CBD Supply Seen Shrinking as Farmers Flee Hemp: Cannabis Weekly

August 9, 2020, 10:00 AM EDT Updated on August 10, 2020, 5:00 AM EDT

Prices begin to stabilize after plunging due to over-supply
Licensed hemp acreage down more than 30% year-over-year

U.S. farmers appear to be fleeing the hemp market after a rush last year to meet over-hyped CBD demand resulted in plunging prices and warehouses full of unsold supply.

Pricing and data firm Hemp Benchmarks said there’s been a “notable contraction” in permitted hemp production capacity this year, with U.S. licensed acreage down more than 30% from 2019 and indoor and greenhouse square footage falling 64%.