Hemp production has become the hot new trend in agriculture in parts of
the US, with acreages tripling, or more, from prior levels. This has caused the prices received by
farmers to nosedive in many cases. From
the perspective of a 40 year veteran of agriculture’s cycles, things will level
out, and those producers who know what they are doing, and who follow sound
agronomic and marketing practices, will do well over the long run as the demand
for the multiple uses for hemp continues to grow.
For anyone looking to get into the business for the first time, there
are a few things to put at the top of the list of factors:
·
Do you have enough capital to get the crop from
planting through harvest? Many ag banks
will not provide financing for hemp growers, so cash in pocket may be a
necessity.
·
What % of your farm will you devote to hemp?
·
Have you talked to other growers in your area
who have tried and failed/succeeded with hemp?
Do you understand why some fail, and
some succeed?
·
Do you have a reputable seed source?
·
Do you have a marketing plan? Is the price guaranteed? Do you have an act of God clause in
your contract?
·
Are you better off (less risk) to partner with
an experienced grower and share land, capital, and
other assets
By no means is this a complete list of key topics, and each situation
and growing area will create other variables.
A word to the wise—walk before you run, into this business.
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