Growing NY Cannabis Market: New Licenses & Farmers Markets Approved

In an exciting move to bolster the state’s legal cannabis market, New York cannabis regulators recently approved over 200 additional retail dispensary licenses and introduced new rules allowing growers to sell directly to consumers at farmers markets. The New York State Cannabis Control Board (CCB) and the Office of Cannabis Management (OCM) announced these “bold actions” during a meeting on July 19, aiming to support the state’s licensed marijuana operators.

The approval of 212 additional Conditional Adult Retail Dispensary (CAURD) licenses was a significant leap forward, bringing the total number of issued licenses to 463. These licenses were exclusively reserved for individuals most affected by the unjust prohibition of cannabis enforcement or nonprofit organizations providing support for the formerly incarcerated, as part of an initiative led by New York Governor Kathy Hochul.

Cannabis Control Board chair Tremaine Wright expressed the importance of these licenses in promoting an inclusive and fair cannabis industry, showcasing the diversity and innovation of New York state. The board will continue to review additional CAURD license applications on a rolling basis. To be eligible for a CAURD license, applicants were required to have a cannabis conviction or be related to someone with a conviction, among other criteria. Nonprofits supporting formerly incarcerated individuals were also eligible.

Despite nearly 500 CAURD licenses being issued, only 20 retail dispensaries have opened so far. The regulated cannabis market was launched just before the end of 2022, as promised by Governor Hochul. However, the slow rollout has led to an excess of regulated cannabis for growers, while the illicit market thrives.

To address this issue and support licensed cultivators, the CCB also approved new rules allowing for Cannabis Grower Showcases (CGS) or cannabis farmers markets. Under this initiative, growers can collaborate with conditional adult-use retailers and processors to organize events showcasing New York brands and selling adult-use cannabis products directly to consumers.

Damian Fagon, the OCM’s chief equity officer, drew on his personal experience as a former New York hemp farmer to emphasize the significance of the CGS initiative. He stated that this move would not only boost sales and retail access throughout the state but also connect consumers with local cannabis farmers and homegrown brands.

Each CGS event will feature a minimum of three licensed cultivators partnering with an adult-use dispensary to sell regulated cannabis products to consumers. These events will only be allowed in cities and towns permitting retail cannabis sales and must have a predominantly adult population. The age limit for purchasing cannabis and cannabis products will be 21 and over.

While these new licenses and rules are met with enthusiasm, some industry experts like Michelle Bodian, a partner at the cannabis and psychedelic law firm Vicente LLP, are cautiously optimistic. They believe that more details are needed to determine the true impact of these actions on New York’s regulated cannabis market’s success. Permanently addressing each stage of the supply chain will be essential for consistent cash flows and long-term profitability.

With these exciting developments, New York’s legal cannabis market is poised for growth and greater accessibility for both businesses and consumers. As the state continues to refine its regulations and licensing processes, the future of cannabis in New York looks promising.

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