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.
Market Dynamics and Regulatory Hurdles
While the REGI proposal is significant for potentially reorienting hemp flowers towards agriculture rather than drug-adjacent commerce, subsidies alone are unlikely to revitalize Europe’s weakened CBD sector. The sector continues to contend with substantial obstacles, particularly those related to novel foods regulation.
A sustained recovery for the European CBD market would likely necessitate clearer, long-term regulatory frameworks, renewed financing, and the development of stable outlets for hemp flowers beyond the shrinking “wellness” CBD market. Structural pressures continue to reshape the hemp cannabinoid business across Europe.
Legislative Process and Political Context
The REGI committee’s vote represents an initial stage in the EU legislative process for amending existing CAP regulations. The proposal must proceed through additional European Parliament procedures before entering negotiations with the European Commission and the Council of the European Union. The measure could take a year or longer to become final EU policy, depending on interim negotiations and potential amendments.
The political context surrounding these proposed CAP changes is particularly sensitive in Italy. Valentina Palmisano’s Five Star Movement has opposed Prime Minister Giorgia Meloni’s ruling Fratelli d’Italia party, which has taken a stance against hemp flowers and cannabinoids. According to Palmisano, lawmakers from Fratelli d’Italia introduced amendments to block this portion of the report, but these efforts were unsuccessful in committee. The Italian hemp association Federcanapa acknowledged the REGI committee approval without extensive comment.
Disclaimer: This article is for informational purposes only and does not constitute medical advice. Hemp Gazette does not provide medical recommendations, diagnoses, or treatment plans. Always consult a qualified healthcare practitioner before making any decisions regarding your health or any medical condition. Statements concerning the therapeutic uses of hemp, cannabis, or cannabinoid-derived products have not been evaluated by Australia’s Therapeutic Goods Administration (TGA). Medicinal cannabis products in Australia are accessed via prescription pathways under TGA regulation.
