Indicators point to CBD hemp production in the USA will decline for the second straight year in 2021; meanwhile the USDA is moving ahead with a hemp producer survey.
Hemp Benchmarks’ latest Hemp Spot Price Index Report summary doesn’t have a a lot of good news.
While some wholesale hemp-CBD product prices were observed to stabilize or rise slightly this month, other products saw the gradual downward trend continue, such as for CBD biomass and isolate.
It notes the 2021 harvest is set to begin next month and while there may not be as much harvested, the impacts of material from previous years is yet to become clear. However, a Colorado processor says it has seen a considerable reduction in inquiries about processing 2019 harvest biomass in the last six months.
In terms of Delta-8 THC distillate prices, those slid for the second month in a row, down 5% month-over-month. Delta-8 THC has been growing in popularity, but a number of states have taken action to curb or ban Delta-THC production and sale. The explosion of Delta-8 products on the market has been fueled by an interpretation of law that some believe makes hemp-derived Delta-8 not a controlled substance.
Hemp Benchmarks also notes smokable CBG Flower prices fell 15% month-over-month. CBG is the acronym for cannabigerol, one of the many cannabinoids in cannabis; albeit a minor one.
More from the report summary can be viewed here.
USDA Hemp Survey Proceeding
While hemp products are growing in popularity generally in the USA, the industry has faced some challenging times due to changing regulation and a “green rush” that resulted in a glut of material; particularly around the CBD side of things.
The USDA wants to get a better handle on what’s happening at the producer end and is moving ahead with its 2021 Hemp Acreage and Production Survey. The survey will collect information on the total planted and harvested area, yield, production, and value of the crop in the USA. Hemp produced outdoors as well as under cover in facilities such as greenhouses, low or high tunnels and hoop houses will be included.
The USDA has previously stated that of the total estimated sample size of 20,000 respondents, approximately 18,000 would be classified as small operators – around 90%.
“The data results from the hemp survey can help inform producers’ decisions about growing, harvesting and selling hemp,” it states.
The survey results may also impact policy decisions about the hemp industry.
Further information on the survey can be found here.