New York51°

New York51°

Denver37°
April 5, 2020 CONTACT

Staff, Author at Hemp Market Report - Page 2 of 9

StaffStaffFebruary 12, 2020
shutterstock_1018623748-scaled.jpg

3min00

GenCanna Global USA, Inc. filed a petition for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court in the Eastern District of Kentucky. The filing will allow GenCanna to continue to operate its business without interruption to customers, vendors, partners, and employees while working through a reorganization plan that could include the refinancing of the company’s existing indebtedness, or an alternative restructuring transaction such as a sale.

GenCanna has obtained approximately $10 million in post-petition debtor-in-possession (DIP) financing from its senior lender, which, subject to Court approval, will provide the company with liquidity to maintain its operations in the ordinary course of business during the Chapter 11 process.

CEO Matty Mangone-Miranda said, “We are taking this action in order to position our business for success in a highly dynamic and rapidly evolving industry. While this is certainly not the outcome we desired, the bankruptcy process gives us the ability to move forward in a way that allows us to best continue operations and serve customers as we work through our reorganization, resolve an outstanding legal dispute involving our Western Kentucky facility, navigate an uncertain regulatory environment and adjust our annual operating costs to better match the landscape.

Through this restructuring, we plan to address certain structural issues that we could not fix on our own. We are grateful for the continued support of our existing senior lender, who recognizes the strength of our brand, and we will continue to work tirelessly on behalf of our employees, farmers, and vendor partners.”

GenCanna was founded in 2014, as an inaugural member of the Kentucky Department of Agriculture’s Industrial Hemp Pilot Program, the company is a longstanding industry pioneer. GenCanna is a founding board member of the U.S. Hemp Roundtable. Launched in early 2017, the U.S. Hemp Roundtable is a coalition of over 70 hemp companies – representing every link of the product chain, from seed to sale – and all of the industry’s major national grassroots organizations. The US Hemp Roundtable has secured the passage of bi-partisan legislation in the U.S. Congress that established hemp federally as an agricultural commodity, permanently removing it from regulation as a controlled substance.

 


StaffStaffFebruary 6, 2020
shutterstock_502144882-1.jpg

4min00

The South Carolina Department of Agriculture (SCDA) said that it will begin accepting applications for hemp farming, handling and processing permits for the 2020 growing season starting Feb. 1, 2020. Now in its third year, South Carolina’s hemp farming program has grown from 20 farmers in 2018 to 114 permitted farmers and 43 processors at the end of the 2019 season.

In 2020, there is no cap on the number of permits SCDA can issue, and no cap on hemp acreage. SCDA will no longer allow “responsible parties” growing under another farmer’s permit, meaning each person who wishes to farm hemp must apply for a permit.

Requests To Change Federal Rules

SCDA’s Hugh Weathers is asking the U.S. Department of Agriculture to revise its national regulatory framework for hemp to better set up South Carolina’s Hemp Farming Program for success. USDA released its interim final rule on hemp on Oct. 31, 2019, and the South Carolina Department of Agriculture is in the process of writing a state plan that complies with the federal rule.

The SCDA has voiced several concerns about testing requirements in the federal rule and has formally submitted comments to U.S. Secretary of Agriculture Sonny Perdue asking that they are reconsidered. For example, the federal rule mandates that all hemp fields be sampled by SCDA-designated staff and tested by a DEA-registered laboratory within 15 days prior to harvest, a window SCDA feels is too narrow. Farmers are at the mercy of weather conditions, while laboratories are likely to experience back-ups during harvest season, and SCDA has not been given any funding to administer this testing.

“We believe that several provisions in the interim final rule lack the flexibility necessary for our farmers to be profitable and for SCDA to be able to implement a successful hemp program,” Weathers wrote.

Farmer Applications

Requirements to receive a hemp farming permit include:

  • Proof of South Carolina residency
  • Criminal background check
  • $100 nonrefundable application fee and $1,000 permit fee
  • GPS coordinates of all locations on which hemp will be grown
  • Attending an SCDA orientation and signing a Hemp Farming Agreement prior to possessing any hemp, including clones and seeds

SCDA will also license hemp processors and, for the first time this year, hemp handlers, a category that includes transporters, seed dealers, laboratories, and others who handle hemp. Separate permitting fees, facility requirements, validation inspections and certificate of occupancy are required.

Farming applications will be accepted Feb. 1, 2020, through March 31, 2020, while processing and handling applications will become available Feb. 1 and will remain open through the year. Applications will be available on the SCDA website, agriculture.sc.gov/hemp, starting Feb. 1.


StaffStaffFebruary 5, 2020
shutterstock_1459161617.jpg

3min00

A new industry report from Nielsen (NYSE: NLSN) and cannabis data provider Headset has highlighted the impact of hemp-based cannabidiol (CBD) on the U.S. pet care market. According to the 2020 Pet Industry Green Paper by Nielsen and Headset, hemp-based CBD pet products will represent 3-5% of all hemp CBD sales within the U.S. by 2025. In fact, joint projections show that the pet sector may yield one of the highest conversion rates within the consumer packaged goods (CPG) industry (37%).

“Understanding the dynamics at play in the cannabis space and their impact on the pet industry is critical,” said Maria Lange, Vice President of Strategic Initiatives at Nielsen. “Despite open questions around regulations, hemp-CBD is exploding in the pet space. With Nielsen’s and Headset’s Pet Industry Green Paper, companies will gain a better understanding of the nuanced cannabis sector, its buyers, marketed packaging claims and the rapidly evolving product landscape to capitalize on emerging trends and opportunities.”

The report made the following key points:

  • 74% of CBD buyers have pets.
  • Pet products have logged over $9.4 million in sales at regulated adult-use cannabis retailers in CaliforniaColoradoNevada, and Washington combined (Q1 2018 through Q3 2019).
  • The average price per pound for CBD dog treats is 2x the average dog treat.
  • To date, 24% of pet owners use hemp-CBD either for themselves, their pet(s), or for both.
  • Nearly 26% of U.S. adults with dogs are using hemp-CBD products. Half already use hemp-CBD for their dog, while the other half only uses it for themselves.

“The perceived positive effects of cannabis and CBD have created new markets, reinvigorated traditional CPG categories and also fueled legalization efforts. It’s no surprise that cannabis and CBD are becoming a popular way to treat pets naturally, driving another exciting market category for cannabis while energizing the pet industry,” said Cy Scott, Founder and CEO of Headset. “Headset is proud to work with Nielsen on this report to help brands and retailers understand this market and better serve consumers – and their four-legged friends.”


StaffStaffJanuary 30, 2020
hemp-farmer.jpg

4min00

Hemp Benchmarks report for January was published on Wednesday at the Hemp Benchmarks website. Founder Jonathan Rubin noted that wholesale hemp markets continue to face significant challenges, including oversupply and declining prices.

The report stated, “We have in previous reports emphasized the current glut of biomass on the market, which has led to farmers being unable to move their harvests. Such market conditions continued in January, with numerous members of our Price Contributor Network reporting that relatively little buying and selling of biomass was
taking place. Transactions that were reported showed high-CBD biomass prices continuing to sink, with the assessed rate for transactions of over 1 million pounds down 53% from last month.

Even the assessed price for high-CBG biomass experienced a 27% downturn. Reports from our network indicate that large volumes of biomass remain unsold, suggesting that further price erosion is possible. Additionally this month, numerous price contributors stated that sales of extracts, specifically distillate, have been sluggish. Very few spot cash purchases are being made and inventories held by producers and processors who are taking splits or tolling fees are growing.”

