Back in October, an Illinois farmer told WSJ he expected to net $75,000 per acre in profit from selling his CBD hemp and only $1,000 per acre for his corn and soybeans. Fast forward two months, and a Kentucky farmer, just one state away, told WSJ he expects to net just $2,000 per acre for his CBD hemp.
In 2018, New Frontier Data claimed that varying states laws, cultivation methods, and other circumstances led to profitability estimates reaching $75,000 per acre. However, that was before U.S. hemp growers planted about 266,000 acres of hemp in 2019, ten times as much as in 2017, per New Leaf Data.
Today, the Brightfield Group estimates U.S. hemp cultivation at 285,000 acres, up nearly 72 percent YOY. That number is expected balloon to 734,000 acres in 2020 and nearly 2.7 million acres by 2023. At this lofty rate, the market for CBD and other hemp products, such as grain and fiber, will need to keep pace with rapid acreage expansions.
As of now, hemp acreage expansions have likely led to lower CBD prices Fortunately, CBD hemp may be as profitable if not more profitable per acre than most or all other agricultural commodities, at least for now.
Perhaps a select few growers with high-yielding and quality hemp may be able to sell for top dollar. However, in the near-term, most farmers will likely have to settle for prices at the low-end of the market.