The number of hemp growers and processors in Kentucky remained largely the same for 2020 despite an evolving market and lingering questions about the industry.
Agriculture Commissioner Ryan Quarles announced the Kentucky Department of Agriculture has licensed 960 hemp growers to grow up to 32,000 acres, while 150 licenses were given to hemp processors and handlers for 2020. The Department has also licensed 4.6 million square feet of greenhouse space for production.
“Hemp continues to draw much attention, and these new numbers reflect an industry that is still maturing,” Quarles said. “The nation’s hemp industry is reacting to a market which is evolving in the face of supply chain issues and the uncertain future of cannabidiol products after the Food and Drug Administration’s years-long struggle to provide a regulatory framework for nutraceutical or food products.”
Of the 960 licensed growers, 157 have not requested growing sites, but intend to store hemp from last year’s harvest for marketing in 2020.
The Department is waiting on the completion of about 60 additional processor applications.
The online application portal is open year-round for processors and handlers and the KDA reviews these applications on a rolling basis.
The KDA oversaw 978 licensed growers and 210 processors in 2019. Kentucky growers reported growing 26,500 acres of hemp in 2019.
Processors and handlers reported $193.9 million in gross product sales in 2019, compared to $57.75 million in 2018. Processors reported spending $207.3 million on capital investment projects in 2019, as compared to $23.4 million in 2018.
Processors reported paying Kentucky farmers $51.3 million for harvested hemp materials in 2019, up from $17.75 million in 2018 and $7.5 million in 2017. Hemp processors said they employed 1,304 people in 2019.
“While these numbers show growth, they likely do not account for the national volatility in the hemp market over the last few months,” Quarles said. “It is important for growers and processors to remember what we have been saying for years: proceed with caution, as you would in any new business. We urge everyone to move forward in a cautious manner, especially in the face of the uncertainty from FDA.”