His exhaustive report determined the following results:

  • The glut of CBD biomass persisted in January. Numerous members of our Price Contributor Network reported few spot cash transactions, while large volumes remain unsold. The aggregate price for all transaction volumes declined 31% month-over-month, while the assessed price for large transactions (1 million pounds +) sank by 53%.
  • Sales of CBD extracts, particularly distillates, were also reported to be sluggish in January. Cash transactions are also rare, while inventories of producers and processors taking splits and tolling fees are growing. The assessed price for Crude CBD oil sank by 25% compared to December 2019, and the aggregate price for various types of distillates was down 17%.
  • As farmers prepare for the 2020 growing season, prices for clones and feminized seeds of CBD cultivars saw increases this month after several months of declines. However, prices for such items remain down compared to those documented at the end of October, when the USDA released new production regulations with an effectively stricter THC limit. Farmers are concerned that available CBD cultivars could be non-compliant with the new rules, while some seed producers scaled up significantly from last year.
  • Available data shows relatively low planting and harvest rates compared to the amount of acreage licensed for hemp production in 2019, yet growers still generated enough CBD biomass to swamp existing processing capacity and tank prices. Wisconsin officials stated registered growers reported that only 6% of their crops had been sold by the end of 2019, on average. With production looking as if it will increase in 2020, processing capacity and demand appear as if they will have to expand significantly to absorb it.

 


StaffStaffJanuary 14, 2020
WideShot_Popup_2-1280x560.jpg

2min00

Charlotte’s Web (OTC: CWBHF) is offering its first-ever CBD swap pop-up shop.  CBD was everywhere over the holidays and many people probably received gifts with CBD in it. Charlotte’s Web though believes that many of these products may be inferior to theirs and so in the spirit of post-holiday gifting, Charlotte’s Web is offering a chance to swap those gifts.

The company opened a 1500 square foot modern apothecary pop-up located at 219 NW 23rd Street Miami FL 33127 on January 8th and will stay open until Match 31st. It is a multi-activation brand experience that is part retail, part education center and part cultural space. The company said the pop-up will host a unique CBD SWAP program where attendees can trade in their unwanted CBD for a gift bottle of Charlotte’s Web, for free (until 2/1).

From 2/2 onwards, the pop-up space will operate as a full retail, educational, and social experience. Charlotte’s Web will announce Super Bowl activations in the coming weeks. Charlotte’s Web in-house agency designed the retail experience in partnership with Winston Retail.

 

How to Swap: (from 1/8 through 2/1)

  1. Bring CBD that you’re not too sure about to Charlotte’s Web pop-up shop.
  2. Enjoy learning about CBD while in the space, talk to the experts about how CBD works and what to look for when buying quality CBD products.
  3. Give your CBD to the representative.
  4. Receive Charlotte’s Web premium quality, full-spectrum hemp extract with CBD – for FREE.

StaffStaffJanuary 7, 2020
adobestock_163698809.jpeg

6min00

A new consumer guide released by Leafreport.com compared over 3,500 CBD (cannabidiol) products — including tinctures, gummies, capsules, pet treats, topicals, isolates, vaporizers, and bundles — from more than 53 brands. The company’s purpose was to help consumers figure out their best choices when trying to make a purchase decision. This consumer guideline looks at quantity, potency, and prices of various CBD products.

It takes this a step further by then reviewing the prices in US dollars per mg of CBD and creating a 3-category price index. These were labeled “Bargain”, “Market” and “Pricey.” There was a 1,000% price discrepancy between the least and most expensive brands with the average price per mg of CBD coming in at $0.12. 

Tinctures

The least expensive brand was Plain Jane, with an average cost of $0.03/mg CBD. Leafreport said that “The company is not USDA certified and it is not clear what extraction method they use.” The most expensive brand was Diamond CBD, with a cost of $0.32 price per mg CBD, significantly higher prices in the lower potency tinctures. Leafreport also wrote that Diamond CBD was not USDA certified and uses CO2 extraction methods. 

The most common potency for tinctures that the guide found was 33.33 mg of CBD per mL. The lowest potency was  Diamond CBD at 0.83 mg/mL. Each 30mL bottle contains 24.9mg (~25mg) and costs $19.99, coming out to $0.8 per mg of CBD. The highest potency came from Medical Marijuana with its Maximum Strength 10g CBD Hemp Oil at 450mg/mL. 

