News

CoBank report highlights risks for hemp growers

A new report by CoBank highlights the risks and rewards of hemp production.

Crystal Carpenter is a senior economist in the specialty crops division. She tells Brownfield information about the hemp market is constantly changing.

“This industry is kind of booming right now and there has been a lot of interest around hemp so CoBank is really just trying to get our hands around some of these issues and understand it.”

Carpenter says the report touches on issues like high seed costs, finding reputable seed suppliers, staying within the THC limit, the lack of processing infrastructure, and the lack of insurance and crop protection.  

She says regulations are different for each state, so growers are awaiting the announcement of federal hemp regulations from the USDA and FDA.

“When you talk about the long-term game for CBD hemp in particular, the FDA regulations will play a significant role.”

Carpenter says there are opportunities for hemp growers, but people interested in starting a hemp crop should be cautious of the risks and uncertainties in the market.