New York will open applications for adult-use cannabis nursery licenses on Nov. 5, marking the first time the state has offered the license category since its adult-use market launched in 2022.
The Office of Cannabis Management will accept only the first 50 applications, reviewing them in the order received. The initial application window will close once that threshold is reached.
The Cannabis Control Board approved the limited application window Oct. 1 to manage processing times, with additional application rounds planned. Applications received after the first 50 will not be considered, and those applicants’ fees will be returned.
What does the cannabis nursery license allow?
The new license category establishes a dedicated supply source for the genetics and starting materials that cultivators rely on in New York’s cannabis market, which generated $1.68 billion in sales in 2025.
The nonrefundable application fee for a nursery license is $1,000. Qualified social and economic equity applicants are eligible for a 50% reduction in both application and licensing fees, according to OCM.
Separate license fees vary by cultivation method:
- Outdoor nursery, $750: Allows outdoor cultivation up to 100,000 square feet
- Mixed-light nursery, $1,000: Allows mixed-light cultivation up to 10,000 square feet
- Indoor nursery, $2,000: Allows indoor cultivation up to 10,000 square feet
Nursery license holders can produce, package, label and distribute cannabis seeds, clones and immature plants. The license also covers other agricultural products used for cannabis cultivation.
The license category focuses on the earliest stage of the marijuana supply chain, with nursery operators supplying starting materials rather than finished products.
Nursery licensees can sell their products to eligible license holders, including cultivators, microbusinesses, cooperatives, registered organizations, registered organization non-dispensing licensees, registered organization dispensing licensees and other nursery license holders.
Nursery licensees cannot sell directly to retailers or consumers, including home growers.
What’s required to apply for a cannabis nursery license?
To qualify for a nursery license, applicants and anyone with an ownership or financial stake in their business cannot own, invest in or control a cannabis retail dispensary, delivery or on-site consumption business.
Other requirements include:
- A nursery Grower Certificate of Registration from the New York State Department of Agriculture and Markets
- Proof of control over the proposed nursery location
- A labor-peace agreement with a labor organization
- An organizational chart and disclosures identifying individuals and entities with ownership or controlling interests in the business
Applicants seeking Social and Economic Equity status must also provide documents verifying their eligibility, such as proof of residency in a community disproportionately affected by cannabis prohibition or records establishing qualifying business ownership.
Applications must be submitted through the New York Business Express portal.
Applicants will have 30 days to correct deficiencies, and OCM expects to submit applications to the Cannabis Control Board for approval within several months, depending on individual circumstances.
OCM will host an informational session Oct. 28 covering eligibility, application requirements and nursery licensee responsibilities.
