From building materials to food and nutrition hemp is a crop that is capturing the imagination. It is finally being supported by governments to become a crop that can drive innovation across a wide range of industries.
The NSW government is coming on board and Lauchlan Grout, CEO of Hemp Farms Australia (HFA) says that NSW government’s draft industry plan, that sets a blueprint for developing an industry that could be worth $100m by 2032, is a monumental step forward.
‘By modernising outdated regulations and supporting industry growth, they are unlocking a $100m opportunity for regional farmers, innovators and communities,’ he said.
‘It is visionary leadership like this that will position NSW and Australia at the forefront of a global hemp renaissance.’
Industrial hemp provides healthy hemp seed for human and animal consumption, while its fibres are in increasing demand for clothing, hempcrete and other construction uses. In 2023/24, there was just 1,350ha of NSW crop production; even though 33,000+ ha was approved for harvest.
Nimbin-based President of the Legalise Cannabis Australia Party (formerly HEMP) and Nimbin HEMP Embassy, Michael Balderstone agrees that it is time for Australia to step forward and embrace hemp and all the advantages it can deliver.
‘Our climate is perfect for growing all types of cannabis which loves the sun and needs a lot less water than other crops like cotton. I don’t know of one mill in the country that processes hemp into cloth for example. The potential for high protein hemp seed production is another industry still in a fledgeling state,’ he told The Echo.
This draft plan seeks to change that and establish hemp as a mainstream crop,’ Mr Grout said. ‘It couldn’t come soon enough.’
The draft plan proposes that the state identifies opportunities to increase private sector investment in cultivation, and to add value, and will work to empower Aboriginal businesses to enter the industry.
Mr Grout, who is also vice-president of the Australian Hemp Council, highlighted the value of locally-developed hemp varieties. ‘Australian-bred industrial hemp strains are tailored for our unique climate, providing higher viability and better agronomic performance compared to imported seeds,’ he said.
‘Locally-bred genetics deliver superior resilience, yield and biosecurity advantages that imported seeds simply can’t match. This is how we ensure farmers are truly future-proofed.’
He added that, with the possibility of more future weather events driven by climate change, incorporating hemp could offer cropping continuity for broadacre farmers.
‘The HFA varieties are specifically bred to deliver optimal harvests for fibre or health-giving hemp-seed,’ he said. ‘Industrial hemp isn’t just an economic powerhouse, it’s a climate solution.
‘With extreme weather events becoming more frequent, hemp’s resilience and its ability to sequester carbon make it an essential crop for a sustainable future. Large-scale planting of industrial hemp provides additional environmental benefits, including significant carbon offset potential,’ Mr Grout said.
‘This dual role, both in soil remediation and carbon sequestration, positions Australia to lead in the development of biomass-based remediation technologies.’
Objectives detailed in the NSW draft plan are: farmers having access to hemp varieties suited to their production environment, processing and value adding infrastructure accessibility across production areas. building consumer confidence in and awareness of hemp products, the NSW regulatory environment continues to support hemp industry.
Mr Grout noted that ‘stimulating private investment in not just about cultivation, but also in advanced processing, breeding innovation and value-adding technologies. This is how NSW can create a true paddock-to-product supply chain that is globally competitive.’
We strongly support the plan’s focus on empowering Aboriginal businesses and building regional processing infrastructure,” Mr Grout said. “A thriving hemp industry must be inclusive, decentralised and designed to deliver lasting benefits to local communities. Momentum is everything, he said.
‘The draft plan sets the right tone, but timely action will be critical. Global markets are moving fast, and NSW can lead if we move decisively.’
The NSW plan can be found here Draft NSW Hemp Industry Development Plan.
NSW DPIRD is seeking industry and stakeholder feedback on the draft plan by completing the survey available on the Have Your Say website or by emailing [email protected].
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