(The Center Square) – Legal recreational marijuana was supposed to be a money maker for New Mexico. Now, however, taxpayers are subsidizing the industry.
The New Mexico Economic Development Department is providing $90,000 from the Local Economic Development Act job-creation fund to a cannabis manufacturing business called Vana LLC, according to the Department.
“The company has constructed a cutting-edge growing and manufacturing facility, engaging local contractors and subcontractors,” a release said. “It also sources locally grown cannabis products to process for area farmers, creating an affordable avenue for farmers and micro-producers to manufacture and sell their products and fostering a sustainable local business ecosystem. Vana benefits from a partnership with sister companies Orenda Farms and Vana Society, allowing it to grow, manufacture, and distribute boutique products.”
This is the first LEDA grant given to a New Mexico cannabis business. However, EDD has provided funding to other cannabis and hemp entities using other programs, like the Job Training Incentive Program, a Department spokesman told The Center Square by email.
Vana plans to hire 12 new employees with salaries averaging $46,626 annually; Vana also plans to invest $2.6 million into the state over the next decade.
Vana got the state’s first approved cannabis manufacturing license two years ago. Vana is licensed for “indoor and outdoor farms, a manufacturing facility, and two retail locations, serving both medical and recreational markets,” the release said.
The company expects to end up employing 45 to 50 New Mexicans.
“EDD’s investment in Clovis-based Vana LLC is a testament to the success of Gov. Michelle Lujan Grisham’s forward-thinking economic policies,” Acting EDD Secretary Mark Roper said. “The legalization of recreational cannabis in New Mexico is growing businesses and helping rural communities diversify their economy and add jobs.”
The company said it will contribute around $350,000 in gross receipts tax to the City of Clovis each year, according to the release.
“We have roots in this community, and we want to give back to the community where we raised our family,” Vana CEO and founder Parin Kumar. “This investment is a big commitment for us, and the state assistance is important to build partnerships so we can achieve long-term success as we add employees and grow.”
In New Mexico, the cannabis industry employed 2022 people at the end of 2022, according to the Department of Workforce Solutions; 88% of those employed worked at marijuana dispensaries.
