The New South Wales Government has applied for a licence to grow cannabis for medical research trials.

Minister for Primary Industries Niall Blair said the state's cultivation licence application was lodged with the Federal Government last week.

Earlier this year, the Federal Parliament passed legislation to make the cultivation of medicinal cannabis legal — with a licence.

The NSW Government is running clinical trials for severe childhood epilepsy, terminal illnesses and chemotherapy-induced nausea.

It has been required to import the cannabis-based drugs from Canadian and British pharmaceutical companies, but Mr Blair said there may be a need to grow cannabis locally.

"We might even have to start the cultivation ourselves, as a Government, on DPI [Department of Primary Industries] sites, so that we can progress this as quickly as we can."

Tamworth-based medicinal cannabis campaigner Lucy Haslam also intends to apply for a licence and has purchased a property near Tamworth to set up a medicinal cannabis farm.

Mr Blair said her application, and others from private citizens, might need to wait until later in the year.

He said Tamworth was the perfect place to grow medicinal cannabis, but it would depend on the conditions of the licence.

"The licence has very strict requirements around security so we would need to have a look at our assets," he said.

"I know there's a lot of people advocating for it to be done in Tamworth and that's something we're looking closely at, but we need to make sure we understand the requirements on our licence and make sure the facilities meet those requirements."

High fencing, security cameras and individual plant labelling and recording are expected to be some of the requirements that will need to be met before the DPI can begin any medicinal cannabis growing trials.

Australian cannabis industry could lead world: expert

An international agronomist, who did not want to be named, agreed that farming conditions in northern NSW were perfect for the crop's growth.

"Australia has the potential to lead the world here on exactly what cannabis is supposed to be and exactly how it's supposed to be produced — outdoors in the sun, naturally," he said.

"Australia is the only country that can grow every type of variety under the sun."

While much of the world's cannabis crops are grown indoors under lights, natural sunlight encourages the most effective production of the chemicals most of use to patients.

He said no single medicinal cannabis variety was suitable for all patients.

"Everybody is different — a type or variety that you can find extremely effective for you mightn't be so effective for me," he said.

"That's where custom medication is going to come into this."