INTERVIEW: Tim Schmidt is a Tasmanian farmer, director of The Tassie Hemp Co. and one of Australia’s leading industrial hemp advocates. Founding president of the Australian Hemp Council (2020-2025), he grows hemp and grass seed and raises 1,000 head of cattle on his family’s farm, while championing processing infrastructure, practical regulation and new markets for hemp foods, fiber and construction materials. Schmidt was the prime mover in initiating the Australian Senate inquiry into the hemp industry, which is due to release its report at the end of this month.
HempToday: The Senate inquiry’s submission deadline is approaching. What outcome would you consider a success?
Tim Schmidt: First, I’d like to see the government establish a legislated definition of hemp, have it removed from the National Poisons Schedule, and to be administered by the Department of Agriculture, Forestry and Fisheries. We have institutions and regulatory authorities already in place to manage end user consumer product safety.
We also need a major boost in funds for research and procurement support for the industry, and to establish a national advisory taskforce to ensure the government makes informed policy decisions.
At the cultivation level we need material control for low THC hemp to be deregulated with the exception of hemp varietal monitoring to ensure crops planted are low THC varieties; this can be managed through a seed production registration system.
HT: Australia has strong research and growing interest, but processing still lags. What is the single biggest obstacle to building regional fiber hubs?
TS: The single biggest obstacle to building regional fiber hubs is lack of confidence. By this, I mean that no investor or group of investors has the confidence at this stage to invest around $40 million into a regional hub. All the ingredients are there apart from confidence; we have the growers, logistics, emerging markets and processing facilities available to build, just not capital confidence. One of a number of solutions for this problem is for the government to provide an underwriting facility to support fundraising efforts.
My observation to date in Australia, is the mistaken idea that small, inefficient decorticators are going to revolutionize the industry. Without scale and corporate investment, fiber hubs will only remain an aspiration.
HT: Housing, carbon and advanced materials are receiving much of the attention today. Which of those markets do you think will generate meaningful commercial demand first?
TS: Housing material supply. There are a number of companies working on this issue with a variety of housing material formulations being developed. The industry is very close to producing an ideal product, and there are a number of cabin/housing prototypes being built already.
With a major housing shortage across Australia and curtailing of the forestry industry, and the emergence of carbon sequestration requirements, I believe the hemp industry is well placed to fill this emerging need.
HT: What lessons should Australia borrow from countries such as France, Germany and New Zealand?
TS: France’s most successful system is one built around a farmer owned co-operative operating a large-scale efficient production facility. This concept has been discussed from time to time in the Australian industry. Also, France has an effective national seed certification system that could be useful to apply in Australia. The establishment of industry product standards in France both for raw material and building codes are important facets from which Australia could learn.
Germany’s bio-economy initiatives integrate industrial hemp into mainstream manufacturing, including automotive, bio-composites and building materials. Australia can adopt this approach, leaning on recommendations to integrate hemp into national construction and circular economy supply chains.
In New Zealand, recent proposed changes to industrial hemp crop regulations, have recognized that low THC hemp is a low-risk crop and can be treated like any other commodity crops such as canola or flax.
HT: And what should it avoid copying?
TS: What we need to avoid are the excessive regulations that still inhibit whole-of-plant use and deprives the industry of supplementary revenue streams that boost profitability.
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‘Australia has the potential to become world leader’ if government will support hemp
