Starting a Cannabis Cultivation Business in New York

New York has a population of around 19.5 million people, making it one of the most lucrative markets in the US for cannabis. In late 2022, the industry is expected to be around $3.1 billion, which is roughly 30% of the whole cannabis industry size in the US.

Bill S.8084-A/A.9283-A was signed into law on 22 February 2022 by Governor Kathy Hochul. This bill creates a conditional adult-use cultivators license which authorizes eligible growers to obtain a license that allows them to grow cannabis that contains more than 0.3% THC to be used on the adult-use market.

While the Office of Cannabis Management has made the plan for Cultivators and Processors available, only the details for Cultivators are currently available. Processor information will become available in the coming months.

Below is a process analysis for all hemp business owners who want to start their cannabis containing 0.3% THC business.

Risk Analysis
Business Plan
License
Quality
Future Ready

Legal risk – Know what you can and can not do, while checking the state law, keep an eye on the federal law as well

Do research about all the penalties, taxes, deadlines

The complete business will be needed for your license as well

This should include organization structure and charts, source of fund, ownership and financial disclosure, capitalization tables etc

Apply for the license by 30 June, 2022

Know what you can and can not do with this license

The cannaboid hemp program need to comply with GMP regulations, therefore it would be wise to plan for GMP for this program too

Cannabis is a heavily regulated industry and you would need to have a proper quality process in place

It would be wise to keep an eye on the manufacturing, labelling requirements and be ready for the near futue

Our advise would would be to take proactive actions for this.

Below, we outline the requirements to obtain a license as well as important details to consider.

New York Cannabis Cultivation License Details

Prerequisite

The grower must have authorization from the Department of Agriculture and Markets Industrial Hemp Research Pilot Program

Target market

Adults – 21 years old and above

Products allowed

Cannabis containing more than 0.3% THC

Other requirements

Be in good legal standing with Department of Agriculture and Markets.
Be authorized by the Department of Agriculture and Markets to grow cannabinoid (CBD hemp) rather than growing hemp for fiber or grain.
Have grown/harvested cannabinoid for two within the past four years (2018 – 2021) and can show the Office proof through documentation of these activities.
Hold a minimum of 51% ownership in the business with authorization from the Department.

Documents

Business plan, which includes ownership and financial disclosure, organizational structure, organizational charts, capitalization tables and ownership structures, and sources or proposed sources of capital.
Documents proving all points mentioned in the requirements.
A cultivation and site plan for each proposed location to grow, harvest, dry, store, or handle cannabis includes submitting floor plans, diagrams, GPS coordinates, and an aerial photograph of the premises.
Applicant attestation and agreement of the Terms and Conditions of the conditional license.

Fee

$2,000

Validity

2 Years

Last date of application

30 June 2022

Flowering Canopy Limit

43,560 sq. ft. (1 acre) only outdoor or 25,000 sq. ft. only indoor (greenhouse) or both outdoor and indoor, where the indoor area is up to 20,000 sq. ft. and the total area is up to 30,000 sq. ft.

Artificial lighting limit

20 No.s

Application link

Click here

How Profitable Are NY-Based Cannabis Cultivation Businesses?

You may be considering how much money you can make in the cannabis cultivation industry.

Marijuana Business Daily stated that most businesses made around $974 per sq. ft. of dispensary space per annum. Additionally, research done by Statista found that average dispensaries could make roughly $1.8 million profit per annum.