New Zealand eliminates licensing requirements for growing industrial hemp: "Simplifying bureaucracy so that the hemp sector can flourish," says the government.

New Zealand is today taking a decisive step towards modernizing the legal framework for industrial hemp, with the Minister of Regulation announcing a profound reform that eliminates the need for mandatory licenses and reduces the bureaucratic burden imposed on producers. The decision is seen by the sector as a "historic milestone," the result of years of joint pressure. The THC limit will be set at 1%, and the commercialization of biomass will be permitted.

“The hemp industry in New Zealand has been treated as a criminal activity for far too long. The sector has been hampered by outdated and authoritarian rules that treat the cultivation of low-risk plants as if they were high-risk drugs. This ends now,” said David Seymour.

The package of measures announced by the Minister of Regulation, David SeymourThis eliminates the licensing regime, establishes a THC limit of 1% to define what constitutes industrial hemp, allows biomass to be supplied to licensed medicinal cannabis producers, and maintains only the obligation to notify the authorities before cultivation, simplifying the entire production process. The Ministry of Health will be responsible for conducting the next legislative steps until the new framework formally comes into effect.

“The hemp industry in New Zealand has been treated as a criminal activity for far too long. The sector has been hampered by outdated and authoritarian rules that treat the cultivation of low-risk plants as if they were high-risk drugs. This ends now.”

The government has approved a package of changes to abolish the current licensing regime for industrial hemp and replace it with a more practical and proportionate regulatory approach. “Simplifying bureaucracy so that the hemp sector can flourish” is the title of the official communication.

New Zealand Deputy Prime Minister David Seymour announced progressive measures for hemp. Photo credit: RNZ / Nate McKinnon

“This is important for New Zealand hemp companies because excessive bureaucracy costs producers money and limits innovation. The proposed changes are expected to generate a net present value (NPV) benefit of NZ$7,5 million over the next 10 years. As the market continues to grow, the benefits will also increase. Over 20 years, the NPV will be around NZ$41 million,” says David Seymour.

The changes also aim to reduce costs and provide security for producers and investors. “We continue to reduce bureaucracy to give businesses the best chance of success. Peer-reviewed analyses estimate that the Ministry of Regulation’s work in its first 18 months will deliver a net public benefit of NZ$223 million to NZ$337 million. The return on investment is substantial, with an expenditure of approximately NZ$20 million,” states the government announcement.

"Despite its low risk profile, [hemp] has been heavily regulated for almost 20 years. Common sense dictates that this is absurd."

“Industrial hemp contains very low levels of THC and is grown for food, oil, fiber, and health products. Despite its low risk profile, it has been heavily regulated for almost 20 years. Common sense dictates that this is absurd. This is yet another example of why New Zealand needs the Regulatory Standards Act. If the law had been in place when these regulations were created, it would have been possible to understand the low risks that these absurd regulations aimed to 'mitigate'. Until now, however, the disproportionately high costs of regulating the use and marketing of industrial hemp have been concealed,” says the Deputy Prime Minister.

According to the new rules:

• The cultivation and handling of industrial hemp will no longer require a license.
• A clear THC limit of less than 1% will differentiate hemp from cannabis with high THC content.
• Hemp biomass, including flowers and leaves, may be supplied to licensed medicinal cannabis producers under strict conditions.
• Producers should notify the police before planting to avoid accidentally involving law enforcement and to assist in controlling illegal cannabis-related activities.
• Producers must also notify the MPI (Ministry of Primary Industries) simultaneously with the police.
• The use of hemp remains restricted to fiber, seed, and oil, with additional permissions for the supply of medicinal cannabis, as mentioned 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 New Zealand Hemp Industries Association welcomes the new measures.

The reform is seen as an important victory for the New Zealand hemp industry, which for years has denounced excessive obstacles and a lack of proportionality in the previous legislation, pointing to this modernization as essential to fostering innovation and competitiveness in the country.

Photo Credit: RNZ / Nate McKinnon

A NZ Hemp Industries Association Inc (NZHIA) already reacted In response to the announcement, the organization emphasized the importance of the moment for all those who contributed to the development of this industry. In an official statement, the organization highlighted that it had established “a milestone for all those who have worked to grow New Zealand’s industrial hemp sector,” noting that the announcement made in Ashburton by the Minister for Regulation, David Seymour, represents “a long-needed change.”

According to the association, this outcome “is the result of years of collective effort, consistent advocacy and the expertise contributed by farmers, processors, researchers and companies across the sector”. NZHIA further adds that the changes approved by the Government “will significantly reduce compliance burdens and create a more practical regulatory environment for low-THC industrial hemp”.

The innovative approach of the New Zealand government

In a surprising move for the international hemp industry, the New Zealand government may set a paradigm for how to regulate the sector.

“In a high-cost economy, regulation is not neutral – it’s a tax on growth. This government is committed to eliminating unnecessary regulations and improving how laws are made,” said David Seymour.

“Bad regulations have real consequences for real people. People work hard to earn a living. Now, with the Regulatory Standards Act, there will be oversight of those who harm them with bad regulations. The public will be invited to participate in Cabinet meetings. They will be able to see how politicians make decisions and based on what advice. If people don't like what they see, they can express their opinion at the ballot box.”

Watch the video of the official press conference of the New Zealand Minister on hemp at RNZ news website.

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Laura Ramos

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With a degree in Journalism from the University of Coimbra, Laura Ramos has a postgraduate degree in Photography and has been a Journalist since 1998. Winner of the Business of Cannabis Awards in the category "Journalist of the Year 2024", Laura was a correspondent for Jornal de Notícias in Rome, Italy, and Press Officer in the Office of the Minister of Education of the 21st Portuguese Government. She has an international certification in Permaculture (PDC) and created the street-art photography archive “Say What? Lisbon” @saywhatlisbon. Co-founder and Editor of CannaReporter® and coordinator of PTMC - Portugal Medical Cannabis, Laura directed the documentary “Pacientes” and was part of the steering group of the first Postgraduate Course in GxP's for Medicinal Cannabis in Portugal, in partnership with the Military Laboratory and the Faculty of Pharmacy of the University of Lisbon.

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