The U.S. Department of Agriculture (USDA) has been miscalculating the value of the American hemp cultivation sector to the detriment of farmers and the development of hemp industry infrastructure and investments, according to an analysis published last week by Whitney Economics.
Beau Whitney, the Chief Economist of Whitney Economics, said that USDA officials are “publishing inaccurate data” about hemp crops and their commercial value, and “inadvertently hurting the very same farmers they are trying to regulate.”
“The lower value of the crop is making it tougher for farmers to raise money, inhibiting infrastructural development and suppressing market growth. These USDA errors are also disincentivizing farmers from adding hemp into their crop rotations. In reality, farmers in the hemp industry are benefiting by their contribution more than corn or soy farmers.” — Whitney, in a statement
Like other agricultural sectors, USDA regulations require hemp farmers to self-report the details of their operations each year, including the types of hemp they grow, its intended use, the amount produced, and the total value of the crop. However, the USDA’s usual method of approximating total market value doesn’t apply accurately to hemp cultivation, the report said, as the floral output of hemp can “vary significantly in value.”
“Highlighting how much farmers are benefiting from hemp cultivation would also influence policies at the federal level,” Whitney said. “This error by the USDA is having a profound effect on the entire hemp industry and must be immediately addressed, or the hemp industry will be negatively impacted, and the growth of the market will continue to be suppressed.”
