New York legalizes cannabis sales at farmers’ markets, pop-up events

New York Gov. Kathy Hochul on Thursday signed a bill into law that allows licensed cannabis microbusinesses and dispensaries to sell marijuana products at pop-up venues such as farmers’ markets.

The measure clarifies that microbusinesses – an all-in-one permit that allows a small operator to cultivate, manufacture and sell – can fully participate in New York’s “cannabis showcase events,” according to an Aug. 6 news release.

The measure fulfills a years-old promise from regulators, which first floated the possibility of cannabis sales at farmers’ markets in 2023. Until now, microbusinesses could sell only from a fixed retail location. And microbusinesses had to partner with a licensed retailer to sell at showcase events.

Why do cannabis farmers’ markets matter for small operators?

Microbusinesses often lack the capital to compete with well-funded retailers for prime real estate and foot traffic. Pop-up sales give them a lower-cost route to customers and a way to build brand recognition in their own communities.

“As a microbusiness, it can be difficult to compete with larger operators that have significantly bigger marketing budgets,” Quality High owner Matthew Nicoletti said in a statement from the governor’s office.

“These events provide a meaningful opportunity to compete on a more level playing field while strengthening relationships within our communities.”

The change also promises a lifeline for microbusinesses, which claim to be struggling more than other operators in New York cannabis.

In the spring, the state Cannabis Control Board heard results from a survey that found only 20% of vertically integrated microbusinesses to be profitable, with 64% of microbusinesses that responded to the survey saying they’re in the red.

Are direct-to-consumer cannabis sales legal?

In a statement, Ricci thanked the state Office of Cannabis Management as well as lawmakers and Hochul for “strengthening” the state’s direct-to-consumer sales model.

“This collaborative effort demonstrates New York State leadership’s commitment to ensuring that small-scale growers can build economically viable businesses, connect directly with consumers, and fully realize the seed-to-sale model envisioned under the microbusiness license tier,” she said in a statement from Hochul’s office.