The Home Office recently made changes to its licensing framework for the industrial hemp industry. The United Kingdom was one of the first countries to permit industrial hemp cultivation in 1993. Despite this, strict rules have long impeded farmers’ ability to meet the growing demand for hemp from different industries.
The new amendments highlight a change in the government’s stance on the burgeoning hemp industry, with industry insiders noting that the government listened to concerns on regulation.
In a recent press release, the country’s farming minister, Mark Spencer, stated that industrial hemp had great potential to unlock new revenue streams in the United Kingdom, bring extensive environmental benefits and expand the country’s bioeconomy. Spencer added that the recent changes recognized industrial hemp as an agricultural crop, which could allow more farmers to include hemp in their crop rotations and sell their harvest to the construction and textile industries.
These changes were developed in collaboration with experienced cultivators and shall take effect in the 2025 growing season. They focus on where hemp can be planted and grown, with license holders now being able to cultivate the crop anywhere on a licensed farm. This will enable farmers to plan their rotations more effectively, helping manage pests as well as soil health.
Another change allows hemp growers to apply for licenses with a future start date. This will enable growers to make future plans easily. The maximum license durations have also been extended to six years from the previous three years.
Currently, hemp cultivation is controlled by the licensing regime under the Home Office. The regime allows the production of seed and fiber from industrial hemp. The regulations note that there has to be a defined commercial end use for hemp seeds. Furthermore, the Advisory Council has been requested by the UK government to offer advice on whether THC content in varieties of industrial hemp could be increased to 0.3%. All seeds produced currently must be obtained from permitted strains with a less than 0.2% THC content.
The British Hemp Alliance applauded the changes to the licensing framework, noting that they were a game changer for hemp cultivators. With these changes, farmers’ confidence to grow the crop may improve, and processors shall have the assurance to get into long-term supply contracts.
The latest data shows that the number of hemp licenses issued in the United Kingdom in the last 10 years have increased to 136 from 6.
Many cannabis companies such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) could take an interest in the regulatory changes taking place in the UK because opportunities to sell hemp-based medicinal products could open up in the near future.
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