The shiny object syndrome is part of the human condition but is also prevalent in the hemp industry. Year after year, we see growers making the same mistake of going “ALL IN” on a hemp trend only to be left in the red at the end of the season.
This coming planting season, we will continue to see the same trend with new and novel cannabinoids coming to the market.
Now, we are not saying you shouldn’t try growing something new and novel… but like any other business decision, you need to tread cautiously with optimism that it’s going to lead to a big pay day.
The ‘ol saying “if it ain’t broke don’t fix it” can definitely be used for the case to grow CBD hemp in 2021. Here’s why:
1. CBD Hemp are known, tested, and tried genetics grown coast to coast: CBD hemp seeds and clones have been grown across the US for YEARS. While it is true that there are “bad” CBD genetics out there, there are reputable companies providing a top-notch quality product that will grow well in your field or greenhouse.
In 2020, we saw a flood of CBG seeds and clones that were complete frauds and wrecked people’s businesses. A lot of seed suppliers hopped on the CBG seed bandwagon and sold horribly unstable and inconsistent seed. In fact, a lot of growers paid premium prices for CBG hemp seeds only to test their product at the end of the season to discover it was CBD!
This will happen again with new cannabinoids coming to market… buyer beware!
2. Consumer demand for CBD products is a known and growing market: The CBD market is currently exploding and seeing massive growth on the consumer side. The consumer adoption of hemp products has taken time and is just now reaching a critical mass. If you have walked into your local gas station or grocery store, you will likely find a CBD hemp product sitting on the shelf!
Though new and novel cannabinoids are a hot commodity in the hemp growing world, if we look further down the supply chain consumers are just beginning to grow comfortable and have higher demand for CBD products. Many end product consumers don’t know much if anything about newer cannabinoids, which may lead to limited demand to sell a crop that is a new/novel cannabinoid.
Crude CBD Oil derived from CBD Hemp Plants
3. CBD product prices have stabilized and even increased in 2021: Yep, you heard that right! Our friends over at HempBenchmarks™ are experts at researching and giving the best spot pricing for all things hemp. CBD products seem to have somewhat stabilized at the time of this writing while other novel cannabinoid products have seen significant price reductions. This ties back into point 2 on how consumer demand for CBD is not only a known market but also a rapidly growing industry on the consumer product side.
4. Product Diversification: Even if you are convinced of growing new and novel hemp seeds, you shouldn’t scratch CBD completely. This is a great, low-cost way to diversify your business and product offerings to buyers. Growing CBD hemp could also hemp insulate you from some of the price volatility of new cannabinoids.
So there you have it… four great reasons to grow CBD hemp this coming season. If you are unsure of where to start on selecting genetics, be sure to take the Alterra Variety Quiz to discover the best hemp varieties for your unique business!