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Canada Announces Craft-Scale Licenses for Smaller Cannabis Producers

November 21, 2017
(RylandZweifel/iStock)
The Government of Canada today announced the establishment of a licensing system that divides cannabis producers between “Standard” and  “Micro” designations under the upcoming adult-use regulatory scheme. 

Micro licenses carve out a space for small-scale producers. Licenses will also be available for nurseries and hemp growers.

The new licenses would allow smaller producers to cultivate cannabis and sell it to provincial resellers without having to go through some of the onerous visual monitoring and intrusion detection requirements that Standard cultivation license-holders would have to abide by.

In addition, cannabis producers could apply for “Nursery” designation, which means they would produce only seeds and seedlings. Producers could also apply to become a producer of industrial hemp, which is cannabis that contains less than 0.3% THC.

Up until now, medical cannabis producers under the country’s ACMPR (medical marijuana) system were only subject to one tier of licensing, with cultivation and sales licenses doled out for the production and sale of dried cannabis and cannabis oil.

A new set of license-types will be made available for intermediary processing of cannabis (such as cannabis oil producers), which would also be delineated between “Standard” and “Micro” licenses.

Related

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Want ‘a Diverse, Competitive Industry’

The Health Minister, MP Ginette Pets Taylor, said in a media scrum Tuesday that the government hopes to spur a “diverse and competitive” industry in which participants would be able to conduct “a wide range of activities” with cannabis. The Health Minister also announced that the current security clearance process that requires background checks for key figures of medical marijuana licensed producers would also apply to the incoming recreational regime. The goal of that, Petitpas Taylor says, is to “reduce the risk that organized crime will find its way in the legal system.”

The Health Minister also said that the government would be introducing a seed-to-sale tracking system, which would apply to all commercial license holders, in order to prevent the diversion of cannabis into the illicit market.

All federal license holders would be able to conduct related activities such as possession, transportation, storage, destruction, and intra-industry sales. However, additional licenses would be required for entities wishing to sell cannabis directly to consumers, and sales would continue to take place over the phone and online for medical users, as has been the case for a few years now.

Related

Quebec’s Cannabis Regulations: 8 Takeaways

No Limit on Licenses

Companies that wish to both produce cannabis and sell it directly to medical patients, for example, will have to apply for both cultivation, processing, and sales licenses, though existing producers will be initially grandfathered in.

The government also announced that individual and organizations could hold multiple licenses, raising the specter that well-funded companies might be able to vertically integrate their activities with cannabis. The government also does not plan to put a limit on the number of licenses that will be granted.

The minister also said that regulations regarding packaging and labelling are forthcoming. She said the government hopes to “keep [cannabis products] out of the hands of children,” while still enabling adults to obtain relevant information about the cannabis they decide to consume. The Minister wouldn’t say whether plain packaging regulations would be implemented, something that reporters at the media scrum couldn’t stop asking about.

Harrison Jordan's Bio Image

Harrison Jordan

Harrison Jordan is a graduate of Osgoode Hall Law School in Toronto and enjoys reading and writing about the regulatory affairs of cannabis in Canada and around the world.

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  • frankgrimes78

    Craft growers will exist no matter what our POS government does to try to stop them. Bottom line in Canada, if u pay for your lawyer vs legal aid, you don’t do time. Their proposed penalization for possession of “Illicit Cannabis” will likely be struck down by higher courts, or be Impossible to enforce. Only a POS smokes LP Cannabis if they can avoid it, they all deserve to burn for poisoning Canadians.

  • Jack Fanning

    Or, we can just grow it and sell it to whoever the fuck we want with no consequences.

    • Barry Allan

      Or grow it and GIVE IT AWAY … It’s just a plant !!!

      • Anon Live

        Are you retarded??? Are other plants free??? Even a damm tomato plant is not free dude nothing is free get over it cry baby…

  • Slept Omar Sampson

    Yeah keep it hard for the black market to get in. The black market doesn’t deserve a chance to pursue anything leagal and it only deserves to be put behind bars.

    If a black market dealer wants to change there life and do what was illegal that is legal now then why not?

    So who cares about them right? The real black market is the government and what the government calls the black market is a dirty shame.

    Pot as you call it, should be a free for all end of story.

    But no! Keep separating your self from dirt right.

    So depressing! Literally depressing!

    Why isn’t this being protested and why is everyone sitting still here letting this happen. Where’s the pot coalition?

    What pot coalition? If there’s not one, there should be one.

    • MONTE CRISTO

      finally someone with a brain ,,organise crime is your government taking away jobs from the rest of our community ,,
      the pot cowboys are all gone now ,,back in the seventies rock AND ROLL,,FULL OF SEEDS ,,GOLD COLOMBIAN

    • Perry .Perry

      The biggest criminal organization in this country right now is the Justin Trudeau Government. I still cannot fathom how this
      underqualified, non quantified little pissant is running our country. Surely there cannot be that many feminazi’s, alphabet soups, or climate change claimers. I literally bristle when he says things like ‘All Canadians”, are in favour of his policies, whatever he may be speaking on in that given day. I am fully expecting my comment to be sanctioned here, because we know who owns the media now and who they ” Toe the line for”.
      If we do not form some sort of People’s Coalition now and put a stop to what is happening to our country it will be too late soon. I dare say, Bill c_51 that was turned into law. Harper backstabbed us. Legalizing cannabis was only designed to line certain pockets more,[Thought], How about that they now have a device to track pot smokers, control your drivers licence, which they never had before, generate income on HTA tickets. Soon to come, if you break a Cannabis Law, you will have to submit a DNA sample to the courts. There is so much more going on here than the average person can realize. What about the hordes in Montreal and Toronto. You know who I am talking about.Climate Change, carbon tax; all of these issues will soon make more sense as the noose tightens around our throats. I would like to refer you to a famous quote that perfectly describes JT and his crew:

      “A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear.”

      ― Marcus Tullius Cicero

  • Dante-the-cat

    Nice!. I was worried about craft growers and small boutiques.

  • EricBenndorf

    Can this idiot Trudeau not speak a single sentence without that horrid “diverse” word in it?

  • EricBenndorf

    Trudeau poses an existential threat to Canada with his insane open borders immigration policy.

  • Bob Carter

    Sorry
    Hell Canada you are to F&N Late, one Cannabis grow cycle before
    legalization, what ever the LP supply is now, is what you have.

    Just to be clear, A large LP buying up a small already grown out
    LP, does not increase Canada’s Cannabis supply at all, add to this these
    fat wallet LP’s are making contracts for 10’s of millions of grams, to
    Governments, Liquor Control boards, and Pharmacies, up and above Supply.

    Barely 1 cycle of Cannabis growth left before Legalization, I
    ask you 1 thing? Is Canada’s Medical Cannabis Supply Guaranteed before
    these Capitalists start shipping WEED-TSX out of our needy Country???

  • Bob Carter

    Like I said, knowing this is a 3 month old Article, 3 months later, seasonal planting starts now, and still no craft licenses only production Canada has is a 1/2 dozen fat wallet corporations that are producing in about a 1/4 of the greenhouse space they own, don’t expect any kind of free cannabis market this year.

  • Frank Frank

    I spend 2 years of my life in prison for growing on a small scale (basement grow) and sold 7 grams to Durham regional police.
    I’m one of the “criminals” part of the black market that our government speaks of. It makes my stomach turn hearing how they plan to take over.

  • R Mack

    I just want to be able to grow enough to produce some seedlings for friends and family and produce small scale oils and edibles & be legal