Minnesota has officially granted its first business license for recreational cannabis cultivation, marking a pivotal moment in the state’s emerging cannabis market. The Minnesota Office of Cannabis Management (OCM) announced on June 18, 2025, that Herb Quest, LLC, a microbusiness based in Pine County, received the license. This establishment is set to focus on outdoor cannabis cultivation.
The announcement follows the state’s inaugural cannabis license lottery, which took place earlier in June. This lottery awarded licenses to 249 applicants, primarily targeting social equity applicants adversely affected by past marijuana laws. The lottery winners are now on a path to establish legitimate cannabis businesses.
OCM Interim Director Eric Taubel expressed the importance of this first license, stating, ‘With our first licensed cultivator now able to begin growing plants, and more than 600 businesses in the final steps of completing their applications and securing local government approvals, we are beginning to see Minnesota’s adult-use market take shape.’
Alongside Herb Quest, nearly 400 microbusinesses are at various stages of approval, but they must still meet additional local requirements and pass final inspections from the OCM before commencing operations. Despite the progress, 527 applicants did not secure licenses, with some alleging that the lottery process lacked fairness.
Since the legalization of recreational cannabis in Minnesota in August 2023, the industry has faced numerous challenges. These include management changes within the OCM and technical difficulties with the licensing application system. As a result, the rollout of the cannabis market has been one of the slowest in the United States.
While many non-tribal entrepreneurs await state approval, the White Earth Nation has moved ahead with plans to launch tribal-owned retail stores in Moorhead and St. Cloud. The OCM is set to hold its next retail lottery on July 22, 2025, as the state continues to develop its cannabis framework.
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