Farmgate Licensing

farmgate license
This year marked the opportunity for federally licensed cannabis cultivators and/or processors to sell cannabis products at their federally licensed production site. With the advent of farmgate cannabis sales, consumers now have the option to go directly to a license holder’s location to purchase cannabis products.
Farmgate cannabis retail is not within the purview of the federal regulation but within each province’s cannabis retail regulatory framework. Federally licensed cultivators and processors who intend to sell farmgate cannabis must comply with provincial legislation for cannabis retail. This means a federal licensee must obtain necessary provincial permits or authorizations before farmgate cannabis retail can be carried out. As each province has different regulatory frameworks for cannabis retail, license holders would go through different processes for farmgate sales depending on the province of their site location.

Farmgate cannabis retail is still in its infancy stage and each province is different when it comes to farmgate cannabis retail regulation.

British Columbia also has plans to launch a farmgate cannabis retail program in 2022, however, this opportunity will be reserved for cannabis cultivators alone (ie. stand-alone cannabis processors will not be eligible for a farmgate cannabis retail store).

Farmgate Cannabis

Saskatchewan’s cannabis retail framework allows for farmgate cannabis. However, there are currently no cannabis retail stores at federal licensed production sites. In Alberta, retail stores can be adjacent to production sites but cannot be realized because of restrictive supply chain requirements. 

 

Other provinces and territories such as Manitoba, Quebec, Yukon and the Maritimes still have yet to establish their farmgate cannabis sales programs.

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Frequently Asked Questions

Federally licensed cultivators and processors who intend to sell farmgate cannabis must comply with provincial legislation for cannabis retail. This means a federal licensee must obtain necessary provincial permits or authorizations before farmgate cannabis retail can be carried out.  As each province has different regulatory frameworks for cannabis retail, license holders would go through different processes for farmgate sales depending on the province of their site location.

Farmgate cannabis retail licenses would need to be renewed on a provincial level, as federally licensed cultivators and processors who intend to sell farmgate cannabis must obtain necessary provincial permits or authorizations before farmgate cannabis retail can be carried out. Further information on the frequency and process for renewal would be provided by the province.

Farmgate cannabis is a retail model by which cannabis can be sold directly to customers by the licensed producer who manufactures such products. In this set up, a licensed producer of cannabis (cultivator or processor) will have a production site that also includes a store-front to allow customers to purchase cannabis products directly from the producer, similar to a vineyard.

Farmgate cannabis is reserved for licensed producers only, as they will have a production site that also includes a store-front to allow customers to purchase cannabis products directly from the producer. Regular cannabis retail stores do not have a production center on-site.

The same types of documents that are submitted for regular cannabis retail licenses would need to be submitted to the provincial/territorial governments for authorization of a farmgate cannabis retail license. This would include things such as incorporation documents, organizational charts, information on controlling individuals/entities, background checks, funding, etc.

They are actually quite similar! Agricultural farmgate sales is a direct marketing method where farmers sell their produce directly to the consumer with the intent to bypass intermediaries such as wholesalers and retailers. In some models, consumers can visit the farm and pick the produce themselves. In cannabis, while farmgate adopts the concept of direct sales of cannabis products to the consumer from the license holder’s location, the province maintains governance and control over the supply of cannabis products.