The medical cannabis field is growing rapidly, with more and more people willing to try medical cannabis to treat their conditions.
Thanks to the research conducted into the effects of cannabis in treating certain conditions and the support the findings have received from doctors and the Government, more patients are turning to CBD products to help manage their pain and their conditions.
It is also thanks to this research that the stigma of using cannabis for medical purposes has all but gone away. Consequently, there has been a dramatic increase in the number of legal cannabis farms throughout the UK.
This guide will look at what medical cannabis farms are, the rules and regulations that a legal cannabis farm owner must follow, and the importance of medical cannabis farm insurance.
What is medical cannabis?
In November 2018, medical cannabis was legalised in the UK. By the end of 2019, there were less than 250 medical cannabis users in the UK. However, this has already increased exponentially and is expected to hit 337,000 by 2024.
Medical cannabis is a broad term that refers to treating symptoms using cannabis-based medicines, such as cannabidiol.
Who can use medical cannabis?
Currently, the only conditions that are being prescribed medical cannabis products by doctors are:
- Children and adults with a severe form of epilepsy. Medical cannabis can help these people to manage and reduce the severity of their seizures.
- Patients with nausea and vomiting caused by chemotherapy, as medical cannabis helps to reduce the feeling of nausea.
- People with muscular stiffness, swelling and spasm caused by multiple sclerosis (MS) where the medical cannabis can help patients to reduce spasms and pain caused by their condition.
However, there are still ongoing discussions about medical cannabis’ other uses for patients with other conditions such as rheumatoid arthritis. This means that the number of patients eligible for medical cannabis prescriptions will likely increase over the next few years.
What are legal medical cannabis farms?
Legal medical cannabis farming is proliferating in many countries, including the UK. In fact, according to a report by the International Narcotics Control Board, in 2019, the UK produced over 320 tonnes of legal cannabis: more than any other country.
All of this cannabis is grown on medical cannabis farms and labs throughout the country. Legal cannabis farms grow the cannabis plant so that it can then be cut, treated and turned into medication.
However, because cannabis is a class b substance in UK law, there are many tight rules and regulations that medical cannabis farms must follow to stop their product from falling into the hands of recreational users.
Who can own a medical cannabis farm?
In short, anyone can own a medical cannabis farm provided they apply through the Government for a licence and pass a DBS check. You will almost certainly be rejected if you have a current criminal record.
You will, of course, also need to own or be able to rent a large area of suitable property that is appropriately fit for cultivating cannabis. This includes all the equipment you will need, including grow lights, plant beds, fertiliser and more.
How do I become a registered medical cannabis farm owner?
So you’ve got your land and equipment ready for growing medical cannabis, but what’s your next step? You will first need to visit the Government webpage for licensing the controlled drug industry here.
To own a legal cannabis farm, you must apply for a ‘Controlled Drugs Domestic Licence’. This licence will usually be valid for three growing seasons, and you will have to reapply each time this period is over.
You, and any other employees working on the medical cannabis farm, will also be required to complete a DBS check.
If your application is successful, you will need to keep a record of the amount of cannabis you produce and report this to the Government by May 1st each year. Furthermore, you will be required to instantly report any theft or unaccountable losses of cannabis from your farm to the Government.
What are the dangers of owning a medical cannabis farm?
As rules around owning a legal cannabis farm are tight, you must ensure that your farm properly follows these regulations. If you are found to have broken any of these rules and regulations, you will most likely lose your Controlled Drugs Domestic Licence and be issued with a fine.
Depending on the severity of your infringement, you could even face jail time (for example, if you were found to have been knowingly supplying drug dealers with cannabis to sell for recreational purposes).
Furthermore, being a class B recreational drug, there is the possibility that your farm may draw unwanted attention from drug users, dealers or even gangs. This could lead to a range of dangers, including the theft of your product and thereby a loss of income, or even threats to you and your employees.
Any legal medical cannabis farm owner must think carefully about how they protect their property and product. Having a fence, CCTV and intruder alarms are a great way to deter would-be trespassers and catch those trying to steal your cannabis. Some larger farms also hire onsite security who can monitor intruders 24/7.
What are the rules and regulations of owning a medical cannabis farm?
Owning a legal medical cannabis farm means ensuring you abide by the strict rules and regulations governing the trade.
