five Troubles Facing The Fledgling Hemp Market


Cannabis activist Jack Herer after opined that hemp is the only factor that could save the globe. So when the new Farm Bill was written into law final year, numerous believed it to be the birth of an sector with globe-altering prospective.   

When they may well but be right in their beliefs, the national liberalization of hemp has not been without having some hurdles. Tightening regulations, lack of infrastructure, and ‘hot’ crops have all contributed to a challenging year for these who have turned their hand to hemp farming. 

Right here are some of the primary issues plaguing the hemp sector nowadays:

New regulations

USDA issued an interim final rule final month. If signed into law, it will lay the regulatory groundwork for hemp producers. It is not been met with excitement from the hemp advocates and sector stakeholders, nonetheless, thanks to a quantity of restrictive controls on points like licensing, THC restrictions and testing needs.

When the release of the regulations does supply considerably-required clarity for producers, numerous think that specific provisions as excessively restrictive and possibly damaging to the sector. More than 500 comments have been produced for the duration of the 60-day comment period, which closes on December 30.  

One particular of the most contentious points covered in the new regulations is the limit on total THC rather than just delta-9-THC, which is limit that the sector was operating beneath. By restricting total THC to beneath .three%, you are basically restricting all cannabinoid production as it is tough to higher CBD content material if you are capping THC so low.


A lot of folks have been so keen to jump into farming hemp that they didn’t genuinely contemplate who they would sell it to post harvest. Time was spent obtaining high quality genetics and having seeds in the ground, and then intensive labor demands for the duration of the seasons, although it was assumed the demand would be there when it came time to sell.

Having said that, with hemp acreage up additional than 300% this year, existing estimates recommend that producers are developing eight occasions additional hemp for CBD than can be consumed by the market place, regardless of its fast development. This could outcome in a cost crash on hemp biomass and flower that could hit compact organizations tough. 

Lack of processing capabilities

Several farmers rely on third parties to method their hemp biomass into CBD. There’s at the moment not sufficient processing capacity to get by means of the complete quantity of harvested crop, nonetheless. 

One particular purpose for a lack of processing capacity is a lack of help from banks when it comes to financing required for infrastructure and machinery. This is due to the association of hemp with drug-kind cannabis

One more trigger for the bottleneck is that some new processors underestimated fees and overestimated their prospective capacity. This led to numerous reneging on contracts and leaving farmers in the lurch.  

Inconsistent genetics

A great deal of the hemp that was planted this year would not be permitted to be harvested beneath new regulations on total THC. In truth, obtaining seeds that reliably make much less than .three% is going to prove pretty difficult for farmers. 

This season saw a huge chunk of crops destroyed due to as well-higher THC levels. In Hawaii, additional than half of 2019’s crop had to be destroyed simply because of elevated THC levels, due to a lack of cultivars suited to the region.  

There are other points to contemplate in the regional developing atmosphere, like soil situation and climate. This developing season specifically suffered at the hands of unpredictable climate. 

Lack of expertise

Increasing hemp for CBD is a lot additional labor intensive than numerous new growers 1st realized. Just like with developing cannabis for THC, generating higher-high quality and CBD-wealthy hemp flower – either for processing into CBD solutions or to be trimmed and cured for smoking requires really a bit of work.


Hemp may well but have a enormous effect on the globe. But that does not imply it will be plain sailing all the way – as numerous hemp farmers discovered out this year. 

There are a quantity of challenges to circumvent and it is not recognized how the hemp sector will respond. If it is as hardy as the plant itself, nonetheless, it would be unwise to create it off just but. 

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