Nursery Licence in Canada 2026

The most underrated path to a compliant genetics and propagation business

A cannabis nursery licence is built for one thing: genetics and propagation at commercial standards. It is ideal for businesses focused on seeds, clones, and pollen, with a smaller flowering footprint than a full cultivation licence, while still operating under the same federal compliance framework.

Under the Cannabis Regulations, a nursery licence can authorize you to possess cannabis, cultivate, propagate, and harvest to obtain cannabis pollen, plants, or seeds, conduct limited testing activities, and sell cannabis as permitted by the licence. Department of Justice Canada

What changed and what matters most in 2026

Health Canada’s streamlined changes increased nursery scale in a meaningful way. A nursery that cultivates cannabis for the purpose of obtaining seeds must stay within a 200 m² grow surface area for all budding or flowering plants, and is limited to 20 kg of harvested flowering heads at any given time from those plants, excluding the seeds. Department of Justice Canada+1

These are the two numbers to design around:

• 200 m² budding or flowering grow surface area

• 20 kg harvested flowering heads possession cap at any time (seeds excluded) Department of Justice Canada+1

If the business plan is seed production and cultivar development, these limits are usually enough to build a serious operation, especially when the facility is engineered for clean workflow and tight environmental consistency.

Nursery licence vs micro cultivation licence

A micro cultivation licence is intended for broader cultivation output and has a larger grow surface area limit for growing cannabis plants. Health Canada’s current guidance describes micro cultivation as up to 800 m² of grow surface area for growing cannabis plants. Canada

A nursery licence is best when the primary goal is:

• producing and selling seeds

• producing and selling plants and clones

• producing and selling pollen

• running a controlled genetic pipeline with tight biosecurity Department of Justice Canada+1

A micro cultivation licence is best when the primary goal is:

• producing commercial volumes of flower and biomass for sale

• running full production cycles at scale Canada

What a nursery is allowed to sell

A nursery licence includes the ability to sell and distribute cannabis, and specifically supports the genetics supply chain by enabling the sale and distribution of cannabis pollen, cannabis plants, and cannabis plant seeds to other federally authorized parties such as holders of cultivation, processing, research, and testing licences, among others. Department of Justice Canada

This is what makes the nursery licence strategically powerful. It can sit upstream of the entire industry as a compliant provider of clean starting material.

The compliance core of a nursery operation

A nursery is not a casual greenhouse with clones. It is a federally regulated site that must prove control, recordkeeping, sanitation, and security appropriate to the activities authorized.

Key areas that typically make or break nursery readiness:

• clean zoning and controlled movement between areas

• a defensible sanitation program with documented frequencies and verification

• pest prevention that does not compromise propagation quality

• tight environmental control to reduce stress driven issues that spread fast in nursery settings

• traceability from mother stock to batch to recipient

The regulatory framework is federal, but local and provincial steps still apply depending on where the facility is located. For example, provincial guidance can outline the broader pathway for production businesses alongside federal licensing. Government of British Columbia

Facility planning that fits the nursery model

A nursery facility that performs well is designed around two priorities:

1. Biosecurity and consistency

2. Efficient propagation workflow

Practical planning elements that usually belong in a well designed nursery:

• a controlled receiving area for supplies and inputs

• a clean propagation zone for cloning and early stage plant work

• separate mother stock zones by cultivar or health status

• quarantine and isolation capability to protect the rest of the facility

• secure storage and controlled access points

• waste handling that prevents cross contamination

Even in small buildings, separating “clean plant work” from “general operations” is one of the easiest ways to avoid chronic problems.

Understanding grow surface area and why it is different than floor space

Your federal limit is not simply room size. For a nursery producing seeds, the regulation is tied to the total surface area that contains all budding or flowering plants, including all parts of those plants. Department of Justice Canada

That matters because:

• overhanging canopy counts

• rack and tier systems must be calculated as total cultivation surfaces

• plant growth changes your real surface area footprint over time

Health Canada’s own micro and nursery licensing guidance emphasizes calculating and documenting grow surface area for evidence packages, including vertical arrangements and the surfaces in use at any single time. Canada

The CTLS application reality in 2026

Applications are submitted through the Cannabis Tracking and Licensing System. Health Canada provides licensing guidance and application requirements under the CTLS pathway. Canada+1

Operationally, success usually comes down to being organized before touching CTLS:

• define the exact licence class and authorized activities you need

• map facility workflow and controlled areas clearly

• prepare site evidence logically

• ensure required personnel and security clearances are lined up early

Health Canada publishes an updated CTLS user guide that outlines account setup, corporate profiles, and document upload expectations and file types, which helps prevent avoidable submission friction. QualiCan QAP Services Inc.

Business models that win with a nursery licence

A nursery licence shines when the business is built around repeatable supply relationships and quality assurance, not one off sales.

High performing nursery models commonly include:

• licensed starting material supply to micros and standard cultivators

• cultivar hunting and phenotype selection programs

• clean mother stock and propagation services for licensed partners

• seed production focused on stability and marketable traits

• long term genetics partnerships with processors seeking consistent inputs

The nursery licence can be the foundation for a premium supply reputation, especially when the brand is known for clean starts and strong vigour.

Scaling up later without painting yourself into a corner

Health Canada explicitly discusses scaling pathways for micro and nursery licence holders. Planning early for future expansion can save major rebuild costs later, especially for security zones, workflow, and mechanical capacity. Canada

A simple way to future proof a nursery build is to design infrastructure with expansion in mind:

• electrical and HVAC capacity headroom

• space planning that can absorb additional secure operations

• modular propagation layouts that scale without breaking biosecurity

Summary

A nursery licence is the cleanest way to enter the regulated supply chain as a genetics focused business. In 2026, the key limits to engineer around are clear: 200 m² for budding or flowering grow surface area and 20 kg harvested flowering heads possession at any time for seed production nurseries. Department of Justice Canada+1

When the facility workflow is designed like a controlled production environment, not a hobby grow, a nursery can become one of the most valuable and defensible positions in the entire legal market.