Under the state’s cannabis law, the number of companies allowed to hold Class 1 (cultivator) licenses is limited to 37, but presently only 17 businesses are licensed to grow cannabis in New Jersey.
The number of licensed operations – six that are medical only and 11 that can cultivate for recreational use as well as medical – is far below other states in the U.S. with legalized markets.
Under New Jersey’s cannabis law, there is a limit on the number of licenses for cultivators for a 24-month period, a rule that is set to end Feb. 22. Based on the state’s market demands, the agency decided to allow the provision to lapse as a way to “open the space for more cultivators,” according to CRC commissioner Maria Del Cid-Kosso.
“The market is developing, and we don’t want to hinder that. The New Jersey canopy is currently only 418,000 square feet – far below the average of other states with legal cannabis. New Jersey currently has only one cultivation license for every 197,000 residents. The national average is one license for every 31,000 residents. We have a lot of room to grow,” said Del Cid-Kosso, a member of the permitting and licensing committee.