APPG meeting minutes 16.09.25
Minutes of the 3rd Meeting
Date: Tuesday 16 September 2025
Location: Committee Room, Palace of Westminster
1. Welcome and Introductions
Chair: Bayo Alaba MP (co-chair) opened the meeting, welcomed members and guests including co-chair Lord Benjy Mancroft, and noted there were no apologies.
Previous minutes were approved without amendment.
2. Guest Presentation: Lessons from the US Hemp Industry
Speaker: Dr Trey Riddle, CFO, IND Hemp (Montana, USA)
IND Hemp is the largest whole-plant hemp processor in North America, operating grain and fibre processing facilities.
Key insights shared:
Success in scaling requires patient capital, simultaneous development of farming, processing, and market demand.
US industry benefitted initially from the 2014 Farm Bill, which allowed research and limited commercialisation.
Challenges remain: lack of subsidies compared to other crops, limited access to R&D grants, and reliance on private investment.
Strongest growth areas include animal bedding, food/feed products, and industrial applications (insulation, composites, auto parts).
Emphasised the need for de-risking supply chains through mechanisms such as insurance and forward contracts to enable investment in infrastructure.
3. Update on US Political Developments
Speaker: David Culver, Crestwood Strategies / US Cannabis Council
Two major US policy debates are shaping the sector:
Rescheduling of cannabis (Schedule I → Schedule III) — expected decision before year-end.
Intoxicating hemp products — Congress considering closure of the “Farm Bill loophole”; active debates in Texas and federal appropriations process.
Once resolved, focus will return to the original intent of the 2018 Farm Bill: industrial hemp for fibre, food, and bio-based products.
Strategy: build bipartisan coalitions and replicate successful models from other sectors (e.g. crypto).
Outlook: optimistic for pivot toward industrial hemp from 2026 onwards.
4. Secretariat Update
Speaker: Nick Morland, Tenacious Carbon (APPG Secretariat)
UK APPG efforts are being used to “pump-prime” US work, giving policymakers draft frameworks rather than starting from scratch.
Current proposals:
Target 5% crop rotation into hemp across pilot regions (Texas, Tennessee, North Carolina, and UK).
Integration of carbon credits into hemp production, with insurance mechanisms to guarantee delivery and enhance market confidence.
Engagement with London insurance market (Lloyd’s) to structure products allowing forward sales of carbon credits.
Potential global premiums of $10bn+ annually in insurance once scaled.
Importance of connecting demand creation, inward investment, and policy shifts to make hemp-based industries investable.
5. Insurance Industry Perspective
Speaker: George Northern-Sharpe, Oysters Risk Solutions
Insurance products can be designed for hemp in the same way as new markets such as cyber were developed.
Lloyd’s of London is positioned to support onboarding of hemp as a new insurable commodity class.
Crop cover, political risk, and reinsurance mechanisms can de-risk supply chains, enable forward sale of carbon credits, and attract capital.
6. Open Discussion
Key contributions:
Dr Lydia Smith (NIAB): Raised seed supply and regulatory barriers for bringing in improved hemp genetics from the US. Stressed need for UK breeding capacity and legislative support for access to varieties.
Nick Joyce (GRWN Group): Queried value of soil carbon credits and viability of biochar-based credits.
Trey Riddle: Shared experience with Vera-approved soil organic carbon credits in the US; emphasised that carbon credit revenues could directly reduce cost of goods for farmers.
Rebekah Shaman (British Hemp Alliance): Highlighted banking and payments barriers (e.g. Stripe refusing hemp transactions). Urged need for clarity to allow consumer-facing businesses to operate.
David Culver noted parallels with US issues; Secure Banking Act may provide a model.
Nick Morland added that once mainstream investment is unlocked, banking barriers typically fall quickly.
Alex Sparrow (UK Hempcrete): Called for government procurement levers to support bio-based construction, citing Paris’s 50% mandate for bio-based materials in new builds.
General agreement: government procurement is a powerful driver of demand creation in construction and bio-materials.
7. Political Context
Chair noted the recent Government reshuffle (including new Farming Minister Angela Eagle MP). Secretariat will re-engage with relevant Ministers across Treasury and DEFRA to maintain momentum.
Cross-Atlantic collaboration remains a central theme, with opportunities to link UK pilot activity to US state-level pilots.
8. Next Steps / Actions
Secretariat to prepare briefing on seed regulatory barriers (per NIAB/ELSOMS) for discussion with Ministers.
Further exploration of insurance product development ahead of target go-live date April 2026.
Continued coordination with US partners on pilot programmes and carbon credit frameworks.
Engagement with UK Government on procurement standards for bio-based construction.
APPG Secretariat to circulate dates for the next meeting and details of the Industrial Hemp Showcase (November, Churchill Room, Westminster).
9. Close
The Chair thanked all speakers and attendees for their contributions. Meeting closed with emphasis on demand creation, risk mitigation, and cross-border collaboration as the drivers for industrial hemp’s economic and environmental potential.
