We firmly believe that any farmer interested in growing hemp in 2020, should fully understand the market, legal and regulatory frameworks and the agronomic requirements to be successful.
We would also expect that many who grow hemp in 2020 will not be profitable. 2019 saw a dramatic increase in hemp acreage and a flood of CBD into the market.
As a result, prices that were once thought to be too good to be true turned out to be just that. Additionally, Texas lacks the infrastructure to process the acreage that is likely to be planted this year. In short, be cautious.
Hemp is not your average commodity.
While the 2018 Farm Bill legalized the cultivation of industrial hemp in the United States, it also required the establishment of a rigorous regulatory and legal framework that farmers must comply with.
Farmers will need to be licensed by the State of Texas, submit to a thorough background check and allow regulatory agencies access to their farms. Additionally, farmers will be liable for licensing and testing fees.
We certainly believe there will be some people who make money on hemp in Texas this year, but it will be the exception and not the rule.
Prices for CBD have fallen some 40% off the highs and as more States finalize and license growers, supply will continue to increase. That is why THGA is committed to developing multiple economies around hemp instead of focusing on a single one.
For 2020, THGA will be conducting a variety of seed trials across the State. Through this process, we hope to find which varieties work in which areas for a number of different end uses.
We will be looking for seed yield, CBD percentages, fiber quality, and environmental suitability. It is our hope that these trials will help inform farmers who wish to grow in 2021.
We are a committed group of farmers who see hemp, not as a gold mine, but as a useful crop that can provide a diversified revenue source for farm operations looking to increase their diversity.
If you have any questions, please reach out to Tillery Sims our Executive Director.
Phone #: (806) 240-0210