The 2018 Farm Bill changed the landscape of all things hemp. The legalized included hemp farming and the sale of hemp and CBD oil derived from hemp. As a result, hemp farmers sprang into action. This new class of cultivators started crossbreeding one hemp strain after another to provide a smorgasbord of savors. It also provided a variety of looks and experiences for the CBD hemp community.
Federal Government Releases Hemp Farming
Within six months of the federal government recognizing that hemp is not marijuana, it is a profitable crop. Some are realizing that hemp farming is making an impact in the credit column of the American ledger.
Both Marijuana and Hemp Are Cannabis
To recap, marijuana and hemp are both cannabis, but the difference lies in the percentage of certain cannabinoids – CBD and THC. Marijuana has high levels of THC and is actually cultivated to have high levels of THC for those who relish the high it gives. True some use it medicinally, but they still get the high. Hemp is a different story. Hemp has 0.3% THC or lower while many strains boast high teens and low to mid-20% of CBD. Consequently, hemp is legal on a federal basis even though some states have banned its farming and its sale. Marijuana is illegal on a federal level, but a few states have legalized it on a state level.
History of Hemp Farming is Long
Hemp was one of the first crops to ever be cultivated and domesticated by humans. They call it the “green rush” as the benefits of the hemp plant continue to stack up and the variety of products increase that can be made with hemp.
Hemp Farming Feeds CBD Product Manufacture
Then there is CBD products such as creams, lotions, gummies and the CBD hemp flower for smoking purposes and with decarboxylating it can be used to make a more healthy cookie, brownie, pies or cakes. Distributor companies selling CBD oil in all its forms are springing up giving so many an opportunity to have a business in the health industry.
Dispensaries used to be for the individual selling medical marijuana in the states where it is legal. But with the legalization of hemp and its products, hemp dispensaries are making an appearance in cities in most states. The CBD hemp market is exploding so has catapulted to a multi-million dollar industry and is headed straight up to a multi-billion industry.
The Demand for CBD Products Drives Hemp Farming
CBD hemp farming is where it all starts so that the industry can pop and boom into everyone’s home for general health, for the relief of chronic pain, anxiety and depression.
As the hemp farming started, farmers and cultivators were conservative with their projections so started with one to five acres. Then the demand started spiraling upward and outward, so the farmers kicked it into high gear and started planting 50-acre plots. One estimate figures that 1,500 to 2,000 hemp plants will grow nicely on one acre. This is approximately $40,000 to $50,000 profit per acre.
Hemp Farming Expands
Even before the federal legalization of hemp in 2018, over 23,000 acres of the crop was grown in 2017. This presents a huge economic horizon for rural areas of the country when 100 of acres have been dormant for some years. Some farmers are realizing that hemp is a more profitable crop to grow than soybeans, corn, wheat, etc. One reason is that hemp replenishes the soil as it moves through the cycles of growth so it is not necessary to rotate crops.
One farmer went from cultivating 20 acres of hemp and in matter of two years increased to 85 acres as he saw the profit in the crop and as the demand multiplied. Tobacco farmers are starting to switch to hemp because hemp takes less water, but it is more technical to harvest. That fact may be because the harvest technique has not been perfected so harvest is quite labor intensive.
The “Hemp of it All” Last Words
The economics of hemp growing is simple. The farmers are multiplying the acres in which they are planting hemp; they are crossbreeding to magnificent strains with higher and higher CBD content which means more health benefits for an increasing number of Americans with chronic health conditions. The consumer is demanding more product as their pain is minimized and skin conditions clear up using products with CBD. The pleasure of smoking hemp flower is replacing nicotine with a product that has health benefits.
If you want more information on all things CBD, read other posts here on our blog.