The new normal that we’re all adjusting to as a result of the global pandemic has implications for a wide range of industries, hemp included. Hemp prices in 2020 were not projected to see much upward movement without a major regulatory change by the FDA that would drive demand by larger industry. Overall volume is down, with very little biomass trading hands. Extractors have deep inventories of extracts, too deep, and many facilities are idle, or pivoting to THC remediation. Tolling fees are very competitive in markets like Colorado, where extraction capacity is highest. T-free distillate – and distillate in general – is moving more than anything, and this in turn drives some demand for crude.
Certified organic products are increasing in volume, for biomass, flower, crude and distillates. This and cGMP practices can have an impact on hemp pricing and CBD prices, with the market bifurcating over processes using premium inputs and manufacturing practices and those that are not [...]
The USDA offers insurance to help protect farmers from forces they have no control over. Insurance offered by the federal government is a fundamental part of much of the farming that happens in the United States.
It allows farmers to survive in an industry that’s both unstable and provides thin margins.
Hemp, though it’s now federally legal, was not eligible for this insurance—until now.
The USDA’s multi-peril crop insurance has been around since the 1930s, and forms part of the backbone of the farm safety net.
As its name suggests, it covers multiple obstacles that farmers might face, including pests, [...]
USDA’s Risk Management Agency announced a new crop insurance option for hemp growers in select counties of 21 states in 2020. The pilot insurance program will provide Actual Production History coverage under 508(h) Multi-Peril Crop Insurance (MPCI) for eligible producers in certain counties in Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia, and Wisconsin.
The MPCI coverage is for hemp grown for fiber, grain or CBD oil for the 2020 crop year. It is in addition to the Whole-Farm Revenue Protection coverage available to hemp growers announced earlier this year.
“We are excited to offer coverage to certain hemp producers in this pilot program,” said RMA Administrator Martin Barbre. “Since this is a pilot program, we look forward to feedback from producers on the program in the coming crop year.” [...]
Nearly 50% of bank respondents who are currently not banking hemp said they will extend services to hemp-related customers in 2020 according to a recent Wisconsin Bankers Association (WBA) survey.
WBA’s annual Bank CEO Economic Conditions Survey asked three hemp-related questions in addition to more traditional economic inquiries. The responses highlighted that many Wisconsin banks have been working through the complex regulatory issue of hemp and are now better prepared to assist their customers.
“Wisconsin’s community bankers strive to help their customers and communities. The reality is that hemp is a very new and complex issue from both a regulatory and business viewpoint,” explained Rose Oswald Poels, WBA President and CEO. “It takes time to work through these complexities. Because there is no one-size-fits-all approach, each bank’s approach and timeframe will be different.” [...]
WISCONSIN DELLS – While most farmers don’t think of growing industrial hemp as a “silver bullet” for farm income, many are interested in it as a way to diversify their farming operations and add another potential income-generating enterprise to their farms.
For Wisconsin’s bankers, dealing with hemp growers poses some new challenges, which were outlined at a Wisconsin Bankers Association seminar Nov. 21 in Wisconsin Dells that attracted 145 state bankers. Scott Birrenkott, an attorney who is assistant director of legal affairs with the association, walked bankers through some of the things they might deal with if they have customers who want to grow hemp.
First, he wanted them to know what hemp is (and what it isn’t). Though admittedly not a botanist, Birrenkott said hemp is a taller, skinnier plant with most of its leaves at the top while marijuana – hemp’s psychoactive cousin – is a bushier plant with broader leaves and budding flowers.
“They come from the same ge [...]