European Parliament Committee Backs Farm Supports for Hemp Flowers Amidst Contracting CBD Market

A European Parliament committee has approved language that would extend farm supports to growers producing hemp flowers, a move that could significantly impact EU hemp regulations. This development occurs as the European CBD market faces tightening rules and contraction, which has reduced the value of these crops.

The proposed rule, detailed in a report from the Parliament’s Regional Development Committee (REGI), aims to extend subsidies for industrial hemp to include CBD-rich hemp flowers under the European Union’s Common Agricultural Policy (CAP). Historically, CAP payments have been available for hemp grain and fiber crops for decades.

Expanding Common Agricultural Policy Eligibility

Valentina Palmisano, a Member of the European Parliament from Italy’s Five Star Movement and a lead figure in this policy change, stated that the expanded rule would classify all parts of the hemp plant as agricultural products. This reclassification is intended to provide greater legal certainty for farmers and permit the marketing of hemp flowers “as an integral part of the plant, without undue distinctions.”

The REGI report cites scientific findings indicating that industrial hemp poses no risk to human health. It also references the 2020 ruling by the Court of Justice of the European Union, which determined that cannabidiol (CBD) cannot be regarded as a narcotic and that CBD products should benefit from free trade across the union.

The modern framework for the Common Agricultural Policy has governed the EU’s treatment of hemp under agricultural subsidy rules since the 1990s. Eligibility for these subsidies has been tied to certified low-THC varieties and direct farm payments. The THC limit for subsidy eligibility was 0.3% from 1976 to 1999, subsequently reduced to 0.2%, and then reinstated to 0.3% under the latest CAP reform, which took effect in 2023. Per-hectare payments under the EU farm subsidy program are generally determined by each member state’s CAP Strategic Plan, varying based on land type, payment category, and environmental incentive programs.

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https://hempgazette.com/news/eu-hemp-regulations-committee-farm-supports-flowers/