Problems with Hemp Processing

We’ve heard a lot about hemp farming in the last few years, but not all of it has been good. There’s a good bit of excitement, sure! But like other kinds of big sea changes, sometimes the infrastructure isn’t quite there to support the transition. 

In general, there’s kind of a “green rush” as farmers start to understand the utility and production value of hemp as a natural plant. There’s also a lot of land available, since dairy farms have been closing at depressing rates, and some other cash crops are similarly on the way out or ceded to big ag. 

So we’ve seen a lot of farmers enthusiastic about hemp, but after the plant reaches maturity, that’s often where some problems emerge.

At 357 Hemp Logistics, we help hemp growers to anticipate some of these issues and get their products to market in the best logistical ways. That requires a detailed knowledge of this industry because it is not like any other!

A New Market

The hemp market is a relatively new one, in part because draconian laws on cannabis suppressed this market for decades. Now, in the US and Canada, new legalization movements are driving more interest in cannabis products, and common-sense decisions to increase sustainability are making hemp attractive for all kinds of manufacturing.

But as it’s still a new market, there’s a lot of uncertainty, and that’s part of what’s causing problems for farmers. They don’t quite know what the logistical process is going to be. It’s not like tobacco or corn or soy, where there’s already an established and less volatile pipeline. It’s more like starting a market from scratch, although with new institutional interest, hemp is “normalizing” quickly. That’s the good news. The firms that get a grip on logistics early will have quite the edge. 

Transporting Across State Lines

Existing laws on transporting hemp across state lines also pose problems for farmers. If there is not sufficient production facilities in-state, then the limitations on interstate transport become a major issue, and in some cases, a dealbreaker.

Insurance and regulation

In addition, farmers have to have certain types of insurance related to hemp growing and wholesaling. That’s in itself something to struggle with, but there’s also a lot of regulatory uncertainty. As we mentioned, some of the market headwinds involve a traditional reluctance to endorse cannabis products and that’s still having a regulatory impact.

Stuck trying to get hemp to market efficiently? Turn to 357 Hemp Logistics. We have the know-how and the resources to help. 

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