Economic issues and perspectives for industrial hemp

Hemp can be used as an input for thousands of products. This chapter provides a historical review of global hemp production and products markets, describes specific economic issues facing producers, and presents some farm-level economic analysis. Hemp grain and fiber markets are expected to compete with the traditional crops being produced across the United States. Hemp grain expected return is only slightly positive, and hemp fiber has a negative expected return above variable costs. Hemp is increasing in competitiveness as improved genetics are available and domestic seed production is established, both of which will increase the yield potential. Hemp is just another crop that can be produced in a wide range of locations across the globe, and is not a silver bullet solution to any part of our agricultural economy. In general, hemp should only be produced if it has a positive impact on the farm's bottom line.