New York legalizes cannabis sales at farmers’ markets, pop-up events

New York Gov. Kathy Hochul on Thursday signed a bill into law that allows licensed cannabis microbusinesses and dispensaries to sell marijuana products at pop-up venues such as farmers’ markets.

The measure clarifies that microbusinesses – an all-in-one permit that allows a small operator to cultivate, manufacture and sell – can fully participate in New York’s “cannabis showcase events,” according to an Aug. 6 news release.

The measure fulfills a years-old promise from regulators, which first floated the possibility of cannabis sales at farmers’ markets in 2023. Until now, microbusinesses could sell only from a fixed retail location. And microbusinesses had to partner with a licensed retailer to sell at showcase events.

“By opening the door for legal operators to sell at approved community events and farmers’ markets, we are putting entrepreneurs on a level playing field, expanding consumer access to safer, regulated products and strengthening one of New York’s fastest-growing businesses,” Hochul said in a statement.

Can you buy cannabis at a New York farmers’ market?

Microbusinesses in New York can cultivate, process, distribute and sell their own cannabis at retail in the $1.7 billion and growing annual market. That structure lets small operators control their product from seed to sale without the need to acquire multiple licenses or partnering with larger companies.

The pop-up provision builds on that model. Operators who apply for a cannabis showcase permit can now bring their products to community events and farmers’ markets, subject to state rules on age verification, security and event approval, according to Albany, N.Y.-based News 10.

Why do cannabis farmers’ markets matter for small operators?

Microbusinesses often lack the capital to compete with well-funded retailers for prime real estate and foot traffic. Pop-up sales give them a lower-cost route to customers and a way to build brand recognition in their own communities.

“As a microbusiness, it can be difficult to compete with larger operators that have significantly bigger marketing budgets,” Quality High owner Matthew Nicoletti said in a statement from the governor’s office.

“These events provide a meaningful opportunity to compete on a more level playing field while strengthening relationships within our communities.”

The change also promises a lifeline for microbusinesses, which claim to be struggling more than other operators in New York cannabis.

In the spring, the state Cannabis Control Board heard results from a survey that found only 20% of vertically integrated microbusinesses to be profitable, with 64% of microbusinesses that responded to the survey saying they’re in the red.

That’s in part because less than 10% of microbusiness permit-holders managed to open a storefront, Nicole Ricci, president of New York Small Farma, an advocacy group for small permit holders, told the CCB in April.

Are direct-to-consumer cannabis sales legal?

In a statement, Ricci thanked the state Office of Cannabis Management as well as lawmakers and Hochul for “strengthening” the state’s direct-to-consumer sales model.

“This collaborative effort demonstrates New York State leadership’s commitment to ensuring that small-scale growers can build economically viable businesses, connect directly with consumers, and fully realize the seed-to-sale model envisioned under the microbusiness license tier,” she said in a statement from Hochul’s office.

New York’s all-in-one microbusiness has no direct match in several other large markets. Small craft cannabis cultivators in California, for example, have been clamoring for direct-to-consumer sales access for years to no avail.