Should Hemp Growers Lock In Prices?

Should Hemp Growers Lock In Prices?

Hemp plants grown at Hampshire Farms in Kingston, Michigan. Photo: Ashley Davenport
Hemp plants grown at Hampshire Farms in Kingston, Michigan. Photo: Ashley Davenport

Since the 2018 farm bill legalized hemp production, Michigan began its pilot program in 2019, registering and licensing 527 growers who planned to plant 32,640 acres and 423 processors.

Mike Klumpp, owner of Ag Marvels LLC, put together a seminar in Decemper for producer to learn more about hemp.

“It’s this new hemp industry in Michgan that shows a lot of promise for farmers,” he said. “There’s a need in agriculture for something new, and I think this might be what they’re looking for.”

Klumpp said some farmers had issues with seed that was available in 2019.

“A lot of farmers had bad genetics,” he said. “We saw a lot of hot crops coming in and a low CBD content, so we spent a lot of energy and focus making sure we had good genetics for this year and we have some good seeds to offer now.”

As for the market price, Klumpp said he isn’t going to lock in a lot of pricing because the hemp market is volatile.

“I don’t think it’s going to behoove us as a processor or them as a agrower to lock in numbers right now because if the FDA comes out with some things allowing this in food, we’re going to see prices rally,” he said. “If they don’t, [prices] may slide a little further. It’s a risky business.”

Ag Marvel is based out of Shephard, Michigan.