Hemp farming: How to master planning, permits and precision

Hemp is increasingly recognised for its versatility and commercial potential, but navigating the sector requires understanding its complexities, from cultivation to processing and market access.

Ayanda Bam, executive director at Zageta Solutions, a strategy and advisory firm in South Africa’s emerging hemp and cannabis industry, provides insight into how farmers should approach this emerging sector.

“Hemp is often spoken of as a single entity, but in reality, it encompasses a variety of products, each with distinct requirements, processing methods, and markets,” Bam explains. This complexity means farmers must prioritise which segments of hemp to focus on, particularly in South Africa, where natural, regulatory, and fiscal constraints apply.

Segmentation helps clarify the landscape. Bam highlights the 5F framework, adapted from the Canadian Hemp Trade Alliance: farming, food, fibres, fractions, and flowers. This categorisation allows farmers to consider the specific end uses of hemp products, helping them make informed decisions about what to grow and how to process it.

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Regulatory environment for hemp in South Africa

Before exploring the hemp value chain, it is important to understand the regulatory framework. Although hemp and cannabis come from the same plant species, South African law differentiates them based on tetrahydrocannabinol (THC) content: hemp contains less than 2% THC, while plants above this threshold are classified as cannabis.

Hemp cultivation in South Africa is regulated under the Plant Improvement Act (1976, updated 2018), which requires farmers to obtain permits and recognises hemp specifically as plants with under 2% THC.

The Medicines and Related Substances Act regulates cannabis and cannabis products with higher THC levels that are processed for medical purposes. Under the Drugs and Drug Trafficking Act, cannabis exceeding 2% THC remains illegal for commercial trade, though private use is permitted. Understanding these distinctions is essential for farmers to operate compliantly within the sector.

Bam emphasises a “demand-driven, vertically coordinated” approach to hemp. This means understanding the end product first, then working backwards through the value chain to align cultivation, processing, and marketing.

Seed development

Seed is the foundation of hemp farming. “Cultivars are developed for specific purposes (grain, fibre, or flower) and these determine everything downstream,” Bam notes.

South Africa currently relies heavily on imported seeds. Bam explains that there are only two locally bred varieties available from the Agricultural Research Council (ARC). Importantly, seed development is costly and time-intensive, requiring protection and registration to commercialise successfully.

Certification and quality assurance

Quality assurance is essential when multiplying seeds for farming. South Africa has a certification scheme managed by Sansor, though enforcement and adoption remain limited.

Proper certification ensures seeds meet standards for performance and legal compliance, which is particularly crucial for farmers entering the sector.

Cultivation considerations

Hemp’s adaptability also matters. Trials suggest the most suitable regions in South Africa include KwaZulu-Natal, the Western Cape, and the Eastern Cape, though success depends on the chosen genetics and local agroclimatic conditions.

Harvesting and processing

Different parts of the hemp plant yield distinct products:

• Grain/seed – This is considered a so-called “superfood”, making up about 10–15% of total biomass. It is harvested, threshed, cleaned, and stored similarly to maize or soy.
• Inflorescences/flowers – Carefully trimmed, dried, and cured in a process similar to tobacco, these are used for oils or medicinal extracts regulated under the Medicines and Related Substances Act.
• Straw/stalk – Usually dried and left to undergo enzymatic decomposition (retting), this part of the plant is primarily used for fibre and various industrial applications.

Processing then creates primary products, which are the raw materials for downstream manufacturing. “You can’t sell a T-shirt without processing fibre from the stalk first,” Bam clarifies, highlighting the need for coordination between cultivation and industrial value addition.

Across the board, hemp farmers share several common requirements. Bam notes that market access is essential, as there is little incentive to cultivate hemp without reliable buyers for their products.

Finance is another critical need, with working capital required to cover inputs and operational costs before harvest. Equally important are skills and expertise, including agronomy and production knowledge, which are vital for successful cultivation and maximising yield.

Bam shares the following strategic takeaways for aspiring hemp farmers:

• Define your segment: Use the 5F framework to determine whether your focus will be on grain, fibre, flowers, or other fractions.
• Understand genetics: Choose seeds that suit your climate and intended end-use; consider both local and imported varieties.
• Plan for processing: Ensure access to processing facilities for your chosen plant parts.
• Stay informed on regulations: Permits and legal compliance are crucial.
• Build market relationships: Successful hemp farming is linked closely to reliable demand and supply chain coordination.

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