Five years ago, farmers were racing to get in on the hemp craze with visions of $100,000 an acre dancing in their heads.
This year, farming problems are coming into focus, with so many problems facing farmers—from insurance costs and processing infrastructure challenges to regulatory and consumer uncertainty. And that’s not even counting the challenges of the weather and the too-successful harvest of last year that has led to a glut in the hemp CBD market with its attendant cratered pricing.
“You can’t tell farmers they’ll make the same money as last year or the year before,” said Wendy Mosher, president and CEO of New West Genetics, a hemp seed genetics seller. “You can’t afford to get in unless you’re vertically integrated. You’ve got maybe $8-12,000 per acre in spending.”
Daunting figures, with more headwinds than farmers would like to normally consider. But what if you can get an optimistic $5,000 an acre—which is maybe about $5,000 an acre more than you’re making on your soybeans? Here are the issues at play for today’s hemp farmers.
In the 2019 planting season, an estimated 250,000 acres of hemp were grown in America, which is about triple the amount grown in the year prior. That led a lot of observers wondering if the hemp CBD market could accommodate all this new raw material. [Read More @ Natural Products Insider]