May 18, 2021 Allison Troutner
Rick Lohre/Adobe Stock
Hemp growing is a passionate endeavor for many farmers. With thousands of potential uses including sustainable alternatives to plastic, fossil fuels, and building materials, growers are eager to expand their hemp acreage to stay ahead of the curve in a burgeoning market. Unlike Canada and China, however, the U.S. does not have a consistent hemp infrastructure to get products from field to market, which leaves much of this process to growers. Scaling up hemp operations—whether for grain, fiber or CBD—requires that growers be knowledgeable of market trends, infrastructure requirements, and understand their appetite for risk. In 2019, an estimated 250,000 acres of hemp were grown by U.S. farmers—nearly four times as much as in 2018. Prices for CBD hemp in particular plummeted; Whitney Economics shared survey resultsshowing 65% of hemp farmers did not have a buyer lined up for their crop in 2019. Before planting any crop, it’s wise not only to understand the current market demand for your crop or finished product, but also to find someone willing to buy it.