New York state Thursday approved 52 licenses for hemp farmers to cultivate cannabis. Three of the farms are in Columbia County.
Aeterna Cannabis LLC, Claverack Farms LLC and Fat Nell LLC of Copake received cultivation licenses. No site was found for Aeterna and the Office of Cannabis Management said it was not disclosing locations.
These are the first cannabis licenses granted in New York ahead of the state’s launch of an adult-use market, which is expected to start by the end of the year.
The initial distribution of the cannabis cultivation licenses allows farmers to grow outdoors or in a greenhouse for up to two years. It also allows the farms to manufacture and distribute cannabis flower products without needing a processor or distributor license until June 1, 2023.
Cultivators are limited to one acre of flowering canopy outdoors or 25,000 square feet in a greenhouse and can use up to 20 artificial lights to aid in the growing process.
Moke Mokotoff, owner of Claverack Farms, celebrated the news Thursday night.
His farm grows organic hemp, a form of the cannabis plant that has lower levels of THC, the compound that gives cannabis its psychedelic properties.
“Indoor growing is unsustainable because of the excess energy it uses,” Mokotoff said. “Our packaging also has to be at least 20% hemp.”
In the growing season, Mokotoff estimates his farm will grow 500 to 1,000 pounds of cannabis.
License holders must participate in a social equity mentorship program where they provide training in cannabis cultivation and processing for social and economic equity partners.
This is linked to Gov. Kathy Hochul’s Seeding Opportunity Initiative, a program that allows farmers and individuals with prior cannabis-related convictions to form the outset of New York’s cannabis supply chain. The policy is a way to remedy the nation’s decades-long war on drugs that has disproportionately impacted certain individuals and communities.
When New York state legalized adult-use cannabis on March 31, 2021, with the passage of the Marijuana Regulation and Taxation Act, a promise was made that incentivizes participation in the new industry for individuals disproportionately impacted by cannabis prohibition over the years.
Besides creating a new sector of business that is socially equitable, New York cannabis growers will also have to meet sustainability requirements to ensure the cannabis is grown in an environmentally principled way.
“The approval of these licenses will help ensure an adequate supply of cannabis when the first round of social and economic equity adult-use retail stores open later this year,” said state Sen. Liz Krueger, D-Manhattan. “It will also prioritize New York farmers and environmentally sustainable agricultural practices. I’m excited and gratified with the steps the Office of Cannabis Management is taking to fulfill the goals and the spirit of the legislation we passed last year as they roll out the adult-use cannabis program.”
The Cannabis Control Board suggested to the Office of Cannabis Management updated regulations for medical home cultivation of cannabis for a second-round 45-day public comment period beginning May 4.
“We are working hard to provide a legal framework for New Yorkers using medical cannabis to grow their own cannabis plants. We understand that patients are looking to this new option to access medication at a low cost, and we are doing everything possible to speed up this process while working within the rules of New York’s regulatory system,” said Chris Alexander, executive director of the Office of Cannabis Management.