Hemp Makes Comeback in Farmfields

Hemp is making a comeback on farms across America.

Hemp was farmed across the U.S. for more than a century; its strong fibers were woven into rope and textiles. But cultivation was largely banned from 1970 until December, when President Trump signed a farm bill that removed hemp from a list of federally controlled substances.

Hemp’s return to fields coincides with a surge in demand for cannabidiol, a derivative of hemp that has become a popular additive in drinks, foods and supplements. Proponents say it relieves anxiety, inflammation and other maladies without the psychotropic ingredient that delivers a high to marijuana users.

Farmers and processors believe growing demand for cannabidiol will turn hemp into a lucrative cash crop. Sales of products containing cannabidiol and other types of hemp are expected to rise nearly tenfold over a decade to $2.6 billion in 2022, according to cannabis research firm New Frontier Data.

“The stigma is totally evaporating,” said David Bronner, chief executive of Dr. Bronner’s, a soap company that uses hemp in its products. “That’s going to be game-changing.”

Devin Jamroz, chief executive of a Colorado-based maker of cannabidiol-infused coffee beans and teas, said brokers have tried to lure away his suppliers of cannabidiol, anticipating a run-up in demand for products that contain it. “They are expecting prices to go bonkers,” he said.

That kind of speculation points to risk. Some agricultural advisers have warned farmers to make sure they have lined up a processor to buy their crop. And states have a complicated patchwork of regulations for selling products with cannabis-based ingredients. The Food and Drug Administration has issued warnings to companies making unsubstantiated claims about their products’ benefits, and it is working on a set of national guidelines.

Meanwhile, U.S. farmers are eager to win market share from producers in Canada, where hemp cultivation was legalized in 1998.

“This crop was growing and flourishing just across the border, and it just drove us nuts,” said Roger Johnson, president of the National Farmers Union.

Growers can earn $200 to $400 an acre growing hemp for use in textiles, plastics, insulation and construction materials, according to Rodale Institute, a farming research agency. Hemp grown for cannabidiol could earn farmers thousands of dollars an acre, according to the institute. Farmers earned net profits of around $11 per acre for soybeans and lost $62 for corn in 2017, federal figures show.

Source: Wall Street Journal