Mr. Michael Moloney:

I thank the Senator. There was an extraordinary increase from 67 ha in 2018 to 314 ha in 2019. We do not normally see that margin of swing. We have no definitive answers on this, but our opinion is that, as the Senator stated, there was great interest in crop diversification. The level of beef prices may have been a factor. There was a 3% increase in tillage area last year and we think much of that came from mixed tillage and beef enterprise. Farmers were looking at margins and backing tillage as having a better margin than beef. Farmers were seeking to diversify. The level dropped off the following year, probably because of the returns. The market was not returning enough on investment. I have referred to spring barley because it is the staple main crop and any potential new crop has to be compared with it because it is the area that will probably be lost to gain hemp or any other crop. That is the basis for giving that comparison.

As regards seed, the seed can be harvested but, unlike in the case of cereals, it cannot be used for propagation - it has to be used for processing. I have responsibility for seed certification schemes. Farmers can use home-saved seed, whether it be potatoes, cereals or whatever, for the following year's crop. That is not possible in the case of hemp. We have had several engagements with the representative organisations and I know one aspect they would like changed relates to the THC content of the seed. That might allow them to use a greater range of varieties. That may happen next year with the change in the basic payment rules, going from 0.2 to 0.3 THC. All the seed is imported. We do not cultivate the seed here. The seed is imported to OECD standards. I have not had direct contact from the representative bodies in respect of the quality of the seed. They have not raised any issues with me in that regard.