At first look, hemp production numbers tell a story of a rapid rise and subsequent swift collapse due to falling hemp prices.  This is true in the cannabinoid segment, where extraordinary interest created the illusion of limitless demand.  The other two major segments, hempseed and fiber, are influenced by separate forces altogether.  For supply and demand discussions, the “seed” category used by FSA is part of the hempseed aggregate.  

Per Farm Service Agency (FSA) numbers released at the beginning of the month, both hempseed and fiber planted acreage have fallen in 2021.  In the case of hempseed, by half, compared with 2020.  We’ve noted the competition for acreage with high commodity prices vying for producers’ fields in 2021. 

While fiber acreage has declined some, actual utilization, and processing tonnage will increase for 2021, though there is no data to support this.  We can infer, though, that…