Kentucky Cannabis Cultivation License Guide

The Kentucky Medical Cannabis program has officially released the requirements, regulations, and licensing portal and timeline for Kentucky Cannabis Businesses, and Bluegrass Cannabis wants to keep you in the loop on Kentucky Cannabis.

That’s why Bluegrass Cannabis is releasing our guide to Kentucky Cannabis Cultivation Licenses. Read on, and find out what you’ll need to know to be a part of the first round of Kentucky Cannabis Licenses, and how you can apply today!

First, the timeline:

When Can you Apply?

The Kentucky Cannabis Licensing applications will open on July 1st 2024, and will continue through August 31st of 2024, with Kentucky Hemp Businesses receiving priority reviews after the switcheroo that House Majority Leader Rep. Jason Nemes played with the Kentucky Cannabis Licensing process.

How Can you Cultivate?

Unfortunately, the cultivation licenses as they stand are extremely restrictive, with full facility build outs necessary to cultivate. Outdoor cultivation isn’t allowed, with only indoor and highly secured facilities. Applicants will need to be prepared for backup generators, constant connection to the state monitoring system, and 100% security camera coverage of the facility.

Licenses Available

Cultivation is split up into four tiers, with only three being available for Applications currently, after an announcement at the April 19th Kentucky Cannabis Workgroup meeting that both the Tier 4 Cultivation Licenses and Producer Licenses would not be available in this round of licenses.

Tier 1 - 2500 sq ft

Tier 2 - 5000 sq ft

Tier 3 - 25000 sq ft

Tier 4 - 50000 sq ft

10 Tier 1 Kentucky Cannabis Cultivation Licenses will be available, Four Tier 2 Cannabis Licenses, and two Tier 3 Cannabis Licenses. The Kentucky Cannabis Department decided not to open any Tier 4 cultivation Licenses in the initial round of licensing, although according to SB47, which legalized the licensing process, the Kentucky Cannabis Department may allow an expansion of current licenses up to 3 times the current level.

Cost

Since individual costs of building a greenhouse, buying property, equipment, etc. is very dependent on the individual applicant, we’ll be focusing on the costs that all applicants should be ready for when applying, not to build out a full facility.

The application fees for the licenses grow with size:

Tier 1 3,000$ Application Fee, and 12,000$ annual licensing fee

Tier 2 10,000$ Application Fee, 25,000$ annual licensing fee

Tier 3 20,000$ Application Fee, 50,000$ annual licensing fee

But don’t guess the price yet. Following in line with a corporate, MSO focused licensing process, the Kentucky Medical Cannabis Department has capital requirements to even apply.

Tier 1 : 50,000$

Tier 2: 200,000$

Tier 3: 500,000$

Tier 4: 1,000,000$

Remember that these amounts will need to be held available throughout the entire licensing process. Most Kentuckians would at best be looking for a Tier 1 Cultivation license, which at 65,000$ to apply in initial fees, would make it quite prohibitive for the majority of farmers.

When we look at the revenue projections for a 2500 sq ft greenhouse annually versus an initial financial commitment of 65000$, with 12000$ in fees necessary annually, the ability to even operate as a business becomes questionable in the Kentucky Cannabis Market.

Where Can You Apply?

You can find the application portal and more information on the Kentucky MedCann Website here.

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