Despite an overwhelming number of options to choose from when processing industrial hemp, farmers are struggling to sell their crops.
With prohibition still acting as a barrier and a huge CBD bubble due to the influx of new CBD companies, the supply of hemp is way higher than the demand for it. If you understand how the law of supply and demand works, that’s not good news for many hemp farmers across the nation.
Hemp prices reached a high of over $40 a pound in July 2019. Today, it’s trading at under $10 a pound, following an increase of 4 times the supply from 2018 to 2019. It may not seem like the price of hemp is going down when you still see companies charging $70 for CBD foot cream, but the prices are diving amid a massively oversupplied market.
The CBD consumer market still has some restrictions as the U.S. Food and Drug Administration continues to prohibit the extract in food or dietary supplements, although many sellers are ignoring that mandate. CBD is still completely legal for other uses, such as topicals, as long as the product contains less than 0.3% THC.
CBD may someday become a completely legal hot health additive, but for now, farmers are pulling back. As the 2020 farming season comes near, farmers should be buying seeds and starter plants. But in a time when demand for their product should be high, market researchers are finding that their January prices are lower than they were in October.