As the world races to reduce emissions and build more sustainably, it seems almost absurd that two of the most promising, natural building materials—hemp and straw—remain sidelined in Australia’s construction industry.

Lightweight, renewable, carbon-sequestering, and fire-resistant, these materials tick all the boxes for a future-proof building sector. So why aren’t we using them more?

Why Hemp and Straw?

Hempcrete (a bio-composite made from the inner woody core of the hemp plant mixed with a lime-based binder) is an ideal material for modern green building. It’s:

• Carbon-negative: absorbs more CO₂ during growth than it emits in production.
• Fire- and pest-resistant.
• Insulating and breathable, helping regulate indoor temperatures and humidity.

Straw bale construction, using compressed wheat or rice straw, also offers:

• Excellent insulation and soundproofing.
• Local availability, especially in farming regions.
• Compostable end-of-life material and extremely low embodied energy.

What’s Stopping Us?

1. Regulatory Red Tape
   Industrial hemp cultivation is highly regulated in Australia. Growers must comply with strict THC content rules and licensing processes, which vary by state and can deter new entrants.
2. Lack of Processing Infrastructure
   Even where hemp is grown, Australia lacks widespread processing facilities to turn it into usable building materials like hempcrete or fibreboard.
3. Limited Awareness and Training
   Most architects, builders, and clients are unfamiliar with how to use these materials, how they perform, or what building codes apply.
4. Higher Upfront Costs
   Although hempcrete and straw bale homes can be cheaper to run, their initial costs are often higher due to small-scale production and limited suppliers.

Where Hemp Is Being Grown in Australia—And By Whom

Despite these challenges, a vibrant if scattered hemp industry is emerging across the country:

1. Tasmania – The National Leader

Hemp Tasmania Pty Ltd is at the forefront, growing industrial hemp for seed and fibre. Tasmania once produced up to 80% of Australia’s hemp, aided by progressive state licensing policies and suitable growing conditions.

2. Queensland – Home to Hemp Farms Australia

Hemp Farms Australia has been cultivating and commercialising hemp since 2013. They supply certified seeds and operate processing facilities for fibre and grain products.

3. Victoria – Small but Active

Total Hemp Co. operates a 35-hectare hemp farm producing fibre and paper products. However, statewide restrictions limit licenses to just a few growers.

4. South Australia – Growing Interest

In the Coonawarra region, Good Country Hemp and others are testing hemp’s viability as a sustainable regional crop.

5. New South Wales – Poised for Expansion

NSW is considering reforms to expand hemp use in food, fibre, and even construction. The Riverina and Northern Rivers regions are promising due to strong grain industry infrastructure.

Building Momentum: What Needs to Happen

To fully unlock the potential of hemp and straw in Australia’s construction sector, the following steps are key:

• Streamline licensing for industrial hemp cultivation across all states.
• Invest in processing infrastructure (decorticators, fibre mills, hempcrete factories).
• Train architects and builders on the use of hempcrete and straw bale systems.
• Support through subsidies and pilot projects that demonstrate viability.
• Update building codes to include and validate these materials.

The Future Is Green—and Local

Australia has the climate, the farmers, and the motivation to build a hemp and straw construction revolution. But policy, education, and investment need to catch up. With the right support, these materials could become standard for energy-efficient, low-impact buildings—helping us meet both housing and climate targets at the same time.

Join the Conversation at the Australian Hemp Connect Forum

Want to dive deeper into hemp innovation, regulations, and market opportunities? Join the Australian Hemp Connect Forum – June 25-27th @LaTrobe Bundoora (Vic) the national gathering for producers, researchers, and advocates working to grow the hemp industry in Australia.

👉 Register Here for the Hemp Connect Forum

References

• Hemp Farms Australia
• Hemp Tasmania
• Total Hemp Co.
• Adelaide Now – Hemp in South Australia
• The Guardian – NSW Hemp Industry Expansion
• Herald Sun – Hemp Reform in Victoria
• PIRSA – Industrial Hemp SA
• NRE Tasmania – Hemp Licensing

Picture of Western Australia’s first Hemp home, build 207