Caution was the name of the game for CBD-hemp production in 2020.
A surplus of biomass led to diminished prices…
Hot hemp plagued the already complex regulatory system attached to CBD production…
And farmers struggled to get a handle on a new and emerging market.
In fact, production of CBD-rich biomass is likely to be half of what we saw during 2019.
But those who have cultivated hemp for CBD this year are hoping for the price per pound to improve.
Right now, unsold 2019 biomass could be a culprit in undercutting the value of this biomass.
But with expiration dates approaching, potency levels dwindling, and less CBD-rich flower grown in 2020, there’s a solid chance the market could improve.
In the meantime, farmers are doing what they can to optimize their production in a way that makes their hemp fields a viable plan for the year ahead.
They say necessity is the mother of innovation…
And in the case of making CBD biomass profitable, that old adage couldn’t ring truer.
Hemp farmers are being forced to find ways to navigate the market, and that’s led to an increased interest in mechanization that will help lower production costs.
According to Hemp Benchmarks, Texas’ resident hemp expert Calvin Trostle “got their 800 [plus] acres cut, baled, and dried in about a three to four week period,” by switching from a grain drill to mechanized practices.
And that’s not the only way he’s hoping to decrease operational costs.
They’re also planting non-feminized seed and then leaving the plants in the field, as an alternative to plucking out each and every male plant by hand.
That an efficient, high-volume hemp operation outweighs the problem of yielding low-potency biomass.
And while we’ll have to wait and see whether these new practices pay off, Trostle’s team’s already come in under budget. So far, their production costs are coming in at less than $3,500 to $4,000 per acre.
According to Cornell University’s research, CBD hemp production can run a farmer as much as $1,300 per acre.
No doubt, mechanization presents quite the opportunity to widen profit margins in hemp for CBD biomass.
However, it seems many farmers are hedging against risk by turning to fiber production instead.
And experts predict…
Fiber Will Be 2021’s Star Hemp Investment
Make no mistake, CBD holds enormous potential for the hemp industry over a period of time.
But right now, hemp seed and fiber show serious promise.
Andrew Bish, founder of Hemp Harvest Works, told Hemp Benchmarks that he believes the amount of fiber we see getting introduced to the market in 2021 will be “shocking,” with projections between 350,000 and 400,000 acres.
And most of these hemp fiber hot spots will be the work of large-scale cultivators in states like Texas, Montana, and Kansas.
Certainly, the demand for fiber is rising.
And as pioneers in this industry, it’s up to each of us to do what we need to get it to thrive…
Even when that means you need to shift your focus for a period of time.
But in an industry where one plant can give birth to 25,000 different products, why should we expect any less?
At Advanced Hemp, we are committed to helping growers grow the best hemp they can for whatever end-product they are targeting. Stay tuned to see our expanding product line in the near future!