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EU Proposal to Recognise Hemp Flower as a Crop in Landmark Shift for Industry

The European Commission (EC) is considering a major overhaul of regulations surrounding hemp across the Union, potentially marking a step change in how hemp is recognised, traded, and funded.

Should the proposals be brought into law, from 2027, the entire hemp plant, including flowers, would be recognised as an agricultural product, not just the seeds and stems, and THC limits could rise to 0.5%.

In a nutshell, this would not only provide much-needed legal clarity for hemp farmers and traders, but by recognising hemp flower, leaves and extracts as agricultural products, grant farmers far greater access to the €55bn a year ‘Common Agricultural Practice’ (CAP) subsidies pot, which represents over a third of the entire EU budget.

While these proposals are promising for hemp-focused businesses throughout the economic bloc, this legislation must now navigate the complex and highly bureaucratic maze of the European Parliament.

What happened?


Every seven years or so, the EC revamps and reworks its vast financial budget for EU member states, in what’s called a Multiannual Financial Framework (MFF).

Currently, the commission is working on a new budget ahead of the next revision in 2027, setting out provisions ‘with which the annual budget of the EU must comply’, and setting ‘expenditure ceilings for broad categories of spending’.

On July 16, the EC published details of the upcoming changes to budget and spending commitments it is proposing for the next seven years (2027-2034).

Historically, the CAP, which is designed to support farmers and ensure a stable supply of affordable food across Europe, has represented the largest single component of the EU’s annual budget, but its share has declined from around 70% in 1980 to approximately 25% in 2023.

This year, in a controversial step, agricultural budgets have been slashed by around €86bn as more money is funnelled towards defence spending. Furthermore, the CAP is being integrated with other, previously separate budget programmes, including agricultural policy, cohesion, fisheries, social policy, and rural development.

Why is this relevant to hemp? Well, given that farmers and the agricultural lobby have long had disproportionate influence in the European Parliament, their deprioritisation and cut to funding means the proposals are likely to be a major flashpoint, meaning amendments are likely.


That said, the changes to hemp are largely favourable to farmers, and Americo Folcarelli, who has built and run businesses in the hemp and CBD industry for nearly a decade, believes these measures are likely to be pushed through.

“The last time the European Union decided they were going to screw farmers, they ended up with people burning down Paris”, he said.

His son, Francesco Folcarelli, who has worked alongside his father since 2018, added: “I don’t see hemp being the hill that people die on to stop this going forward”.

What is being proposed?


As part of the MMF proposals, there are plans to reform the CAP (COM(2025) 553), including redefining regulations around hemp.

Directly citing the 2020 Kanavape case, in which a decision from the European Court of Justice (ECJ) saw the European Union remove its designation as a narcotic, the text concedes that ‘inconsistencies among member states’ (see Italy’s outrageous crackdown for context), limit ‘full plant utilisation and economic potential, especially concerning flowering tops’.

As such, these proposals aim to:

  • Provide legal clarity across the EU.
  • Remove market fragmentation caused by divergent national rules.
  • Ensure farmers can market hemp products from the whole plant while keeping strict public health safeguards.

Specifically, the changes would see:

  • Hemp flowers, leaves, roots and other parts formally classified as agricultural products (CN code 1211 90 86).
  • Farmers able to produce and market hemp products across the EU, subject to CAP rules.
  • A maximum THC level of 0.3% is confirmed across all products (more on this below)
  • Only varieties registered in the EU Common Catalogue can be cultivated that meet THC rules.
  • Certified seeds are mandatory for all cultivation (with allowances for conservation varieties).
  • In order to import, hemp fibre and seeds for sowing need proof of ≤0.3% THC and certification.
  • Imported seeds not for sowing, require authorised importers to prevent misuse.

Crucially, this:

  • Confirms prohibition on narcotic drugs, except for controlled medical/scientific use.
  • Clarifies that CBD and low-THC hemp products are not narcotics under UN conventions.

Raising the limit from 0.3% to 0.5% THC


The 0.3% THC limit has been a major point of contention for hemp farmers for years, and some states like the Czech Republic and Switzerland have implemented much higher limits of 1% THC.

While this is seen as a key part of ensuring the plant is used for purely industrial purposes, rather than intoxication, due to rising global temperatures, this strict threshold is often surpassed through no fault of the farmers, seeing them forced to destroy their crops.

The EC’s official proposals suggest that the 0.3% cap be maintained, but days before these were published, the European Parliament’s Agriculture Committee (AGRI) adopted a position that pushes for this to be raised to 0.5% to protect farmers.


Although that position is not legally binding, it signals strong political pressure behind the 0.5% amendment from one of the heaviest-hitting committees in the European Parliament.

Now that the Commission’s draft law is on the table, MEPs are expected to table amendments to push the 0.5% threshold into the legislation.

If Parliament votes for it in early 2026, the issue will then move to negotiations with EU governments in the Council. Some countries are likely to support the higher limit, while others remain opposed. The final figure will be decided in those talks.

What does this mean for farmers?


It’s easy to get lost in the complex process, multiple influential and often conflicting sides, and the bureaucracy of EU legislation, but these proposals could have a really significant impact not just for farmers, but on the industry as a whole.

Americo explained: “(This is) a big step forward. For years, the debate was: is the flower part of the plant or not? Now we’re saying it is, and that changes the conversation.

“The biggest thing here is that it makes hemp more attractive for investors. They can look at it and say: ‘Okay, maybe we can get some of our money back through subsidies and support’. It reduces risk, because it’s regulated.

“Standardisation also means this is no longer politicised at the national level. Different governments won’t be able to swing between pro-hemp and anti-hemp positions, because there will be a unified EU framework. That gives farmers and investors more certainty.

Francesco added: “The positives are that, if this goes through, European farmers everywhere will now be seen basically in the same light as anyone growing any sort of crop, oranges, olives, whatever. They can apply for government grants and the like, the same way their neighbours can.”

Although the pair raised concerns about how these new rules will be enforced on the ground, and whether police officers across the EU will have any way to differentiate between hemp and high-THC cannabis on the ground (which historically has not been the case), this undoubtedly, is undoubtedly a major step in the right direction for the industry.

The post EU Proposal to Recognise Hemp Flower as a Crop in Landmark Shift for Industry appeared first on Business of Cannabis.

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