After cannabis, Germany to revive its hemp industry

Germany's Federal Minister for Food and Agriculture hinted that the «controversial »intoxication clause may soon be phased out.

At a parliamentary meeting organized earlier this week by the German Cannabis Business Association (BvCW), Cem Özdemir indicated that work was in progress to remove this clause, a new long-awaited and welcome for the country's hemp industry.

This «incomprehensible clause», which has not been removed in the recent cannabis law despite persistent calls from the entire industry, means that farmers can only produce industrial hemp with a THC content of 0.3% or less if misuse for intoxication is excluded.

Indeed, fears that hemp might be used for recreational purposes have meant that it remains strictly regulated, although Germany now allows home cultivation of cannabis with a high THC content.

Jürgen Neumeyer, Managing Director of BvCW, said in a recent press release, «Imagine if alcohol-free beer retailers and producers were raided and punished because they could distill schnapps from residual alcohol.»

«In practice, such complex extraction doesn't take place with industrial hemp either. This insane intoxication clause has caused increasing economic damage and bankruptcies in recent years. Its abolition is urgently needed, and we welcome it!»

What happened?

At the annual parliamentary event, which was attended by industry leaders, policymakers and regulators, Mr. Özdemir said the abolition of the clause was «long overdue».

In his speech, he praised the hemp plant for its long history of use around the world and for its potential as a sustainable, climate-friendly cultivation.

He announced his intention of deleting the intoxication clause and raising the THC limit for industrial hemp cultivation, another measure long called for by the industry.

According to Özdemir, the current reluctance to broach the subject is «almost like shunning bakeries or the entire bakery sector simply because they offer poppy seed cakes».

However, because of the persistent reluctance of those who «recoil in horror» from the word cannabis, he declared that plans to remove administrative barriers to hemp production would be implemented step by step.

This is the first time a minister has confirmed his intention to tackle the problem, and the decision has been hailed as a «major step towards better use» of hemp in the future.

Since it became clear that the clause would not be removed from the cannabis bill, key stakeholders have repeatedly pointed out that it is an unnecessary and absurd obstacle preventing a potentially huge industry from flourishing.

During the‘International Cannabis Business Conference (ICBC) in Berlin last year, Industry veteran and EIHA Chairman Daniel Kruse said: «I would simply like to cancel this clause. All stakeholders will argue in favor of its abolition.»

«The debate on the misuse of hemp must be closed. Hemp has enormous potential if the clause is removed. Industrial hemp would generate more sales than medical and recreational drugs combined in Germany.»

Cannabis lawyer and industry expert Kai-Friedrich Niermann told Business of Cannabis in November 2023 that the retention of this clause effectively meant that «the German market for consumable industrial hemp products has thus received the coup de grâce».

«The legal status of CBD products and industrial hemp should continue to apply in the new law, according to the will of the legislator. This means that misuse for intoxicating purposes should continue to be excluded for industrial hemp products.

«According to German law enforcement authorities, including the Federal Court of Justice, this abuse is not excluded for CBD flowers and hemp leaf tea. These products risk being permanently excluded from the German market.»

Limit of 7.5 g THC

Another oddity of Germany's new cannabis regulations, which seems to run directly counter to its general objectives, is the Federal Court of Justice (BGH) decided in April that the legal determination of a «significant quantity» of cannabis would remain unchanged.

As of April 1, 2024, Section 3 of the Cannabis Act stipulates that possession of up to 25g of cannabis in public, or 50g at home, will no longer incur criminal penalties.

Despite this widespread decriminalization, the BGH decided that the 30-year-old determination of a «small» amount of cannabis would remain unchanged, as it did not assume a «new risk assessment» justifying an increase in the limit, much to the disappointment of many legislators.

Their decision was based on the assumption that the average amount of THC to intoxicate a person by inhalation was 15 mg, and therefore that 7.5 g of THC would continue to give rise to a sanction.