Craft Cannabis Left Out: Why Farmers Markets Still Can’t Sell Marijuana Despite Growing Demand

A Tale of Two Tables: Produce and Pot Remain Separate at Farmers Markets

Casey O’Neill has long mastered the art of selling vegetables. As the operator of HappyDay Farms in Mendocino County, California, he’s known for fresh produce, pepper jelly, and homegrown integrity. He’s also a licensed outdoor cannabis cultivator with award-winning marijuana strains like Papaya Bomb and Government Oasis.

But even with dual credentials—licensed by the state to grow cannabis and certified to sell produce at local farmers markets—O’Neill is not allowed to sell both at the same stall. He can showcase his marijuana, but the actual sale of cannabis remains off-limits at farmers markets under current state law.

This legal split reflects a growing tension in the cannabis industry, especially for small-scale growers like O’Neill. Despite increasing interest from consumers and support from county agricultural officials and market organizers, selling marijuana at farmers markets remains prohibited—leaving what many see as an enormous economic and cultural opportunity untapped.

State Law Still Treats Marijuana Differently from Other Crops

Farmers markets are a staple of local economies, offering artisanal cheese, craft wine, heirloom vegetables, and even locally distilled spirits. Yet marijuana, despite being a legal agricultural product in many states, is conspicuously absent.

This exclusion is not due to lack of demand or interest. In California and beyond, small farms and advocacy organizations are actively exploring ways to incorporate cannabis into community-supported agriculture (CSA) models and public market spaces. The only obstacle? The law.

While a limited number of controlled events—like the annual California State Fair in Sacramento—have successfully showcased and sold marijuana, such sales are permitted only under strict event-specific regulations and licenses. These environments do not represent the full-time, direct-to-consumer opportunities small cannabis farmers say they need to survive in a saturated, underperforming market.

The Promise of Direct-to-Consumer Cannabis Sales

Advocates like Genine Coleman, executive director of the Origins Council, say that opening up direct-to-consumer channels is essential for small farms’ survival. For many of these cultivators, cannabis was once the financial backbone of their operations, providing steady income to support broader food and farm production. But with wholesale cannabis prices plummeting and the illicit market flourishing, that backbone is eroding.

For O’Neill, regular produce sales now provide crucial financial liquidity. But he believes that integrating cannabis into the farmers market scene would restore balance to the farm’s business model—and to public perceptions about cannabis itself.

“Our whole ethos from the beginning is asking why these two agricultural products are treated so differently, even though we grow them side by side,” he said.

State and Local Barriers Keep Cannabis Out of the Market Mix

Despite widespread support from the Mendocino County Farmers Market Association and even the county’s agricultural commissioner, Angela Godwin, cannabis cannot legally be sold at local markets. The key roadblocks are state-level licensing restrictions and county zoning laws.

In O’Neill’s case, his farm isn’t eligible for a microbusiness license that would allow both cultivation and retail sales on the same premises. That license would theoretically allow him to sell directly to consumers at markets, much like wineries can sell bottles and offer tastings.

But changing local zoning laws is just the first step. State lawmakers would also need to amend current cannabis laws to allow for such retail sales outside of dispensaries and special events.

“As far as I’m concerned, it’s a legitimate agricultural product,” said Godwin. “I don’t know how you can possibly say it’s not.”

Efforts in Other States Signal a Changing Tide—But Not Fast Enough

New York recently made strides by legalizing “cannabis showcase event permits,” allowing for marijuana-specific markets with the participation of licensed retailers. Still, the permits do not extend to general farmers markets, and it remains unclear whether the state will take that next step.

Farmers and advocates like Allan Gandelman, co-founder of the Cannabis Association of New York, are hopeful. His Ithaca-based market is open to the idea of including cannabis among its offerings. However, regulators are still determining the boundaries of what’s allowed.

In the meantime, small farmers across the country are stuck in a holding pattern, unable to fully leverage the most consumer-friendly sales venue available to them.

Missed Legislative Opportunities in California

In 2023, the California Legislature considered a bill that would have allowed cannabis cultivators to sell their products at temporary events for up to 32 days a year. The bill had the potential to usher in a new era of local cannabis commerce, but it was vetoed by Governor Gavin Newsom.

Newsom cited concerns about undermining the state’s existing retail framework and creating regulatory headaches for the Department of Cannabis Control. Specifically, issues around enforcing compliance and maintaining track-and-trace controls were flagged as reasons to oppose the bill.

For small farmers, the decision was a serious blow. Without new legislation or regulatory flexibility, cannabis continues to be siloed away from the wider world of local agricultural markets—despite growing consumer support and overwhelming voter mandates in favor of legalization.

Regulatory Safeguards Are Already in Place

One of the great ironies, advocates argue, is that cannabis is already subject to some of the most rigorous regulatory standards of any agricultural product. Licensed marijuana must be tracked, tested, and sold in compliant packaging. Those safeguards, they say, should be enough to allow limited sales at trusted venues like farmers markets.

That argument has gained traction among industry stakeholders, but it has yet to sway state lawmakers to act.

Small Farmers Wait as Policy Lags Behind Public Demand

The issue is no longer about feasibility—it’s about political will. As farmers like O’Neill continue to navigate a patchwork of rules that limit their ability to market their crops, state and local governments are being called upon to modernize regulations.

Until then, the potential for cannabis to contribute to vibrant, locally driven economies remains untapped. And for small craft farmers, that means another season of struggling to stay afloat, even as public support for broader access to cannabis grows.

As it stands, marijuana remains an agricultural outlier—grown on the same farms, often by the same hands that produce the food on our tables, but still barred from the markets where farmers build their livelihoods and connect with their communities.