Overall Hemp Sales Also Expected to See Big Gains
The CBD market isn’t the only hemp sector that’s expected to make big waves in sales over the next few years. Hemp fiber and grain sales are also expected to see major gains in sales.
According to the US Department of Agriculture (USDA), hemp sales could increase by over $100 million by 2022. In 2020 alone, they could increase by $25 million. Again, the signing of the 2018 Farm Bill will play a key role in these dramatic increases, which is opening the doors for scores of hemp farmers across the nation to grow the crop. This will both help the hemp farmers themselves as well as boost local economies where hemp is being grown.
The rate of growth of hemp acreage has already increased recently and will continue along this path thanks to hemp pilot programs that have already taken off and led to the production of hemp crops in recent years. Hemp farmers may soon be eligible for Farm Service Agency (FSA) farm loans to start, operate, and grow their farming business, as well as to expand farm storage facilities.
The total number of hemp production licenses is expected to grow through 2022, as are gross revenue estimates for hemp flower, fiber, and grain. The USDA estimates the following per-acre gross revenues:
- Hemp flower varieties: From $2,333 to $24,000 per acre.
- Hemp fiber varieties: From $23 to $1,228 per acre.
- Hemp grain varieties: Forms $87 to $453 per acre.
Farmers who produce hemp for flower, fiber, or grain will be also able to buy federal crop insurance through the Whole Farm Revenue Protection (WFRP) program which provides coverage for agricultural commodities. What’s even more? Just before the new year, the Risk Management Agency (RMA) of the U.S. Department of Agriculture (USDA) announced they are offering insurance on hemp in the following states for the new 2020 production season:
- New Mexico
- New York
- North Carolina
- North Dakota
Despite the USDA’s final interim rule in October, hemp producers have continued to face challenges, including limited insurance coverage options. But thankfully, this special protection will provide Actual Production History (APH) coverage for those who are eligible to grow fiber, grain and flower — so long as they adhere to state, tribal and federal regulations.