Editor's Note
High prices, enthusiastic support from local government and business groups, and looser regulations in the wake of the 2018 Farm Bill passage led to the planting of tens of thousands of new acres of hemp over the last few years, resulting in a production oversupply still being felt by the industry today, according to the 2020 Hemp Crop Survey from The Jacobsen Publishing Co., a Boulder-based commodity-pricing reporting agency. The current oversupply means that there is a “significant volume of biomass that’s still in storage,” which could help keep prices down as older hemp is less valuable than a freshly harvested crop.
June 4, 2020
CSP Magazine

The industry may be experiencing a reversal on hemp crops and pricing in the post-2018 Farm Bill world, according to the results of the  2020 Hemp Crop Survey .

The survey, conducted by The Jacobsen Publishing Co., a Boulder, Colo-based commodity-price reporting agency, surmises that high hemp prices, broad support of local governments and industry groups, and the passage of the 2018 Farm Bill led to tens of thousands of new acres dedicated to hemp—perhaps more than the market demanded. ...

Prices have dropped from a high of $40 per pound to $10 per pound.

With a large percentage of those hemp crops being dedicated to making cannabidiol (CBD) products, an oversupply is not great for farmers, but could be welcome news for manufacturers and retailers looking to bring new customers into the category.

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