Cannabis is now Canada's fifth-largest commercial crop

Eight years after cannabis legalization, this plant has established itself as a major component of Canadian agriculture. According to Statistics Canada, cannabis generated more than $3 billion in agricultural revenue in 2025, making it the country’s fifth-largest cash crop.

These figures, reported by StratCann, illustrate the economic transformation of a sector that accounted for less than 1% of Canada’s total agricultural revenue before recreational legalization in 2018. Today, cannabis rivals well-established crops such as corn and soybeans, while surpassing durum wheat, barley, lentils, and tobacco in terms of agricultural revenue. In the United States, cannabis is now The 6th Commercial Culture.

From a Niche Crop to a $3 Billion Agricultural Industry

In 2016, cannabis cultivation generated only $94.8 million in agricultural revenue. After legalization, commercial production rapidly expanded, driving revenue to more than $1.4 billion in 2019.

Growth continued through 2022, when revenues exceeded $2.7 billion. After temporary declines in 2023 and 2024, the sector rebounded in 2025, reaching a new record of approximately $3 billion.

Cannabis now accounts for 5.8% of Canada's total agricultural revenue, thereby confirming its place among the country's most profitable agricultural products. These figures reflect the wholesale value of the harvested cannabis—including seeds, vegetative plants, and flowering tops—rather than the final retail price paid by consumers.

British Columbia and the Atlantic provinces dominate their agricultural markets

TheOntario dominates domestic production revenue, representing approximately 48%: Revenue from Cannabis Operations, or $1.5 billion in 2025. The British Columbia is followed by $666.5 million, or 22% of the national total.

Quebec contributes 12%, New Brunswick 10%, and Alberta approximately 3%.

Cannabis plays an even more significant role in several small provincial agricultural economies. In British Columbia, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador, cannabis ranked first among crops in terms of agricultural revenue in 2025.

In Ontario and Quebec, it ranked third, while traditional grains, oilseeds, and legumes continued to dominate the Prairie provinces.

Cannabis sales continue to rise

Farm income is just one aspect of the legal cannabis market in Canada. If processed products and medical channels are included, annual legal cannabis sales exceed 5 billion dollars, with the sector ranking third among crop categories in terms of value in the consumer market.

Retail sales reached new monthly records in May and June 2026, exceeding $500 million every month.

Although market growth has slowed compared to the early years of legalization, consumer preferences continue to evolve. Traditional cannabis flowers have gradually lost market share to pre-rolled, vaping products, and edibles.

Hemp cultivation is shifting toward seed production

Alongside recreational and medical cannabis, industrial hemp production is aware of its own transformation. Canada has grown approximately 15,380 hectares of hemp in 2025, representing a decrease of 2.5% compared with the previous year.

Seed production accounted for 84% of the total hemp crop, compared with 6% for fiber and only 3% for flowers.

The area devoted to hemp seeds has increased by 53% year-over-year, covering 12,859 hectares spread across 388 cultivation sites.

Cannabis contributes nearly 11.6 billion dollars to Canada's GDP

Beyond agricultural income and retail sales, the Canadian cannabis industry has become a major contributor to the national economy.

In 2025, the sector generated approximately $11.6 billion in GDP, of which 10.647 billion came from licensed cultivation and processing operations and 946 million came from authorized retailers.

The contribution of the manufacturing sector increased by 31% compared to 2024, while retail sales rose by 5%.