Paper explores possibility of recreational pot production on ALR

VANCOUVER (NEWS 1130) – So where is all that recreational pot going to be grown once it’s finally legalized?

A new white paper from Colliers International is examining potentially allowing production on the Agricultural Land Reserve.

As it stands the only kind of weed you can grow on ALR land is the medicinal stuff.

Andrew Rojek, a manager for market intelligence for Western Canada for Colliers International, says if that doesn’t change when recreational pot is legalized, we could see pot growers compete for industrial and commercial land in the already tight Metro Vancouver market.

“At the moment there’s about 1.5 percent vacancy,” says Rojek of industrial land here. “So there’s a question about where cannabis production should go in Vancouver. If it were to go into traditional industrial space, that comes at the cost of that industrial space.”

This White Paper concludes that allowing recreational pot production on ALR lands would give owners of that property a new way to use their land — while easing pressure on industrial land.

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“There’s cost reduction and environmental benefits of using greenhouse production as opposed to industrial for cannabis production,” says Rojek. “There’s increased flexibility for ALR landowners. Cannabis, should it be legalized recreationally mid or later this year as many people are expecting it will become a crop, which means it’s another crop that ALR landowners can potentially produce on their land and increased flexibility for producers. From a cost standpoint, it’s much cheaper than traditional industrial land or warehouse facilities…it presents a lower cost of entry into the commercial market for passive investors who want to buy a commercial asset and then lease it out to someone.

“The cost of entry into the industrial market or commercial market is generally in Vancouver is extremely high, which limits the amount of people that can participate in that market.”

This comes as the provincial government has just concluded a consultation on the future of the ALR.

Earlier this week, we heard concerns from Delta Mayor Lois Jackson about farmers potentially dropping the growth of fruit and vegetables in favour of growing pot:

NEWS 1130 asked the Agriculture Ministry for comment on the possibility of increased pot production on farmland, which replied in a statement, “there are still many decisions to be made which are dependent on having better clarity regarding federal legislation and regulation, including those regarding the production of recreational marijuana, both in and outside of the ALR.”

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