This legislation notably offers and guarantees producers the sale of their production through their cooperatives and sales contracts with operators authorized by the National Agency for the Regulation of Activities Related to Cannabis (ANRAC).
Through a structured professional organization, this legislation will also allow small farmers to strengthen their bargaining power and improve production techniques. Small farmers cannot directly sell their cannabis production to operators, even those authorized by ANRAC. They are required to form production cooperatives, which are the only entities authorized to establish sales contracts with authorized operators, negotiate prices, and deliver the production from various farmers to the concerned and authorized operators by the Agency.
These measures also aim to prevent the intrusion of new farmers who were not previously producing cannabis, as the authorization to engage in cannabis production is only granted to farmers living in the three regulated provinces and who cultivate plots previously used for illicit cannabis production.
The regulation will not allow the expansion of cannabis cultivation onto new areas or by new individuals or farmers.
Moreover, the granting of authorization to engage in cannabis production by farmers is conditioned on the prior establishment of a sale price for the cannabis production within a contractual framework with the operator authorized by ANRAC, thereby ensuring visibility on the annual income of small farmers before the start of the agricultural season.
Additionally, small farmers can form processing cooperatives to obtain ANRAC authorization to engage in cannabis processing activities, allowing them to directly enhance the value of their production without going through a private operator authorized by the Agency.
Furthermore, legalization has allowed farmers authorized by ANRAC to access public subsidies or existing financing programs for other agricultural activities, to encourage small farmers to make the necessary investments to develop their production systems.
Thanks to this legislation, ANRAC has issued 3,029 authorizations since the beginning of 2024 under Law 13-21 related to the lawful uses of cannabis, compared to 721 authorizations in 2023, reflecting the continuous increase in these authorizations as farmers have shown a real willingness to transition to lawful cannabis production.