New Zealand scraps hemp licensing, sets THC limit at 1.0%, clearing path for growth
Original Article from Hemp Today | December 12, 2025
New Zealand’s government has approved a sweeping overhaul of industrial hemp regulations, scrapping the current licensing regime and replacing it with a lighter-touch system designed to reduce costs, unlock investment and align oversight with the crop’s low risk profile. The government set the THC limit for hemp at a full 1.0%.
Regulation Minister David Seymour said the existing rules had imposed disproportionate burdens on a sector producing non-intoxicating agricultural products.
“The current system treats low-THC hemp like high-risk drugs,” Seymour said. “That’s absurd when the crop has long been used for food, oil, fiber and health products.”
Under the new rules, which come after nearly two decades of industry complaints, licenses will no longer be required to grow or handle industrial hemp, provided crops contain less than 1% THC. Growers will instead be required to notify police and the Ministry for Primary Industries before planting. Existing food safety and medicinal cannabis rules will remain in force.
Long-sought shift
The decision follows a regulatory review announced earlier this year by Seymour, who has argued that hemp’s classification under drug legislation reflects outdated assumptions rather than evidence-based risk assessment.
Seymour said the nearly 20-year-old regulations are outdated and burdensome, and have stifled economic growth and innovation in the hemp sector.
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