Industrial hemp is a regulated agricultural crop in Canada, defined under Health Canada's Industrial Hemp Regulations as Cannabis sativa L. plants containing 0.3 percent or less delta-9 THC by weight in the flowering heads and leaves. Commercial cultivation has been permitted under licence since 1998.
The species is the same; the chemistry is not
Hemp and marijuana are both Cannabis sativa L. The Canadian legal distinction is purely chemical. Modern hemp cultivars approved by Health Canada produce flower material below the 0.3 percent THC threshold by weight. Modern marijuana cultivars typically test between 10 and 25 percent THC. As of the 2026 growing season, 93 cultivars appear on Health Canada's List of Approved Cultivars for industrial hemp.
Three differences flow from that one threshold
Cultivation. Hemp grown for grain is sown densely (approximately 300 plants per square metre) and harvested with a combine, like a cereal crop. Marijuana is grown widely spaced and individually tended to maximise resinous flower production.
Plant structure. Hemp cultivated for fibre grows tall, 2 to 4 metres, with limited side branching. Marijuana plants are shorter and bushier, typically 1 to 2 metres with extensive lateral growth.
End products. Hemp seed and oil are foods overseen by the Canadian Food Inspection Agency. Hemp stalks become textiles, paper, hempcrete, insulation, and biocomposites. Hemp flowers and leaves can yield CBD and other cannabinoids, but those products fall under the Cannabis Act and require separate Health Canada authorisation, distinct from a hemp cultivation licence.
Why the confusion is persistent
Canadian and US law treated all Cannabis sativa as a controlled substance through most of the twentieth century. The 1937 US Marihuana Tax Act and parallel Canadian narcotics legislation made no distinction between low-THC fibre crops and high-THC drug varieties. Canada introduced the original Industrial Hemp Regulations in 1998. The United States only created a federal pathway for industrial hemp in 2018 through the Agriculture Improvement Act (the Farm Bill). Two generations of legal conflation explain why many consumers still treat the two crops as interchangeable.
What hemp produces commercially
Canadian hemp output sorts into three markets:
- Food. Whole and hulled hemp seed, hemp seed oil, hemp protein powder, hemp flour, and value-added formats including bars, granola, and smoothie boosters. Canada is the world's largest producer and exporter of food-grade hemp seed.
- Fibre and materials. Bast fibre for textiles and paper; hurd (the woody core) for hempcrete, animal bedding, and biocomposites used in automotive interior parts.
- Cosmetics and personal care. Hemp seed oil as a carrier oil and active ingredient in skincare, hair care, and soap.
Cannabinoid extraction is a separate market operating under different regulations.