Industrial hemp trials under the microscope at Narrabri research station

Industrial hemp production in NSW is now under the microscope with the recent establishment of a task force by the NSW Agriculture Minister Tara Moriarty and it has been earmarked as a crop with high growth potential as global demand for its products is projected to reach a value of $18.6 billion by 2027.

A program of industrial hemp variety trials (IHVT) began in 2021 and was undertaken at nine sites across three climatic zones: Northern, Central and Southern Australia. In the Central zone, Narrabri, Stanthorpe in Queensland, Manjimup in WA and Loxton in SA were selected.

Director of Northern Region Agriculture at the University of Sydney, Narrabri, Associate Professor Guy Roth, said the field day in February was attended by about 40 people including farmers, industry members and people from other research organisations.

Prof Roth said it included a field site inspection of 12 different industrial hemp varieties from Poland, France, China, Canada and Australia.

"There is huge genetic diversity in terms of growth, flowering time and maturity. Some of the varieties were similar in height to wheat, while others were 2.5 metres tall and still growing. They vary from 70 to 180 days to maturity," he said.

"This means for farmers across the NSW variety choice opens up many options depending on their location along the coast or inland."

Visitors were shown a range of hemp products, such as foods, oils, and building products by hemp agronomist John Muir.

Prof Roth said while the project looks at both grain and biomass, particular interest has been shown in the fibre for biomass and building products.

"We think the insect pests and weeds will be easier to manage for these products.

"We are interested in a "farm to house" value chain. It won't be for everyone, but people seek sustainable building material alternatives.

"The demand for hemp-based building materials is growing due to their highly insulating, fire-retardant and lightweight properties, while also being both renewable."

Prof Roth said sustainable fuel production could open regional development opportunities for growth better touted and have potential as well.

"Growing industrial hemp should bring soil amelioration and carbon sequestration benefits as well to farmers, but we would like to quantify these."

He said the lack of knowledge of industrial hemp production methods and the best routes to market limits the current potential of the industrial hemp industry.

"The significant barriers to overcome for this industry's growth with field measurements include better agronomic understanding of planting times and weed/pest control.

"Insect and weed control appear to be more challenging for grain crops. In our case, Helothis and Rutherglen bugs have been the main insect pests.

"The other barrier is for producers to identify and create their market. That is whether to pursue food products, biomass for sustainable fuels or a regional development building product.

"A vital market consideration is that potential buyers will want adherence to sustainable, renewable, carbon, and biodiversity messages and, in some cases, organic. If these are not for you, then hemp won't be your crop of choice.

"Industrial hemp is an emerging industry. At this stage, it is tiny compared to mainstream crops. It still has a long journey to travel."

Prof Roth said the Agriculture Minister's recent announcement of a hemp task force should stimulate discussions around opportunities and then put some resources towards further development.