Grow Victoria’s Hemp Industry

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LET’S SOW THE SEEDS OF VICTORIA’S FUTURE

From textiles to food, bioplastics, construction materials, and biofuel — hemp has been around for thousands of years and has been used in thousands of ways.

Fast-growing and pest-resistant, hemp is good for people, for businesses and for the planet. Hemp is great for storing carbon and works as a strong, non-toxic building material called hempcrete.

Unfortunately, strict regulations have slowed its environmental, social, and economic benefits. This fledgling industry needs investment, not roadblocks!

With many parts of Victoria offering the ideal conditions for hemp farming and growing global interest for products made from hemp, the economic potential for hemp farming and manufacturing is seemingly exponential.  

Following the findings of the Inquiry into the Industrial Hemp Industry in Victoria, which we established, there are many ways to ensure our laws better support this vital industry.

RED TAPE IS HOLDING HEMP BACK

In Victoria, farmers must get a license to grow hemp. The application takes a long time, costs money, and involves regular crop checks. Farmers also can’t make hemp products like soap or hemp seed biscuits on their farms. Instead, they must send the crop to an industrial site for processing.

Meanwhile, countries around the world are unlocking hemp’s potential. The global market for industrial hemp is expected to reach $18.6 billion by 2027.

We lobbied hard for the state to investigate the barriers to and rewards of more hemp cultivation. Parliament’s Economy and Infrastructure Committee ran an inquiry, and in late 2023, it released a report on Victoria’s hemp industry. 

It recommended a raft of changes, including standalone industrial hemp legislation (hemp-specific laws) to make it easier for to grow crops.  Victoria, unlike most other states, does not have standalone legislation. Not surprisingly, the state only has six hemp licence holders and much of what we produce is sent overseas for processing.   

WE ASKED PARLIAMENT TO ACT

In May, we introduced an Industrial Hemp Bill to parliament calling for a standalone act, and other changes like streamlining of licenses, and an adjustment to allow on-farm processing.  

From the final report of the Hemp Inquiry

Ahead of the bill debate, we held a hemp showcase in the parliament building so ministers, MPs and their staff could see, touch and smell a range of useful (and beautiful) hemp products – clothes, shoes, hemp seed foods, soaps, shampoos and building materials like wall panelling and super strong hempcrete beams. They loved it and spoke about our showcase during the bill debate. 

The government wanted more time to officially respond to the report, so we didn’t ask the Upper House to vote on our bill at the time. Then in June, the government came back. It gave ‘in principle’ support to six of the nine proposals in the report, including standalone hemp legislation — ‘in principle’ support means the government is still thinking how it could introduce these, but the minister did promise to fully implement two recommendations. 

The government then instructed Agriculture Victoria to make licensing easier and allow hemp products to be made on farms. This is great news for small businesses. It means famers can value add to their crop on-farm and walk away with more cash in their pocket. 

WHAT HAPPENS NEXT?

Legalise Cannabis are now pushing for the government to provide funding to set up a hemp processing co-operative in Victoria.  How great would it be if communities that once relied on native timber logging could set up hemp processing hubs in a hemp co-operative?

Hemp building materials could help build new homes and ease the housing crisis. A hemp co-op could also create jobs and financial security for former logging communities in eastern Victoria, as hemp can supply the chip and pulp industry.

And we’ll keep asking the Victorian Government to lobby the Federal Government to support a national hemp industry, including changes for whole plant use, so hemp farmers can extract any medicinal cannabidiol and sell it. 

Related Resources

> 02/05/23 Media Release: From concrete to cars, hemp is the future
03/05/23 Motion for an Inquiry into Industrial Hemp (Rachel Payne)
> The motion has passed – so what happens next? An explainer by Rachel Payne

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