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Hemp Cultivation – What are the Benefits to the US Economy?

Hemp is a versatile crop for various products, including food, paper, textiles, building materials, and biofuels. The National Industrial Hemp Council estimates that by 2027, the industry of this botanical class of Cannabis sativa cultivars will have a $16 billion influence on the US economy.

Farming marijuana is probably not the first cash crop that comes to mind. Indeed, in the cannabis industry, it’s often an overlooked commodity. However, it’s been gaining popularity as a sustainable and profitable industry in the US.

In this article, We’ll go through the seven financial advantages of the cultivation of industrial hemp and why it’s a wise decision for farmers.

7 Economic Benefits of the Hemp Industry to the Economy of US

1. Increase Farm Opportunities

Farming hemp is a promising new opportunity for American farmers. The crop is relatively easy to grow and requires less water and pesticides than traditional crops such as cotton. In addition, it can grow in a wide range of climates, from hot and dry to cool and damp.

It means that farmers struggling with their current crops due to drought or disease can turn hemp production into a sustainable alternative. Farmers can now access a new market and take advantage of the growing demand for hemp products because of the Hemp Farming Bill. This bill established a regulatory framework for hemp production in the US.

2. More Cost-Efficient Than Cotton

It is an efficient and cost-effective crop to grow, with a yield of up to 4 times more than cotton per acre. As mentioned above, It requires less water and fewer pesticides and grows faster than cotton. It is also more resilient to pests and diseases, so farmers can save money on expensive chemicals and treatments.

In addition, the whole hemp plant can be used for various products, including food, textiles, and building materials. Farmers can, therefore, maximize their profits by selling multiple products from a single crop.

3. Improved Water Conservation

Hemp farming has the potential to improve water conservation in several ways. It also has deep roots, which help prevent soil erosion and retain moisture. It is particularly important in areas prone to drought or water scarcity. This means it requires less irrigation than other crops, which can help conserve water resources.

4. Opportunity for Small-Scale Farmers

It can also be a great opportunity for small-scale farmers. The crop requires less land, water, and resources than traditional crops, which means that even small plots of land can be  pure hemp farms. It can be particularly beneficial for small-scale farmers struggling to compete with larger, industrialized farms. In addition, the range of products made from it means that small-scale farmers can sell directly to consumers, providing a valuable source of income and a connection to their local community.

5. Rapid Growth of the CBD Market

One of the main drivers of the economic benefits of growing it is the rapid growth of the CBD market. CBD, or cannabidiol, is a non-psychoactive compound in hemp and marijuana. It is believed to have many  health benefits, from reducing pain and inflammation to alleviating anxiety and depression. As a result, the CBD market has exploded in recent years, with sales projected to reach $20 billion by 2024.

A hemp farm or marijuana farm can potentially increase the availability of high-quality CBD extract,  leading to a wide range of products such as oils, tinctures, edibles, and topicals.

6. Superior Substitute to Paper

It is an excellent substitute for paper, which is traditionally made from wood pulp. It grows quickly and can be harvested in just 3-4 months; It requires fewer chemicals and less energy to produce, making it a more sustainable and eco-friendly option. Moreover, hemp paper is stronger and more durable than traditional paper, meaning it can be recycled more times without losing its quality.

7. New Well-Paid Jobs

The economic benefits of growing it extend beyond just the hemp farmer.  As this industry grows, it will create business opportunities across the supply chain. From processing and manufacturing to sales and distribution, this industry will require skilled workers to support its growth.

It is a smart choice for farmers and investors looking to capitalize on this emerging industry. With the rapid growth of the CBD market and the increasing demand for eco-friendly and sustainable products, the potential for the cannabis industry is enormous.

It promises significant economic benefits for the US economy. In addition, increasing farm opportunities improve water conservation and can help to support sustainable economic growth and development.

At Safe Harbor Financial, we are committed to supporting the growth and success of the legal cannabis industry, including growing hemp. So if you are a hemp producer or CBD extraction industry needing financial support, look no further.

Contact our team to discuss your cannabis banking options today.

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Do you own a hemp, CBD, dispensary, marijuana, or cannabis business and need a business bank account? We’ve validated over $8 billion dollars in cannabis-related funds since 2015. Bank with confidence. Bank with Safe Harbor Financial today.

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