EU introduces new reporting requirements for the hemp sector

In a regulatory update, the European Union has introduced new reporting requirements for the hemp sector through Commission Implementing Regulation (EU) 2024/2391, enacted on September 10, 2024. This regulation aims to enhance market transparency by bringing hemp in line with other fibre crops like flax and cotton, which have long benefited from structured data collection.

The regulation amends earlier rules under Implementing Regulation (EU) 2017/1185, aiming to streamline data collection across the agricultural sector and reduce administrative burdens. These amendments are part of a broader initiative to bolster the long-term competitiveness of the EU's agricultural markets, as outlined in the Commission's Communication on 'Long-term competitiveness of the EU: looking beyond 2030'.

Specific changes and implications for hemp

From 1 October 2025, the new reporting obligations will apply to all EU member states in which hemp fibres are produced on an area of more than 1,000 hectares. This will require to report data on various aspects of hemp production on an annual basis:

• Cultivated area: Member states must report the area of hemp cultivated in the previous year and provide estimates for the current year, enhancing understanding of hemp cultivation trends. (in hectares)
• Hemp fibre production: Data on the production of hemp fibres must be reported, including the quantities produced in the previous year and projected production for the current year. (in tonnes)
• Pricing information: The weighted average ex-factory prices for hemp fibres from the previous year must also be reported. (per tonne)

These changes aim to bring the level of market transparency for hemp in line with that of established fibre crops to facilitate better informed decisions by policy makers, farmers and other stakeholders in the agricultural supply chain. They are also part of a broader approach to improve reporting obligations in the agricultural sector to promote data collection and market transparency across the EU.

Broader impact and potential challenges

The decision to include these new requirements reflects the recognition of the growing importance of hemp in the agricultural sector, particularly given its environmental benefits and potential for sustainable production. By collecting detailed and structured data, the EU aims to promote a better understanding of market dynamics, which can lead to a more effective and targeted agricultural policy.

Whilst these new requirements represent a progressive step towards greater transparency, they also present challenges, particularly in terms of the additional reporting burdens on member states. Successful implementation of these changes will require effective co-operation between national authorities and the EU to ensure that the data collected is both accurate and useful.

In addition, the regulation adapts the reporting requirements for other agricultural products, indicating a holistic approach to improving market surveillance in all areas. This strategy not only supports the agricultural sector, but is also in line with broader EU objectives for sustainability and economic resilience.

Conclusion

The EU's new reporting requirements for the hemp sector are a clear indicator of the EU's commitment to greater transparency and support for sustainable agricultural practices. Once these requirements come into force, they are likely to play a crucial role in defining the future of hemp cultivation in the Union and contribute to an informed and responsive agricultural policy landscape.