Key Takeaways:
- Whitney Economics reduces its 2030 hemp fiber and grain forecast to 1.0 million acres, down 82% from earlier projections.
- This reduction represents a $3.1 billion drop in projected U.S. hemp revenues.
- Regulatory uncertainty and lack of infrastructure are the main factors for the forecast revision.
Whitney Economics has revised its 2030 hemp fiber and grain acreage forecast, lowering it by 82% to 1.0 million acres. The reduction translates to a $3.1 billion loss in projected revenue for U.S. hemp farmers, based on USDA data.
The adjustment stems from delays in FDA approval for hemp use in animal feed and shifting regulations on hemp-derived cannabinoids.
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Regulatory uncertainty and a lack of investment in infrastructure have dampened growth in the sector. Investors are hesitant due to frequent changes in state laws and restrictions on non-intoxicating hemp products.
The uncertainty surrounding hemp regulations, particularly the new limits on THC and CBD in animal feed, has created more confusion for the industry. Without clarity and infrastructure development, demand for hemp fiber and grain acreage is expected to remain low.