Why CBD Farming is Booming in 2020
Cannabidiol or CBD production will remain dominant in the 2020 growing season; however, newer cannabinoids, along with those that are used for the crop, are starting to gain more traction. This is based on a survey involving 400 people conducted by The Jacobsen, a pricing and research firm based in the Boulder, Colorado region.
This survey, which was taken through April, discovered that almost 80% of hemp farmers would begin growing hemp for CBD use this year. While most farmers are still planning to dedicate their acreage to this prevalent cannabinoid, others are venturing into smaller cannabinoids. According to the survey, almost 15% of all farmers are planning to plant the varieties of hemp that are considered dominant in the CBG (cannabigerol).
Key and Notable Takeaways
Producers are still working with an array of hemp genetics. Some acreage is going to be used for minor cannabinoids, which include CBD, which is going to be the lion’s share in this particular category. The current retail markets for this CBG product are currently developing; however, they are still sparse now, precluding the significant demand for this material. Those who are interested i49 can help solve problems.
While this is true, the grain is now estimated to make up 3.6% of the total planted acreage in 2020, while fiber is slotted to approximately 2.5% according to the survey, as mentioned above. The report makes note that hemp seed has a significant and growing global demand, and the prices for it are somewhat steady. However, the demand right now for fiber is still limited. While this is true, once the companies with certain market-ready products begin to seek contracts for raw hemp fiber, acreage may increase dramatically over a very short time period.
The Role of Farmers
Today, farmers are actively trailing fiber and grain on the farms, some on just a few acres, and in locations with no active markets. This provides them with the time to develop various production systems by using the existing equipment line and addressing any challenges or shortcomings found in the field operations.
Estimates state that growers are set to plant approximately 158K acres this year, which is a slight increase from the 146K acres planted in 2019.
The Demand
The fact is, one of the leading factors that are driving the increase of CBD farming is the increase in demand and the legalization of this product. This is resulted in more and more farmers being able to grow this crop -; legally -; and reap the financial gains that it offers. However, this isn’t possible in all areas yet, so it is essential for those interested in this industry to learn more about it before “diving in.” This is a smart way to ensure the highest earning potential is possible.
If you want to take control of your future and learn about all the potential related to CBD farming and its potential in the near and long-term future, it is a good idea to review the information found here. Doing so is going to pay off and help ensure that the desired results are achieved, regardless of what they are. Being informed, understanding the risks and potential, and getting to know the market is the best way to ensure the desired results are achieved.