Guidance

Industrial hemp licensing: factsheet

Updated 18 December 2024

This factsheet represents the Home Office’s view on the domestic control measures applicable to so-called ‘low THC’ cannabis cultivation (industrial hemp). It is intended as a resource for existing licensees and prospective licensees who may need to apply for a licence, having fully assessed any proposals they may wish to make in the context of this guidance. All should note the limitations for which a licence may be granted under the industrial hemp policy, namely for production of non-controlled hemp products from fibre and seed only.

There are 2 separate licensing regimes relating to cannabis cultivation, according to whether the varieties cultivated (high or low THC (as differentiated in the Misuse of Drugs (Fees) Regulations 2010)) and, for ‘low THC varieties, the intended ‘end use’. This factsheet may also be read in conjunction with published guidance relating to cannabis, CBD and other cannabinoids.

Important note: This is intended as general guidance only; it is not legal advice. Anyone in doubt should seek their own independent legal advice to ensure they are compliant with any relevant legislation.

General legislative position and existing licensing arrangements

Cannabis is a Class B controlled drug under Part II, Schedule 2, of the Misuse of Drugs Act 1971 (MDA 1971). It is also listed in Schedule 1 to the Misuse of Drugs Regulations 2001 (MDR 2001) and designated under the Misuse of Drugs (Designation) (England, Wales and Scotland) Order 2015 (2015 Order).

As such, it is unlawful to possess, supply, produce, import or export this drug except under a Home Office licence. It is also an offence to cultivate any plant of the genus cannabis except under a Home Office licence.

So-called low-THC ‘industrial hemp’ licensing and use of non-controlled parts of the cannabis plant (seeds and fibre) in products

The regulatory/licensing controls identified above apply to cannabis plants cultivated for the production of drug material (for example, hemp fibre or oil). Cultivation or possession of cannabis plants cannot lawfully be undertaken without the requisite Home Office licence.

Home Office policy provides that licences may be issued for the cultivation of cannabis plants with a low tetrahydrocannabinol (THC) content for the production of hemp fibre for industrial purposes or the obtaining of seeds which are then pressed for their oil. For both of these uses, licences are granted to enable the use of non-controlled parts of the plant (that is, seeds and fibre/mature stalk only).

This policy is only applicable where non-controlled parts of the plant are used and does not allow for use of ‘green’ material - that is, the leaves and flowers as these are controlled parts of the plant.

Applications for low THC cultivation licences made beyond the scope of this policy - that is, seeking to produce so-called CBD oils from controlled parts of the plant - will not be considered under this licensing provision as they do not fit with the applicable policy, irrespective of what ‘variety’ of cannabis is intended to be cultivated.

There needs to be a defined commercial end use and the Home Office only issues licences for cultivation of plants from approved seed types with a THC content not exceeding 0.2%.

The ‘0.2%’ reference is used solely to identify varieties which may potentially be cultivated, within the scope of this policy, and to differentiate between the fee level is applicable under the Misuse of Drugs (Fees) Regulations 2010.

The Hemp (Third Country Imports) Regulations 2002 also require, except in specified circumstances, that hemp from ‘third countries’ be imported under a licence and, in the case of hemp seeds other than for sowing, under an authorisation.

Growing cannabis (industrial hemp)

A licence is required to cover both cultivation and possession.

The genus cannabis is a controlled drug in Class B of The Misuse of Drugs Act 1971 (MDA and Schedule 1 of The Misuse of Drugs Regulations 2001).

Under these regulations, a licence may be issued authorising cultivation.

Low THC cannabis grown for the commercial production of industrial hemp fibre or the pressing of seed for oil are purposes for which licences may be issued where- after harvesting- non-controlled parts of the plant are used and controlled parts of the plant are retted at the licensed location or otherwise lawfully disposed of.

Each grower must be individually licensed.

Applying for a cannabis (industrial hemp) licence

You can apply online through the Home Office Drugs Licensing website.

We do not accept applications by post or email.

The process for making a licence application

We have produced a dedicated application form for industrial hemp cultivation licences and a downloadable application guide to help you complete the application.

In summary, you need to:

• ensure you are applying within the application window as outlined on our website

• obtain an ‘iCasework web app’ login

• apply for your enhanced DBS check using the links available on the Home Office website, ensuring the Home Office is noted as the relevant body

• provide payment details for the licence fee, when contacted by the Home Office (see Fees below)

• fully complete and submit the application form via the web portal

• if you have held a licence with us before, ensure you have submitted your annual grower statements previously

• record and retain your application reference number

Uploading documents

The following information must be uploaded when submitting an application:

• aerial photos and site maps which identify the OS grid references and field numbers (not applicable to owner occupied or whole-farm tenanted farms or those that rent a field from a farm)

• photos or images of the perimeters of the fields (not applicable to owner occupied or whole-farm tenanted farms or those that rent a field from a farm)

• photos or images of your record keeping documents

Fees

There is a fee payable for a low THC content cultivate/possess licence. A new licence application to cultivate cannabis with a THC content of 0.2% or lower will cost £580. If you have previously grown in the season prior to your licence expiring, the ‘renewal’ fee of £326 will apply. If a compliance visit is required the fee will be £1,371 but we envisage most applications will not need a visit.

The fees structure for activities fitting within the industrial hemp policy is considerably lower than a new licence application to cultivate high THC cannabis or use controlled parts of the plant of so-called ‘hemp’ varieties which costs £4,700 and recognises the light touch licensing regime applied. Fee levels have been calculated on a full-cost recovery basis and will be periodically reviewed.

