Medical Cannabis Companies Gain Edge in Minnesota’s New Bill HF 2426

2 April 2025

Minnesota’s cannabis industry is facing big changes just weeks before recreational sales are set to begin. Lawmakers are debating HF 2426, a bill that would give existing medical cannabis businesses major new advantages — raising concerns from small businesses and medical cannabis advocates.

If passed, HF 2426 would allow medical cannabis companies to expand their growing space from 60,000 to 90,000 square feet and sell products to the recreational market under certain conditions. Supporters argue this will help avoid product shortages and maintain a steady supply for medical patients as demand increases.

However, many worry the bill could reshape the industry before it even fully launches. \ Small business owners preparing to open new recreational shops fear they’ll be pushed out by large, well-funded medical companies with a head start. Industry critics also question whether a supply shortage would even happen, pointing out that many new microbusinesses are ready to grow enough cannabis to meet demand.

For medical patients, the stakes are high. While expanded production could ensure consistent access to medicine, some fear medical needs could be sidelined as companies shift focus to more profitable recreational sales.

Overall, HF 2426 could tilt Minnesota’s cannabis market toward a few large players, limiting opportunities for small businesses and potentially impacting the balance between medical and recreational supply — right as the state prepares for a historic launch.