2019 Hemp Harvesting and Storage
We are rapidly approaching and some are right in the middle of harvest time. 2019 will farmers and growers will be harvesting the first Federally legal hemp crop. Farmers and growers across the nation planted thousands of acres in pursuit of the economic opportunities being touted.
Many of the growers and farmers that we have met with and spoken with frankly are not prepared for the harvesting process. Most have taken the season to learn how to grow hemp for the first time and have not had the time to figure out yet how to harvest the crop they have tended to so feverishly. As a result, many experts expect a surplus of material that requires drying and storage to preserve the value of the crop.
Let’s take an example of a mature market for an agricultural product where commerce flows freely. In a mature commodities market, the process looks something like this:
- Farmer/Grower has the corn graded by a 3rd party. Similar to obtaining COA and Full panel tests for molds, toxins, etc.
- Based on the grade given by a 3rd party, Commodity exchanges (what others are selling for) determine pricing.
- Wholesaler buys the crop
- Corn heads to a storage / processing facility
This level of infrastructure is new to hemp. According to Whitney Economics, 60% of hemp farmers in the USA lack a buyer. There are two factors driving this statistic. First, a general surplus of hemp material . Second, the ability of hemp processors to extract the incoming hemp crop.