Get your licence
Before you can put the first seed in the soil, you will need to ensure that you have your Controlled Drugs Domestic Licence. Without this, you are not legally allowed to grow any kind of cannabis product – if you do, it can result in imprisonment.
Secure your facility
Ensuring that your facility is as secure as possible from potential intruders is vital to the safety of you, your employees and your property. You will need to provide evidence and documentation on how you are protecting your facility. In the event of theft, you must inform the appropriate authority immediately.
Comply with pharmaceutical regulations
To be able to sell your cannabis products, you will need to comply with all pharmaceutical regulations. For example, for medical cannabis, you will need a product that produces over 0.2% CBD.
Ensure that you have a compliant supply chain
Transporting your medical cannabis products to the market comes with its own dangers. You will need to ensure that your means of transportation is secure if you deliver your product yourself. You will also need to ensure that your product is being sold to established, licensed businesses for the sale to be legal.
Failure to comply with any of these rules and regulations will result in you losing your licence and potentially being hit with a hefty fine. You could also face jail time if the infringement is considered severe enough.
What is medical cannabis farm insurance?
Medical cannabis farm insurance works like any other insurance policy. By paying a monthly or yearly fee, you can ensure that your property and your product are adequately covered in the event of an incident occurring.
For example, if some of your product is stolen from your farm, then you could face a loss of income. As well as reporting the theft to the Government, you can inform your insurance provider, who may be able to offer you some compensation to mitigate your losses.
It is worth keeping in mind that, as a relatively new market, finding full coverage for your crops and facilities can be extremely difficult. In some cases, it may be that you can only get cover on the facilities and equipment, but not on your crops.
What does medical cannabis farm insurance cover?
The answer to this question is complicated. As the growing of medicinal cannabis is still a pretty new venture, many issues are still being ironed out by insurance providers, and you may have to use more than one provider to cover everything you want to be protected by insurance.
Crops
Perhaps currently the most awkward area to find insurance for is your crops. While some providers are starting to offer insurance for medical cannabis crops, many still aren’t.
If you can find cover, then you can make a claim on any plants that are lost to theft. This can help you to protect your finances and reduce the loss of income you may face.
Facilities
Your facilities are where your crops are grown, whether this is indoor or outdoor. Many insurance providers will offer cover to medical cannabis farms.
This works in a similar way to any property insurance in that it is the facility itself that is insured, not its contents. If your property suffers any damage due to weather or fire, you may be entitled to compensation to help you pay for repairs and cover the loss of business.
Equipment
The bigger your medical cannabis farm, the more equipment you will require. Everything from heat lamps to plant beds costs money to buy and maintain.
Unfortunately, your equipment will break over time and due to other stresses. Insuring your equipment can protect your business by reducing the cost of repairs or replacements whenever a piece of equipment breaks or fails. Your insurance provider may be able to offer compensation to help you to pay for repairs or a new piece of equipment.
Personnel
Owning a medical cannabis farm means that you will almost certainly have employees to help you with the cultivation of your crops.
While there are no severe risks working in this environment, there are a few accidents that could happen that could harm your staff.
For example, using shears and pruners have a slight risk of an employee injuring themselves if someone is mishandling them. Having your personnel covered by insurance means that you and your staff are protected in the event of an accident.
How much is medical cannabis farm insurance?
If you own a cannabis farm for medical purposes, then you will want to know how much it costs to insure. However, this depends on a variety of factors, and it is hard to know exactly how much without speaking directly to a provider.
One of the significant factors that will affect the cost is the size of your operation. The more land and crops you have on it, the more your insurance will be.
This isn’t just because of the size of your land, (although this is also a factor) but the more land and crops you have, the more equipment and personnel you will need. And if you want to insure all of your equipment and personnel – which is highly recommended – then you will have to pay more each month or each year.
How can I find a good deal on medical cannabis farm insurance?
Like any business, you want to find a good insurance provider that covers everything that you want to be covered while still offering value for money.
The first thing you can do is speak directly to insurance providers, who will give you a breakdown of their services. This can be a great way to get first-hand information. The downside is that it’s very time-consuming having to speak to numerous providers to find the best deal.
A better way of finding a good deal is to speak to a specialist insurance broker. Park Insurance can take your information, establish your needs, and use our expertise to navigate hundreds of providers and find an insurance policy that meets your requirements precisely.
If you want to insure your medical cannabis farm, speak to one of our experts today.