How to pay the fees

Payment information must be provided to enable the application to be submitted, but payment is not taken at that stage.

Assuming your application is approved in principle, we will issue you an invoice by email for immediate payment via our Shared Service Centre.

Licences will not be issued without payment being received.

If you cultivate before paying for, and receiving your licence, you will be doing so unlawfully.

The light touch regime

This refers to the proportionate processes by which licence applications fitting within this policy are generally considered on the papers; and reflects the fact that in the vast majority of applications we do not expect to have to undertake a site or compliance visit.

Restrictions on planting crops

Farm locations

Licence holders running a farm business or an owner occupied or whole farm tenancy basis can grow hemp anywhere ‘within the extent’ of a farm. Licensee(s) renting a field under a bare rental agreement can grow anywhere within the extent of the farm where the land is rented from, but the licence will only cover the land stated in the bare rental agreement. In short, the bare rental agreement can be varied for different fields on that farm, without needing to notify the home office.

Non-farm locations

In recognition of hemp fibre becoming a more widely used industrial crop, we do not wish to be prescriptive. However, crops should be sited sensitively in locations away from schools, public rights of way or vehicular access and not drawing attention to it.

Informing us where the seed is planted and if this changes

EU/UK ‘approved’ seed varieties, subject to any UK marketing restrictions, of less than 0.2%THC must be sown. We intend to issue the licence itself to cover a whole farm location so we should not need to amend the licence itself, so long as cultivation remains within the extent of the individual farm or the ‘registered extent’.

However, in some cases we may state specific cultivation locations within a premises on the licence and you must keep to these. If you wish to grow in an alternative location, you must submit a new application setting out the alternative locations.

Renting land on an adjacent farm will need to be separately licensed and specifically documented on the licence, so, if you are cultivating across 2 or more farm locations, you must obtain a separate licence.

You should inform your local police of your growing locations.

How long a licence is valid for

Licences for outdoor cultivation of industrial hemp for use of the non- controlled parts of the plant only are typically issued with a validity of 3 growing seasons - so for up to 3 years’ validity.

Licenses for the cultivation of low-THC hemp are always issued to expire on 31 December. If a licence application is approved on 31 March 2025, we would issue a licence to expire on 31 December 2027, covering 3 growing seasons.

However, if an application is made late and approved on 31 July 2025, a grower may lose the benefit of that growing season as a licence would be issued to expire on 31 December 2027.

It is therefore in growers’ interests to ensure applications are submitted in a timely fashion.

If there are substantive changes to a licence - for example amending growing locations outside of your farm’s extent - a fee will be payable for this change as a new licence will need to be issued.

Licences expire on 31 December of the relevant year. If a grower applies for a further licence the conditions or validity of the previously issued licence does not continue whilst a ‘renewal’ application is pending, irrespective of whether the application was made before the previous licence expired.

Special requirements for 3 year licences

Holders of a multi-growing season licence will be required to complete an ‘annual licence review statement’ at the start of growing season. The deadline for completion will appear on the downloadable returns form. Completion and submission of this proforma will be a mandatory requirement of the licence and without submission a licence may be revoked.

As part of this process, you are required to provide details of the records you have kept for the previous growing season relating to cultivation areas, sowing details and yields.

All relevant forms are available on our website.

DBS checks

Satisfactory completion of an enhanced DBS check has been a requirement applicable to all controlled drug and precursor chemical licence applicants.

A fee is payable for an enhanced DBS check.

Applications must be made via Security Watchdog (part of Capita PLC), and the Home Office Drugs Licensing must be noted as the registered body. If this process is not followed, any check completed elsewhere is not transferable.

Generally speaking, we will not ask you to obtain a further enhanced DBS check, where you obtained one for the purposes of drug licensing, within the last 3 years.

A DBS certificate should be obtained before you submit your application for a licence.

Rented land

The grower, as opposed to the owner of the land, must hold a Home Office licence.

The grower may wish to notify his or her landlord of the cultivation and is responsible for ensuring they are complying with the terms of their lease or rental agreement.

Where a grower has affiliations with any ‘companies’ their cultivation authority is not transferred to that company by virtue of a person’s association. The company must be appropriately licensed to lawfully possess any controlled materials.

Growing at multiple locations

Our approach to licensing is premises specific. We do not license multiple, physically separated premises on one licence. Each location must be properly and fully licensed. If you are growing within your farm extent, as a general rule this would be covered within your licence.

If you are growing at multiple locations, outside of your farm extent - for example renting land from a neighbour in an adjacent village - a separate licence will be required.

If you decide to cultivate on land outside of the address specified on your licence, you will need to submit an application to amend your licence. We may need to see copies of ‘bare land’ rental agreements.

When to apply

Any applicable application cut-off-dates will be placed on our website. Applications can be submitted immediately once the application window opens and early application is encouraged.

Please allow sufficient time for your application to be processed; you should allow a minimum of 4 to 6 weeks before you intend to sow.

Please note applications will not be processed if they are not accepted as ‘complete’. For an application to be considered as ‘complete’ all component parts must be in place, that is: DBS completed, field maps and photos provided, and all further information requested has been received etc.

Licences will not be issued until such time as the fee payment is received and time should be allowed for this process. Cultivation cannot lawfully take place until such time as a licence has been issued and growers should not sow until they hold a licence.

Contact Home Office - Drugs Licensing and Compliance

Please use our dedicated enquiry email in the first instance: [email protected] or you can contact us on our telephone number which can be found on our web page.