[PRESS RELEASE] – WASHINGTON, Oct. 1, 2026 – The lack of a consistent moisture standard for cannabis is costing producers and state governments tens of millions of dollars a year and leaving consumers exposed to lower-quality and potentially unsafe products, according to a new report from the American Trade Association for Cannabis and Hemp (ATACH), produced with FTI Consulting.
FTI analyzed nearly 145,000 independent lab test results from 10 states. In every state, the average sample fell below the 0.55 to 0.65 water activity range set by ASTM International standard D8197. In nine of the 10 states, at least three out of four samples tested at or below the bottom of that range.
Water activity measures the "free water" in cannabis flower, and it matters at both ends of the range. Over-dried flower loses terpenes, the compounds behind flavor, aroma and therapeutic effect, and can be harsher to inhale, particularly for medical patients. Flower that is too moist invites mold, yeast and Aspergillus, a fungus that poses serious risks to immunocompromised patients. Between 2019 and 2025, 61% of Colorado's cannabis health and safety advisories involved mold or yeast, and 67% of California's mandatory cannabis recalls between September 2024 and December 2025 cited Aspergillus. The ASTM standard sets an upper limit on water activity as well as a lower one.
Because cannabis is sold by weight, over-drying also shrinks the tax base. A pound of flower dried from 0.65 to 0.45 water activity loses about 18 grams. FTI modeled five states and found that bringing product up to standard would generate significant annual revenue:
- Arizona: $24.4 million in producer revenue, $5.3 million in tax revenue
- Colorado: $27 million producer, $5 million tax
- Massachusetts: $34.1 million producer, $5.6 million tax
- Missouri: $27.8 million producer, $4.8 million tax
- Nevada: $18 million producer, $4.1 million tax
The standard was developed through ASTM International and is recognized in NIST Handbook 130. But while state weights-and-measures agencies commonly adopt NIST guidance, the same adoption requirements don’t extend to cannabis regulatory agencies.
The report finds that this state-by-state inconsistency creates a preventable market inefficiency. ATACH is calling on states to adopt this standard.
"Water activity sounds technical, but the stakes aren't," said Chris Lindsey, Vice President of Policy and State Advocacy at ATACH. “Without a consistent standard, consumers get a worse product, patients face avoidable risks and states leave real money on the table."
The full report, including methodology and state-by-state data tables, is available here.
ATACH will present the findings in a public webinar at 4 p.m. ET / 1 p.m. PT on Sept. 30, featuring Chris Lindsey, Vice President of Policy and State Advocacy, ATACH; David Vaillencourt, Founder and Board Member, S3 Collective; Tyler Klimas, Founder and Principal, Leaf Street Strategies; and Nico Pento, Chief Legal Officer, Elevate Cannabis. Register here.
The report is the first in ATACH's new "Standards in Practice" series, which examines how accepted consensus standards can build a safer, more stable and financially secure cannabis industry.
ATACH worked with ASTM International's D37 committee over several years to establish the water activity specification. It was the first cannabis standard to be developed through a consensus-based standards organization and then recognized at the national level, through NIST Handbook 130 and the National Conference on Weights and Measures.
