New Hemp Promotion‑Research Agency

Summary#

This is a proposal to create the Canadian Industrial Hemp Promotion-Research Agency Proclamation under the Farm Products Agencies Act. If approved, it would let a new national agency raise a small levy (industry fee) to fund hemp research and marketing; the industry has proposed an initial levy of 0.5%. The notice was published on April 20, 2024, and public comments are invited for 30 days (deadline May 20, 2024).

What it does#

• Establishes a national body called the Canadian Industrial Hemp Promotion-Research Agency (a “PRA”).
• Gives the PRA authority to develop and submit a levy (fee) order to the Farm Products Council of Canada for approval.
• Allows the PRA to collect levies on interprovincial sales, imports and exports of listed hemp products.
• Lets the PRA run promotion and research programs aimed at increasing hemp sales, improving production methods, and opening markets.
• Sets the PRA board at nine members elected to represent provinces, importers and supply-chain actors. The head office is to be in Calgary.
• Reflects the industry proposal to start with a 0.5% levy on the value of certain primary and processed hemp products. The industry estimates initial levy revenue at about $200,000, possibly rising to over $400,000 in the long run.
• Notes existing rules: hemp cultivation is regulated by Health Canada, and hemp is defined by a THC limit of 0.3% in flowering heads and leaves.
• Describes that the current voluntary industry checkoff paid to the Canadian Hemp Trade Alliance could be turned into the mandatory levy for the PRA if the proposal proceeds.

Who's affected#

• Licensed hemp growers and producers across Canada.
• Importers of hemp products and buyers of primary hemp goods (they would be the ones invoiced for the levy).
• Processors and other businesses in the hemp supply chain, including many small businesses. The government’s analysis says the administrative burden should be small because the PRA (or a contractor) would invoice and collect the levy.
• The Farm Products Council of Canada, which must review and approve any levies and oversee the PRA.
• The Canadian Hemp Trade Alliance and other industry groups that currently run promotion programs.
• Indigenous-affiliated hemp licence holders; the source records 33 Indigenous-owned or affiliated hemp licence holders as of March 2022.
• Consumers, indirectly — the government expects the levy would have a negligible effect on retail prices.

Why it matters#

• It creates a stable, national fund for hemp research and marketing. That could fund projects individual firms can’t afford, such as product development, nutrition information, and export promotion.
• A coordinated approach may help Canadian hemp become more competitive in domestic and export markets.
• The proposed levy is small (0.5%), so direct costs per sale are modest, but the levy would create predictable revenue for industry-wide programs (estimated $200,000 initially).
• The proposal is not law yet. Levies must still be approved by the Farm Products Council of Canada, and the PRA’s levy order would appear in the Canada Gazette, Part II, before it takes effect. The proclamation itself comes into force upon registration, but the timing depends on those later steps.
• Public comments were invited starting April 20, 2024 for 30 days (deadline May 20, 2024).