Reasons why cannabis production in the United States will decrease in 2021
2020 was exactly the year that companies crystallized in the US market that can significantly influence certain segments of the industry, for example, the grain, fiber or flower markets. It is they who will develop the niches in which they have taken a dominant position, pushing out of them agricultural producers who either later showed their due interest in modern cannabis production, or do not have the resources to compete.
On the pages of the specialized electronic edition of Ukrainian cannabis growers, the article “ Why US vegetable growers do not want to grow cannabis yet ” focused on the fact that in the most highly developed country in the world the interest of agricultural producers in cannabis cultivation is decreasing. A number of US hemp market analysts believe that the price collapse in 2020 for hemp raw materials with therapeutic properties has removed much of the “irrational exuberance” generated by the “green fever” and discouraged farmers from experimenting in the crop sector.
Reports from US hemp market participants and government agencies, as well as price trends for traditional agricultural commodities, suggest that hemp plantings are likely to decline in 2021. In particular, US cannabis government officials argue that the number of applications for licenses by agricultural producers has dropped significantly since 2020. For example, the Alabama Department of Agriculture and Industry says it plans to issue about 200 hemp licenses in 2021, up from 422 in 2020. North Carolina has also seen less interest in obtaining licenses, as well as a significant decrease in hemp acreage. ”In 2021 compared to 2020. According to one of the Oregon hemp market participants, “Most of the cannabis growers in the past three years do not plan to grow the plant in 2021”.
It seems that 2020 was exactly the year that companies crystallized in the US market that can significantly influence certain segments of the industry, for example, the markets for grain, fiber or flowers. It is they who will develop the niches in which they have taken a dominant position, pushing out of them agricultural producers who either later showed their due interest in modern cannabis production, or do not have the resources to compete.
Commentary of the specialists of the Association "Ukrainian technical hemp"
By all accounts, the market for the therapeutic properties of the hemp plant in the United States is experiencing a classic crisis of overproduction. Understanding the peculiarities of the competition in this highly liquid sector of modern cannabis farming, agricultural producers who have managed to create closed production chains are trying to gain a foothold in the market, as much as possible, reducing costs, and those who appeared late on the market or were unable to “get on their feet” look for alternative sources sales of cultivated hemp products.
Most likely in 2021, the hemp fiber market will grow rapidly, since several production sites will be launched in the United States at once, where the fibrous part of the plant is planned to be processed into products with significant added value, therefore, a pool of agricultural producers of hemp raw materials will be formed around these sites. at the above production facilities.
The versatility of the created therapeutic hemp varieties, which can be used to obtain grains, fibrous parts of plants or leaves and inflorescences with significant therapeutic potential, allow the national seed to compete successfully in the tough American market. Speakers' attention will be focused on the peculiarities of using various constituent varieties of technical hemp of therapeutic orientation during the round table " Problems and prospects of using therapeutically active elements of hemp as a basis for nutraceuticals, medicinal cosmetics, animal feed or other products with healing properties of a plant ", held for the listeners of the 6th stream of the " Hemp University ".