Do you want to join New York's burgeoning cannabis industry as a cultivator? The Marihuana Regulation & Taxation Act (MRTA), which passed in 2021, legalized adult-use cannabis in the Empire State, establishing a robust market with great potential for growing high-quality plants and achieving success.
To leverage this unique and exciting opportunity, you need to complete one crucial step first: getting a license. This official permission is key to opening a legal and reputable company in the emerging cannabis space.
Are you looking to start a cultivation business in this state? To give you a hand, we've crafted a comprehensive guide on how to get a grow license in New York! Below, you'll find all the necessary information, from available 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 signed this legislation into law to oversee the cultivation, processing, dispensing, and administration of medical marijuana.
Just 18 months after this act was enacted, the state's first registered patients were able to obtain non-smokable forms of medical marijuana. However, they were only available to people with certain conditions.
After several failed attempts to legalize adult-use cannabis, the MRTA was finally passed in March 2021. This legalization bill built a regulatory infrastructure to allow for and monitor the cultivation, processing, distribution, and sale of cannabis for recreational purposes. It also amended the existing medical marijuana laws.
Cities, towns, and villages retained the right to opt out of authorizing retail dispensaries to sell recreational cannabis or granting on-site consumption licenses.
Since the enactment of the MRTA, the Office of Cannabis Management (OCM) and the Cannabis Control Board (CCB) have been responsible for building a legal and equitable cannabis industry in New York.
Types of Cultivation Licenses in New York
New York offers several options for businesses looking to grow cannabis. To date, the OCM has granted over 500 licenses to cultivators, authorizing them to sell their flowers directly to other licensed operators across the state. The agency is committed to awarding at least 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 you 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 based on canopy type, using a system that considers key aspects such as square footage (typically ranging from 1,000 to 50,000 square feet) and the preferred cultivation method.
The Adult-Use Cultivator License comes with some ownership restrictions, including:
- You cannot have an interest in more than one cultivation license.
- As a cultivator, you may be permitted to hold a license for processing, distribution, or nursery only when made available by the OCM.
- Neither you nor the True Parties of Interest (TPIs) in your business can own or have an 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 allowed existing hemp growers to apply for a permit to cultivate cannabis—specifically, plants containing over 0.3% THC—for the recreational market.
You were eligible for this initial license if you were an authorized hemp cultivator who met specific requirements under the Department of Agriculture and Markets' Industrial Hemp Research Pilot Program.
This conditional license was temporary, valid for up to two years. The application window closed back in June 2022. If you held one, you were required to submit an application to transition to a full Adult-Use Cultivator License by May 3, 2024.
Did you submit a timely transition application? You should now be in the process of moving to a full Adult-Use Cultivator License, and your conditional license will remain valid until a decision is made on your full permit. If you missed the deadline, you were required to cease all cannabis activity by June 30, 2024.
NY Cannabis Microbusiness License
The Adult-Use Microbusiness License is perfect if you want to run a small, vertically integrated cannabis operation. It lets you handle cultivation and at least one other cannabis-related activity, such as processing, distribution, delivery, dispensing, or retail sales.
This license is typically restricted to a smaller canopy size compared to standard ones and requires you to use premises that are near your cultivation locations. The distance is determined based on whether your growing area is in or outside of New York City.
In this sense, your canopy size is limited as follows:
- Indoor Cultivation: Up to 3,500 square feet
- Mixed-Light Cultivation: Up to 5,000 square feet
- Outdoor Cultivation: Up to 10,000 square feet
- Combined Methods: Up to 5,000 square feet for outdoor and up to 2,500 square feet for mixed-light
There are some restrictions for this license, too, including the following:
- You can only hold one microbusiness license.
- You cannot have interests in other licenses, including cultivation.
- Neither you nor the TPIs in your microbusiness can have direct or indirect interests in retail dispensaries, delivery, or on-site consumption.
- Your microbusiness cannot share a TPI with a distributor, except for passive investors.
- You cannot submit applications for more licenses or license types than you're legally allowed to hold.
NY Cannabis Cooperative License
If you're part of an eligible group, the Cannabis Cooperative License enables you and your partners to collectively acquire, possess, cultivate, distribute, or sell medical or recreational cannabis to other businesses.
These are the requirements to qualify for this license:
- You must be organized as a cooperative under New York law.
- All members of the cooperative must be legal residents of the state.
This license aligns with the OCM's goal of supporting SEE applicants and communities that were disproportionately impacted by past marijuana restrictions, helping them enter the legal cannabis industry.
As we mentioned, this license gives your cooperative the ability to engage in several activities, including cultivation, but you aren't permitted to sell directly to customers.
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Registered Organization Cultivation License
While this isn't a new license type, if you're an existing Registered Organization (RO) authorized to cultivate, manufacture, and dispense medical cannabis, you can apply to enter the adult-use market.
This permit is specifically for organizations already licensed under New York's medical marijuana program, and it allows you to expand into the cultivation and sale of recreational cannabis.
Although every New York-registered organization is technically eligible for this license, you may face additional requirements when transitioning to the adult-use side.
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 all applicants to submit a detailed business plan that outlines the business structure and ownership, market analysis, operations strategy, financial projections, 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 operational 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 York'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 TPI restrictions.
- Demonstrate experience in the cannabis industry.
