How to Get a Grow License in New York (2024 Edition)

Do you want to join New York's growing cannabis industry as a cultivator? The Marihuana Regulation & Taxation Act (MRTA) passed in 2021 legalized adult-use cannabis in the Empire State, establishing a robust market with great potential to grow high-quality plants and succeed.

To leverage this unique and exciting opportunity, you need to complete one crucial step first: get a grow license in New York. This official permission is key to opening a legal and reputable company in the emerging cannabis market.

Are you looking to start a cannabis cultivation business in this state? To give you a hand, we've crafted a comprehensive guide on how to get a license to grow cannabis in NY! Below, you'll find all the information you need, from license types to application requirements and other important details.

New York's Cannabis Cultivation Landscape

The Compassionate Care Act of 2014 marked the beginning of New York's journey toward cannabis legalization. In July of that year, Governor Andrew M. Cuomo enacted and signed into law this legislation to oversee the cultivation, processing, dispensing, and administration of medical marijuana.

Just 18 months after this act was signed into law, New York's first registered patients were able to obtain non-smokable forms of medical marijuana, but this type of cannabis was only available to people with certain conditions.

After several failed attempts to legalize adult-use cannabis, the Marijuana Regulation and Tax Act (MRTA) was finally passed in March 2021. This legalization bill built a regulatory infrastructure to allow and oversee the cultivation, processing, distribution, and sale of cannabis for recreational purposes and amended the state's existing medical marijuana laws.

Cities, towns, and villages were allowed to opt out of allowing retail dispensaries selling recreational cannabis or granting on-site consumption licenses. Since then, the Office of Cannabis Management (OCM) and the Cannabis Control Board (CCB) have been responsible for building a legal and equitable cannabis industry.

Types of Cultivation Licenses in New York

So far, the OCM has granted 270 licenses to marijuana cultivators, 40 to conditional processors, and 75 to retail dispensaries that grow, distribute, and sell cannabis across the state. The agency is committed to awarding 50% of them to Social and Economic Equity (SEE) applicants.

For more details on when new licensing applications will be accepted, visit the OCM website. In the meantime, you can check out the types of cannabis licenses available below:

Adult-Use Cultivator License 

As the standard license for cannabis growers in New York's recreational market, this document allows holders to cultivate, clone, harvest, dry, cure, grade, and trim cannabis plants for subsequent sale to licensed processors, micro-businesses, cooperatives, or registered organizations.

This license can be granted for indoor, outdoor, and mixed-light cultivation, or for a combination of two or more methods.

In New York, cannabis cultivators are licensed by canopy type based on a system that considers certain key aspects, such as square footage (typically from 1,000 to 50,000 square feet) and the cultivation method.

There are some ownership restrictions for licensees in this state, including:

• No person may have an interest in more than one cultivation license.
• Cultivators can hold a license for processing, distribution, or nursery when made available by the OCM.
• Licensees or their true parties of interest cannot own or have interest in a retail dispensary, delivery, or on-site consumption license.

Adult-Use Conditional Cultivator License 

Created in 2022, New York's adult-use conditional cultivator license authorized existing hemp growers to apply for a permit to cultivate cannabis containing over 0.3% THC for the recreational market.

Hemp cultivators who met certain requirements and were authorized to grow cannabis by the Department of Agriculture and Markets Industrial Hemp Research Pilot Program were eligible for this license.

The conditional license was temporary and valid for up to two years. As of 2024, the application window is closed. Existing holders are now transitioning to full adult-use cultivation licenses. 

Adult-use conditional cultivator licenses will expire once authorities make a decision on a holder's application for a full permit. Those who didn't apply for this transition were required to cease all cannabis activity by June 30.

NY Cannabis Microbusiness License 

The adult-use microbusiness license type is designed for small-scale, vertically integrated operations. It's available to businesses that engage in cultivation and at least one additional cannabis-related activity, such as processing, distribution, delivery, dispensing, or retail sale.

These licenses are typically restricted to a smaller canopy size compared to standard ones and require microbusinesses to use premises near their cultivation locations. The distance is determined based on whether growing areas are in or outside of New York City.

Canopy sizes are limited as follows:

• Up to 3,500 ft2 for indoor cultivation
• Up to 5,000 ft2 for mixed-light cultivation
• Up to 10,000 ft2 for outdoor cultivation
• Up to 5,000 ft2 for outdoors and up to 2,500 ft2 for mixed-light if both methods are combined

There are some restrictions for these licenses, too, including the following:

• Applicants can only hold one microbusiness license.
• Microbusinesses cannot have interests in other licenses, including cultivation.
• Microbusinesses or their true parties of interest cannot have direct or indirect interests in retail dispensaries, delivery, or on-site consumption.
• Microbusinesses and distributors cannot have true parties of interest in common except for passive investors.
• Individuals cannot submit applications for more licenses or license types than they're legally allowed to hold.

NY Cannabis Cooperative License 

The cannabis cooperative license is issued to eligible groups of people who want to acquire, possess, cultivate, distribute, or sell medical or recreational cannabis to other businesses.

