Agriculture
Cannabis legalization voted Canadian Press’s Business Story of the Year
TORONTO — Canada’s trailblazing move to legalize cannabis for recreational use, which sparked an entirely new industry and had wide-ranging implications for nearly every facet of society, has been voted The Canadian Press Business News Story of the Year.
The term “disruption” in business has become so overused that it has become an empty cliche, but it is warranted in the case of pot legalization, said Andrew Meeson, deputy business editor at the Toronto Star.
“It’s hard to think of an area in Canada that hasn’t been shaken up: not just commerce (from criminal act to booming startup to takeover target in the blink of an eye), but also policing, health care, justice, politics. Even culture (just ask Tommy Chong),” he said.
“If that doesn’t make it the business story of the year, I don’t know what would.”
In an annual poll of the country’s newsrooms conducted by The Canadian Press, business editors and reporters across the country chose cannabis legalization in a landslide, with 60 per cent of the votes cast.
The terse negotiations between Canada, U.S. and Mexico towards a new North American Free Trade Agreement was a distant second with 30 per cent of votes.
Canada’s pipeline conundrum, with the Trans Mountain pipeline expansion now in limbo after a court overturned its regulatory approval in August and a U.S. court throwing out the Keystone XL pipeline’s presidential permit in November, came in third out of eight possible candidates with 10 per cent of the vote.
“Pipelines would have won, hands down if it weren’t for the creation of an entirely new industry in Canada,” said David Blair, a business columnist with CBC Radio. “Rarely, if ever, do journalists get to cover the opening of a new market, especially one that is as controversial as cannabis.”
The world was watching when the country made history with the first legal sale of non-medicinal pot just after midnight on Oct. 17 in Newfoundland and Labrador, due to its time zone being 30 minutes ahead of the rest of Canada.
It marked the beginning of what the New York Times dubbed Canada’s “national experiment,” and the culmination of months, if not years, of preparation by legislators and law enforcement officials at all levels and in each province, territory, and municipality.
While Oct. 17 represented an extension from the initial target set for July, and licensed producers ramped up production in the lead-up, long lines of customers were met with widespread product shortages online and in the relatively few bricks-and-mortar stores that were ready on day one.
Still, many Canadians were simply elated to be able to buy government-sanctioned pot after nearly 100 years of prohibition.
“My new dealer is the prime minister!” said Canadian fiddler and pop star Ashley MacIsaac, who in 2001 had been arrested for possession in Saskatchewan.
But cannabis mania had been bubbling for months before legalization, with retail investors rushing to invest in the latest pot company to list its stock. Cannabis company valuations in the lead up to Oct. 17 soared and some of the banks’ online direct investment platforms were bombarded with unprecedented trading volumes.
At one point producer Tilray Inc.’s stock on the Nasdaq exchange in September hit a peak of US$300, giving the Nanaimo, B.C.-company a market value higher than established Canadian conglomerates such as Loblaw Companies Ltd. and Rogers Communications Inc.
Pot will be cited for years to come as many Canadians’ first experiences with investing, said Pete Evans, senior business writer for CBC News.
“Cannabis mania deserves some credit — and maybe blame — for ushering an entire new generation of primarily young people into making their first stock market investments ever,” he said.
A flurry of merger and acquisition activity in the sector, even before legalization, fuelled investor interest as well.
Aurora Cannabis Inc. was on an acquisition spree this year, buying rival CanniMed Therapeutics for $1.1 billion after a terse takeover battle and later MedReleaf for $3.2 billion.
Alcohol giant Constellation Brands in August announced it was upping its investment in pot producer Canopy Growth Corp. — in the largest strategic investment in the pot space to date — to increase its ownership stake to 38 per cent. The Corona beer-producer also received warrants that, if exercised, would up its stake to more than 50 per cent.
And earlier this month, Big Tobacco came calling, as the number of countries that legalized cannabis for medical use continues to grow.
Marlboro maker Altria Group Inc. said it planned to invest $2.4 billion in pot producer Cronos Group Inc. for 45-per-cent ownership, with an option to increase that stake in the future.
The Altria-Cronos deal gave the overall sector a slight lift, but pot stocks have largely come off their highs after legalization as reality set in and concerns mounted about lofty valuations.
Canadian marijuana companies have found themselves in the crosshairs of short-sellers, as well.
Aphria Inc. earlier this month saw its stock value more than cut in half over three days after two short-sellers targeted the Leamington, Ont.-based cannabis producer with a raft of allegations, including that its recent international acquisitions were “largely worthless.” Aphria has called the allegations “inaccurate and misleading” and is confident in the deal in question, but has appointed an independent committee to review their claims.
Meanwhile, recreational pot supply shortages continue to linger. Several cannabis producers in part blamed supply chain issues for contributing to the shortage and have said they are aiming to increase their production, but it will likely take more time fresh product to hit the market.
Quebec’s cannabis corporation stores continue to be closed from Monday to Wednesday as a result. And in Ontario, where the only legal way for residents to buy adult-use pot is through the government-run online portal, the provincial government said it will hand out a limited number of retail licenses due to the shortages.
