Vertical farming is gaining momentum in Canada, driven in large
part by changing consumer tastes, the need for greater
sustainability and advanced technology.
In grocery stores and restaurants, Canadians are demanding more
fresh local produce year-round. The world's changing climate
threatens the reliability and sustainability of some food supply
chains. Controlled environment agriculture (CEA) technology and
innovation continue to improve at a rapid pace. Canadian
governments and agencies have introduced new policies and funding
to support vertical farming, both in the countryside and in
cities.
Technology and Location
Vertical farming crops are grown indoors on vertically stacked
or inclined layers and rely solely or largely on artificial
lighting. Small crops (e.g., strawberries and microgreens) and
leafy greens (e.g., herbs, lettuces and vegetables) may be grown in
vertical farms, although the variety of fruits and vegetables is
growing. The practice is not new, but its acceleration is an
exciting development in Canadian agribusiness.
In March 2023, Canada's first ever hands-free vertical farm
opened in British Columbia, using a touchless technology from
seeding to harvest. More vertical farming operations are being
established in urban settings and the first hydroponic-based high
yield facility in Canada opened in a former cereal plant in
Ontario. Quebec is a Canadian leader in urban agriculture as it has
many urban farms, community-led rooftop gardens and the world's
first commercial rooftop greenhouse operation. Several floors of an
office building in Calgary have been rented to a vertical indoor
farming startup. Successful vertical farms operate in rural and in
remote areas across Canada.
Government Funding and Policy in Canada
Several government supports are available for vertical
farms.
Federal—The Sustainable Canadian Agricultural
Partnership (Sustainable CAP) is a 5-year agreement between the
federal, provincial and territorial governments. It took effect on
April 1, 2023 and provides $1 billion in federal programs and
activities, along with $2.5 billion in cost-shared programs and
activities funded by federal, provincial and territorial
governments. Significant adaptions of robotics equipment used in
vertical farms is included in the AgriInnovate Program. The
Sustainable CAP also includes an AgriScience Program to accelerate
innovation by providing funding and support for pre-commercial
science activities and research that benefit the agriculture and
agri-food sector.
British Columbia—In February 2022, the B.C.
government announced it was improving the Agricultural Land Reserve
(ALR) Use Regulation to allow for more vertical farming.
The B.C. Centre for Agritech Innovation opened in September 2022
and a vertical farming project was one of the first to receive
funding.
Commercial greenhouse vegetable operators in British Columbia can
apply for the Greenhouse Carbon Tax Relief Grant Program until May
31, 2023.
Alberta—The Alberta Investment Growth Fund was first
introduced in 2021 and Alberta's 2023 budget proposes $15
million annually for the Fund. The first project to receive funding
was a vertical farm operation.
Quebec—In November 2020, Quebec announced more than
$100 million to double the size of the province's greenhouse
operations by 2025. As of January 2023, the province has reached 50
percent self-sufficiency for greenhouse-grown fruits and
vegetables, which is an increase of 20 percent from 2020.
Investissement Québec, which partners with Quebec-based and
international businesses looking to locate in the province, has
funded various vertical farming projects.
Challenges
Proponents of vertical farms need to be aware of local laws and
regulations, such as building codes. While some municipalities are
beginning to develop frameworks for urban agriculture, farm
operations may still run into challenges, including whether they
should be following the building code requirements of a traditional
high-occupancy development.
An important consideration in all indoor agriculture is energy
consumption. Energy costs for greenhouses are high, as indoor
facilities require a supply of energy around the clock. Vertical
farms in Quebec have the advantage of being in a province that
produces relatively inexpensive hydroelectricity. New technologies
are continually being developed to help reduce energy consumption
in vertical farms, such as LED lighting.
No Pesticides Registered for Use in Vertical Farming
Greenhouse crops are generally grown in a single, horizontal
layer and rely mostly on natural sunlight. Certain pesticides are
registered with Canada's Pest Management Regulatory Agency
(PMRA) for use in greenhouse growing, but these products have not
been assessed for use in vertical farming, which may involve
different risks to human health and the environment.
The PMRA made it clear to growers and other stakeholders in an Information Note
issued in August 2022 that there were (at that time) no pesticides
registered or authorized for use in Canada for use in vertical
farming.
A Health Canada Working Group, in cooperation with the provinces,
has been established to determine if further data may be required
for the registration of pesticides for use in vertical farming.
Stakeholders can also communicate their interest to the PMRA in
adding vertical farming production use to a registered product
label under the User Requested Minor Use Label Expansion
program.
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