State doubles plant count limits to help industry ramp up

SANTA FE—The Cannabis Control Division of the Regulation and Licensing Department on Friday announced that rules doubling cannabis plant-count limits are now in effect to support the industry as the state prepares for the successful launch of adult-use cannabis sales by April 1.

“We have been listening to producers, consumers and patients who are as committed as the Cannabis Control Division is to supporting a thriving cannabis-industry in New Mexico,” said CCD Director Kristen Thomson. “Doubling the plant count for licensed producers makes sense to ensure that everyone can maximize the benefits of a thriving cannabis industry.”

The rule, posted on Thursday, doubles plant counts for each level of licensed producer. The new plant-count numbers are:

(1) Level 1: 401 – 2,000 mature cannabis plants;

(2) Level 2: 2,001 – 6,000 mature cannabis plants;

(3) Level 3: 6,001 – 12,000 mature cannabis plants; or

(4) Level 4: 12,001 – 16,000 mature cannabis plants.

Each licensed producer’s plant-count limit is doubled effective immediately without any further action by the licensee.

“Licensed producers don’t need to do anything except put more plants in the ground and enter them into BioTrack, our seed-to-sale tracking software,” Thomson said. “Not every producer is going to want to grow more plants. But, for those who do want to increase their plant counts, they can start doing that today.”

Not included in the rule change, however, are micro producers. The definition of a micro producer is established in the Cannabis Regulation Act as a producer with fewer than 200 plants. Because the micro producer plant count is set by statute, it cannot be changed by the rule. Instead, the Cannabis Control Division will be working closely with the Governor and the Legislature to amend the Cannabis Regulation Act during the upcoming legislative session to increase micro producer plant counts.

“Equity and fairness are foundational principles of New Mexico’s vision for the state’s cannabis industry,” Thomson said. “We will work with legislators and the governor to ensure those values are upheld and that micro producers see increased plant count limits as soon as possible.”

In deciding to increase producer plant counts, the CCD also relied on input from the Cannabis Regulatory Advisory Committee.

“I commend the administration for implementing this important plant count increase and for working to support producers and micro producers to ensure greater equity in the new industry," said Emily Kaltenbach, chair of the Cannabis Regulatory Advisory Committee. "With thoughtful and nimble regulatory processes we can stand up a strong industry that is ready to care for patients and serve consumers on April 1.”

To date, the CCD has issued 30 new producer licenses—14 of which are microbusinesses.  The CCD has also renewed licenses for the 34 legacy medical cannabis producers.

With 290 submitted applications, the Cannabis Control Division’s professional staff is working with prospective licensees to complete their applications and approve licenses. Unlike in some other states, there is no limit on the number of cannabis licenses in New Mexico. Applicants who complete the licensing process will receive a license.

The Cannabis Regulation Act, passed by the Legislature and signed by the Governor last year, requires sales of adult-use cannabis to begin no later than April 1. The new industry is projected to generate $300 million annually in sales, create 11,000 jobs and bring in $50 million in state revenue in the first year alone.

Anyone interested in applying for a cannabis license should visit the CCD website at ccd.rld.state.nm.us. Prospective licensees are encouraged to review the online checklists and participate in the CCD’s Grow New Mexico online business-development classes to make sure they have a strong foundation of information when they start the process.

The public can also search licensee and application information online.