NT growers will be able to cultivate and supply industrial quality hemp for food, fibre and seed production from today.

Authorities expect the first crops will be planted next year.

Katherine has long been highlighted as an optimum location for the growing of hemp, and maybe later, medicinal cannabis.

A plot of cannabis was successfully grown at the town's research farm in 2018.

Farmers say they are already excited about the opportunities this new crop would bring.

The industry will see two main opportunities grow from the passing of this new bill, both a fibre and grain industry (THC levels under 1%), and a viable seed industry (THC levels under 0.5%).

The NT will have a competitive advantage in the emerging industrial hemp market in Australia, with the potential to supply a viable seed industry to other Australian jurisdictions via a dry season crop, supplying viable seed the rest of Australia for summer planting.

There is the potential for two dry season crops each year.

The NT Government said the way was now clear for the Territory's farmers to grow this innovative new crop which produces a versatile, environmentally sustainable and profitable product.

Establishing a hemp sector in the Territory has the potential to facilitate investment and job opportunities in regional areas and capitalise on emerging domestic and international market opportunities.

Industrial hemp plants differ from regular hemp species in that they contain very low levels of THC, and if consumed, foods and other products made from industrial hemp have no psycho-active effects on people.

The Territory has a competitive advantage in the emerging industrial hemp market in Australia, with the potential to produce viable seed via a dry season crop and supplying it to the rest of Australia for summer planting.

The ability to plant two crops for Territory farms each dry season increases the potential return to farmers, with hemp grain currently garnering a farm-gate price of around $3,000 per tonne.

This emerging industry represents great potential in regional areas due to the nature and scale of the crop with the Territory well placed to provide a pre-summer supply of seed to southern domestic markets and supply chains.

Primary Industry and Resources Minister Paul Kirby said: "At a time when jobs and investment opportunities are more important than ever for the Territory, the commencement of the Hemp Industry Act is a huge opportunity for our agriculture sector.

"Our farmers and the whole agriculture sector are a significant employer and source of economic activity in regional and remote areas of the Territory. Opening the door for our farmers to grow an emerging and exciting crop as industrial hemp is a great milestone.

NT Farmers Association CEO Paul Burke said: "Northern Territory farmers have watched the development of the Hemp Regulation with considerable interest.

"Hemp will prove an excellent crop in the Northern Australia setting and will diversify opportunities for broad-acre cropping.

"NT Farmers Association will now work with interested producers to make this new opportunity a reality."

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