The sessions highlighted that Canadian hemp markets were slow to develop, according to Teske, and advised Kansans to search for buyers before planting a hemp crop. The expansion in indoor spaces or greenhouses approved for hemp production demonstrates the move in the CBD market towards flowers, as farmers looking for that product tend to cultivate their plants indoors, said Ian Laird, Chief Financial Officer and General Counsel of Hemp Benchmarks. With the legalization of hemp cultivation across the country, many textile and clothing manufacturers are now recognizing the advantages of hemp fibers. While contracts between CBD, or cannabidiol, extractors and hemp producers are rare in the budding industry, Hemp Foundry's 50-50 payment agreement with producers who don't buy their clones, and a 60-40 benefit-sharing agreement for those who do, resulted in crops that went directly to Monee, Illinois. Information on regulations for hemp cultivation in the United States is available on the Agricultural Marketing Service's hemp production website.
Since the Hemp Foundry facility can process 2,500 pounds of hemp a day, it processes the product even for farmers who didn't buy their clones. Hemp grains and hemp fiber continue to show positive returns above variable costs (assuming that application and licensing fees are spread over more than one acre). According to Hemp Benchmarks, a hemp industry data provider based in Stamford, Connecticut, about 107,000 acres have been licensed outdoors so far this year. The interior space authorized for hemp production has grown, reaching more than 168 million square feet this year, according to Hemp Benchmarks.
Cyrus said that, anecdotally, she knows of at least a million pounds of hemp plants and thousands of kilos of hemp oil stored in her area.
Growing hempspecifically for the smokable hemp market is the most complex but also the most profitable. In the retail sector, customers who buy hemp products tend to be younger and more liberal-minded, although sales of hemp and cannabidiol (CBD) fabrics reach a wide range of demographic markets. The potential for profitable returns from growing hemp is real. However, it is important to understand the regulations and market conditions before investing in this new industry. Farmers should research potential buyers before planting their crop and consider growing indoors or in greenhouses to maximize their profits.
Additionally, they should look into contracts with CBD extractors and consider selling directly to retailers or consumers. Overall, growing hemp can be a lucrative business if done correctly. Farmers should take advantage of this new industry by researching regulations and market conditions before investing in this new venture.