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Navigating Cannabis Cultivation Licenses in Minnesota
Minnesota’s Office of Cannabis Management (OCM) is making cultivation very accessible in the upcoming general application window. Whether you’re a small-scale entrepreneur that wants to start a cultivation business, or you’re looking to establish a facility with up to 30,000 square feet of growing space, there’s a license for you.
However, it can be difficult to understand the nuances of each license and determine which one you should apply for. Nonetheless, it’s crucial to be sure that you’re applying for the license best suited to your business strategy. Doing so can save a tremendous amount of time and unnecessary expenses.
With the next application window expected to open by January 2025, now is the perfect time to explore your options and prepare your application.
Understanding Minnesota's Cannabis Cultivation Licenses
There are three licenses that authorize cannabis cultivation: the microbusiness, the mezzobusiness, and the cannabis cultivator licenses. Each license type has unique advantages and limitations primarily relating to the cost and scale of the operation.
Let’s take a look at each option, starting with the Minnesota cannabis microbusiness license.
1. Microbusiness License
The microbusiness license is an excellent starting point for those looking to enter the cannabis industry with a small-scale cultivation operation. This license allows up to 5,000 square feet of indoor canopy space or half an acre for outdoor cultivation.
The microbusiness license also permits a variety of other activities outside of cultivation. This means that those applying for a cannabis microbusiness license in Minnesota can also choose to engage in activities like manufacturing, packaging, wholesaling, and even operating a dispensary. This kind of flexibility is great for businesses looking to operate more than one cannabis business, or carry a product from seed all the way to sale.
One of the most appealing aspects of the Minnesota cannabis microbusiness license is its affordability. The application fee is just $500, and there are no licensing fees, making it the most economical option available. By minimizing upfront expenses, the microbusiness license lowers the barriers to entry, enabling more entrepreneurs to participate in Minnesota’s up and coming cannabis industry.
2. Mezzobusiness License
The mezzobusiness license is similar to the cannabis microbusiness license in Minnesota, but it allows the licensee to create a much larger operation. When it comes to cultivation, this license allows for up to 15,000 square feet of indoor cultivation space or 1 acre outdoors. Additionally, a mezzobusiness licensee can operate up to three dispensaries, while also engaging in manufacturing and other ancillary activities listed in the chart above.
The mezzobusiness application fee and licensing fee are each $5,000, which is considerably more than the Minnesota cannabis microbusiness option. This license requires a larger initial investment, but it provides an opportunity for businesses to start a much larger operation, consequently providing an opportunity for higher returns.
If you’re interested in growing weed in Minnesota on a relatively large scale, then the mezzobusiness license could be an ideal fit.
3. Cannabis Cultivator License
The cannabis cultivator license is designed for businesses that aim to operate on a large scale. This Minnesota cannabis license allows for a substantial cultivation space of up to 30,000 square feet indoors or 2 acres outdoors. This is the maximum cultivation space that will be legally allowed to operate within Minnesota’s state lines.
The cannabis cultivator license is great for businesses that want to focus solely on cultivation, and operate at a growing capacity that exceeds what’s authorized by a mezzobusiness license. Applying for a cannabis cultivator license requires a $10,000 application fee and a $20,000 licensing fee (paid after license issuance).
Preparing for the Application Process
The Minnesota OCM is encouraging prospective applicants to review Minnesota cannabis license requirements and begin preparing their documentation and business plans before the application window officially opens. Regardless of the Minnesota cannabis license type you choose, the application process is detailed and comprehensive
Key components of the application include:
Business Plan: Outline your cultivation strategy and approach to growing weed in Minnesota. This should include your approach to cultivation techniques, pest management, and environmental controls.
Financial Projections: Provide a detailed financial plan that demonstrates your business’s sustainability and growth potential.
Compliance Plans: Ensure your operation adheres to all state regulations, including security measures, waste management, and employee training.
Community Impact Plan: Show how your business will positively impact the local community, such as job creation, community engagement, and social equity initiatives.
Why Work with CannDelta?
As the application window approaches, take the time to thoroughly assess your business needs, prepare your application materials, and consider seeking expert guidance to navigate the complexities of the process. By doing so, you can ensure you’re meeting the Minnesota cannabis license requirements, and position your business for success in Minnesota’s emerging cannabis market.
If you’re ready to become one of Minnesota’s first cannabis cultivators, start preparing now by reaching out to CannDelta.
Frequently Asked Questions
What is a Micro License for Cannabis in Minnesota?
The cannabis microbusiness license in Minnesota allows the license holder to operate a cannabis business that engages in a number of different activities. These include:
- Cultivation
- Retail
- Transport
- Packaging
- Extraction
- Edible production
- Non-edible product production
- Wholesale
- On-site consumption
- Various medical cannabis endorsements
The activities that will be conducted by the microbusiness must be specified on the application.
Is Cannabis Legal in Minnesota in 2024?
Yes! Cannabis was legalized for recreational use in Minnesota in 2023.
How Much Cannabis Can You Grow With a Micro License in Minnesota?
Minnesota cannabis microbusinesses can have up to 5,000 square feet of indoor canopy space or half an acre for outdoor cultivation. This is equal to about 1,250 cannabis plants indoors, or 5,445 plants outdoors.
How Much Cannabis Can You Grow with a Mezzo License in Minnesota?
Minnesota cannabis mezzobusinesses can grow with up to 15,000 square feet of indoor cultivation space or 1 acre outdoors. This amount of space would allow for the cultivation of approximately 3,750 plants indoors, or 16,335 plants outdoors.
How Much Cannabis Can You Grow with a Cultivator License in Minnesota?
Minnesota’s cannabis cultivation license allows for up to 30,000 square feet of indoor cultivation and 2 acres outdoors. This is equal to about 120,000 cannabis plants indoors or 348,480 cannabis plants outdoors.
