Hemp growers are angry at plans for a massive increase in the cost of crop licences with the fee tipped to rise from $11 to more than $500.
Bruce Hill is one of only a dozen New Zealanders with a licence to grow hemp, a close relative of cannabis, which can be made into products like oil, clothes, food and insulation.
But he says the fledgling industry is under threat because of plans to increase substantially the cost of licences.
"It is worthwhile having a fairly tight regime in place that maintains the public confidence in hemp production, but at the same time it shouldn't be excessively expensive."
The fee is expected to rise from $11 to $550 - on top of that growers will have to pay $300 each time the crop is tested for mind-altering chemicals.
Stewart Jessamine of the government agency responsible, Medsafe , says the original fee hasn't changed for 23 years and testing costs are set by the lab.
"The licence fee is a reflection of the amount of work that Medsafe estimates will be necessary to receive a licence application, process it and police it."
But Green Party list MP, Ian Ewen-Street, is questioning why the drug regulating agency has even been put in charge of hemp, which is an agricultural crop.
"I believe there's confusion about the relationship between cannabis and industrial hemp. Obviously we're dealing here with a product that is completely drug free."
But Jessamine says it is a necessary role for Medsafe.
"Medsafe is the part of the Ministry of Health that admisters the Misuse of Drugs Act and hence that's why it's involved in the process."
Submissions on the proposed licence fees and other regulations surrounding hemp close next Friday.
