What's been learned from 2019

The signing of the Farm Bill 2018 by President Trump gave so many hope as hemp was made legal. Well, it's not worked out thus far like it's intended.

Farmers are reactive people and will jump on a "new thing" real quick. And boy did they with hemp. The US had around 60,000 acres of hemp grown in 2018 pre-Farm Bill. That number increased by at least ten fold 2019 and the surplus has created a major problem.

The main problem is that farmers are not getting paid for their work as much of the hemp rotted in the fields, and much more is waiting for a buyer. I recently spoke to a number of farmers who grew hemp in the 2019 season and many of them are bummed out. They say that the "hype" about the industry has not panned out as the business they were promised has not came through, and they are trying to figure out what to do 2020.

My best advice is to align with a real extraction lab to find out what they need, and grow that. The days of just "fligging it" are over as farmers and investors have lost lots of money. The time they will not get back but the experience has created reservation to the hemp industry at large. I think the farmers were promised it all yet very little has happened. The FDA has not issued ruling on CBD nor other cannabinoids so the real business that can occur is not ready to take the risk since the FDA can make you pull product even after being on the shelves.

Now it's a game of relationships and figuring out who can perform on this evolving industry. I know with the pains there has been major strides toward legitamizing the potential into reality. So, 2020 will be another year of testing what the market wants and hoping there is not too much of it. Time will tell...

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