Hemp Prices Are Plunging As Demand For CBD Falls Short

Hemp Prices | Source: The Happy Campers

Hey there, fellow readers! Are you curious about the world of industrial hemp and why farmers are having a hard time selling their crops? 

You may have heard that the supply of hemp is higher than the demand, but did you know that there’s a little something called the CBD bubble and some pesky regulations that are also causing farmers to struggle? Buckle up, because we’re about to take a deep dive into this fascinating topic and uncover the mysteries behind this oversupply crisis

Get ready to learn why the hemp industry is in a state of flux and what the future may hold for these hardworking farmers.

Prohibition – A Bummer for Hemp Farmers

Ah, prohibition. It’s like the party pooper that just won’t leave. Despite the fact that hemp is no longer considered a controlled substance, it’s still being heavily regulated by the government. 

This means that farmers are facing all sorts of restrictions on how they can use and sell their precious crops. It’s like being handed a fancy new toy, but then being told that you can only play with it on Sundays between 2pm and 4pm. Seriously, what a bummer!

You see, even though hemp has been legalized, there are still plenty of rules and regulations surrounding its cultivation and sale. This can make it a real headache for farmers who just want to get their product to market. It’s kind of like trying to navigate a maze, blindfolded, with one hand tied behind your back. Okay, maybe that’s a bit of an exaggeration, but you get the picture.

So, what kind of restrictions are we talking about here? Well, for starters, there are limits on the amount of THC that can be present in hemp products. This means that farmers need to be extra careful when growing and processing their crops to ensure that they stay within the legal limits. And let’s not forget about the pesky FDA regulations surrounding the use of CBD in food and dietary supplements. It’s a real buzzkill for farmers who were hoping to cash in on the CBD craze.

All in all, prohibition is still a major barrier for hemp farmers, and it’s not going away anytime soon. But hey, at least they can take comfort in the fact that they’re not alone in their struggles. The road to success is rarely easy, and these farmers are certainly facing their fair share of obstacles.

The CBD Bubble

CBD, CBD, everywhere! It seems like everyone and their grandma is jumping on the CBD bandwagon these days. With new CBD companies popping up left and right, it’s safe to say that the CBD bubble has well and truly arrived.

Well, unfortunately, it’s not all sunshine and rainbows. You see, this influx of new CBD companies has caused an oversupply of hemp, which has led to a decrease in demand. And when the demand for a product goes down, so does its price. It’s like Econ 101, but way less exciting.

This oversupply problem has left many farmers scratching their heads and wondering what the heck they’re supposed to do with all this excess hemp. It’s like having a fridge full of food but no appetite to eat any of it. Sure, it’s great to have options, but when those options are causing you to lose money, it’s not so great after all.

The Drastic Decrease in Hemp Prices

Hemp Prices Fall | Source: HealthMJ

Picture this: you’re a hemp farmer, and you’ve just had a bumper harvest. You’re feeling pretty good about yourself, and you’re excited to sell your crops and make some serious cash. But when you look at the current market prices, your heart sinks. It’s like someone let the air out of your tires, and you’re left feeling deflated.

That’s because the supply of hemp is so much higher than the demand for it. And when there’s too much of a good thing, prices naturally start to drop. It’s like when you find out that your favorite pizza joint is doing a half-price deal, but everyone else has already eaten there, and there’s no room for you. Sure, you could still get a slice, but it’s not going to be as satisfying as when the pizza place wasn’t so popular.

The same thing is happening with hemp prices. They were soaring just a few years ago, reaching highs of over $40 a pound. But today, they’ve plummeted to under $10 a pound, leaving many farmers struggling to make ends meet.

It’s a tough situation for our hardworking farmers, and there’s no easy solution in sight. But one thing’s for sure: we need to find a way to rebalance the supply and demand chain and give our farmers a fighting chance. Because let’s face it, we all rely on their hard work to keep us fed, clothed, and healthy.

Restrictions on the Use of CBD…

Another issue that hemp farmers are facing is the restrictions on the use of CBD. The U.S. Food and Drug Administration still prohibits the use of CBD in food or dietary supplements. 

While many sellers are ignoring this mandate, it’s still a significant limitation. However, CBD is still legal for other uses, such as topicals, as long as the product contains less than 0.3% THC.

Does This Mean That Farmers are Pulling Back?

Farmers Pull Back | Source: Nutraingredients 

With all of these issues, it’s no wonder that farmers are pulling back. As the 2020 farming season approaches, farmers should be buying seeds and starter plants. 

However, market researchers are finding that their January prices are lower than they were in October. It’s a tough time to be a hemp farmer.

Key Takeaways!

Here are the main takeaways from our exploration of the struggles faced by hemp farmers:

  • Prohibition is still an obstacle for hemp farmers, and government regulations make it harder for them to sell their crops.
  • The CBD bubble has caused an oversupply of hemp, leading to a decrease in demand and prices.
  • Restrictions on the use of CBD in food and supplements add to the challenge for farmers.
  • It’s a tough time for our hardworking farmers, and we need to support them by buying local and keeping the conversation about their struggles going.

So, next time you’re shopping for hemp-based products, remember the challenges faced by our farmers and choose to support them by buying local. Let’s work together to find solutions to these issues and give our farmers the support they need to thrive. For all of your latest cannabis news, follow The Happy Campers on Instagram and Twitter.

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