Last Week’s Hemp Commentary

Production Costs

Production costs for cannabinoid hemp farmers is a moving target. The majority of producers do not yet know what a typical year’s operational costs look like; no real surprise given that many of the states have zero to one year of hemp production under their belts. Production methods are all over the board too.  Operations are in startup mode, frequently encountering surprise costs in the 2019 season.  Harvest logjams increased the cost to get hemp out of the field, dried, and into storage in areas like Southern Oregon, but other surprise costs associated with setting up drying space, or labor to rogue males – for whomever was lucky enough to have someone competent to ID males consistently – were shared by producers in all areas. 

This applies also to the extraction segment, so many of which are brand new businesses….