Full-Service Cannabis Consulting Tailored to Minnesota's Unique Market Needs
Catalyst BC offers comprehensive guidance and solutions, customized to help your business thrive in Minnesota’s regulated cannabis industry. Contact us today to get started!
About Minnesota
Minnesota, often called the “Land of 10,000 Lakes,” is a Midwestern state known for its stunning natural beauty, vibrant culture, and thriving economy. The state is home to over 5.7 million residents, making it the 22nd most populous state in the nation. Its state capital, Saint Paul, forms the “Twin Cities” metropolitan area with neighboring Minneapolis, a hub for commerce, arts, and education. Minnesota is well known for its pristine lakes, expansive forests, and outdoor recreational activities, as well as its chilly winters. The state also boasts a diverse economy, with strong industries in healthcare, manufacturing, and technology, anchored by Fortune 500 companies such as Target, 3M, and Best Buy.
The state takes pride in its high quality of life, ranking consistently well in areas like education, healthcare, and economic opportunity. Minnesota is also famous for landmarks such as the Mall of America, the largest shopping mall in the United States, and its contributions to music and arts, being the birthplace of iconic artist Prince. Visitors and residents alike appreciate the state’s dedication to preserving its natural beauty, with numerous state parks, trails, and water bodies offering endless opportunities for adventure and relaxation.
Legal Status of Cannabis in Minnesota
Cannabis became legal for recreational use in Minnesota on August 1, 2023, after Governor Tim Walz signed House File 100. Adults 21 and older can possess up to two pounds of cannabis flower privately (or two ounces in public), eight grams of concentrate, and 800 mg of edibles. Home cultivation of up to eight plants, with a maximum of four flowering, is allowed. The Office of Cannabis Management oversees regulation, expungement of prior cannabis-related convictions, and industry licensing. Tribal nations operate dispensaries independently, and the University of Minnesota is establishing a cannabis research center.
Minnesota legalized medical cannabis in 2014 for specific conditions, later expanding eligibility to include chronic pain and PTSD. The 2022 legalization of hemp-derived THC products further accelerated cannabis reform. The new law imposes a 10% cannabis sales tax, funds social equity programs, and bans vehicle searches based solely on cannabis odor. Legal dispensaries and delivery services are expected to roll out as the regulatory framework is completed.
Important Updates for 2025:
After legal challenges, the Minnesota Office of Cannabis Management (OCM) will adhere to a standard licensing cycle for both social equity and general applicants in 2025.
Key Highlights:
• 648 qualified preapproved applicants will be automatically entered into the next licensing cycle
• Denied applications can either request a refund or correct errors and reapply in the new cycle
• Social equity verification opens January 15, 2025. The full application process begins February 18, 2025.
• Applicants for capped licenses will enter lotteries with priority for social equity applications.
Catalyst BC, in alignment with the state’s efforts, provides Minnesota hemp and cannabis cultivators, farmers, businesses, and suppliers extensive seed-to-sale support including licensing and applications, business strategy, financial planning, start-up support and more.
Legal Status of Hemp Farming in Minnesota
Hemp farming in Minnesota is legal under both federal and state law, with regulations outlined in Chapter 18K of the Minnesota Statutes. Farmers intending to grow hemp must obtain a license from the Minnesota Department of Agriculture (MDA). This process includes submitting to background checks and ensuring compliance with federal laws established under the 2018 Farm Bill. The MDA also oversees testing to confirm that hemp crops do not exceed the 0.3% THC limit, distinguishing hemp from marijuana. The state prohibits growing, drying, processing, or storing hemp in residential areas and requires growers to maintain detailed records for at least three years.
Licensed growers in Minnesota can cultivate hemp in agricultural zones, unless restricted by local ordinances. The state’s program is aligned with USDA-approved guidelines, requiring documentation for hemp transported into Minnesota and rigorous testing for THC compliance. If a grower’s license is suspended or revoked, all cannabis plants must be destroyed. Minnesota also mandates that seed sellers have a permit and adhere to both state and federal seed laws.
Navigating the Complexities of Operating a Cannabis or Hemp Business in Minnesota
Launching and operating a cannabis business in Minnesota is a competitive and highly regulated process requiring expert guidance to navigate effectively.
With a proven track record of success, Catalyst BC supports Minnesota based businesses at every stage including Business Strategy, Financial Planning, Licensing & Applications, Facility Design, Startup Support, Operational Optimization, Genetic Development, and Cannabis Business Turnaround.
Book a complimentary consultation today.
Free eBook: Starting A Legal Cannabis Business
Discover the secrets to building a thriving cannabis business with our free eBook, Starting a Legal Cannabis Business: From Formation to Acquisition! This comprehensive guide walks you through every stage of launching and scaling a cannabis business, from navigating regulations and securing licenses to optimizing operations and planning your exit strategy. Whether you're a budding entrepreneur or an experienced operator, this resource is packed with expert insights to help you succeed in this dynamic industry. Download your free copy today and take the first step toward cannabis business success!
Other Services
Business Strategy
Collaborative efforts to create a personalized and comprehensive business and operational plans tailored to your market, resources, and vision.
Financial Planning
Strategy and creation of a bespoke financial model based on historical inputs specific to selected corporate structure, facilities, and market conditions.
Licensing & Applications
Catalyst has secured over 57 licenses in merit-based and highly competitive application and RFP processes with a win rate of nearly 96%
Facility Design
Design-assist aligns designs and calculations with proven methods, equipment, and systems successfully used in world-class facilities.
Startup Support
Proven expertise and track record of supporting licensed and conditionally licensed businesses from build-out to operational excellence.
Genetic Development
Design and implement propagation and breeding programs that produce unique and proprietary cultivars that maximize productivity and profitability.
Business Turnaround
Our team brings over 60 years of regulated cannabis industry experience, expertly assessing situations, crafting strategies, and achieving client goals.
Operational Optimization
Catalyst's team of experts provides guidance and support for all types of cannabis business, including cultivation, retail, extraction, distribution, and delivery
Contact Us
Enough about us. We want to hear more about you, your project, and your vision! Get in touch with a real live person today. Don’t worry, we don’t have a long, confusing phone menu, and your email isn’t going to the abyss, we promise. At Catalyst, we provide the service and support we’d want to experience ourselves!