A recent report published by the Home Office on GOV.UK confirms that hemp licensing changes will enhance the economic and environmental potential of the high-demand crop. Revisions made to industrial hemp licensing will aid regulated British farmers in cultivating the medicinal plant, garnering global interest for its abundant therapeutic properties, e.g., anxiolytic, analgesic, antiemetic, anti-inflammatory, and antioxidant.

On top of this, hemp licensing amendments will fuel the British economy by encouraging industry investors to participate in the growing industry via a simplified application process. Home Office members emphasize that the public will continuously be shielded from drug misuse despite the rise of cannabis-based medicines.

Hemp is distinguishable from “marijuana” because of its tetrahydrocannabinol (THC) content. The non-psychoactive cannabis variety contains less than 0.2% THC - a psychoactive compound that makes users feel “high.”  Various other medicinal cannabinoids (plant compounds) may exist in specific strains of hemp, including cannabigerol (CBG) and cannabinol (CBN).

The non-psychoactive plant harbors numerous uses in diverse applications, including various construction and textile projects. Developers in these industries aim to reduce climate change via reduced carbon footprint development strategies. Hemp is also widely cultivated across the United Kingdom (and around the world) for medicinal purposes, including the production of CBD-based medicines to treat epilepsy and other debilitating medical conditions.

Obtaining a farming license is imperative to ensure the safety of this tightly regulated market, which is still in its nascent stages. It is illegal to cultivate hemp for use or sale outside of the medical field in the U.K. The Government's primary motive for this is to prevent drug misuse among people of all ages, particularly underage consumers.

Nonetheless, myths portraying cannabis as a gateway drug have been dispelled by researchers who published their findings in the journal Psychological Medicine on January 5, 2023.

Permissible THC Levels for Industrial Hemp in the U.K. Could Rise

The British Government has also requested that the Advisory Council on the Misuse of Drugs divulge advice regarding the permissible levels of THC contained in industrial hemp varieties. Specifically, governmental members want to raise the legal THC level to 0.3%.

If the Council agrees, the revised law will not disrupt the country's existing cannabis control laws. Currently, cannabis is categorized as a Class B controlled drug under Part 2 of Schedule 2 in the Misuse of Drugs Act 1971. Despite the proposed changes, the Government stressed that it is not an invitation for members of the public to avert law enforcement charges if they are caught in possession of or supplying cannabis.

A no-tolerance approach will be taken in such instances since cannabis possession is an enforceable criminal offense. The maximum sentence for individuals caught carrying cannabis is five years behind bars, a financial penalty, or both. Supplying the plant is deemed more serious, with guilty offenders facing up to 14 years incarceration, a fine, or both.

“This government will always seek to reduce unnecessary regulatory burdens placed on businesses so that they can flourish and grow,” said the Minister for Crime and Policing, Chris Philp. “The changes outlined today will help farmers and manufacturers in the U.K. to fully realize the economic potential offered through the safe and legal cultivation of hemp.”

Phill's views are shared by Farming Minister Mark Spencer, who told reporters that the British industrial hemp market has immense potential countrywide. He noted that the industry will “unlock new revenue streams, expand our bioeconomy without permanently removing land from food production, and bring wider environmental benefits.”

The newly announced licensing amendments position industrial hemp as a “field-grown agricultural crop and will enable more farmers to add hemp to their crop rotations, sequester carbon, and sell their harvest to the textile and construction industries,” added Spencer.

Home Office’s “Industrial Hemp” Licensing Regime Permits Outdoor Growing

Permit holders will not be allowed to cultivate hemp inside greenhouses or indoor cultivation facilities. Instead, they will need to grow plants in nature. So long as the farm is licensed, registered growers can plant their seeds there for leaf, stem, flower, fiber harvesting, and seed production.

A standard cannabis cultivation license enables growers to perform these lawful agricultural tasks. Most growers are seeking opportunities to produce pharmaceutical goods using British-grown hemp. Products of this kind must undergo strict lab testing to ensure purity, potency, safety, and composition.

Since 2013, when six hemp licenses were issued across Great Britain, the number of licensees has grown by 130. This is based on data gathered in 2023 and is likely higher now. The cost for a first-time license (valid for three growing seasons) is £580. 

According to the Managing Director of the British Hemp Alliance (BHA), Rebekah Sharman, the updates to hemp licensing is described as a “game changer”, especially for farmers intent on growing hemp as part of a rotational crop cycle. Sharman says the licensing revisions indicate a new window of opportunity for farmers, the environment, and the bioeconomy.

“The BHA is delighted that the Home Office and Defra recognize the potential of this important crop for the environment and for creating sustainable products, including construction, energy, and food. By removing some of the regulations holding back the U.K. hemp industry, it can now become a more competitive force in this space,” expressed Sharman.

“We hope the ACMD will also acknowledge the potential economic and environmental benefits of the hemp industry by raising the THC levels to 0.3% so that we are in line with both the USA and Europe.”

CBD Growth is Fueling Demand for Agricultural Hemp Projects

An expanding realm of research elucidates the therapeutic benefits of hemp-derived cannabinoids (primarily CBD) for noncancer-related chronic pain, including pain caused by arthritis, fibromyalgia, and neuropathy. Hemp-sourced CBD further earns its spot in the medical limelight as a safe and effective anticonvulsant.

The unique hemp compound minimizes neuron excitability in epileptic patients by influencing the brain's G protein-coupled receptor 55 (GPR55). CBD also outshines most cannabinoids for its anxiolytic effects, with researchers clarifying that the non-psychoactive compound’s anti-anxiety behavior is most efficient in 300 mg doses.

Since CBD products are on the rise, it's understandable why demand for hemp production is skyrocketing. According to data gathered by analysts at Statista, the value of CBD products in the United Kingdom is forecast to surge by 0.37% from 2024-2029. resulting consequently, this will amplify market volume to GBP£260.4 million by 2029.

Industry experts attribute the intensifying demand for the U.K. CBD products market to increasing awareness and acceptance of cannabis-based medicines and related products. According to a recent report from Market Research Update, Europe's industrial hemp market was valued at US$ 4.7 Bn in 2022 and is on track to inflate to US$ 18.1 Bn by 2031, expanding at a CAGR of 16.1% from 2023-2031.

(Get a free sample of Market Research Update’s report on the European industrial hemp market here: https://www.marketresearchupdate.com/sample/412125)

Applying for a Hemp Cultivation License in the U.K

Hopefully, hemp cultivators in the UK will be advised to review the industrial hemp application guidance information published by the Home Office. The details in this online guide aim to simplify the application process to ensure prospective growers submit the necessary information in the correct format. Applicants have been able to submit forms for hemp cultivation licenses since Tuesday, 2nd January 2024.

Although hemp is an affordable crop to produce, growers have previously been deterred by the licensing process. Fortunately, the process has now been simplified. The proposed changes stipulate that hemp cultivation license holders can legally cultivate the plant anywhere on a licensed agricultural site.

License extensions will be valid from 3 to 6 years, contingent on a farmer's compliance with the license terms. After obtaining a license, farmers can wait a maximum of one year before growing the plant. The recently announced proposals are predicted to be effective for the 2025 growing season.

For additional insights and guidance regarding the application process, visit the Government’s website at https://www.gov.uk/guidance/controlled-drugs-industrial-hemp