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Cannabis Cultivation Licensing

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Cannabis Cultivation License

Get Your Cultivation License

Those looking to cultivate cannabis are required to hold one of the following licenses under the Cannabis Act & Regulations

Nursery License

Permits the cultivation of cannabis genetics such as clones and seeds, within a maximum 540 square feet

Standard Cultivation License

It permits cultivation in an unlimited-sized grow space

Micro-Cultivation License

Allows for cultivation in a grow space of up to 2,152 square feet

Medical and Recreational Cannabis in Cannada

Cultivation of medical and recreational cannabis in Canada is permitted both indoors (year-round within a constructed facility or permanent greenhouse) and outdoors (seasonally, within a temporary greenhouse or in an open plot of land). Furthermore, a cultivation licence allows for the holder to grow cannabis through unspecified means, including but not limited to using aeroponics, hydroponics, aquaponics, vertical planters, and in traditional soil. To decide which license class is the best fit for your business, you may want to consider the amount of canopy space available within your chosen facility or outdoors. Canopy space that is equal to or less than 200 square meters in size (this includes multiple and vertically arranged surfaces) fit within the description of Micro-Cultivation and is perfect for small batch or craft growers. Anything larger would require a Standard Cultivation License, which is a great option for large and growing companies. Alternatively, a Nursery license would be the best fit if your business is interested in the development of starter plant material and new plant varieties with goals of altering cannabis genetics to make seeds, seedlings and clones.

License Overview

cannabis cultivation

Who is a Cultivation or Nursery license For?

Micro and Standard Cultivation Licenses are designed for business that would like to be able to legally grow, possess, sell (in bulk – to certain parties), and research cannabis.

The Micro-Cultivation License 
is perfect for smaller business and craft growers that are working with a limited amount of unique strains.
Standard Cultivation Licenses
are ideal for larger companies that want to build and grow in a large-scale facility or are exploring outdoor growing on a large plot of land.

What Can You Do With A Cultivation Or Nursery license?

Sale and distribution

To license holders that are authorized to sell cannabis for medical purposes is allowed for plants and seeds only. Furthermore, cultivation licence holders can sell seeds and plants, not dried or fresh cannabis, to the provinces, for recreational cannabis sales.

Obtaining a Nursery License

Allows the holder to possess, propagate, cultivate, harvest, and alter the chemical and physical properties of cannabis. It permits the sale and distribution of plants and seeds to other Cultivation, Processing, Analytical Testing, Research & Development , and Cannabis Drug License holders. As with Cultivation Licenses, selling plants and seeds to license holders that are authorized to sell cannabis for medical purposes and those who can sell it under a provincial or territorial Act is allowed as well.

Micro and Standard Cultivation Licenses

Permit the possession, propagation, cultivation, harvesting, chemical or physical alteration, sale (in bulk – to certain parties), and distribution of cannabis. Dried and fresh cannabis, as well as plants and seeds, can be sold to other holders of Cultivation, Processing, Analytical Testing, Research & Development, or Cannabis Drug Licenses, with licensed nurseries exempt from buying dry or fresh flower.

What isn't Covered Under A Cultivation or Nursery License?

Cultivation license holders are not permitted to sell or distribute cannabis to the general public (recreational cannabis) or direct to medical patients (medical cannabis). This is because cultivation license holders do not have a Quality Assurance Person (QAP) to perform finished product release.

Micro Cultivation and Nursery License Requirements

  • The holder of a Cultivation or Nursery license must hold a security clearance. In addition, key personnel required under the cultivation or nursery license (e.g. Responsible Person, Master Grower, Head of Security), as well as any directors, officers and key investors, are also required to hold a security clearance.
  • The license holder must retain the services of one individual as the Responsible Person, who has the authority to bind the holder. The Responsible Person will be accountable for the license holder’s activities and should have an adequate understanding of how the Cannabis Act and Regulations apply to the licence holder. They are also required to hold a security clearance. The license holder may designate one qualified alternate Responsible Person (who is also required to hold a security clearance).
  • The license holder must retain the services of one individual as the Head of Security who is responsible for ensuring that the applicable physical security measures set out in Part 4 of the Cannabis Regulations are complied with and that implements the organizational security plan of the licence holder. One qualified alternate Head of Security may be designated. The Head of Security, and any alternate, must hold a security clearance.
  • Hiring a Master Grower is also a requirement for license holders. The Master Grower is responsible for the cultivation, propagation, and harvesting of cannabis, and must be familiar with the Cannabis Act and Regulation’s provisions as they relate to their activities. The Master Grower (and one optional qualified alternate Master Grower) must hold a security clearance.
  • The facility must have any on-site storage areas and the site perimeter surrounded by a physical barrier in order to safeguard against unauthorized access. It should be possible to demonstrate how the barrier’s construction, as well as the required access controls on the exit and entry points, are able to achieve this goal. Access to all storage areas must be restricted to authorized personnel only.
  • Micro-Cultivation Licenses allow up to 200 square metres (approx. 2,152 sq. ft.) of canopy space. A Nursery license is limited to 50 square metres (approx. 540 sq. ft.) of seed production (flowering heads) with no limitation of space to cultivate clones and/or genetics.
  • To ensure production standards, analytical testing for microbial and chemical contamination is required. Those with the appropriate licence can conduct analytical testing in-house, but pesticide testing must be done via a third-party (Analytical Testing License holder). License holders must also establish appropriate Standard Operating Procedures (SOP’s) for their operations (e.g., recall, record keeping, sanitation, pest management).
  • Only fully-built facilities are eligible for a license. Applicants are required to submit a site evidence package with visual evidence to demonstrate the completion and functionality of their facility.

