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Hemp Production and Prices Increase

Earlier this year, hemp was included in the USDA’s Census of Agriculture. When hemp was first legalized in 2018, there was a boom in production under the fervor of new opportunities, spearheaded by the demand for CBD products. This resulted in over production and over supply. The CBD market was over-saturated within a growing season and hemp biomass prices plummeted, along with hemp production. More recently, however, hemp production has leveled out and is even increasing as reported by the USDA on April 17, 2024. As an example, prices for hemp outdoor-grown flower are up 35% and hemp clone and transplant prices are up 61%.

If you’re in house counsel at any company, you’re likely looking to cut down on the day to day, high volume minutia posed by a variety of commercial agreements and transactions that come your way time and again. Doubly so in the cannabis industry given the fact that you have bigger fish to fry with labor and employment issues, day to day operational issues, fundraising and finding more capital, and dealing with the precarious legal environment created by the current federal law conflict (even with possible rescheduling on the horizon). To alleviate some of that in house stress, general counsels should be considering instituting cannabis corporate playbooks (or alternative language libraries) to make the company’s contracting process more turnkey, predictable, and efficient while cutting down on risk.