That way it’s looking so far, Wisconsin might see fewer hemp growers this season. Data from the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP), the state agency that manages the Hemp Research Program, shows that as of March 29, 2021, the number of hemp grower license applications issued so far this year stands at 488—down from 1,301 in 2020.
The number of hemp processor licenses issued are also down, at 310 so far this year, compared to 649 last year. DATCP is still receiving applications, so those numbers could change as we get closer to the growing season. Kevin Hoffman, public information officer for DATCP, says it’s difficult to say what is having the biggest impact on fewer hemp license/registration applications, but he shared some insight from the agency’s Division of Agricultural Resource Management.
“From the standpoint of hemp processing infrastructure, Wisconsin is not far behind other states,” Hoffman says when asked about how Wisconsin’s hemp infrastructure compares to the rest of the nation. “The U.S. as a whole has not developed the infrastructure, supply chain and markets for the processing and sale of hemp in a large-scale, sustainable way. That infrastructure and the markets are still developing. Without consistent markets, there is uncertainty for growers.”
He adds that another factor is the strong interest that came with the new crop and the likely overproduction that occurred nationally. (2018 marked the first full year of Wisconsin’s Hemp Research Program.) “Hemp products and cannabidiol (CBD) market prices have been depressed because of the significant growth in hemp production nationally over the past two years,” Hoffman notes. “On the other hand, corn and soybeans prices have risen significantly, and those are established markets and crops that Wisconsin agricultural producers know well. When those commodity prices were low, growers sought alternative crops, and hemp was the new crop.”
COVID’s Impact
And then there’s COVID-19. The pandemic may have also had an impact on hemp growers and processors. According to kush.com, farms dependent on temporary farm labor might have difficulty with workforce safety challenges and a smaller pool of workers. The lack of widespread and affordable testing throughout much of 2020 affected farmers’ ability to identify uninfected laborers who they could hire.
Forbes has reported that during the early months of the pandemic, ports and factories were impacted, leading to supply disruptions for cultivation materials such as grow lights, pots and other agricultural commodities.
To see DATCP’s statistics as of March 29, 2021, which includes year-by-year licensing data; 2020 statistics on hemp acres and locations by county; and hemp processing and growing acreage by county, click here.
