In July, the German Federal Ministry of Food and Agriculture released a draft law aimed at liberalizing the cultivation and management of industrial hemp. They recognize the significant advantages of industrial hemp farming for sustainability, climate protection, and biodiversity, but argue that current legal regulations create legal ambiguities and impede the sector’s growth. The so-called misuse clause restricts hemp production and processing, and courts have traditionally enforced this limitation rigorously. According to established jurisprudence, trading in hemp products like industrial hemp tea or CBD flowers is punishable even if the THC limit of 0.3% is met, as long as the potential for misuse for intoxication is improbable but not completely excluded. The Ministry believes this imposes an excessive restriction on the trade of industrial hemp products.
With the new law’s implementation and the introduction of a legal procurement method, such provisions will become unnecessary. Additionally, the requirement for a “commercial or scientific purpose” will be eliminated. Established case law deems it sufficient if a commercial purpose exists on one side of the transaction. The Ministry views this requirement as redundant, lacking significant regulatory value. Furthermore, the new law would allow the indoor cultivation of industrial hemp, providing additional market participants the opportunity to engage in hemp cultivation. The draft bill is now being submitted for interdepartmental review.
