A Solution to Minnesota's Cannabis Supply and Demand Issues: Could a one-time shift from black-market or homegrown cannabis to testing and retail be the answer?

With many Cannabis experts now predicting the Minnesota Cannabis Retail shortage to run well into 2027, with wholesale prices already topping $4000/lb as stores just open their doors, this figure is expected to rise through mid-2026. Many experts believe that Minnesota may face a cannabis retail shortage that could extend into 2027. Currently, wholesale prices have reached over $4,000 per pound as new stores open their doors. However, there is potential for these prices to stabilize as the market develops through mid-2026. Addressing this issue proactively could help ensure a more balanced supply and demand in the coming years.

Implementing a one-time program that allows black market and home growers to have their cannabis tested and sold through licensed Minnesota retail stores could provide significant, targeted benefits to address the state’s current supply and demand imbalances in the legal cannabis market.

• Addressing Immediate Supply Shortages.

  Minnesota’s rollout of adult-use cannabis has resulted in a mismatch: there are nearly 40 retail locations but only four authorized wholesalers servicing the legal supply chain, leading to frequent inventory shortages and product variety gaps in stores. Allowing a controlled, temporary influx of homegrown and black market cannabis—subject to standardized testing—would help fill shelves quickly, maintain consumer interest in licensed stores, and ensure consistent tax revenue while longer-term cultivation ramps up.​

• Undercutting the Illicit Market

  With little legal product available, consumers often turn to unregulated sources. By channeling product from legacy growers through rigorous testing and into legal dispensaries, the state could reduce the appeal of the illicit market, build consumer trust in the regulated system, and create a transitional pathway for individuals operating outside the law.​

• Promoting Public Health and Safety

  By requiring all incoming products to pass state-mandated safety and contamination tests before legal sale, this approach ensures that only clean, accurately labeled cannabis reaches consumers—unlike the often untested black market supply. This reduces risks of contaminants, recalls, or medical emergencies, especially as new consumers enter the market.​

• Building Bridges for Future Legalization

  A structured, one-time amnesty/testing event could encourage black market participants and homegrowers to register, comply with regulations, and pursue licensing for ongoing legal participation, supporting Minnesota’s broader goals of equity and inclusion in its cannabis industry.​

This targeted strategy could stabilize Minnesota’s cannabis rollout, protect consumer health, and foster a more inclusive and sustainable market, while remaining time-bound and focused on addressing the unique dynamics of the market’s launch period.