Queensland company Ecofibre, headed by managing director Phil Warner, has leased a property at Jerrys Plains where it plans to process the hemp.

Mr Warner said industrial hemp was part of the 90 per cent of cannabis plants that were non-drug plants.

“The Hunter Valley is close to Sydney and its manufacturers,” Mr Warner said.

“By setting up the processing here we hope to draw other industries and literally create a research hub with a major supply available.”

He estimates that will happen in three to five years.

Mr Warner expects crop plantings will eventually spread well outside the Hunter but predicts 1000 hectares to 7000ha will be grown here annually.

This summer has been called a ‘pilot year’ for the crop, which totals about 70 hectares grown by about a dozen farmers.

Last year there were several trial sites from Vacy to Dungog and Scone.

Mr Warner said industrial hemp offered a huge opportunity in Australian markets and globally.

“Hemp produces fibre but it’s not just textiles, it’s a bit like plastic or steel, it goes in everything,” Mr Warner said.

“It can be found in chairs, ceilings and carpets, it can be found in many forms. Hemp has a high technical quality and really works in well with other sustainable agricultures.”

Mr Warner said industrial hemp was a great rotation crop and also benefited the crop that followed, paid well and was without hassle.

“All farmers need to do is prepare the soil, plant the seed and water the crop,” he said.

He expects next year’s planting to swell to about 400 to 700ha.

Producers need to be registered to grow industrial hemp and will do so under contract.

It will then be harvested and transported to Jerrys Plains by Ecofibre Industries.

Mr Warner hopes a local contractor will take over the harvesting operations further down the track.