According to some experts, the price of hemp is not likely to change this year. Even after the 2018 Farm Bill was approved, which legalized hemp as an agricultural product, the cost of hemp didn’t change that much. President Trump has already signed the 2018 Farm Bill and this means that farmers in the country can now legally cultivate the crop.
At the moment, conventionally grown hemp is being sold in the range of mid 50 cents per pound while the organically grown varieties are being sold for $1.30 per pound. There’s a whole lot of price discovering going on with hemp all throughout the year. There’s a slight possibility that there will be a change in price but for the most part, the price should remain consistent. There will not be a lot of fluctuation that will be taking place on hemp this year. The increasing US production could keep a lid on how far these prices can increase in Canada.
The need for a hemp producer to sign a contract before growing hemp is necessary. In terms of the number of acres, hemp is a relatively small crop. Unlike the commonly traded crops, hemp doesn’t have an effective price discovery model.
The US Farm Bill
Under the 2014 US Farm Bill, each of the 50 states in the US had the authority to allow hemp crops for research and experimental purposes. With the excitement mounting on the legalization of hemp, it’s expected that the production of the crop in the US will dramatically increase in the next few years. Another positive change that’s expected to happen in the hemp industry now that the US Farm Bill is approved is that the crop will now be getting more attention from the public and can become the next big thing. This can greatly help the hemp industry as a whole.
With the publicity surrounding hemp after the signing of the Farm Bill, more companies and distributors are looking at hemp as an excellent food option. Aside from food products, hemp can also be used for a wide variety of products, such as personal care, medicinal, clothing, and building materials. Unlike marijuana that contains THC, which is the psychoactive component of cannabis, hemp has an extremely small amount of THC and will not make any user high
Hemp Industry in Canada
Since hemp is derived from a plant known as Cannabis Sativa, the production of the crop in Canada is regulated by Health Canada. Therefore, manufacturers and producers who want to be a part of the thriving hemp industry should first obtain a license from Health Canada.
Of more than 40,000 acres of hemp cultivated in Canada in 2018, almost 90% was planted in the Canadian Prairies. This was according to the data obtained by Statistics Canada. The rest of the crops are mostly grown in New Brunswick and Ontario.