Source: politico.com
HEMP FARMERS OPTIMISTIC ABOUT INDUSTRY OUTLOOK: With hemp nearing legalization, farmers across the country are ready to turn their attention to commercialization. But despite having some powerful political backers (chief among them Sen. Majority Leader Mitch McConnell), many ag experts say the road to profitability will be long.
“You talk to some folks, and they think this is the next miracle crop,” Zack Clark, government relations director for National Farmers Union, told POLITICO’s Alex Nieves. Even though he is optimistic about hemp’s business prospects, he cautions that it will take time to cultivate the market. “It's like any sort of new industry, it will certainly go in fits and starts,” he said. “I can't imagine that it takes off and stays going unchecked.”
Growers eyeing market share: There was a time when hemp wasn’t so controversial. It was used to make rope during World War II and the first American flag was made out of it, Alex writes. But because it is a controlled substance, parts of the market are highly reliant on products imported from China and Canada. Sales are now projected to grow to $2 billion by 2022, with some proponents saying it can be using in a wide variety of sectors including auto manufacturing, Coca-Cola and grain production.
What’s standing in the way: A lack of infrastructure and investment will keep large-scale projects out of reach. So far, the only product that can currently be produced at a level that meets demand is cannabidiol — referred to as CBD oil, Alex writes.
ICYMI: James Higdon detailed in a recent POLITICO Magazine article how McConnell and Rep. James Comer, a farmer from Kentucky, pushed for years to persuade the DEA and conservative pols of the benefits of hemp legalization.
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