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U.S. farmers acquired state licenses to grow hemp, but total hemp acreage is down 14.3 % from 2019. Meanwhile, the number of farmers and individuals licensed in their state to grow the crop rose 31 percent. With 507,114 total licensed hemp acres for the 2020 season, compared to 544,009 last year indicated a disturbing trend. Colorado has licensed 62,208 acres of hemp for this year – the most of any state – followed by Tennessee (51,000), Arizona (34,035), Kentucky (32,106), and New York (29,985) rounding out the top five.

Last year, the 34 states that allowed hemp cultivation issued 16,877 licenses while this year, states have licensed 21,496 growers, according to Vote Hemp data outlined in the report. Compared to 2018, states issued 476 percent more licenses in 2019. Not all states require processor licenses, but 4,485 such licenses have been issued in states that require them.

Licensing is a good indicator to show intent but doesn’t always equate to more cultivated plants or end-products. From previous years that significantly, less hemp is planted than what is licensed due to a variety of factors, including access to seed and clones, a lack of financing as well as inexperience. But another issue has been overlooked: Infrastructure. What a ready and reliable market, farmers are stuck with crops and no place to market them. The results are negative without the prospect of move the commodity at a profit. 87% of farms nationwide who grow hemp lose money and must are gripping at the states for conveying false promises; a constant theme of our G-101 algorithm has been broadcasting.

Most of the hemp grown in the U.S. is cultivated in a greenhouse, we estimate the largest 100 greenhouse hemp producers in the U.S. account for nearly 220 million square feet of hemp cultivation, compared to 93,666,091 square feet of outdoor cultivated hemp.

According to U.S. Department of Agriculture data, the agency has approved hemp plans for 17 states – as required under the 2018 federal hemp legalization law – and the U.S. Virgin Islands. Another 24 states are operating under their 2014 pilot program rules. The agency has also approved hemp production plans for 32 Native American tribes.

Farmers beware: Hemp is not a cash crop, more like "work in progress" with no means to profitability.

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