In Canada, CBD hemp oil producers expect to double their production in 2019. According to Statistics Canada, growing areas expected to increase from 41,200 acres in 2018 to 82,500 this year. Hemp oil is legal in both Canada and the United States, which legalized it in late 2018, a booming market in North America.
This news comes in a very difficult context for producers and farmers. In the province of Alberta, the net income of farmers fell by 68% to only $ 535 million in 2018, due to extreme weather conditions (severe drought) and trade barriers imposed by the country.
Canadian Hemp Trade Alliance (CHTA)
According to Ted Haney, executive director of the Canadian Hemp Trade Alliance (CHTA), the hemp craze is due to a shift in perspective on the plant. “Hemp grown in Canada for 20 years, always considered a non-mainstream culture. There has always been this attitude of “this type of cannabis cultivator“. Today, like chickpeas, lentils or quinoa, this is another of the most popular options. It is increasingly considered a dominant culture. Indeed, the CHTA reported that most new licenses are available for new producers.
However, this recent attraction for hemp cultivation worries Will Van Roessel, a farmer and seed grower in southeastern Alberta. “I think investors have unrealistic expectations,” he told the Calgary Herald(Canadian newspaper).
“Right now, there seems to be a lot of investment from novices in the CBD sector, which is a bit of a concern because some of them are not very familiar with what’s going on on a farm or how do they work. agricultural production practices “.
Van Roessel also adds that some producers have signed contracts with CBD hemp oil companies in canada.
Those companies have not even yet built CBD extraction and processing facilities. They are posing a considerable risk for the hemp-makers to remain with their production on the markets.