Eligible groups must be organized as cooperatives under New York law, and all members must be legal residents of the state. This license is aligned with the OCM's goal of helping social and economic equity applicants and communities disproportionately impacted by marijuana restrictions enter the legal cannabis industry.

As mentioned, this license allows cooperatives to legally engage in several activities, including cultivation, but these businesses aren't permitted to sell directly to customers.

Registered Organization Cultivation License

While not a new license type, existing registered organizations that are authorized to cultivate, manufacture, and dispense medical cannabis can apply to enter the adult-use market.

This permit is limited to organizations that are already licensed under New York's medical marijuana program and allows them to expand into the cultivation and sale of recreational cannabis.

Although every New York registered organization can technically be eligible for this license, there may be additional requirements to transition to the adult-use market.

Preparing Your NY Cultivation License Application 

Do you want to apply for a cultivator license in NY? Thorough preparation is key. Below are some tips to help you maximize your chances of getting your application approved!

Developing a Comprehensive Business Plan 

Crafting a comprehensive business plan is a crucial step to entering the cannabis market. Besides ensuring the long-term success of your company, this document is essential for your NY cultivation license application.

The OCM requires applicants to submit a detailed business plan that outlines the business structure and ownership, market analysis, operations strategy, financial projects, and other key details.

A well-thought-out business plan will show regulators that you have a clear vision for your cannabis cultivation business, can execute your operations strategies, and are committed to complying with all federal, state, and local laws.

Free Cannabis Cultivator Business Plan Template

Do you need help getting started? You can find a free, downloadable business plan template for cannabis cultivators on our website! This document covers the following sections:

• Executive summary
• Market analysis
• Operations plan
• Financial projections
• Compliance strategy

Our template can serve as a starting point to align your business plan to New Nork's specific requirements, but make sure it's tailored to your needs and reflects your unique vision.

Download our cannabis cultivator business plan here!

Eligibility Requirements 

Eligibility criteria may vary by license type, but the following requirements are standard for most cultivators:

• Be at least 21 years old.
• Be a legal resident of New York.
• Have no prohibition from holding a license based on prior disqualifying convictions or true parties of interest restrictions.
• Demonstrate experience in the cannabis industry.

Location and Premises 

You should secure a compliant location for your cultivation facility in order to apply for a license in NY. Since local governments can choose to opt out of licensing cannabis dispensaries or on-site consumption within their jurisdictions, you may be required to obtain zoning permits and approvals from the municipality where you plan to grow your plants or address community concerns and get support from your project.

Either way, you might be required to provide proof of control and a certificate of occupancy over your proposed premises.

Business Formation

Before starting the application process for a NY cultivation license, establish your business entity and prepare all related documents.

Financial Considerations 

For your application, be ready to provide detailed financial disclosures, such as funding sources, a comprehensive budget, and financial projections to prove that you have sufficient resources to invest in your project (pay for your cultivation facility, equipment, licensing, staff, and operations) and demonstrate your business's viability.

Application and License Fees 

New York uses a tiered system to determine the fees that cultivation license applicants must pay during this process. It's based on each business's license type and canopy size.

Fees start at $1,000 but can increase as follows:

• Indoor cultivation: From $1,750 for 500 ft2 to over $100,000 for more than 50,000 ft2
• Mixed-light cultivation: From $1,500 for 500 ft2 to over $26,000 for more than 25,000 ft2
• Outdoor cultivation: From $1,000 for 500 ft2 to over $30,000 for more than 100,000 ft2
• Combination cultivation: From $15,000 per square foot for up to 25,000 ft2 to $35,000 per square meter for over 100,000 ft2

Find more information about application and licensing fees here.

Note: SEE applicants may receive a 50% reduction on all fees. Moreover, the state's Cannabis Control Board voted to waive licensing fees for two years for conditional cultivators.

Environmental Sustainability and Resource Management

The process of obtaining a cultivator license in NY is similar to other states, but there's one unique aspect: a commitment to environmental sustainability.

New York is committed to protecting the environment and improving resilience to climate change in order to grow a sustainable cannabis industry. To support these goals, the state promotes the following initiatives:

• Energy use standards and emissions management: The OCM urges both medical and recreational cannabis businesses to develop, submit, and implement plans to monitor and manage resource consumption and control greenhouse gas (GHG) emissions, such as carbon emissions, in order to minimize the environmental impact associated with cannabis production.
• Waste minimization: New York cannabis businesses are also encouraged to use sustainable packaging, promote post-consumer recycling, and implement other strategies to reduce the amount of waste sent to landfills through every stage of the production process, from cultivation to consumption.
• Protection of air, water, and land: The OCM has set environmental regulations, such as standards for resource tracking and land stewardship, to monitor energy and water use or report the generation of associated emissions to protect resources.
• Research: The state offers a research license that allows eligible parties to explore innovative methods to minimize the industry's adverse environmental impact and combat climate change. Key areas of study may include sustainable packaging, climate justice, economic development, cannabis resource efficiency, the impact of vaporizer batteries and hardware, waste management, and more.