Leafreport said, “There is a huge variation in price and often in potency with tinctures and with any CBD liquids. In general, companies that produce higher-quality CBD are often more expensive, but as this report shows, this is not always the case.”

Gummies

Gummies are slower to digest than tinctures, but the effects last longer. The average price for a CBD gummy product was $39 and the price discrepancy between the least and most expensive brands was 300%. The report determined that the average price per mg of CBD was $0.14. 

The least expensive brand was CBDIstillery, with an average cost of $0.07 per mg CBD. The company is not USDA certified and uses CO2 extraction. Followed by JustCBD, with an average cost of $0.07 per mg CBD. JustCBD is not USDA certified and uses CO2 extraction. 

The most expensive brand was luxury label Lord Jones, whose price of $0.28 per mg CBD  lived up to the premium brand style. Leafreport said that it does not have USDA certification. The manufacturer’s website provided no information on the extraction method used. 

When it came to potency, the report wrote that “most gummies jars/boxes contain around a total of 300 mg CBD. Individual items vary based on shapes and sizes in the package.” Green Roads sold the lowest potency with 25mg found in each CBD Froggie SOURZ and JustCBD offered CBD gummies in jars that have a total of 3000 mg of CBD per item.

More CBD Products Listed

The report went on to cover CBD for Pets, capsules, topicals, vapes & liquids and isolates in the same manner. In addition, Leafreport looked at bundle pricing and discount options. The report did note that pricing could be affected by several factors. It said, “Achieving certified organic status is neither easy nor cheap. It can be an expensive, years-long process. Some companies, like Charlotte’s Web, have been farming organically for years while others are completely new to the organic world. In some states, there is no provision for certifying industrial hemp as organic. Lazarus Natural’s in Oregon, for instance, grows their products organically, follows the rules of the Oregon Farm Bureau, but still doesn’t provide organic certification.”

It also added that not all extraction methods cost the same. “Most companies rely on either a traditional ethanol extraction or the newer and more expensive CO2 extraction method. Some companies use a combination of both.”

And finally, it noted that “some companies utilize 3rd party testing. While this gives consumers the ability to know what they are getting, it can ultimately be an expensive addition.”

 


StaffStaffDecember 20, 2019
hemp-farmer.jpg

6min00

A group of hemp farmers including the U.S. Hemp Farming Alliance, First Crop, International Hemp Solutions, HiLo Seed, GenCanna and Farm Journal came together to form the U.S. Hemp Growers Association (USHGA), www.ushempga.org.  It is the only national farmer-directed hemp trade association and seeks to provide educational and market development resources, research, and networking opportunities and will unify the voice of farmers to actively engage in critically important advocacy efforts.

At launch, more than 300 farmer-members of U.S. Hemp Farming Alliance will fold into USHGA. Caren Wilcox will serve as the inaugural USHGA executive director. Wilcox is a well-known ag and food leader who has held executive roles at Hershey, the USDA and the Organic Trade Association. USHGA will meet in late February 2020 in San Antonio to secure founding partners and to install an initial board of directors. A majority of the board leaders will be active hemp farmers.

“I am honored to be a part of this historical moment in U.S. agriculture and lend my experience and expertise to the emerging commercial hemp industry as we develop this organization,” said Caren Wilcox, executive director for USHGA. “The forward-thinking industry leaders who have partnered on this endeavor see the potential for hemp as an agricultural commodity and understand this industry can contribute to the environment and sustainable products that benefit, at the grassroots level, farmers and consumers.”

“Industrial hemp provides a unique economic opportunity for farmers and all of rural America,” said Michael Bowman, cofounder of First Crop. “I am thrilled that First Crop is a founding partner of USHGA. Our focus is to promote regenerative farming practices to nurture the soil, not just for this year’s crop but for future generations, and hemp is one of the tools that will help us achieve these goals.”

Farmers and organizations interested in supporting U.S. agriculture’s role in the success of industrial hemp should go to www.ushempga.org to obtain more information or to sign up as a member of the organization.


