ERS report on hemp economic viability
A report by USDA’s Economic Research Service looks at the economic viability of industrial hemp in the U.S.
David Olson, with ERS, tells Brownfield long-term economic viability of hemp will be affected by competition from other domestic crops for acreage, market information and transparency and the regulatory environment which is still developing.
“Just as more and more of that gets worked out it’s going to take risk off and, likely, more people are going to feel comfortable becoming a producer or investing in one way or another.”
Acres planted to hemp through state pilot programs reached just over 146-thousand as of 2019. Colorado, Oregon and Kentucky were in the lead out of 22 states but Olson says the crop likely won’t be economically viable in every state.
“Moving forward I think we’re going to continue to see the major producing states throughout the country continue to be the major producing states and the market looks like it’s likely going to continue expanding, probably not has fast as it has.”
Olson says U.S. hemp growers should also take into consideration the potential for increased imports from global hemp competitors, mainly Canada and China.
Interview with David Olson