The European hemp cultivation has gone up over the last several years, making room for many interested U.S. stakeholders to join the growing market.
The U.S. Department of Agriculture USDA addressed the hemp industry boom in the EU in its recent report European Union: Market Trends and Regulations for Industrial Hemp in the European Union. One of the motivations behind the hemp trend is to reduce fossil fuels and carbon-intensive products.
Hemp cultivation offers a range of environmental benefits including carbon storage, erosion prevention, increased biodiversity, low to no pesticide requirement, and breaking disease cycles in crop rotation, according to the report. The hemp plant's dense leaves create a natural soil cover that can reduce water loss and protect against soil erosion. In terms of biodiversity benefits, the hemp plant's flower cycle produces large amounts of pollen, which supports the pollination of other crops. U.S. stakeholders welcome Under These Conditions.
There is an economic side to the coin as well.
According to the EU's approval of a Common Agricultural Policy, which is expected to take effect in early 2023 and last for four years, hemp farmers are eligible for an electronic transfer of funds to make payments for certain varieties. The report stated that hemp contains up to 0.3% THC by dry weight.
There are exceptions. It is possible to plant hemp with THC levels over the EU limit if it is authorized by national regulations, the report continues, while urging U.S. stakeholders to pay attention to hemp regulations that vary from country to country.
The USDA said that EU Member States may apply more restrictive rules. Seed harvested in the EU must comply with EU rules and requirements regarding seed production, certification, labeling, and packaging. The EU legislation does not protect the marketing of propagating material of hemp. Europe is making progress on the cannabis side as well. While medical cannabis companies are flourishing in countries like Germany and Portugal, several European countries have gathered earlier this year to weigh in on the possible challenges on a path to recreational marijuana legalization.
The first meeting attended by lawmakers from Germany, Luxembourg, Malta and the Netherlands is one of many planned multilateral discussions focused on future cannabis regulations. There are officials from other countries in the European Union who may be able to participate in future summits.