Historically, when many people thought of the hemp plant and what it could be used for, they likely thought of rope, paper, and various textiles. While hemp is certainly still used to make those things, raw hemp flower has experienced a dramatic rise in demand among patients and consumers in recent years.

‘Floral hemp,’ as it is often called in the United States, or ‘cannabis light,’ as it is commonly referred to in Europe, is very popular these days in markets where it is sold. Visually, hemp flowers typically do not look different than non-hemp cannabis flowers. The difference can be found in the manner in which the flowers are produced and the amount of THC that they contain.

Scientifically speaking, cannabis is hemp, and hemp is cannabis. However, governments around the world have created arbitrary THC limits that separate one from the other, with THC thresholds ranging from .2-2% globally. As demand for hemp flowers has risen in recent years, governments have struggled to regulate products derived from them. That has, in turn, created a lot of headaches for entrepreneurs and investors trying to navigate the shifting hemp flowers sector landscape.

Thankfully for the hemp flowers sector in parts of Europe, the European Union Commission is reportedly set to recognize hemp flowers as an agricultural product starting in 2027. The public policy shift would be a game-changer for the emerging industry.

“In the future, not only seeds and straw, but also flowers and leaves should be included in the Common Agricultural Policy. This would give farmers access to subsidies, create investment security, and promote a uniform legal situation.” stated the German Cannabis Business Association (BvCW) in a recent newsletter (translated from German to English). “A THC limit of 0.3 percent is proposed, but the European Parliament ‘s Agriculture Committee has already called for an increase to 0.5 percent.”

“The German Cannabis Industry Association (BvCW) welcomed the initiative in a statement to the Federal Ministry of Food, Agriculture and Home Affairs (BMELH) as an important step towards legal certainty, climate goals, and the Green Deal, but warned of restrictions imposed by the low THC limit. Instead, the association advocates for a 1.0 percent limit, as already provided for in the Czech Republic and Switzerland.” BvCW also stated in its newsletter.

“Furthermore, the BvCW calls for the abolition of special national regulations such as harvest permits and the “intoxication clause,” as well as more flexible use of hemp products with more than 0.3 percent THC for industrial purposes, such as building materials. The association also advocated for adjusted funding guidelines and a lower level of controls to strengthen the competitiveness of the European hemp sector.” the organization concluded.

In addition to EU farmers being able to apply to receive government subsidies for their operations producing hemp flowers, the policy change will also presumably throw cold water on national government efforts that seek to hinder the emerging hemp flowers sector. A notable example is in Italy, where a hemp flowers ban went into effect earlier this year.

“The EU Commission’s decision is more than just a technical adjustment. It also sends a political signal to member states, some of which still operate restrictively when it comes to hemp. EU-wide recognition of the flower as an agricultural product could weaken national reservations and promote market harmonization.” pointed out Hanf-Magazin in its coverage (translated from German to English). “This opens up scope, especially for countries that currently have strict regulations on flower products, to realign their agricultural policies.”

Even as more countries in the European Union modernize their cannabis laws to permit wider adult-use cannabis activity, such as in Malta, Luxembourg, Germany, and the Czech Republic, the EU’s recognition of hemp flowers as an agricultural product is a really big deal.