The latest Hemp Benchmarks report for January 2020 is out, and it confirms what many in the industry have been feeling: the market is evolving rapidly. The 24-page report provides a detailed snapshot of the U.S. hemp industry, with falling prices and supply chain challenges emerging as the dominant themes.
For the hundreds of Michigan farmers who went all-in on CBD hemp in our first growing season, this news can feel jarring. As the chart from the report clearly shows, the assessed price for CBD biomass saw a steep decline in the second half of 2019.
So, what does this mean?
First, it’s not a surprise. This is a natural market correction. The initial “green rush” and the massive spike in interest and acreage were bound to flood the market and put pressure on prices. This is the challenging, but necessary, phase of building a real, sustainable industry.
Second, it highlights the critical importance of strategy. The days of planting first and asking questions later are over. Success in 2020 and beyond will be defined by smart business decisions, from choosing the right genetics to securing contracts with processors before the harvest.
This is precisely why iHemp Michigan exists. We are here to help you navigate this new terrain. The falling prices in the CBD market underscore the urgent need to look at the bigger picture for industrial hemp—developing robust supply chains for fiber, grain, and other applications that offer long-term stability.
The road ahead won’t be a straight line, but it is full of opportunity. By working together, sharing knowledge, and building a strong community, we can overcome these early challenges and build a thriving, diversified hemp industry right here in Michigan.
Don’t navigate this market alone. Join a community of farmers, processors, and pioneers who are building the future. Become a member of iHemp Michigan today.