Hemp stakeholders buoyed by changes in UK, but tight restrictions remain

The UK government has extended the licensing period for hemp growers to six years and relaxed restrictions on where crops can be grown, as announced by the Home Office this week.

While the cost of permitting appears to have decreased from £906 to £580 for six years, the British Hemp Association (BHA) is seeking confirmation of this change. Currently, a first-time license for three years costs £580 and can be extended for another three years for £326. The new licensing system allows growers to delay planting start dates by up to one year.

Effective 2025

The changes, effective in 2025, mean farmers no longer need approval from the Drugs and Firearms Licensing Unit for specific fields and can plant hemp plots anywhere on agricultural land, according to BHA.

Farming Minister Mark Spencer stated, “The licensing changes recognize industrial hemp as a field-grown agricultural crop, allowing more farmers to add hemp to their rotations and sell their harvest to industries like textiles and construction.”

No flower growing

However, key restrictions remain in place. British hemp growers may only cultivate crops for grain and fiber, are not allowed to grow indoors, and cannot farm or process flowers without separate licenses for medical cannabis.

“Growers wanting to use controlled parts of the plant must obtain a cannabis cultivation license,” the Home Office stated. Such licenses for growing cost £4,700 while processors pay £6,019.

This leaves UK hemp growers excluded from the domestic CBD extracts market, estimated at $850 million, as well as the global export market worth billions.

0.2% THC threshold

While there is a proposal to increase the THC threshold to 0.3%, it currently stands at 0.2%, aligned with European standards abandoned by the EU in 2020.

“A higher THC threshold will provide more seed crop options for farmers and benefit the food industry,” said BHA.

Most hemp varieties being developed now have at least 0.3% THC, with many countries adopting 1.0% THC as the threshold between hemp and marijuana.

Right direction

Despite remaining restrictions, BHA sees the licensing and field location changes as positive steps.

“We welcome a more efficient system with less bureaucracy and a mature perspective on hemp farming,” said Nathaniel Loxley from BHA.

Encouraging farmers

The Home Office stated that the changes will support farmers and encourage investment in the industry. Currently, there are 136 hemp licensees in the UK, with less than 1,000 hectares of hemp fields in recent years.

The regulatory structure will still aim to protect the public from drug misuse, with cannabis remaining a controlled drug under the Misuse of Drugs Act 1971.