Economics

Billions in Hemp Risks Rotting on Farms in Processing Bottleneck

  • Murky regulatory outlook limits expansion for processing
  • Farmers jumped to hemp after China shunned U.S. soy, grain
A farmer inspects hemp plants in Dixon, Kentucky on July 29.Photographer: Luke Sharrett/Bloomber
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The euphoria from the burgeoning prospects of U.S. hemp, grown as an alternative to mainstream crops caught in a trade war, has turned to caution.

In the first year of widespread commercial cultivation, hemp planting quadrupled as growers sought a profitable alternative to crops such as soybeans ensnared in the U.S.-China trade dispute. The hemp-derived compound cannabidiol, known as CBD, has a non-psychoactive cannabis ingredient at the center of a wellness trend sweeping the nation, showing up in everything from beauty products to dietary supplements.