05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
Industrial hemp is not immune to the effects of lingering cannabis prohibition. Industrial hemp fiber markets essentially did not exist in the US until the federal pilot program emerged in 2014. This is not to dismiss the small-scale efforts that have enriched the national conversations that run concurrently with the new slate of operators now processing raw hemp.
The physical infrastructure and market structure that underpin a US supply chain for industrial hemp don’t yet exist. The same is true for hempseed on a national level, though parts of the Corn Belt and Plains are well suited to handling hempseed and derivatives over the coming years, should markets dictate.
Investment is needed to jump start manufacturing supply chains, but there is substantial value to be found in exploiting existing infrastructure. This is a good place to start with policy, leveraging existing capacity or relying on a direct substitution of existing…