2020 was like eating a high dose edible for the first time!

2020 was like eating a high dose edible for the first time!

 

 

What a crazy year in the hemp industry. As if it wasn’t already crazy enough to become legal in 2018! 2019 was a disaster with little regulation and sketchy banking setups for CBD companies.

 

2020 was consumed by the pandemic! What does 2021 hold in store for the Hemp Industry? 

2020: Hemp Struggles Through Regulatory Uncertainty and COVID disruption:

The FDA’s continued refusal to legally recognize and regulate CBD – the focus of more than 80% of hemp growth nationally -- cast a cloud of uncertainty over the industry. With big box retailers and Big Food companies delaying entry into the space, a dramatic oversupply of hemp biomass and derivative products resulted, deeply impairing U.S. farmers.

Pandemic disruption exacerbated the economic pain, and aggregate prices for hemp CBD biomass, crude oil and seeds declined between 75-125% since June 2019.  Bankruptcies ensued, and too many farmers were left with large volumes of 2019 biomass they couldn’t sell. By the 2020 planting season, there was a severe retrenchment in hemp growth. In Kentucky, for example, hemp acreage declined from 26,000 in 2019 to less than 5000 in 2020, reflecting the steep decrease in demand.


 

 2020 Struggles Continue to Plague the Industry 

2020: Hemp Struggles Through Regulatory Uncertainty and COVID disruption:

The FDA’s continued refusal to legally recognize and regulate CBD – the focus of more than 80% of hemp growth nationally -- cast a cloud of uncertainty over the industry. With big box retailers and Big Food companies delaying entry into the space, a dramatic oversupply of hemp biomass and derivative products resulted, deeply impairing U.S. farmers. Pandemic disruption exacerbated the economic pain, and aggregate prices for hemp CBD biomass, crude oil and seeds declined between 75-125% since June 2019. 

Bankruptcies ensued, and too many farmers were left with large volumes of 2019 biomass they couldn’t sell. By the 2020 planting season, there was a severe retrenchment in hemp growth. In Kentucky, for example, hemp acreage declined from 26,000 in 2019 to less than 5000 in 2020, reflecting the steep decrease in demand.

 

Blu Lion Hemp Lites

2020: A Difficult Year for Communities of Color

Protests against racial injustice galvanized the nation toward meaningful change, but a just and equitable society remains a shared vision, not yet a reality. In the meantime, farmers of color and minority-owned businesses struggled disproportionally during the difficult year, while disadvantaged communities remained the most vulnerable to an unregulated hemp extract product market. The 2018 Farm Bill continued to prohibit many drug felons to access hemp licenses as a means to secure a second chance in life.

Until next discussion,

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Keiji

Written by Keijiro Varela

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