Location and Premises
To apply for a license in New York, you must secure a compliant location for your cultivation facility. While local governments possess the authority to opt out of licensing cannabis dispensaries or on-site consumption within their jurisdictions, they cannot entirely block other operations, and this includes cultivation.
Despite this, you'll still be required to obtain zoning permits and approvals from the municipality where you plan to grow your plants. It's also important that you actively address community concerns and seek support for your project.
Additionally, you may be asked to submit proof of control over your proposed premises (such as a lease or deed) and a current Certificate of Occupancy.
Business Formation
Before starting the application process for a NY cultivation license, you need to establish your business entity and prepare all related documents.
Financial Considerations
For your application, you should 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 you must pay during the cultivation license application process. It'll be based on your license type and canopy size.
Fees start at $1,000 for the first step of the application for the Adult-Use Cultivator License, and the amount required after approval can be set as follows:
- Indoor Cultivation: From $1,750 + $450 per 500 square feet (for the first 5,000 square feet) to over $100,000 + additional fees for more than 50,000 square feet.
- Mixed-Light Cultivation: From $1,500 + $290 per 500 square feet (for the first 5,000 square feet) to over $26,000 + additional fees for more than 25,000 square feet.
- Outdoor Cultivation: From $1,000 + $150 per 500 square feet (for the first 5,000 square feet) to over $40,000 + additional fees for more than 50,000 square feet.
- Combination Cultivation: From $1,250 + $150 per 500 square feet of cultivation canopy (for the first 7,500 square feet of combined canopy) to over $56,000 + additional fees for more than 65,000 square feet of combined canopy.
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 (the large, tiered amounts) for two years for conditional cultivators and those transitioning to full cultivator licenses.
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 dedication 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. You must take these steps to minimize the environmental impact associated with your cannabis production.
- Waste Minimization: New York also encourages you to use sustainable packaging, promote post-consumer recycling, and implement other strategies to reduce the amount of waste your business sends 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. You're required to monitor your energy and water use, as well as to report the generation of associated emissions to protect these resources.
- Research: The state offers a research license that allows you (if eligible) to explore innovative methods to minimize the industry's adverse environmental impact and combat climate change. Key areas of study you might explore include sustainable packaging, climate justice, economic development, cannabis resource efficiency, the impact of vaporizer batteries and hardware, and waste management.
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? Here are the steps you must complete:
- Prepare Your Application: Learn everything you need to know about your desired license type and gather all required documents.
- Go to the NYBE Website: Visit the New York Business Express page and sign in or create an account to get started.
- Submit Your Application: Enter the required information and submit all necessary documents.
- Pay the Fees: Make the non-refundable application fee payment.
- Wait for Review: Be patient while the OCM reviews your application, and prepare to respond promptly to any requests for additional information.
- 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:
- Double-check if you have all the required permits to operate at your chosen location.
- Calculate the required space for your grow room, considering the equipment you'll use and the area's ventilation and lighting needs.
- Design a facility layout, making sure it promotes production efficiency and adheres to regulatory requirements.
- Implement robust security measures, such as installing fencing or access control systems, reinforcing doors and windows, or using surveillance cameras.
- Prepare your equipment, from grow lights and ventilation fans to hydroponic systems.
- Source high-quality genetics and starting materials.
- Hire qualified staff and train your team on key topics, such as cultivation methods, security measures, quality assurance (QA) protocols, and compliance.
- 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 software to support your operations.
In New York, all cannabis businesses are required to use a system that tracks cannabis as it moves through the supply chain from cultivation to retail. It's called "Metrc." You need an electronic Enterprise Resource Planning (ERP) solution that can integrate with this state-mandated platform.
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.
Distru's Integration with Metrc
Do you want to ensure you transmit accurate data to Metrc as the OCM requires? We're happy to announce that Distru integrates with New York's track-and-trace system!
Thanks to this powerful integration, you'll only need to input data once. Distru will automatically sync with Metrc to update information about your cultivation processes, inventory, and sales on both platforms, ensuring accuracy on all fronts.
Our integration with Metrc aims to save you time, reduce human errors and discrepancies, guarantee your state-mandated reports are always up-to-date, mitigate risks, and help you stay compliant!
Distru's all-in-one system can also streamline the creation of the OCM manifest—an important document that all cannabis businesses need in this state.
The OCM manifest tracks the movement of cannabis products between licensed entities to ensure safe and legal transportation. With Distru, you can automatically fill in much of the required information, eliminating manual entry to save time and maintain accuracy when creating this document.
Are you interested in learning more about our Metrc integration or OCM manifest generation feature? Schedule a free demo today!
Maintaining Your Cultivation License
There's still a lot to do 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 the 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 reports through Metrc and PowerScore.
- 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 expansion 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 that the number of cannabis sales increased by 62.2% and the number of products sold increased by 87.0% in August 2025 compared to the previous year.
Similarly, in September 2025, the OCM announced that total adult-use sales had surpassed $2 billion since they were first allowed, with over 50% of that revenue being generated that same year.
These milestones and promising expectations underscore the potential of New York's cannabis industry. In the meantime, you should research the market and stay informed about key topics, such as:
- Potential expansion avenues
- Changes in federal, state, and local regulations
- New consumer trends
- Innovative cultivation methods, technology, or equipment
- New environmental protection measures and sustainability practices
- Strategies 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 support, your dream of getting your NY cannabis cultivation license can become a reality!
If you need more details about this state's licensing process, requirements, and regulations, check out this official guide and visit the OCM website regularly for updates!
