A draft plan announced by the NSW Government to establish hemp as a mainstream crop and a sustainable source of products in the state has been hailed as a “monumental step forward” for the industry by entrepreneur Lauchlan Grout.
The plan, which was released last week for public consultation, notes that NSW is already a leader in the hemp industry nationally with the largest area under cultivation of all states and territories for the last three years.
It also highlights estimates by AgriFutures Australia that the Australian hemp industry could be worth $100 million a year “under the right circumstances”.
Grout, the CEO and co-founder of Hemp Farms Australia, says NSW has taken the lead ahead of other states by announcing its “pro-active plan” for industrial hemp that will provide a blueprint for the sector to grow.
“The NSW Government’s draft plan is a monumental step forward,” says Grout.
“By modernising outdated regulations and supporting industry growth, they are unlocking a $100 million opportunity for regional farmers, innovators and communities.
"It is visionary leadership like this that will position NSW and Australia at the forefront of a global hemp renaissance."
Hemp is described by Grout as the “tame cousin of cannabis” with the product delivering hemp seed for human and animal consumption and its fibres used for clothing and the creation of hempcrete, a bio-composite building material.
The hemp industry veteran points out that just 1,350ha of hemp crop was in production in NSW in 2023-24, despite more than 33,000ha approved for harvest.
“This draft plan seeks to change that and establish hemp as a mainstream crop,” says Grout. “It couldn’t come soon enough.”
NSW has a total of 170 hemp industry licences currently issued and by the end of March this year had 254 licenced hemp facilities operating state-wide. Nineteen new licence applications were approved in the first nine months of FY25 and 11 licences were renewed over the same period.
The Brisbane-based Hemp Farms Australia, which was founded by Grout and Harrison Lee in 2013, is a specialist in industrial hemp genetics with its own unique varieties that thrive in harsh, hot environments.
"Australian-bred industrial hemp strains are tailored for our unique climate, providing higher viability and better agronomic performance compared to imported seeds," says Gout, who is also vice-president of the Australian Hemp Council.
"Locally bred genetics deliver superior resilience, yield and biosecurity advantages that imported seeds simply can’t match. This is how we ensure farmers are truly future-proofed."
Among the industry objectives listed by the NSW draft plan is that primary producers have access to hemp varieties suited to their production environment and supported by best practice crop production.
The plan also includes building consumer confidence in hemp-based products through the development of product standards and quality assurance programs, and through the ongoing support of the regulatory environment for the industry.
"Stimulating private investment in not just about cultivation, but also in advanced processing, breeding innovation and value-adding technologies,” says Grout.
“This is how NSW can create a true paddock-to-product supply chain that is globally competitive."
The government plan proposes that the state identifies opportunities to increase private sector investment in cultivation and value-add, while working to empower Indigenous businesses to enter the industry.
"We strongly support the plan’s focus on empowering Aboriginal businesses and building regional processing infrastructure," says Grout.
"A thriving hemp industry must be inclusive, decentralised and designed to deliver lasting benefits to local communities.
"Momentum is everything. The draft plan sets the right tone, but timely action will be critical. Global markets are moving fast, and NSW can lead if we move decisively."
The Draft NSW Hemp Industry Development Plan is available for public consultation until 19 May 2025.
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