StaffStaffDecember 16, 2019
Patriot_Tincture_1000mg_Bottle_x3-1280x720.jpg

5min02

Company: Patriot Supreme

Product: Pure CBD Oil

Price: $85

What Makes This Product Unique: 

Patriot Supreme is an American made company that is dedicated to preserving the rights and freedoms that the USA holds dear. Specifically, this company helps heroes, both veterans and everyday heroes, by supplying free CBD oil through their Hero Program.

This program is unique because it is not limited to a specific type of hero. Instead, this program is a way to honor people who are viewed as a hero in the eyes of their loved ones. This person can be a parent, a grandparent, a spouse, a friend, or anyone who helps improve the lives of those around them.

Review: 

Patriot Supreme is a Veteran-owned, GMO-free product that is made with American Hemp and HTC free. This product is based on quality and dedicated to helping people live their lives the way they want, with less stress and pain.

Here is my experience with Patriot Supreme Pure CBD Oil:

Package: The packaging for this product is clean, simple, and masculine in nature. The black, white and red color scheme makes it look official and intense. Although, this fits nicely with the military, and the freedom-sustaining vibe this company evokes.

The packaging is reminiscent of a vitamin supplement but it is intriguing. The downside to the product’s color choice and visual branding tactics is that women likely would not be attracted to it; at least for themselves, as it looks like a product designed for men.

Labeling: The label for this CBD oil does appear to have a lot of information about it but for the most part, that information is more branding than medicinal. The label clearly states there is 0.0% THC and that is manufactured in the USA. Although, the directions for use are extremely small, which would be a challenge for elderly users. Additionally, the Supplement Facts only contains the most basic information. One thing that stands out is judging by this bottle alone, a potential consumer would have no idea what CBD oil is used for.

However, the ingredients are labeled, so people can check the list against any allergy concerns they might have. (Yet, you might need a magnifying glass to do it.)

Texture: The texture is a little denser than water, but not too thick. It is easy to consume and leaves a citrusy aftertaste. After initially putting it under your tongue, there is a little bit of an oily texture but that will go away within a few minutes or almost immediately after having a swig of water.

Smell: The scent of this CBD oil is musky, with a bold orange flair. The smell definitely boasts the oil’s robust nature. Yet, even with the citrus, the scent matches the packaging, with more of a masculine presentation.

Taste: This CBD oil does have a nice hint of citrus to help overpower the slightly slimy, oily taste that is inherent with any CBD oil. This definitely helps the experience.

 Efficacy: This is a very effective product. I used this product to reduce inflammation in my wrists (from Carpel Tunnel) and in my back. Within a week of taking this CBD Oil twice per day, I noticed a difference in my level of discomfort. Plus, if taken before bed, it helps improve the quality of sleep I receive.

I definitely recommend this product.

Product Review by Colette Tozer 


StaffStaffNovember 8, 2019
Florida.jpg

9min00

With the surge of medical marijuana and CBD-THC -free products across the US, medical patients in Florida can rest assured that they can legally obtain medical marijuana for certain health and pain-related conditions at a medical marijuana dispensary in Florida.

Florida’s Compassionate Medical Cannabis Act was signed into law on June 16, 2014, by Governor Rick Scott. This act allowed for specialized doctors in Florida to order low- THC cannabis for patients from January 2015.

That said, recreational marijuana is illegal in Florida, and medical patients that need medical cannabis have to go through Florida’s system of obtaining a medical marijuana card to use at a medical marijuana dispensary.

