It’s exciting to think about the growth potential of the hemp industry. With its legalization not so far in our past, the possibilities for hemp for the economy is still something to research and discover. However, projections are looking good for those thinking about joining in.
Hemp’s economic impact in dollars
In 2020, the full economic impact of hemp in the U.S. was at least $4 billion. Projections have this number steadily rising, according to the 2021 Hemp & CBD Factbook. The industry’s impact could reach upward of $13 billion by 2025.
That means the standard multiplier for hemp is 1.9. In simpler terms, for every $10 consumers spend on hemp products, an additional $9 will make it into the economy, mostly at the local level.
The domino effect of this impact
At first glance, this information looks like it’s only about the dollars. It means demand for hemp-derived products and success for hemp farmers, processors, and manufacturers. However, taking a deeper dive into the economic impact of hemp leads to so much more.
Feeding so much money back into the economy, the simple sale of hemp-derived projects means more work for ancillary businesses. The companies that transport hemp products, those that make the packaging, and every business that contributes to another CBD store opening.
Taxes collected on the increased sales of hemp-derived products also deepen its impact. Now there’s more money to fund government initiatives like school improvements and road repairs.
There’s also more potential for jobs as hemp businesses expand, hire more workers, and have the capital to grow.
This ripple effect provides opportunities, jobs, and local improvements, and all you had to do was buy your favorite CBD product.
Success happens because of quality
It’s huge, the potential impact hemp can have on our economy, but these numbers are nothing without the availability of high-quality products.
As the hemp industry gets flooded with brands trying to push their products to the top of the pile, quality can suffer. The need to quickly get something to market can mean cheaper genetics get used, extractions aren’t as pure, and products aren’t delivering on the effects consumers are expecting. This then devalues the industry, and may turn people away.
The solution is to put quality above quantity. Focus on growing the right genetics for superior hemp. Making sure it’s processed carefully and correctly to grab the highest levels of cannabinoids in their purest form. Working with manufacturers who maintain the quality by adding pure ingredients to hemp to craft a finished product.
It takes a working knowledge of the entire industry, and a strict attention to detail, to make this work. The returns for all this effort, if predictions are correct, are worth it in more ways than one.
Take the middle step seriously
As a hemp farmer, your work is the first step in growing superior hemp. Without you, we have no plants. It’s your job to cultivate your hemp crop in a way that gives your plants the best care. But, don’t ignore your crop once you’ve harvested it.
The next step, the middle step, is the most involved. It’s where all the processing takes place. This includes drying hemp and extracting compounds. If you don’t have the right processor handling your hemp, all the time and effort you put into growing it will be for nothing.
At Arbor Vita8, we offer services that begin with your seed selection and end with the final sale to a manufacturer, but at our core, we’re a hemp processor. Our facility is second-to-none. Our equipment is state-of-the-art, efficient, and safe. We take all the proper precautions to ensure your hemp comes into as little contact with contaminants as possible. We handle everything with an expert hand.
Maintaining the quality of every hemp plant we touch is essential to ensuring the hemp industry continues to grow. Contact us today to learn more about our high standards and our processes.