South Australia: Kangaroo Island farmers eligible for industrial hemp funding
2 min read
The Islander reports
The South Australia state government is investing $500,000 to support industrial hemp production in South Australia through new trials and industry support
See story (paywall) https://theislanderonline.com.au/news/2026/09/28/kangaroo-island-farmers-eligible-for-industrial-hemp-funding/
Also https://pir.sa.gov.au/crops-and-plants/grains-and-crops/industrial-hemp
Key Objectives of the Funding
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- Water-Efficient Crop Trials: The South Australian Research and Development Institute (SARDI) will head new crop variety trials. The primary goal is identifying low-water cultivars that can withstand arid conditions, paving the way for cultivation to expand into areas like the Riverland.[1, 2, 3]
- Infrastructure Support Grants: A portion of the $500,000 is carved out as small grant opportunities. These grants will help local farmers offset the initial capital costs of processing machinery and storage infrastructure. [1]
- Regional Farmer Eligibility: While the Limestone Coast has previously been a core production hub, this fresh push explicitly expands eligibility and focus to broader regions, including farmers on Kangaroo Island. [1, 2]
The Context of Hemp in South Australia
Industrial hemp—which contains less than 1% THC and holds no psychoactive properties—was legalized for cultivation in South Australia in 2017. Because it is a highly versatile plant, its raw fiber and seed can be manufactured into texturized fabrics, sustainable “hempcrete” building materials, cosmetics, bioplastics, and high-protein health foods. The state government views the crop as a massive multi-million dollar economic opportunity to diversify farming and build eco-friendly manufacturing jobs