The Ontario government initially said it would not cap the number of licenses, but now says it will only be able to issue 25 licenses by April via a lottery system. This deals a blow to a slew of companies who have been putting down deposits to secure prime real estate locations in the country’s most populous province in anticipation of obtaining a license.
“Seemingly overnight, activity that always existed on the margins of society has come into the centre,” said Evans.
“It’s been fascinating to watch the growing pains that have ensued… It will be interesting to see in the coming months and years how and if the reality lives up to expectations for the industry.”
Armina Ligaya, The Canadian Press
Agriculture
Restoring balance between renewable energy, agricultural land and Alberta’s iconic viewscapes
Alberta is known around the world for many things – some of the most breathtaking and iconic scenery on earth, a world-class agricultural industry that puts high-quality food on tables across the globe and a rich history of responsible energy development. Alberta is a destination of choice for millions of visitors, newcomers and investors each year.
To ensure Alberta’s continued prosperity, it is imperative that future energy development is balanced with environmental stewardship, protecting Albertans’ ability to use and enjoy their property, and safeguarding agriculture for continued food security.
Alberta’s renewable energy sector has grown rapidly over the past decade, yet the rules to ensure responsible development have not kept up. As a result, municipalities, agricultural producers and landowners across the province raised concerns. Alberta’s government is fulfilling its duty to put Albertans first and restore the balance needed for long-term success by setting a clear path forward for responsible renewable energy development.
“We are doing the hard work necessary to ensure future generations can continue to enjoy the same Alberta that we know and love. By conserving our environment, agricultural lands and beautiful viewscapes, our government is protecting and balancing Alberta’s long-term economic prosperity. Our government will not apologize for putting Albertans ahead of corporate interests.”
Amendments to the Activities Designation Regulation and Conservation and Reclamation Regulation provide clarity for renewable energy developers on new and existing environmental protections.
These changes will create consistent reclamation requirements across all forms of renewable energy operations, including a mandatory reclamation security requirement. Albertans expect renewable power generation projects to be responsibly decommissioned and reclaimed for future generations. Alberta’s government stands firm in its commitment to protect landowners and taxpayers from being burdened with reclamation costs.
“We want to protect landowners, municipalities and taxpayers from unfairly having to cover the costs of renewable energy reclamations in the future. These changes will help make sure that all renewable energy projects provide reasonable security up front and that land will be reclaimed for future generations.”
Alberta’s government committed to an ‘agriculture first’ approach for future development, safeguarding the province’s native grasslands, irrigable and productive lands. The protection of agricultural land is not only essential to food production, but to environmental stewardship and local wildlife protection.
The Electric Energy Land Use and Visual Assessment Regulation follows this ‘agriculture first’ approach and enhances protections for municipalities’ most productive lands, establishing the need to consider potential irrigability and whether projects can co-exist with agricultural operations. These changes are critical to minimizing the impacts of energy development on agricultural lands, protecting local ecosystems and global food security. With these new rules, Alberta’s farmers and ranchers can continue to produce the high-quality products that they are renowned for.
“Our province accounts for nearly 50 per cent of Canada’s cattle, produces the most potatoes in the country, and is the sugar beet capital of Canada. None of this would be possible without the valuable, productive farmland that these new rules protect. Understanding the need for an ‘agriculture first’ approach for energy development is as simple as no farms, no food.”
The new Electric Energy Land Use and Visual Assessment Regulation also establishes specific guidelines to prevent projects from impacting pristine viewscapes. By establishing buffer zones and visual impact assessment zones, Alberta’s government is ensuring that industrial power projects the size of the Calgary Tower cannot be built in front of UNESCO World Heritage sites and other specified viewscapes, which will support the continued growth and success of Alberta’s tourism sector.
As Alberta’s population and economy grows, it is critical that the province has the additional power generation needed to meet increasing demand. Power generation must be developed in a balanced and responsible manner that promotes environmental stewardship, ensures the continued enjoyment of Alberta’s beautiful landscapes, and safeguards food security by protecting Alberta’s valuable agricultural lands. By encouraging the responsible development of additional power generation with these new regulations, Alberta’s government is listening to Albertans and ensuring the electricity grid is affordable, reliable and sustainable for generations to come.
Summary of Policy Changes
Following the policy direction established on February 28, 2024, Alberta’s government is now implementing the following policy and regulatory changes for renewable power development:
Agricultural lands
The new Electric Energy Land Use and Visual Assessment Regulation takes an “agriculture first” approach.
• Renewable energy developments will no longer be permitted on Land Suitability Rating System (LSRS) Class 1 and 2 lands unless the proponent can demonstrate the ability for both crops and/or livestock to coexist with the renewable generation project,
• In municipalities without Class 1 or 2 lands, Class 3 lands will be treated as Class 1 and 2.
• An irrigability assessment must be conducted by proponents and considered by the AUC.
