As HNP continues its tour through the 2020 hemp trade show circuit, we’ve been fortunate to spend time with industry professionals from a wide range of backgrounds, from established hemp cultivators to experienced farmers interested in adding hemp to their rotations. This year, we’re also seeing more government officials in the audience and, in some cases, at the speaker podium. We see this as a reflection of how quickly the hemp industry has evolved in recent years and is staying on track to become an important agricultural commodity nationwide.
While the road hours and time away from home have been long, its been a valuable and gratifying experience to connect with more hemp professionals at every level, hearing new perspectives on hemp growing and sharing our own.
Here’s what we’ve heard about most, along with our takeaway on what this means for the year ahead:
New Crop Insurance Programs Will Protect Hemp Farmers
USDA’s Risk Management Agency has announced guidelines for a number of hemp crop insurance programs available for the 2020 year. Whole Farm Revenue Protection and Non-Insured Crop Disaster Protection are available nationwide, with Multi-Peril policies being piloted in a number of select counties within 21 states.
- The deadline is Monday, March 16 — get in touch with us for more information, or for a referral directly to one of HNP’s recommended brokers for hemp insurance policies.
Concerns Over Market Value Are Starting to Impact Supply
There is considerable skepticism over the state of the hemp market, with many observers predicting a major contraction of supply in 2020. Some even suggest the number of acres to be planted this year will be half of that planted in 2019.
Hemp biomass prices indeed remain low (with biomass hovering at just under $1.00 per point in recent days) and biomass inventories likewise aren’t moving. Additionally, integrated CBD extractor/formulators have been able to source pre-processed crude at prices lower than the marginal cost of CBD crude oil production to run their own facilities.
Our Perspective? This Is Still a Great Time to Be in Hemp
Despite all this, prices for retail products with CBD ingredients remain firm. From our perspective at HNP, this is a continued sign of solid consumer demand. That being the case, and anticipating yet greater demand once the FDA makes its move, we believe the current supply-side logjam to be a temporary phenomenon.
If you’re going to plant hemp in 2020, do it right. Pick the best genetics, engage top-notch agronomic advice, and plan ahead. Fortune favors the brave. HNP can help.