The Mass Extinction of Oklahoma’s Wild-West Cannabis Market

OG Article By Paul Demko

September 16 2025

Higher costs, tougher enforcement, falling prices, and rampant crime have destroyed the once-booming medical cannabis market.

The Dream Begins

CADDO COUNTY, Okla. — Aaron The Grower once believed in Tokelahoma.

In November 2019, Aaron Scheiner and his wife, Shannon, bought 12 acres of rocky land 60 miles southwest of Oklahoma City. They moved 1,600 miles from California to start a cannabis farm.

Land and energy cost less than in California. They paid $30,000 for the property. A grow license cost $3,000—a low fee compared to other states. No limits existed on licenses.

Aaron built a small facility for 130 to 150 plants. Shannon managed the business, named ATG Acres. By late 2022, they sold all their flower to over a dozen dispensaries and made a small profit.

“I felt like we had slipped into a perfect utopia,” Aaron said.

This feeling was common. In 2019, voters approved medical cannabis. The conservative state became the world’s wildest cannabis market. No business limits, few rules, easy medical enrollment drew entrepreneurs nationwide. By late 2021, nearly 14,000 licensed businesses existed—more than any state, including California.

Problems Emerge

The free-market approach caused issues. Criminal groups, including Chinese organized crime, used it as cover for smuggling. This happened in other states like California, Maine, and Oregon. Oklahoma became a warning for states like Mississippi, Kentucky, and Texas.

By 2023, the utopia turned nightmare. Voters rejected recreational legalization in March. Every county voted no, even liberal areas like Tulsa and Oklahoma City. This slowed the national legalization trend. Over half of Americans now live where adults 21+ can buy cannabis legally.

The defeat encouraged crackdowns. Fees rose from $3,000 to $5,000 yearly. Growers needed a $50,000 bond, costing about $2,500. ATG Acres spent $15,000 on security, alarms, and doors for a Certificate of Occupancy—long required but unenforced until 2023. Bureaucracy required lawyers.

Oversupply worsened problems. A 2023 study showed 64 times more cannabis produced than needed for 400,000 patients. Prices fell. Competition grew fierce. Dispensaries stopped paying $1,600 for ATG’s high-grade flower.

“We jump hurdles as they come,” Shannon said in April. “It’s hard, but we won’t give up. We’ll fight for this farm.”

By mid-June, they quit. A new law required individual packaging, adding $2,000–$3,000 per harvest.

“They always change rules,” Shannon said.

“It’s death by a thousand cuts,” Aaron added.

Mass Closures

Thousands closed shop. In February 2023, 12,000 licensed businesses existed, including 7,000 grows. By September this year, only 5,000 remained. Hundreds more stopped operating despite valid licenses.

“If you survived, you have thick skin,” said Donald Gies, a cannabis attorney. “You have grit. I hope it gets better. I just don’t know.”

Theory One: Official Opposition

State leaders opposed legalization from the start. The 2019 vote passed with 57% support. They hesitated to block it.

No local bans or zoning allowed. Any ailment qualified for a card.

“You could have gas and get a card,” said Donnie Anderson, Oklahoma Bureau of Narcotics director. “That’s recreational.”

Changes shocked residents. Dispensaries appeared everywhere. Billboards flashed “Honk if you’re high.”

“That’s not what they voted for,” said Rep. Scott Fetgatter.

The 2023 rejection emboldened officials. New laws, fees, and enforcement made profits hard.

“Leaders are anti-cannabis,” said Mayor Stephen Holman. “They can’t end it, but they can destroy it.”

“We’re driving legal ones out,” Anderson said.

A key change: Enforcing Certificates of Occupancy in 2023. Many lacked them.

Jeff Henderson moved from Colorado in 2019. Colorado licenses cost too much. Oklahoma let him grow big.

“Oklahoma made me,” he said.

But he’s stuck two years without his certificate for Pyre Farms. He admits a paperwork mistake.

“The state shuts down as many as possible,” he said.

OBNDD extended deadlines for good-faith efforts. “No excuses now,” said spokesperson Mark Woodward.

Henderson persists. No regrets.

Theory Two: Market Correction

The market grew out of control. It threatened safety and health. Rural areas filled with farms.

Criminals flocked. Chinese-linked operations held licenses but sold illicitly. They tied to trafficking.

A 2022 quadruple murder on a farm drew global attention. The killer got life in 2024.

Over 6,000 illegal farms shut in four years. Raids continue weekly.

“Don’t go to Oklahoma,” Chinese sites warn.

Businesses became robbery targets. Cash-only due to federal laws.

Josh Fischer’s grow was robbed in 2022. Nine armed men stole $60,000 in flower. It halted operations three months.

“It almost ended me,” Fischer said. He carried an MP5 rifle to work.

He closed in January. Oversupply and low prices killed it. He lost $300,000. Now a designer and musician.

“No one can make it legally,” he said.

Relief in Closure

Five years ago, excitement filled the air. Oklahoma had a free-enterprise market.

Tom Spanier owned Tegridy Market. “Survival of the fittest,” he said then.

He closed in May. Low margins and fewer customers wore him down.

“We sleep better now,” he said. “So glad to be out.”

Patient numbers fell below 325,000. Oversupply continues. A new study checks excess.

“Some close because they can’t profit,” said Adria Berry, OMMA director.

Future Hopes

Not all give up. A 2026 recreational push started. Oklahomans for Responsible Cannabis Action needs 173,000 signatures.

Leader Jed Green notes differences from 2023. Industry unites now. It would constitutionalize legalization.

Federal changes could help. Rescheduling cannabis cuts taxes.

“Our goal is freedom,” Green said. “Protect access forever.”