Reclamation security
Amendments to the Activities Designation Regulation and Conservation and Reclamation Regulation create consistent reclamation requirements across all forms of renewable energy operations, including a mandatory reclamation security requirement. There will be a mandatory security requirement for projects located on private lands.
• Developers will be responsible for reclamation costs via a mandatory security or bond.
• The reclamation security will either be provided directly to the province or may be negotiated with landowners if sufficient evidence is provided to the AUC.
Viewscapes
The Electric Energy Land Use and Visual Assessment Regulation ensures pristine viewscapes are conserved through the establishment of buffer zones and visual impact assessment zones as designated by the province.
• New wind projects will no longer be permitted within specified buffer zones.
o Other proposed electricity developments located within the buffer zones will be required to submit a
visual impact assessment before approval.
• All proposed electricity developments located within visual impact assessment zones will be required to submit a visual impact assessment before approval.
Municipalities
The AUC is implementing rule changes to:
• Automatically grant municipalities the right to participate in AUC hearings.
• Enable municipalities to be eligible to request cost recovery for participation and review.
• Allow municipalities to review rules related to municipal submission requirements while clarifying consultation requirements.
Agriculture
Saskatchewan potash vital for world food
From Resource Works
Fertilizer Canada says the fertilizer industry contributes $23 billion a year to Canada’s economy and provides over 76,000 jobs.
A small potash extraction company in Manitoba calls Saskatchewan “the Niagara Falls of potash in Canada.”
The current 10 mines in Saskatchewan produced around 13 million tonnes in 2023, accounting for some 33% of global potash production, and exported 95% of it to more than 75 countries.
Potash mine No. 11 in Saskatchewan is working toward production in late 2026. That’s the $14-billion Jansen mine, owned by BHP, located 140 kilometres east of Saskatoon. It aims to produce around 8.5 million tonnes a year to start, and as much as 16–17 million tonnes a year in future stages.
With potash used primarily in agricultural fertilizers, Saskatchewan’s output is a key ingredient in global food security. Fertilizer is responsible for half of the world’s current food production.
As Real Agriculture points out: “Fertilizer production is not only an economic driver in Canada, but it is also a critical resource for customers around the world, especially in the United States.”
This is particularly important as Russia’s war on Ukraine has raised doubts about reliable supplies of potash from Russia, the world’s No. 2 producer, which produced 6.5 million tonnes in 2023.
In fertilizers, the potassium from potash increases plant growth and crop yields, strengthens roots, improves plants’ water efficiency, and increases pest and disease resistance. It improves the colour, texture, and taste of food. Natural Resources Canada adds: “Potassium is an essential element of the human diet, required for the growth and maintenance of tissues, muscles and organs, as well as the electrical activity of the heart.”
Canada’s federal government has included potash as one of 34 minerals and metals on its list of critical minerals.
Fertilizer Canada says the fertilizer industry contributes $23 billion a year to Canada’s economy and provides over 76,000 jobs.
The potash operations in Saskatchewan are in the Prairie Evaporite Deposit, the world’s largest known potash deposit, formed some 400 million years ago as an ancient inland sea evaporated. The deposits extend from central to south-central Saskatchewan into Manitoba and northern North Dakota. These deposits form the world’s largest potash reserves, at 1.1 billion tonnes.
Manitoba’s first potash mine is close to bringing its product to market. The PADCOM mine is 16 kilometres west of Russell, Manitoba, near the Manitoba-Saskatchewan border. The Gambler First Nation has acquired a one-fifth stake in the project.
PADCOM injects a heated mixture of water and salt underground to dissolve the potash, which is then pumped to the surface and crystallized. CEO Brian Clifford says this process is friendlier to the environment than the conventional method of mining underground and extracting ore from rock deposits.
Saskatchewan’s northern potash deposits are about 1,000 metres below the surface and are extracted using conventional mining techniques. To the south, deposits are anywhere from 1,500 to 2,400 metres deep and are mined using solution techniques.
PADCOM aims to produce 100,000 tonnes of potash per year, eventually growing to 250,000 tonnes per year. However, PADCOM president Daymon Guillas notes that across the Manitoba-Saskatchewan border, the Nutrien potash mine near Rocanville, Saskatchewan, produces five to seven million tonnes per year.
“In 36 hours, they produce more than we do in a year. Saskatchewan is the Niagara Falls of potash in Canada. Our little project is a drip, just a small drip out of the faucet.”
(New Brunswick once had a small potash mine, but it closed in 2016.)
Real Agriculture says: “Canadian-produced potash remains vital to the U.S.’s ability to produce enough corn for feed, ethanol production, and export requirements, at a time when the U.S. heightens its focus on reducing exposure to international integrated supply chains in favour of U.S. domestic supply chains.”
Writer Shaun Haney continues: “For the U.S. corn farmer, Canadian-produced potash is critical for achieving the top yields. According to StoneX, over the past three years, Canada accounts for roughly 87 per cent of potash imports by the U.S., while Russia sits at 9.5%.”
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