With the inevitable legalization of Cannabis, I can imagine there being big money in Hemp producers because of its wide variety of applications (e.g. paper, clothing, rope, bio-fuel, biodegradable plastics, and of course medical) and its large biomass/hectacre. Where would be a good place to put your money before the legaliztion? Does anyone have any information on who would be producing Hemp?
It is such a touchy subject for many people, I have to say that simple "set it and forget it" kind of investing isn't likely in the near term.
Instead, if this is something you believe in, treat it like any other business opportunity and do some detailed research into people operating in the field. Look into their business plans and visit their operations. If there is a plan, and idea, a team and the intangible it you might consider doing some direct investing with a local company.
Basically become a small business owner, silent partner or investor. If you believe in it go for it. If you don't believe in it that much, I think this is a market somebody else needs to develop before we invest.
Hemp is already pretty easily grown by farmers here. Canada had 50,000 acres of legal hemp in 2006, but it's been in decline the last 3 years due to the cost, lack of demand, and the high values of some other crops. It's also difficult to harvest due to its size.
It's possible that the demand for hemp products will increase, but given that many Asian countries (Russia, China and Korea, for example) never banned it in the first place, there's a pretty ready supply already in place. In Canada, the big reason to grow it is as an alternative crop for use in rotation that has some commercial demand, but it's certainly not as valuable as crops like canola, oats or soy beans.
The legalization of Cannabis will drastically alter supply and demand of cannabis and hemp. The distribution channels that work well for hemp may or may not work well for cannabis and may or may not continue to work well once cannabis is widely available.
Companies may have avoided sponsoring hemp products because of it's association with marijuana. If Marijuana is made legal, that stigma may or may not go away, changing which companies are interested in distribution.
I don't believe that legalizing cannabis will create a great investing opportunity into existing hemp producers.