As with many aspects of life in Vermont, the central well of gravity in the budding legal cannabis industry is in the North. The population density of the Burlington area and the rugged legacy cultivators of Northeast Kingdom take up a lot of oxygen in the room, and for good reason. But make no mistake, Southern Vermont is a historical and current player in this subculture, as well, and it might yet emerge as an epicenter for activist, progressive approaches to scaffolding a well-regulated, equitable and sustainable cannabis economy across the state.

Aside from the many legacy farmers along the socio-economic and age spectrum who for decades have quietly cultivated marijuana here in the hills of the southern counties for themselves, family and friends, there are new operations coming out of the wider, illicit cannabis trade that have deep roots in this part of Vermont. Tao Labs, a cultivation and extraction company based in Brattleboro, is one such company, co-founded by two longtime locals: Jamie Tao from Bratttleboro, and Sam Neill from Saxtons River.

“We’re honored to bring some badly needed representation to this part of the state,” said Tao, who is chief product officer of Tao Labs. “There are a lot of folks who end up going across the border to Massachusetts for their needs because product tends to be cheaper there, and retail shelves here are still missing some of the key preferences of large portions of our population, like high-potency rosin cartridges.”

Tao is 36 years old, of Taiwanese descent, and wants to bring superstar-level cultivation and product development to the people and neighborhoods of his childhood. He and his 37-year-old business partner, Sam Neill, are both social equity licensees. Neill, who is a mixed race Nigerian American with Vermont ancestry that stretches back over 250 years, cares deeply about protecting the homegrown cannabis industry within Vermont’s borders. They plan to be selling products at retail locations throughout the state by July 4.

Although social equity status gives the men relief on licensing fees, it’s not a tremendous boost and other ways of supporting historically under-represented groups have yet to be implemented by legislators despite the Cannabis Control Board’s legislative recommendations and years of advocacy by local member-based nonprofits.

“Of all the money generated by the 14% cannabis excise tax and other fees in Vermont, exactly zero of that is currently committed to social equity, racial justice, or community reinvestment,” said Geoffrey Pizzutillo, co-founder and executive director of Vermont Growers Association, a nonpartisan, member-based nonprofit fighting for a just and equitable cannabis industry.

But, Tao and Neill are quick to point to the unfairness built into the private side of the cannabis business that negatively impacts the operators of every small, craft company in Vermont.

“Jamie and I have both sacrificed a lot to get here,” said Neill. “So it’s hard to watch out-of-state interests come profiteering within Vermont just because they see us as a nascent market to dominate. We’re doing our part to keep that from happening here the way it’s happened in other states, and we’re not alone.”

One form that such out-of-state companies take is that of a multistate operator, or MSO. Their model is widely regarded by economists and regulators to be a useful backstop if prices rise too quickly and cause folks to resort to the illicit market or neighboring states where prices might be lower. Their cash and at-scale production methods can quickly inject supply to curb price inflation, and so they are permitted to establish extensions of their out-of-state operations within newly-legalized markets. But their presence in some cases is proving to be less helpful than their size would suggest, as seen in states like California, where MSO Curaleaf recently retreated after causing sizable distortions there that have driven craft companies out of business.

This is a well-known effect of MSO activity in cannabis markets: Flood the zone with cheap product, watch the competition die off, then raise prices again.

“It’s critical consumers know what and who they are supporting,” said Neill. “Otherwise, that state brand that Vermont is so proud of in other industries like cheese, maple syrup and beer — the brand of craft — will be wrecked by MSOs pushing schwag (low-quality cannabis).”

Those other non-cannabis industries can sell products across state lines, but cannabis cannot. This creates a deeply asymmetric economy if large out-of-state companies can compete for Vermonters’ dollars and then export those dollars to a place where the purchased products are prohibited. Tao and Neill are confident Vermont-grown and produced cannabis products can eventually compete against the best anywhere in an open national market, but until federal law changes, MSOs and their monopolistic tendencies are seen as a threat to that future.

Many industry insiders believe Southern Vermont as a whole has been slow to advocate for an intentional, craft approach to the cannabis industry. But up-and-coming businesses like Tao Labs see a window to change that. Vermont, with its low population and historical embrace of cannabis, could possibly do what other states have failed to do: resist the encroachment of MSOs and build a sustainable cannabis marketplace that is circular and keeps its dollars within Vermont’s own borders.

Maybe it’s time Southern Vermont let its unique voice be heard in the struggle to resist MSOs. Efforts by those like Tao and Neill to create high-quality products are a key part of that. But consumer awareness is just as crucial, because they can choose to vote with their dollars, buying only products made by Vermonters, from retail stores that do not have ties to out-of-state interests.

The clock is ticking. Harvest season for cannabis will be upon us in a handful of months, and as the first one after the launch of adult-use legalization, it could be a significant turning point for the industry. For local production to meet supply enough so that the muscle of the MSOs is not seen as the only way forward, Vermont growers, retailers and consumers have to present a united front.

If cannabis cannot be done the Vermont way, the same way cheese, beer and maple syrup have been — with a deep reverence for how things are made, not just how much money is made — an opportunity of historic proportions will have been lost.