinvest in better medical offerings. However, because the medical side is still a small slice of the overall market, this federal change is not an immediate game-changer for most Vermont operators.”
Zenbarn called for the state “to revitalize its medical program” by expanding qualifying conditions, reducing barriers, increasing patient awareness and ensuring that medical cannabis more affordable than recreational options. Still needed is “full federal legalization,” the post states.
“If we want a cannabis system that truly serves patients, consumers, and communities equitably,” Zenbarn said, “we must keep pushing forward.”
Scott Sparks, owner of Vermont Bud Barn in Brattleboro and chairman of the Cannabis Retailers Association of Vermont, has opposed rescheduling. He prefers taking the plant completely off the schedule.
While Vermont Bud Barn and other retailers have been approved to sell medical grade products to Vermont medical card holders through a new endorsement program, Sparks said the revenue represents less than 1 percent of his sales and it is unclear if IRS code preventing cannabis establishments from benefiting from tax deductions offered to other businesses will be affected by the change.
“I can’t help but think this is a ploy backed by big pharma,” he said. “The definition of a Schedule 3 drug is it requires a prescription. They want to sell cannabis products in pharmacies and keep home grow and adult use illegal. Follow the money. Who funds political campaigns? Who changes laws?”
Sparks said Windham County only has 250 Vermont medical card holders.
General Assignment Reporter
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