Moreover, New York has approved PowerSource as the resource tracking and reporting platform for all medical and adult-use license holders engaged in cannabis cultivation.

PowerScore Reporting Requirements

PowerScore is a platform developed by the Resource Innovation Institute (RII) that allows businesses operating in controlled-environment agriculture (CEA) areas, including cannabis cultivation facilities, to report energy use, waste management, and water consumption.

This data can then be used to build benchmarks that may serve as guidelines for future decisions about resource use, management, efficiency, and operating costs. The OCM can also assess this information to determine whether cannabis cultivation businesses adhere to the state's climate laws, such as the Climate Leadership and Community Protection Act.

As a NY cannabis cultivation license holder, you'll need to report the following:

• Production information, such as your cultivation method, canopy size or square footage, and number of lights used
• Utility data, including your electricity consumption, service provider, peak demand for power, energy sources, and renewable energy usage
• Harvest information, such as your growth cycle lengths, total annual yield, or harvest frequency
• Waste generation data, including your waste disposal methods for certain materials and supplies or the amount of plant waste disposed of within a specific period

The Application Process 

Do you want to apply for a NY cannabis cultivation license? These are the steps you must complete:

1. Prepare your application: Learn everything you need about your desired license type and gather all required documents.
2. Go to the NYBE website: Visit the New York Business Express page and sign in or create an account to get started.
3. Submit your application: Enter the required information and submit all necessary documents.
4. Pay fees: Make the non-refundable application fee payment.
5. Wait for review: Be patient while the OCM reviews your application and prepare to respond promptly to any requests for additional information.
6. Receive the decision: If approved, receive your license and start setting up your cultivation facility.

Setting Up Your Cannabis Cultivation Facility

Did you get your NY cultivation license approved? Are you ready to start growing your beautiful and highly profitable green plants? Let's design your facility! Below are the steps you need to complete:

1. Double-check if you have all the required permits to operate at your chosen location.
2. Calculate the required space for your grow room, considering the equipment you'll use and the area's ventilation and lighting needs.
3. Design a facility layout, making sure it promotes production efficiency and adheres to regulatory requirements.
4. Implement robust security measures, such as installing fencing or access control systems, reinforcing doors and windows, or using surveillance cameras.
5. Prepare your equipment, from grow lights and ventilation fans to hydroponic systems.
6. Source high-quality genetics and starting materials.
7. Hire qualified staff and train your team on key topics, such as cultivation methods, security measures, quality assurance (QA) protocols, and compliance.
8. Install energy-efficient equipment to meet the state's requirement of using PowerScore for reporting.

Implementing Seed-to-Sale Tracking

Besides setting up your cannabis cultivation facility, you'll have to choose a robust seed-to-sale tracking system to support your operations. In New York, all cannabis businesses are required to use  an electronic system that tracks cannabis as it moves through the supply chain from seed to sale.

With this tracking and record-keeping system, you can collect key information throughout the entire cultivation process to ensure transparency and accountability, streamline reporting, and stay compliant with regulatory requirements.

Maintaining Your Cultivation License 

There's still a lot to be done after getting a NY cannabis cultivation license. If you've obtained permission to operate your business, you need to be fully compliant with all associated regulations and requirements.

To avoid issues, violations, or potential disciplinary actions and keep your license in good standing, consider these tips:

• Research and comply with all regulations and guidelines set by the OCM.
• Renew your license and pay associated fees as required.
• Track all of your cultivation activities and ensure the information you collect is accurate to prepare for potential facility inspections.
• Cooperate with authorities if your business is subject to an inspection or audit.
• Submit the required compliance reporting
• Maintain high-quality standards for your cultivation practices.
• Make sure your cannabis cultivation business complies with federal and state financial regulations, including tax filings.
• Seek advice from legal experts and consultants knowledgeable about the cannabis industry if you have questions about the licensing process or regulations.
• Perform the required testing to ensure your products are safe.
• Comply with all cannabis packaging and labeling requirements.

The Future of Cannabis Cultivation in New York

The future of New York is promising when it comes to cannabis. The market is likely to experience significant growth and bring golden opportunities for cultivation businesses.

According to Grand View Research, the state's legal cannabis market size is expected to grow at a 15.3% CAGR by 2030. A Headset Data report revealed the number of cannabis products sold increased by nearly 11% from July to August of this year, which underscores the potential of New York's cannabis industry.

In the meantime, cannabis cultivators should research the market and stay informed about key topics, such as:

• Potential expansion opportunities
• Changes in federal, state, and local regulations
• New consumer trends
• Innovative cultivation methods, technology, or equipment
• New environmental protection measures and sustainability practices
• Opportunities for market differentiation

Final Thoughts 

Do you want to start a cannabis cultivation business in New York? Applying for a license is the first step! This process will be time-consuming and involves meeting many strict requirements, but it's essential to operating on the legal side.

Plus, you have all the information you need to prepare a strong application here! With our guide, your dream of getting your NY cannabis cultivation license can become a reality!

If you need more information on this state's licensing process, requirements, and regulations, check out this official guide and visit the OCM website regularly for updates!