A Florida doctor must follow certain conditions before being allowed to order low-THC cannabis for Florida patients. These conditions include the following:

  •  The physician must be licensed under Chapter 458 and 459 of the Florida Statutes
  •  Attend an 8-hour training class
  •  Write and pass an examination

With Florida federally legalizing hemp in 2018, there are numerous CBD companies selling hemp online. By 2019, smokable medical marijuana was made legal in Florida, although there is still a bit of a wait to get a prescription. March 18, 2019, Bill provisions include the following:

  •  Allows the possession and use of smokable medical marijuana from a medical marijuana dispensary. 
  •  It allows for the use of a marijuana delivery service used for smoking marijuana to be purchased from a vendor other than a medical marijuana treatment center.
  •  Regulates the amount of smokable marijuana to no more than a 35- day supply for a 35-day period, or no more than one 70-day supply for a 70-day period.
  •  The 35-day supply cannot amount to more than 2.5 ounces, with patients not allowed to have more than 4 ounces of smokable marijuana at a time.
  • Dispensed marijuana products need to remain in their original packaging.
  •  Patients are prohibited from smoking medical marijuana in public, at work, or on private property when not permitted by the owner.

That said, medical marijuana can only be purchased at a medical marijuana dispensary in Florida.

Reasons for Legalization

Over 70% of Florida voters approved wanted medical marijuana approved by 2016. Voters believed that qualified medical patients should have the right to smoke medical marijuana or take it in whichever form they most preferred. 

There was also Florida’s appeal of a lawsuit following the ban. Today, chronic pain is the most common reason patients use to get the state-approved medical marijuana card in Florida. They need to get a marijuana card first so that they can visit a medical marijuana dispensary.

Patients Options

Marijuana is a Schedule 1 drug under Federal Law, which means Federal Law supersedes State Law. Marijuana that contains a high amount of THC is effective for patients with different medical conditions such as:

  •  Autism
  •  ADHD
  •  Chemotherapy
  •  Parkinson’s Disease
  •  To increase appetite
  •  Pain management
  •  Glaucoma
  •  Depression

Risks and Opportunities 

Long-term research is still not available as to the safety of all CBD products. Harvard adds that “without sufficient high-quality evidence in human studies we can’t pinpoint effective doses, and because CBD is currently being mostly available as an unregulated supplement, it’s difficult to know exactly what you are getting. If you decide to try CBD, talk with your doctor — if for no other reason than to make sure it won’t affect other medications you are taking,” adds Dr. Grinspoon, MD, Harvard Health Publishing. 

Whether you’re purchasing medical marijuana from a medical marijuana dispensary or THC-free CBD, patients need to question where their product comes from, and who is responsible for the final quality of the product. The US made medical marijuana and CBD-THC-free products tend to be a higher-quality product with fewer contaminants like heavy metals and pesticides.

Quality control measures in the US come into play in a big way of protecting consumers. That said, consumers still need to ask for a certificate of analysis or COA to examine the analytical testing of the final medical marijuana product from a third-party lab. This guarantees safety and a high –quality product for all patients. 

A medical marijuana dispensary in Florida will have to follow certain rules and regulations, and can only start dispensing medical marijuana after obtaining a receipt of a medical marijuana dispensary license. 

Keep in mind that Florida law requires that medical marijuana patients meet up with their provider at least twice a year. In 2019, the Florida School board also approved a plan to establish a policy to allow for the use of medical marijuana from a medical marijuana dispensary. With medical dispensaries generating millions in sales this year, it’s not surprising that medical marijuana patients may have a hard time making a choice with the huge array of cannabis products, and extended CBD brand lines.

Author:

Olivia Davis is an enthusiastic, creative author and the Communications Assistant at Dr.Green Relief – Medical Marijuana Doctors. Our mission is to aid patients with qualifying conditions to get their MMJ Card so they can use, possess and cultivate medical marijuana legally.

 


StaffStaffNovember 7, 2019
hemp-farmer.jpg

7min00

The USA has a new boom for hemp farmers. Though it is forbidden to consume cannabis at the federal level, 33 states legalized its usage for medical purposes and 11 states don’t mind about you smoking hemp for your personal advantage. 

Let’s distinguish the difference between hemp and marijuana. There are over 50 thousands of goods that have hemp as one of the ingredients. They include clothes, cosmetics, beverages, food, construction supplies, etc. These two types of crops are cultivated from one sort of plant, Cannabis sativa L. However, hemp has only 0.3% of THC (Tetrahydrocannabinol), the addictive component of marijuana. This means, that hemp can’t make you high and doesn’t have a similar effect as smoking a joint of marijuana. 

