As some of you may already know the United States grew approximately 25,000 acres of hemp for the 2017 season. It is estimated that 50-60% of that acreage was for high CBD cultivars. As you can see from the chart to the right, the states that provided the vast majority of this material are – in order of acreage, Colorado, Kentucky, Oregon, Nevada and North Carolina. That means that we only had in the neighborhood of 12,000 – 15,000 acres from which to source all our product.
In the first month or two after harvest this past September and October, we saw huge amounts of product get ground up and processed into oils and isolate. Becuase if this we are now starting to see the supply becoming much less abundant especially for the carefully trimmed product Herb-a-lites is becoming known for. One of our main focuses at this point is to secure a consistent supply for all our existing and future customers over the next four months before the 2018 harvest begins.
Because of the supply and demand realities of our “free market” system, we are finding that farmers are now starting to ask for higher prices for all of their products, including the trimmed tops we use for our products. This means that we will need to increase our prices somewhat over the next few weeks to compensate for the prices we have to pay our farmer partners. But, we hope that by locking in supply now, we will only have to do this kind of increase once.
We appreciate all the amazing support we have received from our customers over the past four months and look forward to a long and beneficial relationship with each and every one of you.