Regulation Minister David Seymour has announced the reform of regulations for the industrial hemp sector.

Cabinet has agreed to a package of changes to scrap the current licensing regime and replace it with a more practical, proportionate regulatory approach.

Industrial hemp is grown for food, oil, fibre and health products.

It contains very low levels of Tetrahydrocannabinol (THC), the main psychoactive compound in cannabis.

Despite its low risk profile, it has been heavily regulated for nearly 20 years.

Under the new settings:

• Industrial hemp will no longer require a licence to grow or handle.
• A clear THC threshold of less than 1% will distinguish hemp from high-THC cannabis.
• Hemp biomass, including flowers and leaves, may be supplied to licensed medicinal cannabis producers under strict conditions.
• Growers must notify Police before planting to avoid accidental enforcement and assist in controlling illicit cannabis activities.
• Growers must also notify MPI at the same time as Police.
• Hemp use remains restricted to fibre, seed, and oil, with additional permissions for medicinal cannabis supply as noted above.
• Existing food safety and medicinal cannabis requirements will continue to apply.

The new regulations will include safeguards to prevent misuse and ensure compliance.

The changes will reduce costs and give certainty to growers and investors, Mr Seymour says.

They are expected to generate a net present value (NPV) benefit of $7.5 million over the next 10 years. As the market continues to grow, the benefits will too – over 20 years, the NPV is estimated at about $41 million.

Mr Seymour says red tape for the sake of it costs growers money and limits innovation.

“New Zealand’s hemp industry has been treated like a criminal for too long.”

And:

“The industry has been held back by outdated, heavy-handed rules that treat growing low-risk crops like high-risk drugs. That ends now.”

Implementation of these changes will be led by the Ministry of Health who will draft the new regulatory settings with the Parliamentary Council Office.

Source: Minister of Regulation