Ms Kate Carmody:

I thank the committee for the opportunity to speak to it today on this important issue. I am here in my role as chair of Hemp Cooperative Ireland, which was set up in May 2018 by myself, other farmers and interested parties. It came about because we shared a vision of the great potential for hemp cultivation in Ireland. We now have 262 shareholders, made up of farmers, processors and supporters of the industry. We have eight board members of various backgrounds who volunteer their time as they are passionate about the development of the industry.

In my comments today, I will set out why hemp is an important crop for Ireland, how it can be taken up across Irish agriculture and how hemp cultivation can lead to new jobs through high value products across a range of sectors including health products, food, clothing and construction. I will also touch on hemp and its environmental benefits in bioremediation and adaptation to climate change and its role in the just transition for our farming communities.

Hemp Cooperative Ireland supports farmers to access resources, equipment and markets through a national body and four regional hubs, covering the four provinces of Ireland. Increasing the amount of hemp grown here can help Ireland become a leader in carbon sequestration as we strive to meet our 2030 commitments. Hemp on average sequesters 10 tonnes of net carbon dioxide per hectare, so 10,000 ha sown would reduce carbon dioxide emissions by 100,000 tonnes per annum, incredibly in a four month window.

Economic valuations show that on average hemp has a 39.5% higher gross margin in comparison to winter wheat. In recent years the area dedicated to hemp cultivation in the EU has increased from less than 20,000 ha in 2015 to 35,000 ha in 2019, a 75% increase. France is the largest producer accounting for 70% of EU production.

The hemp stalk is separated into fibre and shiv, the shiv being the woody core. The fibre is used for clothing, textiles, insulation and, more recently, biocomposites. The woody core of the plant is used for building products, including hempcrete, fibre board and insulation. Furthermore, it is used as bedding material, biomass and paper.

The seed from the hemp plant can be used in many ways. The oil from the seed is in food, body care products and technical products. The omega-6 to omega-3 ratio in hempseed oil is 3:1, which is considered to be optimal for human health. The seed cake can be used as an animal feed-rich flour that is 33.5% protein. The Department of Agriculture, Food and the Marine stated in 2014 that the dependence of Ireland and the EU on imported protein sources such as soya bean meal had initiated a legislative and political push towards the development of indigenous plant–based protein sources. There is a great opportunity to use hemp to improve this situation, considering that 415,000 tonnes of soya bean meal was imported in 2020. The leaf and flower of the plant contains many bioactive compounds suitable for health products.

By developing a hemp industry in Ireland, Hemp Cooperative Ireland forecasts an immediate and lasting environmental impact by reducing the volume of high-polluting fossil fuels required for industry. Of equal importance is the potential of hemp for rural regeneration. An indigenous hemp industry has the potential to create 80,000 rural jobs according to a recent report from Teagasc. This is direct and indirect job creation and is based on the premise that legislative frameworks be put in place and State bodies be willing to fund the industry. For every €8.9 million invested in the sector, somewhere in the range of 200 to 400 direct and indirect jobs will be created in agriculture. To create 10,250 jobs annually, the hemp industry would need to attract an average of €150 million investment each year. Hemp Cooperative Ireland has made recent efforts to commence dialogue with State funding agencies like Enterprise Ireland and LEADER to ascertain what potential support could be available. However, our efforts have been met with resistance. At these early stages of trying to grow the hemp industry in Ireland, Government assistance will be a key component of the tri-party funding that will be required to help invest in machinery and infrastructure. Hemp Cooperative Ireland also intends to raise funding through a members share issue and private investment.

There is a housing crisis in Ireland and we maintain that hemp is part of the solution. Buildings are possible using hemp shiv with lime as a replacement for concrete, not to mention a solution to retrofitting older cottages. Hempcrete is CO2 absorbing, fire resistant and breathable. For example, 2 tonnes of hemp shiv will be sufficient to build an average house and will sequester 3.7 tonnes of CO2. Hemp can also retrofit our existing housing stock and there are many homes in our rural towns and villages that could benefit.

According to the CSO in 2016, since only 5% of Irish farmers are under 35 years of age and 30% are over 65, there need to be as many incentives as possible to entice young people into becoming farmers and for this occupation to be a long-term source of income. We as an organisation promote hemp as a rotational crop for all farming systems. It is an ideal break crop that creates an added income stream. If hemp was recognised in any carbon credit scheme, it would enable a just transition for our rural communities. There is a great deal of agricultural activity on drained peatland, which by its very nature is a major contributor to carbon emissions. It is unjust to suggest that these farmers should be told to rewet these lands when they could instead be offered the opportunity to grow hemp to initiate this just transition.

Hemp decontaminates soil as a natural phytoremediation crop. It promotes biodiversity as a late-flowering source of pollen for bees. Hemp grows well in organic systems and improves soil structure. It also needs no artificial fertiliser, is not reliant on pesticides, fungicides or herbicides and increases certain crop yields by 25% while limiting weeds and, therefore, reliance on spraying. We outlined our vision to the Department of Agriculture, Food and Marine in more detail when we responded to its consultation call last summer. This submission was endorsed by the Irish Farmers' Association, IFA, and the Irish Grain Growers group. Hemp fits neatly into the emerging bio-economy and is an opportunity that we should not miss, but it currently cannot be supported because it is not included in policy.

The global hemp industry is growing and Ireland is in a unique position to become a major player in the EU. Of the major issues facing Ireland, hemp is uniquely positioned to provide part of the solution. A hemp industry supported by the Government will create green jobs in rural communities, entice young farmers and provide an additional income stream to all farmers, thereby helping Irish farmers and businesses to meet carbon goals while integrating into their existing farming systems. The time to support the hemp industry is now and Hemp Cooperative Ireland is ready to engage with the Government at national and local levels. Without Government support, Ireland will be left behind our EU counterparts that have flourishing hemp industries.

To summarise the needs of and barriers to the industry, we need engagement at government and local levels, funding, collaboration, and research and development. Teagasc has done some research and development and there is a European Innovation Partnership, EIP, project ongoing in Loop Head, County Clare called Hemp 4 Soil. We have a lack of infrastructure and support for hubs. Legislation and funding are also lacking. There needs to be education about industrial hemp and insurance companies do not want to cover hemp products.

The benefits of using hemp include import substitution, rural regeneration and job creation, in which respect there is a Teagasc report that I would refer to. They also include the environment and CO2 sequestration, soil regeneration and rotational crops, which is of interest to farmers.

In addition, it is of benefit in housing retrofits and plant-based proteins.