BOULDER, Colo., Oct. 17, 2019 /PRNewswire/ — It is not often that we witness the meteoric rise of an industry. Hemp is unique in that for many years, advocates have worked hard to promote the potential of the crop, one that has been “forbidden fruit” for a lifetime. There is no precedent. No other crop has been legitimized federally after being prohibited for over three-quarters of a century.
With all the uncertainty and change in the market, The Jacobsen has entered as a new CBD oil and hemp pricing benchmark. On October 29th, Chase Hubbard, Senior Hemp Analyst at The Jacobsen, will host a webinar to add clarity to what’s happening in the hemp marketplace. The presentation will share The Jacobsen’s insights while also allowing time for Q&A.
The hemp and CBD oil webinar will be hosted on October 29th, at 1 pm to 1:30 pm EST. Please register in advance here: https://thejacobsen.com/about/events/
Below are a few facts to consider in regard to hemp’s impact on the agricultural community.
In Oregon’s Jackson County, hemp is now more prevalent than the traditional major crops combined: pears and grapes. This is a big shift for areas like Jackson County, where agricultural supply has shifted to service the new industry with inputs, machinery, and professional services. Professional growers there and in other mature cannabis/hemp areas like Colorado and California have helped make the crop more successful than upstart areas. Hemp has been a job creator, but extraction facilities are mistrusted, and residents complain about the odor. Several producers in Oregon successfully grew and harvested a crop, only to lose it to fire. There have been three structural fires in recent weeks, involving hemp drying. This is not unique to hemp; grain dryers burn routinely with oil-rich soybeans. The market for hemp biomass has deflated since planting time, changing the financial picture for many farms. Vertically Integrated operations are well-positioned for biomass pricing constriction. Producing value-added products is a reliable approach to mitigating hemp price fluctuations in agriculture. Extractors have been reticent buyers this fall, seeking out tolling agreements to cash flow their expensive facilities, and trying to avoid split arrangements, where the processor keeps a percentage of the crude CBD oil as payment. Some extractors are struggling with cash flow and unable to purchase biomass, even below the $2 mark. This has reduced the volume traded and pressured prices. Litigation is increasing, commonly around seed genetics that don’t reflect the buyer’s selected traits. In some cases, seed was not properly feminized, creating a total loss for some producers that aren’t experienced with hemp and missed male plants prior to pollination. It will take years to develop widespread stable genetics, especially those adapted to regions other than the traditional cannabis growing areas of the country. East Coast seed breeders are only beginning to establish adapted varieties, with some northern regions focusing on autoflower genetics. Legal action also centers around buyer/seller agreements. Some of these total tens of millions of dollars and represent actual growing pains: a producer’s inability to harvest and deliver crops as specified in a contract.
Founded in 1865, The Jacobsen is a trusted price and reporting benchmark for the hides & leather markets. Today, The Jacobsen has evolved to do price forecasting as well as reporting for a variety of niche markets, including hemp, CBD, vegetable oils, biodiesel, feedstocks, and organic / non-GMO.
For more information on hemp and CBD oil pricing, please contact The Jacobsen by visiting our website at https://thejacobsen.com
George MorrisThe Jacobsen303.firstname.lastname@example.org
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