Introducing the BC Craft Farmers Co-Op

The BC Craft Farmers Co-Op shouldn’t have to exist. British Columbia has been Canada’s natural home of cannabis for decades. Thousands of small farmers have grown high quality and potent cannabis known as “BC Bud”.

But the federal government’s over-regulation of cannabis and the BC government’s lack of backbone mean thousands of these farmers still live underground. The government created a “micro-producer” class to bring the legacy market out of the shadows. But as of 2022, only 70 craft farmers have received their accreditation.

Hence the importance of the BC Craft Farmers Co-Op. An organization dedicated to supporting small and medium-sized cannabis producers in BC. They want BC to remain a leader and innovator in the cannabis space. They want to provide medical and recreational users with the highest quality BC cannabis products. But you can’t do that when the government requires $200,000 in seed capital at the lower end. And up to $1,000,000 to be eligible for a license.

Of the more than 1,200,000 square feet of legal cannabis cultivation in Canada, artisanal growers account for just 0.17%. The BC Craft Farmers Co-Op wants to dramatically increase that number. Honorary Secretary David Hurford recently spoke to me about the BC Craft Farmers Co-Op and some of his thoughts on the current cannabis landscape in Canada.

What does the BC Craft Farmers Co-Op think of the Cannabis Industry Table promised in the latest budget?

“It was good to see that the federal government announced an initiative in the budget. But if they just hire the same people they’ve been dealing with, the system is really built for the big producers, and they’re struggling. So I think by working with Industry Canada the government can start moving this a little bit away from Health Canada, that’s a step in the right direction. But if Industry Canada continues to include only the companies that control the cannabis industry in that country, it’s going nowhere. You really need to go to the experts.”

Who should regulate cannabis in Canada?

“In our view, cannabis policy in Canada should be written in British Columbia. When it comes to writing automotive policies in Canada, we don’t write them in BC. We write it in Ontario. Because cars are built there. When we write maple syrup guidelines, we don’t write them in Saskatchewan; We write it in Quebec because that’s where maple syrup is made. When we make rap politics, we write it in Saskatchewan. Where should we write cannabis policy from? British Columbia.”

Why do you think that’s not the case?

“This is a top-down policy written by people who don’t know much about cannabis, directly praised by LPs who have plenty of resources to try and make the changes they want. But the government is wrong. They need to be a lot more bottom-up. And they’re too top-down right now. So the idea of ​​getting Industry Canada more involved in the sector is a good move. We want to be part of this process. We hope they listen to the experts, because cannabis policy in Canada really should come from the people who know how to grow cannabis and know the cannabis industry, and that is British Columbia.

“It’s nothing compared to people in other provinces. We have great craft farmers across the country. In fact, from the perspective of the cooperative, we see a national movement of artisanal farmers. To some extent similar to what wheat farmers did in the early 1900s when they formed the Wheat Board.”

What are some of the challenges for the BC Craft Farmers Co-Op?

“Stigma. That’s a big challenge. That means banks don’t lend to small farmers. Insurance companies don’t talk to small farmers. Some small farmers have to give up their home insurance. So there’s all these institutional barriers. Local governments in this country, which are run by provincial and Federal governments have been vetoed, have received no resources from those governments to accept applications. Local governments have a very small tax base. Provincial and federal governments have simply reprimanded them, saying, “You’re the gatekeeper here now.” they haven’t incentivized the municipalities. We’re asking the state and federal governments to give municipalities an economic development grant so they can take our projects to the top and see those applications as job creators. For any craft farmer that Health Canada approves create we four and a half jobs.”

You’d think they’d be listening to the BC Craft Farmers Co-Op talk about jobs.

“Our estimate is that of BC’s 6,500 medicinal product growers, even if only 10% could pass the Health Canada test, we’re talking about 700 growers. And that’s a very low number. That’s 700 farmers, each creating four jobs; that’s 3000 jobs in BC overnight. Or the first year. And these are just direct jobs, because they’re going to go to the hardware store, they’re going to go to the nutrient store, they’re going to create indirect jobs.

