The Victorian Government has thrown its support behind proposals to cut red tape for the state’s hemp industry.
Responding to a report lodged in November following the 2023 hemp inquiry, the government said it supported six of nine recommendations “in principle”, two “in full” while one was “under review”.
Among the suggested reforms backed by the ruling Labour party was a call to streamline licensing requirements and to clearly differentiate industrial hemp from medicinal cannabis.
It also pledged to investigate the creation of standalone legislation for hemp and to lobby the federal government to allow for the use of the whole plant, including for CBD extraction.
The only recommendation not to receive backing concerned the formation of a cooperative to support hemp farmers and manufacturers.
The government said it “does not yet have the evidence required to review the merits of a hemp cooperative” .
The inquiry was instigated by Legalise Cannabis MPs David Ettershank and Rachel Payne in May last year with the wide-ranging remit of exploring the issues, barriers and opportunities facing the sector.
Payne, who sat on the Legislative Council’s Economy and Infrastructure Committee, welcomed the response.
“I’m delighted to hear that the Allan Government will back many of our findings, for example considering stand-alone legislation similar to other states and committing to simplify the licensing process,” she said.
“Farmers must currently apply for a costly licence and go through police checks and fill out a detailed form. They are hamstrung. The government will now task Agriculture Victoria with streamlining this.
“Also, hemp products will be defined as Rural Industry in the Victorian Planning Provisions – another win for farmers, because it gives them the option of processing hemp on their properties.
“This means they can make anything from hemp soap to hemp fabric. Previously hemp was an ‘industry’ product meaning it had to leave the farm for processing.”
But she repeated calls for a cooperative to be established, arguing that those in Gippsland to the east of the state – who once relied on native timber logging – could set up hemp processing hubs.
“This would create jobs and financial stability for the former logging communities of eastern Victoria, as industrial hemp is another chip and pulp industry,” Payne said.
She added: “I also want to know how the Victorian Government will advocate to the Commonwealth to support the hemp industry.
“This includes changes for the whole of plant use, including CBD extraction and recognising hemp in a carbon credits scheme.”