Following the adoption of the Farming Act in 2018, which legalized technical cannabis varieties, cannabis was sown in Michigan. On October 8, local farmers harvested their first crop and reported on the results of the 2019 harvesting campaign.
Hemp is more profitable to grow than other crops
Michigan authorities issued 572 licenses for the cultivation of cannabis on a total area of 13,198 hectares, 423 enterprises received permission to process the plant. Hemp was planted in the spring and summer of this year, so not all farmers have harvested yet. The director of the cannabis growing program, Gina Allessandry, said that information on the volume of production of hemp products will be known at the end of the year.
Local farmer David Connor decided to grow hemp instead of blueberries. This year he collected 9 tons of raw materials from an area of 10.5 hectares. CBD will be extracted from cannabis inflorescences, the stems will go to the production of building materials, paper and fabric. Conor argues that hemp is more profitable to grow than all other crops. For example, a blueberry crop harvested from 0.4 hectares costs $ 543, and cannabis yield from the same area ranges from $ 10,000 to $ 12,000.
CBD market continues to grow
Farmers get the lion’s share of the profits from the CBD market. The cannabinoid is added to the oil, tinctures, creams, food, and even animal feed. According to economists, the volume of trade in cannabidiol products in the United States will reach 22 billion by 2022. The popularity of a substance among consumers is due to its versatility: CBD is used to treat various diseases, for cosmetic purposes and as a bioactive additive.
Gary Schuler, the founder of GTF LLC in Michigan, believes that the main advantage of cannabis is that it can be used in its entirety. GTF LLC dries and processes cannabis waste. From the obtained raw materials produce food products, biodegradable plastic, and building materials.
The Michigan government plans to continue implementing an industrial hemp cultivation program next year. The authorities are ready to issue licenses for growing and processing plants to all interested institutions. In addition, on November 1, the administration will start accepting applications from companies that want to work in the recreational cannabis market. The first hemp stores will be open in 2020.