“So this is an opportunity that governments are really missing out on and I think stigma still has a lot to do with it. The public is way ahead, but there are still officials within the government who have been prosecuting people for decades, police forces, some banks and financial institutions that just don’t have the memo. And it takes a while for them to get out of the prohibition mindset. But it is within these institutions. I don’t think the public stigma is as present everywhere as it used to be. The stigma within institutions still holds us back. And I think they’re actually waiting for a signal from the government because all the messages the government is sending about craft farmers is that we don’t want you. Look at the system they have set up.

“I’ve spent 30 years in government designing all kinds of government programs. And I know the difference between designing a government program to succeed and designing a government to fail. And this is a government program – the microclass regulatory program – that is doomed to fail. Which is terrible.”

It sounds like there’s more than just stigma holding BC back.

“The stigma, the barriers to entry on the regulatory side that make you shell out a few hundred grand just to be eligible. Those are the real barriers. And then, once you get into the system, yes, of course there are additional barriers. But we think some of that can be solved with direct selling programs, you know, where farmers and retailers can do their own business by allowing people to come to the farms to buy direct. We believe that consumers are actually interested in shopping local and understand that due to the high quality, this may come at a premium.

“We haven’t really been able to test that because in BC when you only have 70 farmers licensed in three years, you don’t have that critical mass. They’re all scattered, and they’re all scattered. So you have no clout. You have no political influence. You don’t have the purchasing power. Part of the co-op mandate is to pool their purchasing power so they all buy the same things and we can buy them all at once and get a much better price.”

Is there anything governments can do?

“The ceilings for mics, 2100 square feet? These should be doubled. Over night. Why don’t you let the small farmers go to at least 4200 square meters? Not only is it a good number, but it also doubles your yield without doubling your cost. Why not do something that simple? That would go a long way toward making these operations more profitable.

“These are easy things for the minister. You can literally do them in an afternoon.

“Governments do not invest in any sector strategy. Governments invest all the time. We heard that the BC government opened a BC hydrogen office and poured millions of dollars into it to prepare BC for all these hydrogen orders that are coming off the pipeline. Good idea, but do you know what their job prospects are in BC’s hydrogen industry? Four thousand new jobs by 2035.

“We can create 4,000 new jobs with 1,000 farmers in the next two years. And yet there is no coordinated government effort, whether in tourism or capacity building, to educate people on modern cannabis cultivation. There is no effort to encourage women entrepreneurs. Local growers still feel left out.

“There are no incentives for municipalities. There is no access to capital. Typically, governments work together in sectors, be it forestry or wine industry or aerospace industry or whatever. And they’re constantly funding partnerships to grow those sectors. Sectors that can create jobs and economic growth, but the government hasn’t even touched cannabis. They don’t even really see it as an economic development activity.

You mentioned that the system is destined to fail. So it’s not just incompetence?

“It’s definitely not incompetence. My experience working in government is that people who work in government know what they are doing. This is a program destined to fail. Nobody in government wanted cannabis legalization. Mr. Trudeau stuck his head out to make the promise. Half of his faction didn’t want it. It didn’t come from the bottom of the bureaucracy. It came from a politician. If the bureaucracy had its way, cannabis would still be illegal.

“The only time we’ve had cannabis innovation was either from a politician showing leadership or from a court telling the government they have to do it. Innovation does not come from bureaucracy. In fact, they don’t want that.

“Now, of course, the Conservative government has instituted a regime of large manufacturers that resemble Health Canada of a pharmaceutical industry. They are very large and corporate. Something Health Canada is more used to. They’re not used to dealing with small farmers in William’s Lake. You don’t even know the difference between Smithers and Williams Lake. So I think they just feel more comfortable in Ottawa dealing with corporations and lobbyists and that kind of infrastructure. Health Canada certainly is. They don’t feel comfortable dealing with the small cannabis farmer who lives out of town in William’s Lake.

“It’s not incompetence at all. It’s on purpose… the way the government regulates CBD and THC together isn’t stupid. They are not stupid people. They know what they’re doing.”

The BC Craft Farmers Co-Op works with BC’s legacy craft farmers to build and strengthen a network to bring everyone into the legal market. You can find out more about them here.