# Licensed producer

> A licensed producer is a business authorised by a regulator to grow, process or sell cannabis commercially, subject to security, tracking, testing and labelling rules.

- Canonical: https://genetixbay.com/knowledge/glossary/licensed-producer.html
- Also written: LP, LPs, licensed grower, licensed cultivator, licensed producers, commercial licence holder
- Glossary category: Legal and regulatory
- Status: Draft: awaiting expert review · Updated: 2026-10-31
- Licence: CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/), attribute "GenetixBay cannabis glossary"

A licensed producer (LP) is a business holding a government licence to cultivate and often process or sell cannabis. Licence classes vary: large-scale cultivation, micro-cultivation, nursery, processing, testing, retail.

## In practice

Licensed production comes with obligations: site security, plant and batch tracking, mandatory lab testing for potency and contaminants, product recalls, record keeping, packaging and labelling rules. These costs weigh heavily on small growers.

GenetixBay's founder holds the opinion that the commercial model of [legalisation](https://genetixbay.com/knowledge/glossary/decriminalisation.md) has been bad for quality: scale economics, contamination controls met by decontamination (including [irradiation](https://genetixbay.com/knowledge/glossary/irradiation.md)), and regulatory costs have pushed out many small, careful growers. That is presented as opinion, backed by the documented costs and practices, not as a claim about any particular licence holder. The constructive answer is craft production where licences allow it, and growing your own where that is legal.

Rules differ by country, state, province and city, and change often. This is a general definition, not legal advice: check local rules.

## Don't confuse with

- **Licensed retailer**: sells to the public, does not usually grow.
- **Hemp licence**: a separate regime in many places.

## Related terms

[Seed-to-sale tracking](https://genetixbay.com/knowledge/glossary/seed-to-sale-tracking.md), [Compliance testing](https://genetixbay.com/knowledge/glossary/compliance-testing.md), [Labelling requirements](https://genetixbay.com/knowledge/glossary/labelling-requirements.md), [Cannabis irradiation](https://genetixbay.com/knowledge/glossary/irradiation.md), [Home grow](https://genetixbay.com/knowledge/glossary/home-grow.md)