Further study industrial production in hemp crops agriculture

Abstract

Potential regulatory costs of commercial hemp production would be a matter of conjecture at this point. Initial start-up production investments would include land preparation and purchase of seed. The installation of an irrigation system is another potential production cost. Specific data on costs and returns are not currently available for U.S. production. The Department of Agricultural Economics at the University of Kentucky developed a preliminary hemp budget summary for the Commonwealth in 2013. This included net returns per acre for hemp fiber, seed, and both fiber and seed for a lower price scenario ($50/ton for fiber and $0.50/lb for seed), and a higher price scenario ($100/ton for fiber and $0.90/lb for seed). The budget did not include land cost, and was developed for four levels of productivity – low, medium-low, medium-high, and high. Returns per acre in the lower price scenario ranged from a negative $314 for fiber only production, to $202 per acre for seed only production at the high productivity level