Cannabis sativa is a tall, stout, strong-smelling annual plant of the mulberry family. It is cultivated for its fibre, oil, and drug products, including marijuana and hashish. It is native to Central Asia, but grows as a weed throughout the temperate regions of the world. It can grow to heights of 5 metres; however, in Canada the short growing season generally limits the plant to a height of 2 metres. For good growth Cannabis sativa requires rich soils and mild, humid climates. It grows well on the rich farmland areas of Ontario and Quebec, and arable coastal regions of British Columbia. It does not grow well on the Prairies because of low soil moisture.
The Narcotic Control Act (R.S.C. 1985, c. N-1) states in section 6 that "no person shall cultivate . . . marijuana except under the authority of, and in accordance with, a licence issued to the person under the regulations." "Marijuana" is defined in the Act to mean Cannabis sativa. It is the use of this plant, as a narcotic, that the Act and its Regulations are intended to control. Thus, the Act restricts the cultivation of marijuana to only those circumstances allowed under the Regulations. The Narcotic Control Regulations (C.R.C. 1978), as amended stipulate in section 67 that the Minister of Health and Welfare may issue a licence to any person who applies to cultivate marijuana for scientific purposes. Accordingly, the growing of marijuana as an agricultural cash crop is not allowed under the Regulations. Consequently, as confirmed by health and Welfare's Bureau of Dangerous Drugs, today marijuana is not grown legally anywhere in Canada for purposes other than scientific investigations.
It was recently reported that the annual retail value of marijuana grown in the city of Vancouver alone was $750 million(1). According to the B.C. Minister of Agriculture, Ron Charles, profits from marijuana operations are three times greater than from dairy production, B.C.'s most valuable farm industry at $245 million per year(2). It might be possible, through amendments to the current Act and Regulations, and through strict cultivation, distribution and marketing regulations, to redirect illegal marijuana profits to legitimate agricultural operations.
In order to redistribute some of the profits of a marijuana industry to the agricultural sector the price of marijuana and hashish would have to be controlled. Unlike the distillation of spirits, the cultivation and curing of marijuana (i.e., legal cultivation, possession, consumption and sale) could potentially stimulate the practice of "home-growing" marijuana. This would lead to low market demand, over-supply and a significant drop in the unit price of marijuana. In addition, it must be realized that while marijuana has a high unit value, the actual volume of product marketed is quite low. Consumption levels of marijuana are measured in grams not kilograms. Accordingly, the potential does not exist for the conversion of vast acres of farmland to a new high-priced cash crop.
For Canadian agriculture to benefit from marijuana as a legal cash crop, the existing legislation and regulations would have to be amended. Regulations that strictly controlled the cultivation, processing and marketing of marijuana products would have to be in place, while the laws prohibiting possession and consumption would have to be liberalized.
A permit or quota system, similar in concept to the milk quota system now used to control dairy surpluses, would be required. A permit might stipulate such criteria as the number of acres allowed for cultivation, the genetic variety to be grown, security requirements, pesticide limitations, as well as quote the guaranteed government purchase price. Quotas might be purchased by farmers, or awarded on a lottery basis. In this manner a portion of farm income could be freed from the uncertainty of fluctuations in the market prices. Controlled cultivation of marijuana could therefore contribute to both agricultural diversification and more secure farm incomes.
Strict controls on marijuana processing and distribution could extend the economic benefits of legalized marijuana beyond the agricultural sector to the processing, packaging and transportation industries. The sale of marijuana and marijuana products through government-controlled outlets would offer additional employment opportunities. Finally, marijuana, like alcoholic beverages, could be used to generate substantial tax revenues. Such revenues could be specifically directed to the support of agricultural programs.