According to Barclays Bank and EssayShark, the size of the legal cannabis market reached $28 billion in the past year. If the USA legalizes the full cannabis market, it will enhance to $41 billion by 2028.  In case the medical usage is legalized in Europe and at the federal level, the market will grow to $55 billion. It’s logical that such perspectives attract lots of investors. This fact led to the appearance of many hemp-related startups in 2018. At the beginning of 2019, their total value was worth $1.2 billion.

It’s not surprising that these tendencies and potential increased the number of new hemp farmers. There are limits to growing cannabis, but they are quite ridiculous. For example, you can’t grow more than three sorts of the plant. A person can freely grow up to 6 bushes of hemp. People who managed to “catch the wave” of planting cannabis have now grown to the earning millions of dollars. The average price for their final product is seven thousand dollars per one kilo. Farmers are sure that it’s better to work legally and the prohibitions only support the drug dealers and the development of the black market.

The product that had been illegally brought to the USA turned into legal goods. Authorities imposed taxes and customs on them. Workers involved in the hemp industry obtained official employment, government establishments started checking the quality of the product. As a result, the price for legal cannabis increased by 5-6 times in comparison to the illegal options. Many people with low budgets prefer purchasing under-the-table weed instead of paying more. Thus, the new hemp farmers who want to have a stable income must sell their product almost without any retail margin to compete with the existing offers until they have a stable audience of customers. 

Due to the high demand and the global madness over an opportunity to earn money in this industry, many people attempt starting their own production of hemp. Those people who have never had experience with anything related to agriculture (it is agriculture by any measure) have a strong belief that it’s a piece of cake. New hemp farmers usually make the same mistakes. They don’t compile a harvest plan and take into account the weather conditions. As a result, they might lose their yield or have a smaller amount of crop than expected.

Another reason that influences the new businessmen is their confidence in finding the customers or contractors for selling their products. Experienced and considered farmers search for the contractors prior to planting the crop. Therefore, they can estimate the approximate number and the workforce required to cultivate and process the product. The majority of new farmers rely on independent contractors who have to cultivate, harvest, and dry their crops. Unfortunately, many such contractors make only verbal promises and don’t satisfy their customers’ needs. As a result, farmers fail to yield and process hemp to have a final product for sale. 

It’s difficult for amateur farmers to enter the market and beat the competition. The huge processing and harvesting companies in the industry leave almost no chances for small businesses. Thus, even if you consider all the negative factors like unfortunate weather, low prices, lack of labor, and create a perfect harvesting plan, there is still a high possibility that you might push your income into the red. The industry is facing the oversupply of hemp which leads to the decreased rates. Many farmers hurry to fire-sale their crops to anyone not to lose all the money and efforts put into the cultivation, harvesting, and processing. 

The hemp market is definitely flourishing in the USA. Unfortunately, the equipment, workforce, knowledge, skills, and time required to grow cannabis might be too much for the newbie farmers. They tend to underestimate the efforts and financial risks for entering this sphere. 

Guest post by Kelly Pethick



About Us

The Hemp Market Report will target news from the fast growing worlds of cannabidiol (CBD) and hemp. As a sister site to the Green Market Report, HMR will cover financial stories, but also take a look at lifestyle news as well. The Hemp Market Report will also publish sponsored content as we seek to expand our content offerings.


READ MORE



Recent Tweets

@GreenMarketRpt – 44 mins

My week on Twitter 🎉: 31 Mentions, 272K Mention Reach, 9 Likes, 2 Retweets, 56.9K Retweet Reach. See yours with…

@GreenMarketRpt – 2 hours

Our biggest fans this week: ChrisHusong, Nopich. Thank you! via

@GreenMarketRpt – 1 day

RT : Great read from . We’re keeping our customers safe with direct to . $DRVD

Back to Top

You have Successfully Subscribed!