Sky-high hemp prices are expected to fall back to Earth this fall, but that doesn’t mean the green rush is headed for a crash landing.
“We’re looking at around $18,000 an acre — last year we were four times that amount,” predicted “Pioneer” Pete Gendron, president of Oregon SunGrown Growers’ Guild.
Despite the steep drop, he said it’s still not so low that most farmers won’t make a profit, and he said seed producers are ready to pivot to the next big thing derived from this cousin of cannabis.
Other industry leaders don’t think prices will fall as low as Gendron estimates, but most think they will go down.
Hemp, the biggest agricultural crop in the Rogue Valley, is grown for CBD, or cannabidiol, but Gendron said cultivators are hard at work perfecting other strains that read like an alphabet soup of cannibinoid molecules. Cannabis plants contain more than 100 cannabinoids, which some studies suggest result in various health benefits as they react with the human body’s endocannabinioid system.
Cannabigerol, or CBG, is the chemical parent of THC and CBD, according to Leafly.com, and it seems to be the next big thing in the hemp world. Some research suggest CBG helps with glaucoma, inflammatory bowel disease, Huntington’s disease and cancer. Many of the studies of CBG are from Europe.
While CBG is coming into focus on the hemp horizon, Gendron said he’s told producers to get ready for plummeting pricing and to make sure they’ve got buyers lined up before they get their plants in the ground.
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