Former cannabis farm in Claresholm finds new life growing gourmet mushrooms, other produce

After sitting empty for several years, a former cannabis growing facility in Claresholm, Alta., has been taken over by a company cultivating gourmet mushrooms and other produce — a move the surrounding community hopes will foster economic growth in the area.

Devon Davidson, CEO of Hypha Farms, said the facility, which includes five greenhouses, was an ideal spot for the company's mushroom and produce operation.

"We were very lucky because we got into a greenhouse that fits our needs really well," he said.

Hypha Farms announced on social media last December it was moving operations to the former site of Custom Cannabis Inc.

The cannabis company was deemed bankrupt in August 2023, as reported by Insolvency Insider Canada. Since then, the facility has been vacant. 

Several cannabis companies have gone bankrupt or closed their facilities in rural Alberta in recent years, as across the country producers have struggled with market oversaturation, high overhead costs and competition with the black market, since legalization in 2018.

"There's been a number of purpose-built cannabis facilities that have unfortunately gone under and are being repurposed to other things," Davidson said.

"One of the biggest challenges was breathing life into a building that's been sitting vacant for multiple years."

In addition to the greenhouses, Hypha also plans to establish a retail space to sell its produce.

According to its website, Hypha Farms grows several varieties of mushrooms using an indoor vertical farming technique requiring less water and space than traditional farming methods.  

In addition to mushroom varieties like blue oyster, chestnut and lion's mane, it also grows a long list of produce, including greens, microgreens and peppers, Davidson said. 

Hypha got its start when Davidson and his brother Wayne started growing and selling mushrooms out of their garage in 2021.

"It just quickly gained momentum and we had to build into a larger space, which we did out in Mossleigh," he said.

From there, things kept growing, Davidson explained, and when the opportunity presented itself to move to a larger facility in Claresholm, they took it.