Interest in every aspect of hemp grown for high levels of THCa continues to grow. Our Hemp Benchmarks division has expanded their research and reporting on the cultivation of, demand for, and wholesale price tracking of THCa flower (and now the derivative products – THCa Distillate and THCa Isolate) that is currently grown by licensed hemp farmers across the United States.
Inquiries regarding THCa flower genetics and THCa flower wholesale prices from our readers and customers of both Cannabis Benchmarks and Hemp Benchmarks have significantly increased as we head into the early summer months. As the specifics of the 2024 Farm Bill are addressed by Congress, much debate surrounded the exclusion of any language related to intoxicating hemp products. That is until May 23rd, when an amendment submitted by Representative Mary Miller (R-IL) that would federally ban all ingestible hemp products with any level of THC sent shockwaves through the hemp community. Yet it is anticipated that the current version of H.R. 8467 will not survive a vote in the House. Hemp Benchmarks is a proud contributing member of the U.S. Hemp Roundtable, and we default to their efforts for guidance and updates regarding the matter.
After the 2018 Farm Bill reintroduced hemp as a cash crop in the U.S. an abundance of land was registered with the intent to produce hemp that was high in cannabidiol, or CBD, while having below 0.3% THC – and therefore being essentially non-intoxicating. The massive oversupply of high CBD/low THC hemp biomass that was harvested put economic strain on many market participants as wholesale prices were orders of magnitude lower than promoted, buyers were scarce, and processing capacity slow to ramp up. There was a definite interest in exploring the new hemp-derived products by consumers, yet ensuring that the products available at gas stations, smoke shops and farmer’s markets contained the CBD levels advertised resulted in a discouraged customer base. Basic market economics followed, as supply greatly outstripped demand, and wholesale prices continued to decline. Despite retail prices remaining extremely high, the oversupply and subsequent wholesale price bust drove participants out of the market, both willingly and unwillingly.
The new wave of hemp-derived products that continue to increase in popularity, and are delivering a new path to profitability for many participants in the hemp industry, stand in stark contrast to the CBD products. The main difference is that the consumers of products marketed for their levels of THCa, Delta-8 THC, and Delta-10 THC, is that the user can feel the effects after consumption due to the intoxicating nature of these compounds. Unlike CBD, CBG, CBN, and other cannabinoids that were promoted for their health benefits, the new path to profitability for hemp market participants stands in direct competition to the legal recreational cannabis industry that currently exists.
Hemp Benchmarks has been reporting on THCa flower prices and trends since early 2024, and the initial discovery was that the wholesale price per pound for THCa flower grown by licensed hemp cultivators was comparable or higher than the cannabis flower spot price in 10 state markets tracked by Cannabis Benchmarks. May marks the fourth month of our THCa flower price tracking, and the current monthly price per pound is higher than seven state cannabis wholesale spot price assessments: Arizona, California, Colorado, Michigan, Oklahoma, Oregon, and Washington.
The aggregate price assessment for THCa flower continues to decline, a trend that is not unexpected as more cultivators enter the space and competition for customers ramps up. Indoor grown THCa flower declined over 7% this month; greenhouse grown flower saw the largest decrease in pricing, dropping 11% per pound this month. Changes in the price of outdoor grown THCa flower, although not completely insignificant, have a much smaller effect on the overall price assessment currently due to the lower quality of smokable material when compared to the indoor and greenhouse grown product and therefore lower volume of product traded. The $10 decrease for outdoor grown flower this month is a 2.5% decrease from April’s price assessment.
We have also begun tracking THCa Distillate and THCa Isolate pricing and supply trends. The price for THCa distillate saw a significant 20% drop in pricing this month compared to our price analysis for the product type in April.