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While there are several thousand cannabis stores in Canada, consumers can purchase cannabis directly from the grower at just a handful of locations.
Only about a dozen of these cannabis farmgate stores operate in a handful of provinces, allowing consumers to engage more directly with the cannabis grower or processor. Each province has a slightly different approach to this type of licensing, and each business has found its own unique angle to the model.
Ontario was the first to launch its farmgate program in 2021, licensing the first two locations on April 20 of that year. As of May 2024, Ontario listed five fully licensed farmgate locations.
New Brunswick became the second province to announce a cannabis farmgate program, also in 2021, allowing for “on-site selling of in-house products for local LPs, nurseries, and micros.” The province currently lists five such locations after the sixth in the province was forced to give up its production licence.
In late 2022, British Columbia began allowing applications under its farm-to-gate Producer Retail Store licensing model. Since the launch of the program, only three companies have applied. The first opened in 2022, while a second was just licensed on September 12 with a grand opening expected in the coming weeks. The third applicant is currently working its way through the licensing process.
Here’s a breakdown of the different approaches to farmgate in each of these provinces, as well as the businesses operating under such licences.
Cannabis farmgate in Ontario
Ontario currently lists five farmgate locations: Thrive Cannabis in Simcoe, Kingston Cannabis in Kingston, Level Up in Toronto, Royal Cannabis Supply Company in Toronto, and Station House Cannabis Co. in St. Thomas.
The cost of licensing associated with a farmgate licence (Retail Operating Licence (ROL) and Retail Store Authorization (RSA)) in Ontario is around $10,000 for the first two years. More information about Ontario’s farmgate licensing process can be found here.
Cannabis farmgate in New Brunswick
There are currently five cannabis production licence holders in New Brunswick with a farmgate licence: Eco Canadian Organic in Rexton, Sana’a in Miramichi, Hidden Harvest in Moncton, Stewart Farms in St. Stephen, and Green Herb Farms in St Joseph-de-Kent. Hidden Harvest is the only cannabis nursery in Canada with a farmgate licence, allowing for the sale of plants directly to consumers.
The cost of a cannabis farmgate licence in New Brunswick is about $1,750 a year. More info about farmgate in New Brunswick can be found here.
Cannabis Farmgate in British Columbia
There are currently two licenced cannabis farmgate stores in BC: ShuCanna in Salmon Arm and the Victoria Cannabis Co. in Victoria, although the latter was only licensed recently and, as of publication, has yet to open.
The cost of a cannabis farmgate licence in BC is $7,500 to apply, and then a $1,500 per year annual fee if approved. There can also be municipal licensing fees, depending on location. Applications are open to all federal licence holders except stand-alone processors.
British Columbia also allows for special licensing agreements with First Nations communities in the province, two of which operate as farmgate stores. One, All Nations cannabis, is in Shxwhá:y Village, near Chilliwack, BC while the other, Sugar Cane Cannabis is operated by Williams Lake First Nation in Williams Lake.
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