Brazilian research agency says 1.0% THC level for hemp is necessary to be competitive

Brazil’s leading agricultural research institution, Embrapa, is urging regulators to raise the national THC limit for hemp from 0.3% to 1.0% — a shift it says is essential if Brazil is to compete with neighbors such as Argentina

The change could unlock industrial, medicinal, and research-driven opportunities, the agency said during a recent expo in São Paulo.

Why 1.0% matters

Raising the limit would immediately expand the range of hemp genetics available to Brazilian farmers. A 1.0% cap also makes CBD production more economical because CBD concentration rises proportionally with THC in most cultivars. The change would also protect farmers from crops going “hot,” or over the 0.3% limit, which can mean financial losses.

Finally, a higher threshold would also allow plant breeders to develop more region-specific varieties, accelerating R&D that has been stalled by regulatory constraints.

Many countries still anchor hemp regulation around a 0.3% THC limit, a limit widely used in North America and parts of Europe, but a growing group has moved to a full 1.0% to give farmers more breathing room. Non-EU member Switzerland allows industrial hemp with THC levels below 1.0%, treating it as non-drug cannabis so long as it meets that threshold.

The Czech Republic similarly raised its on-farm hemp limit to 1.0%, explicitly bringing its rules into line with Switzerland. Uruguay also draws the line between mariuana and industrial hemp at 1.0% THC.

Stuck in neutral

Despite its mandate to lead agricultural innovation, Embrapa still lacks authorization from federal health regulator Anvisa to cultivate cannabis for scientific purposes. Researchers must rely on partnerships with associations to access plant material, slowing progress at a moment when competitors are scaling up.

Lilia Salgado, Deputy Head of Research and Development at Embrapa, said Anvisa will need to set clear rules for plant yield, THC levels, and chemical composition—standards that are essential for producing the plant-based active ingredients used in medicines.

The call for a 1.0% limit comes amid a protracted regulatory saga. In October, Anvisa requested an additional six months from the Superior Court of Justice to decide whether to authorize hemp cultivation for medicinal purposes — pushing the deadline to March 31, 2026.

The agency missed a court-mandated decision date in September and cited “technical complexity” and the need for broader dialogue. The delay frustrated stakeholders who have watched Anvisa pull hemp from its agenda at key moments, feeding fears that regulators may restrict cultivation to pharmaceutical channels.

Sector needs clarity

Brazil is expected to spend more than $150 million this year on cannabinoid-based medicines, most of them imported. A study by Instituto Escolhas projects that domestic demand could grow sixfold by the early 2030s if local production becomes viable.

Advocates say failing to update THC limits and approve cultivation keeps Brazil dependent on foreign APIs and blocks development of an industry that could benefit both large agribusinesses and family farms.

Industry researchers note that the STJ has already ruled that low-THC cannabis does not fall under Brazil’s Narcotics Act and ordered Anvisa to establish a regulatory framework. But years of hesitation have left the sector in limbo. Embrapa and others have warned that without a clear rulebook — including a 1.0% THC standard — Brazil risks ceding leadership in a field where it has climate, acreage, and competitive advantages.

The agency said raising the THC threshold is one of the few short-term steps that could move the sector out of paralysis. Embrapa says it is ready to scale research, expand breeding programs, and regionalize production once the rules allow it.