Cost Of Hemp Supply and Demand

Cost Of Hemp Supply and Demand

Posted by Steve Breault on May 13th 2020

Cost Of Hemp Supply and Demand

2019 showed us that Hemp for CBD was a massive emerging agricultural crop that was and still is making waves in just about every industry.  The cost of what you pay for an ounce of hemp cbd or a pound of hemp buds will most likely be fluctuating quite a bit in 2020.  Supply and demand at scale for the hemp industry it seems.

CBD Derived From Hemp Flower

I have known about CBD for years myself and only contemplated getting into the CBD industry while I was still working my ass off in retail.  It wasn't but 2 years later it actually happened.  With the legalization of hemp in the united states in December of 2018 completely changed the game for alternative medicine.  CBD could be arguably one of the most effective plant based remedies you can now buy and or legally use.

Without any real scientific proof to show you I can't tell you that CBD will get rid of your pain or that CBD is going to cure you because it probably won't.   Is it possible though that it could help even just a little or even quite a bit?  Of course its possible and testimonials from people that use CBD regularly make me believe it can help. This is where the demand has exploded around the world for hemp derived cbd also known as cannabodiol. 

Hemp Supply Was Low In 2019

Since the farm bill had only passed in December of 2018, there was not a large supply grown since it would have needed to have been planted in the spring of that same year.  Being that there was not that many hemp grower licenses issued as of yet with the exception of some that had been growing for the cannabis industry under the 2014 farm bill, there was very little inventory to meet the demand of the CBD and Hemp Stores around the united states.  

2019 Hemp Crops Being Grown Has Quadrupled

According to an article I read posted online by Forbes.

The amount of land on which U.S. farmers are licensed to grow hemp has more than quadrupled this year. 

It is very hard to determine what the demand will be or even how much of this registered land even grew a crop this year or are in research phase and plan to grow in 2020.  

Conclusion of 2020 Price For Hemp Flower

I don't think retail prices will be effected much by the supply, as I think most likely there will be lots of crops grown with a very low quality due to lack of experience.  Those will either be sold as biomass or even be a total loss.  The market is already saturated for biomass, so if growing for biomass I think the wholesale costs will drop, but for trimmed hemp flower I believe we should see a similar pricing structure wholesale and retail as the last.