N.S. farmer wants to sell cannabis directly to consumers
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Adam Webster’s cannabis micro-cultivation licence allows him to grow plants with a maximum canopy of 200 square metres. (Emily Leeson photo)
by Emily Leeson
Adam Webster’s cannabis plants weren’t yet transplanted into the new fenced-in plot he had ready for them on his farm in Port Williams, N.S., in late May, but he was already deeply concerned about the profitably of his next crop.
“A lot of people are getting way below $1 a gram,” said Webster. That’s much less than the price of $3 a gram that he was anticipating and is a major hurdle toward the long-term viability of his new business.
Webster believes the trouble stems from his inability to sell directly to the public and he’s asking the Nova Scotia government to make the regulatory changes necessary to allow him to do so. He started an online petition a couple of months ago stating just that and the petition had more than 780 signatures as of late May.
With his micro-cultivation licence issued by Health Canada in January 2020, Webster can grow plants with a maximum canopy of 200 square metres (about 150 regular-sized cannabis plants).
But before his product can be sold to the public, it must first be funnelled through another level: a producer who holds a processing and sales licence (a licence he’s not interested in applying for because of added expenses). According to Webster, the problem for now is that few of those licensees are buying – or at least buying at a reasonable price.
“Some processors and sales licensees aren’t interested at all,” he said. “They’re just saying ‘talk to us next year.’”
Webster said Nova Scotia’s cannabis market hasn’t materialized as forecasted and now most of the producers he could sell through are primarily concerned with selling their own crops.
“They have no obligation to buy anything from micro cultivators,” he said, adding that he spent the winter months calling around, searching out potential buyers, and coming up empty-handed.
It’s a particularly disheartening position to be in after an investment of approximately $80,000 in the infrastructure required to adhere to Health Canada’s strict cannabis production regulations.
MEANT TO BE A LEG UP
Webster’s cannabis business, Annapolis Valley Craft Cannabis, which he operates with his father Don, was originally meant to be a leg up for a family that owns a 100-acre farm producing vegetables, fruits, and herbs.
The family’s Olde Furrow Farm only grows non-GMO or heirloom seeds. The Websters don’t use synthetic pesticides or chemical fertilizers, and the only pest management systems they employ are companion planting, crop rotation, hand removal, and the attraction of beneficial insects. Weeds are managed through mulching, flaming, and hand weeding. They fertilize by way of cover crops, compost and compost teas, and pasturing cattle.
Expanding into a high-value crop was an enticing opportunity, and cannabis seemed like a natural fit. “We considered different crops over the years like apples and cherries and wine grapes,” said Webster. “When cannabis was legalized, we looked into that and figured that was the best option for making a good income on our piece of land.”
Webster is aiming to grow his cannabis in a similar fashion to the other crops on the farm – as naturally as possible. That includes moving the plants outside as soon as the weather is warm enough.
Outdoor production fits well with Webster’s farm practices and in the right circumstances could be a selling point to consumers interested in a naturally grown product. But when selling to other licence holders, it creates a hurdle.
“Outdoor growing can lower THC,” he said, referring to tetrahydrocannabinol, the main psychoactive compound in cannabis. Most larger growers have indoor hydroponic systems and produce cannabis with higher THC.
“A lot of people are looking for 20 percent THC or higher,” said Webster. “Mine is just below that. But I know that people would still want to buy my product no matter what the THC level is because they know how I grow it. But I have no way to sell it to them. Most micro-cultivation growers are having the same issues.”
But he believes the solution is simple, in theory at least: let him sell directly to customers, just as he does with the other agricultural products he grows.
“It just makes sense,” he said. “Instead of everything going through NSLC (Nova Scotia Liquor Corp. stores), why can’t farmers’ markets or individual farms sell it straight from there? It would give us a plan B if a processor doesn’t want to buy our product.”
FARMERS’ MARKETS
Justin Cantafio, executive director of the Farmers’ Markets of Nova Scotia (FMNS) cooperative, agrees that farmers’ markets could be ideal venues for small-scale cannabis producers to sell their product should the regulations change.
He said the situation is similar to what the craft alcohol industry went through in the mid-2000s. Up until that point, craft alcohol producers could only sell their products from their own facilities and, if they were large enough, through the NSLC.
Shortly after the FMNS organization was established, the group successfully lobbied for changes that eventually led to craft alcohol sales permitted at farmers’ markets throughout Nova Scotia.
“We were one of the first provinces in the country to allow that to happen,” said Cantafio. “And it’s not, in my opinion, completely unrelated that we now have the most farmers’ markets per capita in Canada and the most microbreweries per capita in Canada.”
He said farmers’ markets and craft alcohol go hand in hand in terms of contributing to a thriving agri-tourism industry and rural revitalization.
“Craft alcohol benefits not just the bottom line of rural economies through economic recirculation and job creation, but it also drives people to farmers’ markets and therefore brings more people into that space to buy other products, which are locally produced food, crafts, and arts,” said Cantafio.
Many small-scale cannabis producers – such as Webster – already sell other farm products at farmers’ markets. Cantafio said it’s logical to consider adding cannabis to the products on offer.
Given access to that market, small-scale cannabis producers could access better prices for their product and ultimately help to build the craft cannabis industry’s credibility.
CRAFT PRODUCTION
“There’s tremendous opportunity for the government to explore creating regionally represented brands, traceability, and transparency that allows people to tell the story of how things are produced and get a greater return,” said Cantafio.
With the current system, the culture of craft production is being lost and cannabis is being treated as more of a commodity. Micro-cultivation licence holders are forced to amalgamate their crops with others, and high volume is incentivized over unique quality.
“If you transform something into a commodity from the get-go, it’s really hard to convert it to a craft,” said Cantafio.
In Ontario, Thrive Cannabis recently became that province’s first licensed producer to sell cannabis products at its own facility thanks to new provincial regulations for farm-gate cannabis sales. But the Nova Scotia government doesn’t appear interested in changing its regulations.
“Nova Scotia opted for a public retail model to keep cannabis out of the hands of youth and ensure Nova Scotians have the information they need for the safe use and consumption of cannabis and cannabis products,” said Tracy Barron, spokesperson for the Nova Scotia finance department, which is in charge of the provincial legislation governing alcohol and cannabis sales. “As the industry evolves, we continue to monitor how best to meet consumer demand while ensuring that public health and safety is prioritized.”
In the meantime, Webster has a good lead for the 50 kilograms of cannabis he’s expecting to produce this year, but nothing’s set in stone yet.
“I’m trying to get people talking and aware of what’s going on because maybe people think cannabis growers are really raking it in, but a lot of us aren’t,” he said.
Webster said he can hold onto his business for about another two to five years with this status quo. “Closer to two,” he added.
“It is very time consuming – not so much the growing and all the record keeping and following the strict regulations, but also just calling all the different licensed producers,” he said. “I’ve probably talked to 20 over the winter. That takes a lot of back and forth. And most times it ends up with nothing.”
