Some enthusiastic locals even suggested working in his crop for free, providing he allowed them a few rows in the centre of the paddock for their own plot of cannabis.

Mr Dugan eventually abandoned plans for a trial crop when police restrictions became too difficult but he still sees a future for environmentally friendly industrial hemp, suitable for everything from building products, cosmetics and bio-fuel to textiles, dog food, paints, paper and insulation.

The NSW Government yesterday legalised industrial hemp and launched a new licensing scheme allowing prospective growers to lodge applications with the Minister for Primary Industries Ian Macdonald.

Strict licensing arrangements are designed to prevent industrial hemp being used to camouflage illegal crops of marijuana.

According to Department of Primary Industries western region manager Greg Markwick, police-approved industrial hemp varieties have low levels of tetrahydrocannabinol, the compound people smoke to get high.

Mr Markwick expects “a degree of local interest” but doubts a whole new industry will be spawned overnight.

“Farmers will have to make a judgement on the commerciality of industrial hemp,’’ he said.

“Like all crops, high yields are required for profitability and high yields require plenty of water.’’

The DPI believes industrial hemp has the potential to provide farmers with a much-needed additional fast-growing summer crop option that can be used in rotation with winter grain crops.

Barry Dugan sees real possibilities but worries about the scarcity of hemp processing facilities.

“There’s not much point growing the stuff if there’s nowhere to have it treated,’’ he said.

“According to my research, a huge amount of energy and water is required to get all the good things out of hemp.

“The Trangie Research Station has plenty of land and water and I’d like to see scientific staff conducting trials to determine the right varieties and techniques for this area.’’

Properties growing industrial hemp will be audited and inspected regularly.

Application forms to grow large-scale hemp are available from the NSW DPI website at www.dpi.nsw.gov.au.

heather.crosby@ruralpress.com