New Mexico Clamps Down: $2M Fines For Cannabis Farm Violations

New Mexico marijuana regulators on Tuesday revoked the licenses of two growing operations in a rural county for numerous violations. They levied a $1 million fine against each business. This action comes in the wake of New Mexico’s legalization of cannabis in April 2021, a move that marked a significant shift in the state’s stance on marijuana. 

However, since legalization, the state has grappled with a series of challenges, including controversies surrounding regulation and compliance. More recently, financial issues have surfaced as over a hundred license holders were found to be dodging their taxes, reflecting the complexities in regulating this emerging market.

Notable Violations And Federal Raids

Meanwhile, another issue is plaguing the state's industry. New Mexico’s Cannabis Control Division revoked licenses from Native American Agricultural Development Co. and Bliss Farm for serious violations, including exceeding plant count limits and failing to track inventory, according to The Associated Press. Particularly noteworthy, Native American Agricultural Development, associated with Navajo businessman Dineh Benally, faced a 2020 federal raid for illicit cannabis cultivation in the Navajo Nation, resulting in the seizure of over 200,000 plants, far exceeding the state’s then-limit for licensed medical cannabis producers.

Allegations Of Worker Exploitation

Adding to the controversy, a group of Chinese immigrant workers sued Benally and his associates, alleging they were deceitfully brought to northern New Mexico and coerced into working long hours trimming marijuana on Navajo Nation land, where cultivation remains illegal. These allegations coincide with the Native American Agricultural Development’s recent accusations by New Mexico's Cannabis Control Division of exceeding plant limits, failing inventory management and maintaining unsafe working conditions.

Regulation And Oversight

New Mexico recently cracked down on other shady cannabis operations amid accusations that the state lacked oversight and enforcement. These actions, together with the significant fines and license revocations, signal a state commitment to stringent regulation and oversight.

As the cannabis industry evolves, the need for well-enforced regulations and established controls becomes crucial to guide its growth responsibly and ensure public safety and compliance.