The Ministry of Health has approved trials to cultivate industrial hemp with a group of growers being given the green light to cultivate the controversial crop.
The first licenses for growing hemp, which is from the same family as marijuana, will be issued by the ministry on Tuesday.
Hemp is already a big hit as a commercial crop in China, Canada and some Eastern European countries because it is versatile, durable and fashionable. Its stalks and leaves can be used for everything from particle board to chocolate.
But because it is also a close cousin of marijuana it has been illegal to grow it in New Zealand until now.
The news has been welcomed by those who have lobbied for its introduction.
"It's brilliant and I can't express enough... I mean it's hard for me to get the smile off my face," says Mac MacIntosh of the Hemp Association. "It's been a long time coming and the hard work starts now, but it's brilliant."
It has taken more than a decade to get the go-ahead and now 11 growers from South Canterbury to Waikato will be in on the groundbreaking trial.
However, it will not come cheap as they will have to invest as much as $55,000 per hectare for the privilege.
"No one expects to make any money the first year but that's the same with any new industry. You have to invest something if want to get something out of it," says David Musgrave who will be trialing hemp on his South Canterbury property.
Police initially opposed the trial. They were concerned the criminal variety could be hidden amongst the commercial crops but hemp growers are at pains to deny that.
"I hope that the public comprehends that we are trying to do something with economic and commercial aspirations that's got nothing to do with the drug culture," says MacIntosh.
"We'd like to think that the drug culture will recognise that as well and leave the crops alone."
After the overseas success, New Zealand farmers are hoping trials over the next two growing seasons will confirm hemp as a potential cash crop for them.>
"We've done some estimates of the likely demand for the insulation and wool and food products and we think that within three to four years this could be worth $5 million to $10 million to New Zealand," says Musgrave.
Harvesting and processing the hemp are issues that will have to be addressed once they determine if it can be successfully grown.