ALBANY — Agriculture Chairs Assemblymember Donna Lupardo and Senator Michelle Hinchey announced that two bills supporting New York’s cannabis farmers were signed into law by Governor Hochul.

The first bill (A1234/S1752) clearly defines cannabis as an agricultural product, making it eligible to receive an agricultural assessment along with other protections afforded in the Agricultural Districts law. Ambiguity in the law resulted in some localities questioning whether cannabis was an agricultural crop in relation to tax assessments and zoning rules. Without the important protections this law provides, cannabis farmers were at risk of losing their agricultural tax assessments.

Additionally, farmers who converted land from growing an agricultural product currently receiving an agricultural assessment to cannabis, could have lost their agricultural assessment on the portion of land they converted, resulting in an unforeseen real property tax increase and possible penalty for conversion. Cannabis will now be considered an agricultural crop and treated as such, the same as grapes grown for wine production, hops and malting barley, along with grains used by distillers.

The Governor also signed legislation (A10398/S9679) which gives the NYS Office of Cannabis Management (OCM) the authority to issue Cannabis Showcase Event permits, similar to the successful Cannabis Growers Showcase (CSG) program which sunsetted on January 1, 2024. By all accounts, the CSG program was a success, bringing cultivators, processors, and retail licensees together where they could directly interact with and educate consumers, build brand recognition, and orient consumers to the legal market’s offerings.

The legislation will allow OCM to issue Cannabis Showcase Event permits for events at farmer’s markets and “pop-up” locations, while providing the agency with the flexibility to authorize other locations. Permits will be valid for up to 14 days.

Assemblymember Donna Lupardo, Chair, Assembly Agriculture Committee, said, “The roll-out of the adult-use cannabis market has been rocky to say the least for NY’s cannabis farmers. Clarifying that they are eligible to receive agricultural assessments will provide statewide uniformity to the way legally grown crops are viewed by local tax assessors. Also, establishing a new Cannabis Showcase Event permit will expand market opportunities for smaller farmers and provide sales opportunities in areas where legal stores have yet to open. I’d like to thank the Governor, Senator Hinchey, and the advocates who correctly remind us that without licensed NY cannabis farms, we have no legal cannabis market.”

Senator Michelle Hinchey, Chair, Senate Agriculture Committee, said, “These two new laws create lasting business opportunities for New York’s cannabis growers and offer the same financial relief already in place for other farmers. Those who are stepping up to build our cannabis industry—literally from the ground up—shouldn’t face unnecessary hurdles to growing their product and getting it to market. Through these bills, we’ve fought hard to deliver support by providing a direct way for farmers to sell their products through the now-permanent Cannabis Grower Showcases and by clarifying their eligibility for agricultural assessments. I’m grateful to Assemblywoman Donna Lupardo for her partnership and thank Governor Hochul for signing our bills into law. This is a meaningful step toward helping New York’s cannabis farmers succeed in this new industry.”

–The Office of Assemblymember Donna Lupardo
Chair, Assembly Agriculture Committee