The initial crop, grown by different Southland farmers in trial plots, exceeded expectations according to Southern Medicinal CEO Greg Marshall. 

“It’s been a tough growing year in Southland - first with excessive rain and then drought. Despite the challenges the plants have thrived and Southland has proven itself to be a perfect growing climate,” he said.

The unexpectedly good yield from the crop is pointing the way forward for a permanent, profitable and sustainable addition to Southland’s farms. 

The hemp strain being grown is high in CBD, which is effective in therapeutics for pain relief, anxiety, depression, seizures and a range of other medical conditions. It is very low in THC, the psychoactive compound that produces the ‘high’ associated with smoking.  

When the plants are processed, the flower will be exported to Australia (regulations do not yet allow it to be sold unprocessed in New Zealand).  

This year’s first crop has not been without plenty of learning experiences - much of the initial planting had to be replanted after it was decimated by heavy rains and wind - but since then the crop has flourished despite the drought that has ravaged Southland this summer.

After the successful first year, dairy farmers are lining up to plant the lucrative new supplementary crop next season, for financial and sustainability reasons. Marshall says CBD Cannabis is perfect for planting on riparian margins to absorb nitrates, and has the potential to provide farmers with valuable additional income to their core farming activity. 

A report by Dunedin agri science company Abacus Bio found that a 200 hectare farm converting 10% of its land to CBD hemp could reduce stocking rates, lower its methane and CO2 emissions and cut nitrate levels in waterways - all while maintaining or improving profitability. 

The programme is being run by Southern Medicinal, which operates a CBD processing plant down the road in Mataura.

Executive Director Greg Marshall says Southland is uniquely positioned in the world for CBD hemp growing.  The region’s long sunshine hours in summer and high levels of UV light stress the plants differently than most growing regions, resulting in high levels of CBD.

While non-CBD hemp has been grown on farms around New Zealand for several years, the yields and profits are tiny compared with this cash crop, which can have a major financial impact when incorporated into farm business planning.  

Marshall says the growing programme is set to expand significantly across Southland next year.