IT wasn’t just potato farmers who took notice when earlier this month the government announced a £10 million agricultural loans scheme for the first time since 2003.
Jersey Royals may be the Island’s most famous export, but its newest agricultural industry is arguably cannabis. Should hemp farmers be allowed to access public money under the scheme?
Deputy Philip Ozouf says no, and is seeking to amend the 2025 Budget to ensure that these loans are not accessible “for any purposes relating to the cultivation of cannabis in Jersey”.
Deputy Hilary Jeune, meanwhile, hopes to alter that amendment to allow hemp growers to continue dipping into the pot of taxpayer money.
The clash comes a week after Health Minister Tom Binet criticised the previous States Assembly for legalising medicinal cannabis without putting in place the necessary regulatory frameworks.
He said the current government was now “playing catch-up” to address gaps in regulatory oversight and patient support.
In his amendment, Deputy Ozouf has also called for a “clear and consistent” regulatory framework for cannabis production to “protect investors, ensure market stability, and maintain public trust”.
Economic Development Minister Kirsten Morel announced at this month’s Jersey Farming Conference that the agricultural loans scheme had reopened for the first time since 2003.
The £10 million allocation to the scheme was unanimously approved last November, and Islanders in the agricultural industry can now apply through Jersey Business to borrow a portion of the first £3 million tranche of the funding to make long-term investments in their businesses.
Jersey Farmers Union president Dougie Richardson hailed the government’s decision to re-establish the scheme as “great news” for the sector.
Deputy Ozouf has also said the scheme’s re-establishment offers “significant opportunities to enhance the productivity and sustainability of traditional agricultural and horticultural sectors”.
He added: “However, it is essential to maintain a clear distinction between traditional agriculture and the cultivation of medicinal cannabis.
“This industry operates more as a medical and commercial export sector rather than an agricultural one, and thus warrants different regulatory and support considerations.”
He listed several concerns regarding cannabis cultivation, including its “unregulated and inconsistent regulatory framework” and recent case studies such as Northern Leaf, which he said illustrated the sector’s “volatility and risks”.
In May, the grower said it remained “in a precarious financial state” with less than £25,000 cash in the bank after being founded by a consortium of private investors in August 2019.
The company invested £30 million in building a 100,000sq-ft cultivation and processing facility, according to reports published last year.
Deputy Ozouf continued: “The initial promise of a thriving cannabis market in Jersey has, in some cases, resulted in significant financial challenges, raising doubts about the prudence of directing public funds into this sector.
“Investing public funds into a nascent, high-risk, and inconsistently regulated industry raises accountability and sustainability concerns. Public money should be used to support sectors with a demonstrated record of stability, economic contribution, and community benefit.”
He added: “A clear and consistent regulatory framework for cannabis production should be established to protect investors, ensure market stability, and maintain public trust.”
However, Deputy Jeune has lodged an amendment to his amendment to clarify that this exclusion would only apply to the cultivation of cannabis-based products for medicinal use.
She said: “Given the Island’s long history of hemp cultivation, the known benefits to the environment and the many potential by-products of industrial hemp, the exclusion of hemp cultivation from the agricultural loans scheme would be detrimental to Jersey’s traditional agricultural sector.”
In April, Deputy Kirsten Morel said the medicinal cannabis industry was still on course to become a “significant” part of the economy – having already generated around £60 million of investment in the Island since 2016.
Two licences for the commercial cultivation of medicinal cannabis were issued in January 2020, in a move aimed at putting the Island at the forefront of the emerging European medicinal cannabis market.
