Hemp is showing, yet again, its promise and potential to not only be a healthy and sustainable consumption alternative but to be an economic powerhouse for farmers as well. With the US and China in a trade war and China putting a 25% tariff on soybeans, US farmers are feeling the heat. Soybeans are the United State's second largest import to China and at its peak, the soybean farmer could be earning up to $160/acre. However, currently, the situation is so bad that these farmers are actually losing $20/acre forcing them to find quick and profitable substitutes.
By switching to this sustainable plant, farmers could potentially sell three ways, all of which yield much higher returns per acre - in fact, it's not even close. There are three main use cases for growing industrial hemp these three being grain/seed, fiber, and CBD. If a farmer decides to sell hemp grain/seed they usually average about 1000lbs per acre which in turn can produce around a $200 to $300/acre payout after everything is said and done. Now, let's say a hemp farmer decides to get into the fiber game to help create a sustainable future. This usually means that the farmer can sell his or her hemp fibers for around $260 per ton and on average, a hemp crop can yield about 2.5/3 tons per acre. If you do the math, this specific hemp farmer can make about $480 per acre on hemp fibers alone. Finally, let's say a farmer wants to produce hemp for CBD extracts. Depending on cultivation method, this will yield incredible returns. Ranging widely from $2,500 all the way up to $40,000 per acre no other crop can come close to the potential hemp has to impact farmers and their communities.
Photo Credit: Hemp Industries Association