What assessment has the Welsh Government made of the potential economic value of industrial hemp cultivation in Wales for seed and fibre production?
The Welsh Government is supportive of farmers who wish to diversify into growing hemp for industrial purposes, provided that they acquire licences from the Home Office to do so.
The growing and/or processing of hemp is considered an eligible project for funding through our existing Agricultural Diversification and Horticulture Scheme. Capital grants of up to £100k are available for eligible applications, supporting investments associated with the growing of novel or alternative crops or investment to enable farmers to add value to an agricultural product or by-products.
In terms of the regulatory framework for hemp, the UK Government made changes to hemp licensing in 2024 to reduce the bureaucratic burden of growing it.
Regarding research into the industrial applications of hemp and government collaboration with research institutions, the Welsh Government supported the PHARMHEMP research partnership through the SMARTExpertise fund. The aim of this work was to make hemp a more valuable crop by increasing the amounts of compounds used to make a variety of food, health and pharmaceutical products.
Guidance for the growing of horticultural crops is provided through the Farming Connect – Horticulture Programme. Farmers wishing to grow hemp may seek advice from Farming Connect on the practicalities they will need to consider.