License Overview

All of the requirements listed for Micro-Cultivation and Nursery Licenses above.
    The facility must have any on-site storage areas, operations areas, and the site perimeter surrounded by a physical barrier in order to safeguard against unauthorized access. It should be possible to demonstrate how the barrier’s construction, as well as the required access controls on the exit and entry points, are able to achieve this goal. Access to storage and operations areas must be restricted to authorized personnel only.
    commercial cannabis growing license canada
    • A record must be made of everyone who enters and exits from storage areas.
    • Each storage area must be located in a place that satisfies the security measures outlined in the Cannabis Regulations.
    • The site perimeter, operations areas, and storage areas are required to be monitored by visual recording devices at all times to detect and record any unauthorized attempts, successful or unsuccessful, to access the site. Entry and exit points on grow areas must be visually monitored as well.
    • The site perimeter, operations areas, and storage areas must have an intrusion detection system operating 24/7 to discover any unauthorized attempts to access the site or tamper with the system. It must also be possible to detect unauthorized movement within operations and storage areas.
    • The intrusion detection system is required to be monitored at all times, and the license holder is responsible for determining what measures are appropriate in response to any incidents. In cases of an incident, the holder must retain a document that contains the date and time of the occurrence, how it was responded to, and the date and time of when that response took place.

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    Frequently Asked Questions

    If you want to cultivate cannabis you’ll require either a nursery license, standard cultivation license, or a micro-cultivation license according to the Cannabis Act & Regulations.  Any person or business that wants to apply for a license under the Cannabis Act will have to meet the requirements set by Health Canada.

    The fees for a cannabis cultivation license vary depending on which class and subclass of license you are seeking, so there are different expectations on what you’ll be expected to pay. In general, Health Canada charges an application screening fee, a security clearance application fee (for any individuals associated with your application), and an annual regulatory fee. Additionally, after the license is approved there will still be a large amount of additional work (i.e. production) to be done before you start seeing profits for your business.

    In most cases, licenses are not transferable even for mergers and acquisitions. Licenses are issued to an individual or corporation at a specific site based on their physical security measures, security clearances for key personnel, and good production practices. Any proposed transfer of ownership is subject to many factors and Health Canada needs to assess the situation on a case-by-case basis.

    Due to the variety of cannabis cultivation licenses (standard cultivation, micro cultivation, and nursery licenses), any individual or business wanting to grow cannabis can apply.  If you want to grow cannabis on a large scale and are a larger business you’ll probably want a standard cultivation license.  If you are just getting started as a business, a micro-cultivation license will let you cultivate cannabis as well only on a smaller <200m2 area.  Finally, individuals may even consider growing cannabis with a nursery license which allows you to grow cannabis starting materials (e.g. clones, seeds) in a small 50m2 area.

    In Canada, cannabis cultivation licenses are issued by Health Canada.  Anyone that wants to conduct any activity with cannabis is required to obtain a license.

    Recreational and growing cannabis at home is allowed in; Alaska, Arizona, California, Colorado, Hawaii, Illinois, Maine, Michigan, Massachusetts, Missouri, Nevada, New Mexico, Oklahoma, Oregon, Rhode Island, Vermont, Washington, and Washington DC. per cannabiz media sept 2021

    Cannabis cultivation is the process of growing cannabis which will require 1 of 3 cannabis cultivation licenses (standard, micro or nursery license).  Cannabis processing is when you conduct finished product packaging of dried flowers or manufacture and package cannabis-based products (i.e. extracts, edibles, and topicals).  If you want to conduct these activities you’ll need to acquire either a standard or micro-processing license under the cannabis act. 

    To obtain a cannabis cultivation license, you need a plot of land outdoors or a fully built indoor production facility where you will be cultivating. The land/building needs to be zoned for cannabis cultivation which you can confirm with the municipality. In addition to these requirements, there are several other application requirements which our team can walk you through.

    Congratulations, you’ve decided to join one of the fastest-growing and luxurious industries in the world.  To get started with growing cannabis you should follow these steps.

    1. What type of goals do you have for cannabis production and the sales you want. Consider having a business plan prepared.
    2. Based on the goals you set, choose the cultivation license that is best for you.
    3. Follow the required steps and criteria outlined by Health Canada for applying for your cannabis license.
    4. Contact Cannabis License Experts if you want to get licensed faster.  

    Although the laws for cultivating cannabis differentiate per state, the following states allow the cultivation of cannabis for personal use:  For more information contact us at info@cannabislicenseexperts.com

    • Alaska
    • Arizona
    • California
    • Colorado
    • Connecticut
    • Hawaii
    • Illinois
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Minnesota
    • Mississippi
    • Missouri
    • Montana
    • Nevada
    • New Hampshire
    • New Mexico
    • Oklahoma 
    • Oregon
    • Rhode Island
    • Vermont
    • Virginia
    • Washington D.C

    According to the Cannabis Act, adults are allowed to cultivate up to 4 cannabis plants per household in Canada for personal use. Individuals or businesses looking to cultivate on a commercial level will require a standard or micro-processing cultivation license to produce, distribute or sell cannabis in Canada. To learn more about the recommended safety and security measures along with additional restrictions, visit our website.

    Canada has 606 cultivation cannabis companies licensed across Canada as of February 24th, 2022 according to Health Canada. These licenses are divided between micro-processing, micro-cultivation, standard cultivation, and medical sales, with most companies possessing more than one type of cannabis license.

    The cultivation of cannabis for industrial needs like making industrial hemp or for horticultural use is legal in India. The National Policy concerning narcotics sees cannabis as a source of fiber and highly valuable oil.

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