By Mark TurnerIntroduction: Navigating the Regulations
Cultivating industrial hemp in the United Kingdom is a promising venture for farmers, but it is governed by strict regulations. Despite hemp's negligible levels of THC (the psychoactive compound in cannabis), the plant is still classified as a controlled substance under the Misuse of Drugs Act 1971. Consequently, any person or business wanting to grow hemp must first obtain a licence from the Home Office.
This guide provides a comprehensive overview of the entire licensing process. We will cover who needs a licence, the step-by-step application process, associated costs, and the critical compliance requirements. Understanding these rules is the first step towards a successful and legal hemp cultivation business in the UK.
Legal Requirement
Who Needs a Licence?
Any individual or organisation that intends to cultivate industrial hemp in the UK must hold a valid licence. The licence is specific to the named person or company and the specific premises detailed in the application. This requirement applies to:
- Farmers growing hemp for its fibre or seeds.
- Research institutions conducting trials on new hemp varieties or cultivation methods.
- Commercial companies that are managing contract farming operations.
- Landowners who lease their land to others for the purpose of hemp cultivation.
It is a common misconception that only the farmer needs a licence. In fact, the person or company responsible for the cultivation activity at a given location must be the licence holder. Check out our detailed licensing page for more farmer-specific information.
The Application Process
The Home Office application process is thorough and requires careful preparation. Following these steps will help ensure your submission is complete and processed efficiently.
Gather Key Documents
Prepare detailed farm maps (with GPS coordinates), a clear business plan, and your company registration details.
Complete DBS Checks
All company directors or partners must undergo an enhanced Disclosure and Barring Service (DBS) check. This must be completed via the Home Office's specified provider.
Submit Online Application
Complete the official application forms on the Home Office portal, uploading all required supporting documents.
Pay the Licence Fee
Submit the non-refundable application fee. A new application costs £580.
Application Review
The Home Office will review your application. They may contact you for further information or clarification.
Receive Your Licence
Once approved, you will receive your licence. You can then legally purchase approved seed and begin cultivation.
Costs and Fees
Budgeting for licensing is a key part of your business plan. The main fees are set by the Home Office and are non-refundable, even if your application is unsuccessful.
| Fee Type | Amount | Notes |
|---|---|---|
| New Application | £580 | Required for all first-time applications. |
| Licence Renewal | £326 | For renewing an existing licence before expiry. |
| Compliance Visit | £1,371 | Fee if a compliance visit is required. |
| DBS Check | ~£40-£60 per person | Payable directly to the disclosure provider. |
Financial Planning
Key Licence Requirements
To secure and maintain a licence, you must meet several important conditions set by the Home Office.
Approved Seed Varieties
You may only cultivate hemp varieties that are approved and listed on the EU Common Catalogue of Varieties of Agricultural Plant Species. The primary requirement is that the THC content of the variety does not exceed 0.2%. Our hemp varieties are being developed to guarantee compliance. They are currently in laboratory development. The use of gene editing technologies, as enabled by the Precision Breeding Act 2023, allows us to develop elite cultivars with stable, compliant THC levels. Learn more about the science behind it.
Site and Storage Conditions
- Location: While not a strict rule, it is recommended that cultivation sites are not in close proximity to schools or public areas to avoid public concern.
- Security: You must have a plan for the secure storage of your harvested hemp material before it is processed or moved off-site.
- Mapping: You must provide precise, verifiable maps of all cultivation fields. Any changes to these locations require a licence amendment.
Important: The Rules on CBD
"An industrial hemp licence will not be issued for the production of CBD or other cannabinoids, as the controlled parts of the plant (flowers and leaves) cannot be used for this purpose."
This is the most critical and often misunderstood aspect of UK hemp licensing. An industrial hemp licence is granted **exclusively for the purpose of cultivating hemp for fibre from the stalk and/or oil from the seeds.**
The leaves and flowers of the hemp plant, which contain the cannabinoids (like CBD), are considered controlled parts of the plant. Under an industrial hemp licence, you are not permitted to harvest, process, or extract anything from these parts. To produce CBD legally, a company must obtain a standard controlled drug licence, which is a separate, more rigorous, and costly process.
Not Permitted for CBD
Timeline and Renewals
A significant and welcome change is the extension of licence validity. From the 2026 growing season, new licences will be valid for **six growing seasons**, and renewals for a further six. This replaces the previous three-year cycle, providing farmers with greater security and the ability to make longer-term plans for their hemp-based enterprises.
You should apply for a renewal at least 8 weeks before your current licence expires to ensure continuous cover. The renewal process is simpler than a new application, provided there have been no significant changes to your operation.
