Everything You Wanted to Know about the NY Cannabis “Farmers Market” Program

Written by David Pejovic

On July 19, 2023, The New York Office of Cannabis Management (OCM) unveiled comprehensive guidelines outlining regulations and prerequisites for adult-use licensees interested in participating in the highly anticipated Cannabis Growers Showcases (CGS). This initiative, introduced under the umbrella of the New York Cannabis Law, presents licensed cultivators and processors from the state with an exclusive platform to present their products at events, where consumers can purchase directly from licensed retailers. The showcases, which have been likened to farmers markets, aim to foster direct engagement between producers and the public, with a goal of cultivating transparency and consumer choice. It appears the OCM chose this path to help licensed growers to have an avenue for the sale of their products given the still very small number of open licensed dispensaries, which would normally purchase growers’ products.

Under the guidance released on July 19, eligible participants include Conditional Adult-Use Retail Dispensary (CAURD) licensees and Adult-Use Conditional Cultivator (AUCC) licensees. Specific criteria must be met to ensure adherence to the regulations. A minimum of three vendors is required for each organizer, with each vendor being a CAURD licensee that has final retail authorizations. It should be noted that those who possess licenses but have yet to secure an OCM-approved retail space are precluded from engaging in the CGS program.

Furthermore, certain disqualifications have been put in place to ensure the integrity of the initiative. Provisional licensees, licensees under suspension, and those failing to meet inventory reporting obligations are strictly prohibited from participation. Additionally, Adult-Use Conditional Processors (AUCPs) can join the CGS program, provided there is a ratio of one processor for every three vendors.

For organizers planning to host CGS events in locations not covered by a licensed CAURD, obtaining explicit authorization from the relevant municipality is essential. The application for participation must include this approval, and the OCM retains the authority to grant final endorsement for the event’s location.

The comprehensive guidance document underscores the importance of compliance with regulations and obtaining all necessary approvals to ensure the seamless execution of the showcase events. The CGS program is a temporary endeavor, with OCM accepting applications now and until December 1, 2023. The deadline for the completion of all CGS showcases has been set for January 1, 2023. While CGS events can recur, an individual event cannot span more than 14 consecutive days. In fact, the first CGS event was opened on August 10, 2023 in New Paltz, NY.

As New York’s cannabis industry continues to evolve, the Cannabis Growers Showcases represent a pioneering opportunity for licensed cultivators, processors, and retailers to directly connect with consumers. By providing a transparent and regulated platform for product presentation and purchase, the CGS initiative is expected to play a pivotal role in shaping the future of the state’s cannabis landscape.

Prospective participants are encouraged to carefully review the detailed guidelines provided by the Office of Cannabis Management to ensure their full understanding of the program’s requirements and opportunities. For those who meet the eligibility criteria and wish to capitalize on this unique platform, the journey toward participation in the Cannabis Growers Showcases has officially begun. 

This summary of the regulations should not be relied upon as legal advice. All are encouraged to engage legal counsel to assist them in compliance with the new regulations.