US President Donald Trump participates in a signing ceremony for the Agriculture Improvement Act of 2018 at the White House on December 20, 2019 in Washington, DC.

A non-psychoactive cannabis compound more commonly known as CBD is "poised to flourish" thanks to the 2018 Farm Bill, signed into law by President Donald Trump.

That's according to analysts at Canaccord Genuity who have published a list of their favorite stocks as the cannabis industry takes off.

The 2018 Farm Bill has removed all cannabis fibre products with less than a 0.3 percent concentration of the psychoactive element tetrahydrocannabinol ("THC") from the Controlled Substances Act.

That means it is now legal to manufacture, distribute and sell hemp-derived cannabidiol (CBD) anywhere in the United States. CBD is viewed by many to have medical benefits, providing relief from everything from pain to depression and anxiety.

In a note Wednesday, Canaccord Genuity identified these stocks as plays for investors looking to take advantage of firms that market hemp-derived CBD products.

• Charlotte's Web Holdings, Inc. (CWEB-CSE | BUY; C$21.00 PT) • Canopy Growth Corporation (WEED-TSE | SPECULATIVE BUY; C$50.00 PT) • Curaleaf Holdings, Inc. (CURA-CSE | SPECULATIVE BUY; C$13.00 PT) • Liberty Health Sciences Inc. (LHS-CSE | SPECULATIVE BUY, C$2.00 PT) • 1933 Industries, Inc. (TGIF-CSE | SPECULATIVE BUY, C$0.70 PT) • DionyMed Brands, Inc. (DYME-CSE | SPECULATIVE BUY, C$5.50 PT) • KushCo. Holdings, Inc. (KSHB-OTC | SPECULATIVE BUY, US$7.50 PT) • MJardin Group, Inc. (MJAR-CSE | SPECULATIVE BUY, C$9.00 PT)

Despite the passing of the Farm Bill, legal ambiguities have remained as the U.S. Food and Drug Administration (FDA) has maintained its stance that it is unlawful to sell CBD as a dietary supplement.

Canaccord's North American equity research team said despite this confusion it had noted products already being sold through Safeway in some U.S. states and that other retailers would likely follow this year.

"While the FDA's stance has added some initial caution by retailers looking to enter the CBD space, we believe this to be transient, and expect many mass market retailers to begin distributing CBD products over the course of 2019," the note read.