Great Demand for CBD Is Making Hemp the Cannabis Cash Crop
By Space Coast Daily // September 20, 2019
The fact that the cannabis industry is booming is not news. Marijuana is being legalized in many countries and people now want to take advantage of the favorable circumstances. In fact, the demands for cannabis are so high that hemp has become the trending cash crop at the moment.
Farmers all around the world, especially in the USA, are switching to growing hemp. This was made possible thanks to the Farm Bill passed in December 2018.
It is one particular component of cannabis that is hugely popular at the moment: CBD or cannabidiol, the non-psychoactive part of the marijuana plant which is widely used for medicinal purposes.
But the demand for hemp is not only for medicinal or recreational purposes. There are thousands of hemp-based products available from beauty products to furniture and even food.
All in all, it seems that the best time to capitalize on hemp cultivation is now so you might want to learn a bit more about the industry.
Are Hemp and Marijuana the Same?
You have heard the words hemp and marijuana many times but you must have wondered whether they actually mean the same thing. If you have used them interchangeably, you weren’t wrong.
But here is an explanation that will help you understand the difference between the two terms.
Hemp is cannabis. However, the term refers to the strains of the cannabis plant that are not used for medicinal purposes or for getting high. Hemp is perfect for making fabric as well as rope, paper, etc.
It can also be used to make eco-friendly plastic. Hemp plastic is a cost-effective alternative to regular plastic which takes hundreds of years to degrade.
Marijuana refers to the strains that are used for recreational or medicinal purposes. By that, we mean strains that are rich in THC (tetrahydrocannabinol) or CBD. Marijuana that is grown for recreational use typically contains high levels of THC.
So yes, the terms can sometimes be used interchangeably but there is one more difference between the two. Cultivation and use of marijuana have long been prohibited because of its known psychoactive effects.
Hemp, on the other hand, was regarded differently. Because of the value of hemp products such as clothes, rope, paper, etc, the United States passed a law (Marihuana Tax Act) in 1937 to legalize the cultivation of the plant. But there was one rule: the hemp had to contain very low levels of THC.
The Most Popular Crop
If you are thinking of getting into the cannabis business, you have chosen the right time. It appears that hemp cultivation brings a secure profit these days so farmers are rushing to take advantage of the opportunity.
In fact, farmers who used to grow corn, wheat or tobacco flavored e-liquid until now are looking to switch to cannabis. Hemp has proven to be a more sustainable crop that could really boost rural economic development according to sources.
Also, since the federal ban has been lifted, it is now easier for farmers to secure crop insurance in cases of harsh weather that could ruin their entire farms.
Hemp farmers also have access to banking services which wasn’t the case before. This is another thing that makes the hemp industry so appealing at the moment.
Some unofficial data shows that farmers earn 30 or 40 times per pound of quality hemp when compared to other crops.
Because of the high demand for CBD (which is now widely used in cosmetics and not just for medicinal purposes) farmers are making a nice profit selling their CBD-rich crop.
After the Farm Bill was passed last year, hemp prices went up a little and right now, it is a very profitable field. It is even possible that the supply for this cannabis component will not meet the demand.
According to the U.S. Hemp Crop Report, 78,176 acres of hemp was grown in 23 states in 2018. The number is huge if we compare it to the 9,770 acres grown in 2016.
Right now, there are 45 states with enacted hemp bills in the United States. The report also shows that 3,546 licenses were issued in 2018 and 40 universities conducted research in the same year.
On top of it all, it is estimated that retail sales of CBD products will reach $16 billion by 2025. These numbers speak for themselves. Hemp has, in fact, become a cannabis cash crop.
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