Recently the USDA released a lengthy report stating an estimate for hemp to remain a specialty crop unlikely to develop into a commodity such as corn or wheat. This conclusion was reached by analyzing the success of the states growing hemp under the 2014 Farm Bill.
The reasons for this conclusion involve competition for acreage, global competition, constantly shifting regulatory environment, and the lack of market information and transparency. Other crops have proven more profitable than hemp within the US which makes farming hemp a hard choice for farmers. Cheap labor in certain international markets also means that global competition presents a growing worry for the US hemp market since it would be impossible to achieve the same profit margins and keep prices competitive.
The USDA’s report claimed that lack of pricing transparency is a “serious impediment” to the success of hemp as an industry within the US. At Hemp Benchmarks we are working hard to eliminate that “impediment” and provide the pricing transparency the market needs. If you are a grower, processor, or retailer and interested in helping bring pricing transparency to the hemp market consider becoming a member of our price contributor network.