The growing and cannabis have been illegal in the U.S. since 1937 when the Federal Government decided to outlaw the growing, sale, and possession of cannabis. Hemp harvesting is taking place once more across the U.S. as the relaxation of hemp laws has led to a range of options for farmers to explore. The relaxing of cannabis laws across the U.S. has led to the development of the cannabis and hemp market, which could be aided by the ongoing trade wars between the U.S. and China. Despite the Chinese leading the international hemp and cannabis market, the U.S. is catching up with farmers across the nation looking to profit from growing cannabis.
What Should I Grow?
When you are thinking about the different options open to you as a farmer of cannabis and hemp, you will want to choose the correct crop for your needs. There are three major markets in the hemp sector, which are:
- CBD extract
These three markets offer widely different options for you as a farmer because you will soon discover the different benefits and issues facing each market. Hemp can be grown for its grains, oil, or fiber with the CBD oil market known as the most profitable available.
What is the Grain Market Worth?
The three markets for hemp production offer very different results for you to enjoy as a farmer. The first being the grain market that has been developed with more profitability for your crops than those on offer from grains, such as wheat with emp offering a return on investment of between $0.65 and $0.60 per pound. As a farmer who has heard so much about the potential profits on offer from hemp, you may think this is a small amount to receive for your hard work. However, one of the benefits of growing cannabis for hemp is the proximity these plants can be grown in. Cannabis plants grown for grains can produce around 1,000 pounds of useable cannabis per acre giving a return of around $6,000 to $6,500 per acre.
How the CBD Oil Market has Grown?
The most profitable use of the hemp market is the development of the CBD oil sector that has grown since the 2018 Farm Bill in the U.S. CBD oil is a popular option for a range of medical and mental health issues that have been shown to benefit from the use of this product that does not include THC. THC is the chemical in the cannabis plant that is associated with the high many people feel when they consume the plant in some way.
No matter how much money is made by farmers growing cannabis for the grain or fiber markets, CBD oil is the most profitable available. The CBD oil market has a supply that has yet to match the demand for the products that continue 0.3 percent THC or less. The growing of hemp for CBD oil extract is the most profitable option for farmers who hope to make a healthy profit in a short space of time. The value of the hemp industry per acre varies when used for CBD oil because of the quality of the plants used from $2,500 to $75,000 per acre. The CBD oil sector of hemp harvesting marketing is the most significant part of an industry totaling more than $47 million per kilometer farmed, according to Businesses.com.
The Fiber Market can be Difficult
No matter how many tariff wars that take place between the U.S. and China, the hemp harvesting for fiber market remains rooted in Chinese territories. The fiber market gives a return of around $260 per ton with between two and three tons grown per acre in the U.S. The main problem for anybody wanting to grow hemp for fiber is the problem of processing needing to be done directly after harvesting takes place at a plant around 30 miles from your land. Chinese producers have developed communities and agricultural areas around processing plants that do not exist in the U.S.
A Growing Market
The hemp and CBD market has been growing for the last few years with the overall sector estimated to grow to a $2 billion industry by 2022, according to AG Professional. Indoor facilities where plants are grown under lights can be more profitable with up to four harvests per year during an average farming season.