After a brutal shake-out that chopped hemp acreage in half in two years, the industry is focusing on hemp as a source of grain and fiber, a less profitable but possibly steadier market than cannabinoid (CBD) oil, used in food, beverages and dietary supplements. Analysts say the unclear regulatory status of CBD has throttled sales. Growers rushed into industrial hemp following the legalization of the crop by the 2018 farm bill, attracted by reports of high revenue from hemp sold for processing into CBD oil. But the pandemic and a glut of hemp crushed wholesale prices. Licenses were issued for nearly 285,000 acres in 2021, down from as many as 466,000 acres in 2020 and more than 511,000 acres in 2019, when production was the highest ever, reported Hemp Industry Daily last fall. The Hemp Industry 2022 Opportunity Report said licensed acreage fell by 55% “to levels seen before the 2018 farm bill.” The 2014 farm law allowed hemp pilot and research programs. CBD prices fell below production costs but the “bright spot was the supply and demand for fibers and grain,” said the report. “We’re only at the beginning of the renaissance of hemp.”

420 Intel – Marijuana Industry News, 01/17/2022 19:00:00

Open article: