Industrial Hemp (iHemp)

We’ve made it easier for the industrial hemp industry to grow.

In November 2025, Cabinet agreed to overhaul New Zealand’s industrial hemp (iHemp) regulations – following a review led by the Ministry for Regulation.

The review found that the existing rules were no longer proportionate to the low risks presented by industrial hemp, and were placing unnecessary costs and complexity on industry and regulators. The licensing regime – set out in the Misuse of Drugs (Industrial Hemp) Regulations 2006 – was introduced nearly 20 years ago and is widely seen as out of step with today’s understanding of the crop and its uses.

Cabinet has agreed to a package of changes aimed at reducing red tape while maintaining controls where needed. These include:

• Replacing the licensing regime with permission-based regulations
• Setting clear conditions for legal cultivation and use, including a THC limit of less than 1%
• Allowing more parts of the plant to be used – including flowers and leaves for supply to medicinal cannabis licence holders
• Keeping existing controls on food safety and export requirements
• Requiring growers to notify Police and the Ministry for Primary Industries of crop locations before planting
• Import and export restrictions remain in place.

These changes are expected to generate a net present value benefit of $41 million over the next 20 years. They also enable the utilisation of the whole plant, subject to conditions, creating opportunities for increased income.

The sector is expected to save $80,000–$160,000 per year, equating to $1–$2 million in net present value over 20 years, through reduced compliance costs.

Analysis commissioned by the Ministry for Primary Industries estimated that, even under current regulatory settings, the sector could grow to approximately $30 million by 2030 – highlighting the sector’s untapped potential.

More information 

Information Release: Addressing unnecessary regulatory burden on the hemp sector (3.4 MB, Pdf)