The global industrial hemp market is currently estimated to be worth nearly five billion dollars (USD). By 2025, it is projected to be worth over $26 billion dollars (USD).
For a number of years, the industrial hemp industry was significantly limited by prohibition policies all over the globe. Fortunately, things have changed in recent years.
A number of countries around the world still prohibit hemp production, however, a growing list of countries are allowing farmers to legally cultivate the versatile plant, with the latest being the nation of Paraguay. Per La Nacion:
On Monday, the Executive Branch announced that President Mario Abdo signed the regulatory decree for the controlled production of industrial hemp or cannabis. It establishes that family farming producers can grow it.
The policy change allows every family in Paraguay to cultivate up to a maximum of two hectares of low-THC industrial hemp. Two hectares equates to slightly under 5 acres.
How Much Money Can A Family In Paraguay Make From Cultivating Hemp?
Each hectare of industrial hemp in Paraguay is valued at roughly 10,000,000 Paraguayan Guarani, which converts to roughly $1,545.00 USD.
If a family in Paraguay can successfully cultivate and harvest 2 industrial hemp crops annually, that’s a significant income boost considering the per capita GDP in Paraguay ($9,826 USD).
Paraguay’s industrial hemp industry model is very interesting in that it is built on a cottage industry model.
Out of a population of roughly 7 million people, it is estimated that as many as 25,000 families will take advantage of the recent policy change.
How Popular Will Hemp Cultivation Be In Paraguay?
How widespread hemp cultivation ultimately proves to be will largely depend on how profitable it is for families.
For families who live in areas with rich soil and a climate that is suitable for proper hemp cultivation, the 2-hectare limit may prove to be too low. For families who live in less ideal areas, reaching the cultivation limit may never be a concern.
The hemp plant will grow just about anywhere, however, to grow in a manner that yields a desirable harvest the hemp plant needs good soil and a mild climate.
Technology can help increase yields and quality, although it may be tough for some families to afford sophisticated cultivation equipment and light deprivation greenhouses in Paraguay.
Demand For Hemp Will Continue To Increase
The hemp plant is one of the most versatile plants on earth, with tens of thousands of products being able to be made from it.
In recent years the popularity of CBD, which the hemp plant is rich in, has exploded all over the planet.
Demand for CBD products is what is going to drive the hemp industry forward, in Paraguay and beyond. Consumer demand for hemp-derived CBD will definitely increase, including CBD derived from industrial hemp from Paraguay.
However, whether or not families in Paraguay will reap the rewards will have to be seen as time goes along.
Comparatively, farmers in the United States are making tens of thousands of dollars per hectare from hemp. The estimated value for hemp in Paraguay is considerably less.
Hopefully Paraguayan families get an equitable share of any profits generated by Paraguay’s hemp industry. If not, Paraguay’s industrial hemp industry will never reach its full potential.