Have you ever wondered about what the current hemp flower’s price per pound is? With the recent federal legalization of hemp across the United States, several opportunities for growth and income have happened. This begs the question, will we see more progress in the coming years?
The change in hemp’s legalization status has impacted the value of cannabinoid and all its derivatives. This change brought about a growth in the demand for hemp across the nation, and with it, an influx of hemp products. But is this level of production directly proportional to the current needs of the market? Was the demand sustained?
Benzinga Cannabis revealed that the American production of hemp in 2019 was eight times more than the expected yield. In the same year, according to data from Vote Hemp, America saw over 200,000 acres of hemp being planted across the nation.
The country had high hopes for such a burgeoning sector. Legal hemp was seen as the salvation of many American farmers. Even the Government placed its faith in what seemed to be a booming market. Sadly, too much hope and confidence in the CBD market were placed all at once, and the crop that meant to be a solution to everyone’s problems created more concerns.
It is evident now that America faces an “overproduction” problem. There is too much supply of hemp and Cannabidiol (CBD) than the demand for it, and prices are continuously dropping.
The influx of hemp has resulted in the over-saturation of the CBD market. The production of hemp and CBD products are in abundance, yet there is only so much of it that the market can realistically consume and process.
The price of hemp, which has been on a steady decline since 2019, has dropped its lowest this 2020. And this change in pricing is not just confined to wholesale hemp flower but to other types of hemp products, such as CBD biomass, crude and refined hemp oil, hemp isolates, and refined hemp seeds.
In this particularly challenging situation, the adage “not all hemp is created equal” rings especially true. There are different prices for every available hemp product in the market, and the demand for it varies based on what the consumers are looking to buy. Current regulations regarding hemp and CBD use will have a continuous impact on the market as well.
In addition, a low hemp flower price per pound will ultimately affect the consumers’ buying decisions, possibly posing a bigger risk to the business of cultivators and hemp growers.
To illustrate just how valuable hemp flowers are, buying these in the market means purchasing one of the plant’s most essential parts. Dried hemp flowers are referred to as parts of the plant where the bud and the trichomes are. The trichome is a special gland of the hemp plant that holds important chemical compounds such as Tetrahydrocannabinol (THC) and CBD.
These hemp buds are detached from the stalks and stems and sold as smokeable pre-rolled joints or as is. Compared to CBD biomass, dried hemp flowers command a greater price due to the laborious process involved in its preparation. These buds, when purchased by the consumer, are ready for use through methods such as smoking or vaping.
So, with that said, what is the current market price of hemp flower per pound?
In 2019, the wholesale price of hemp flower per pound was around $349. It then dropped to more or less $319 during October, which is also referred to by cannabis growers as Croptober. Another steep drop succeeded this dip in December, and by January 2020, the wholesale price of CBD flower per pound has dropped a whopping 35 percent at $226.
At a glance, the current state of the market may look discouraging and bleak. However, as with all emerging markets, a period of oversupply and volatility is quite common. There is still hope as the US CBD market is forecasted to attain more than $2.5 billion in sales by 2022. This vision, a far cry from the current state of the CBD market. By then, the whole hemp industry should be raising, not alarms, but its glasses to better profits, and a more impressive hemp flower price per pound.