In 2019, Ellis Monroe made a game-changing discovery. His mother, Youlanda Monroe, had been struggling with chronic pain and inflammation for years and was losing hope of finding a solution. Monroe was becoming increasingly interested in food as medicine on his urban farm in Durham, North Carolina. That’s when he came across research on cannabidiol (CBD), a cannabinoid compound found in hemp, a variation of the cannabis plant. CBD has both pain-relieving and anti-inflammatory properties. North Carolina was one of several states that implemented pilot programs authorized by the 2014 Farm Bill to license industrial hemp growers. Monroe eagerly signed up for the pilot program. After his first harvest, it was clear that he had discovered something that could help people, including his mom. He also uncovered the next phase in his career. That year, he founded Ellis Herbs. 

CBD is a polypharmacological agent, meaning that it affects multiple processes in the body with a wide array of benefits, including pain relief and anti-inflammatory effects. Because so many chronic pain conditions are rooted in or tied to inflammation, CBD has broad applications, including for arthritis and multiple sclerosis. It is also used to treat anxiety, post-traumatic stress disorder, and depression.

According to Benny Bunting, hemp is also a fantastic crop to grow. Bunting, a North Carolina farmer and RAFI’s longtime Lead Farmer Advocate, was immediately enamored with hemp. “It’s a beautiful crop in the field,” he says, not to mention that it grows fast, remediates soil, and uses significantly less water than crops like cotton. It also helps build organic matter and sequester carbon (by some estimates, cannabis is one of the most effective CO2-to-biomass converters, with one hectare sequestering 8-15 metric tonnes of carbon per year under optimal conditions outdoors). Along with cannabinoid compounds, hemp produces high-protein seeds and fiber that can be used in everything from construction materials to plastics. It can be lucrative at small scales with the right market conditions. Naturally resistant to common pests and diseases, it is well-suited for organic production or rotation with commodity crops, such as wheat or soy.

Bunting and many farmers in the U.S. South view hemp as an attractive alternative to tobacco, as it relies largely on the same equipment and infrastructure. Dormant poultry houses on Bunting’s farm work beautifully for cloning plants and drying; the fans allow air circulation with negative pressure to control drying. Hemp can be grown as a cash crop or as a supplement to other commodity or specialty crops. 

Growing hemp also comes with the sense that you are helping people. “It is a crop you could be proud to grow,” Bunting reflects. Like Monroe, Bunting’s interest in hemp began with a desire to help a loved one — his daughter — with managing her symptoms of multiple sclerosis. Bunting will be the first to tell you that hemp, while not an FDA-approved treatment for MS, really seems to work. Monroe hears similar anecdotes firsthand. With a direct-to-consumer business built on relationships with the customer, he can adjust levels of various cannabinoids according to each person’s needs. “Each person, and each plant, is different. By talking with people, I can help them identify the cannabinoids that suit them best.” 

A Complicated Crop

Each plant is unique: small changes in soil, weather, or harvest time can lead to significant variations in chemical composition. This complicates the production of cannabinoids. “It is a fantastic crop — if you are willing to give it the attention it requires,” says Bunting, who tested the levels of cannabinoids in each plant every week until harvest. Frequent testing is necessary to ensure appropriate levels of cannabinoids. Hemp and marijuana both produce THC, a federally controlled substance. Hemp produces only trace amounts of THC, but if left in the field, it can tip past the 0.3% THC threshold to be considered marijuana and cannot be sold as hemp. In addition, without precise storage conditions, cannabis plants rapidly lose potency. In other words, hemp is a fickle plant, not your average commodity crop.

Cannabis has a controversial history in the U.S. Until the Marijuana Tax Act of 1937, cannabis was widely produced, with Thomas Jefferson allegedly referring to it as “of the first necessity to the wealth and protection of the country.” The 1937 Act effectively criminalized all but industrial uses of the plant. Then, in 1970, the Controlled Substances Act repealed the Marijuana Tax Act, classifying cannabis as a Schedule I drug, illegalizing it in every form. President Nixon’s “war on drugs” disproportionately targeted Black, Indigenous, and people of color (BIPOC) communities, and its harms are still reverberating through society. The war on drugs also effectively put an end to the cultivation and research of hemp and hemp-derived products. 
 
That was until 2018. Four years prior, the 2014 Farm Bill had established pilot programs to study the growth, cultivation, and marketing of industrial hemp. More than 40 states participated, and farmers nationwide tried their hand at growing it. By 2018, 32,464 acres of hemp were planted. The 2018 Farm Bill removed hemp and all hemp-derived products from the Controlled Substances Act. This legalized its production on the federal level, effectively opening the gates to a new national agricultural crop, and the market responded. 

In 2019, 146,065 acres of hemp were planted across the U.S. in what many describe as a “hemp gold rush.” A proliferation of CBD buyers started signing contracts with farmers, but the market was off to a rocky start. The momentum was not coupled with any sort of supply management, and production and market data — fundamental to farmers’ decision-making — were lacking. The market flooded, leading to an oversupply that caused prices to crash. Many buyers advised farmers to store plants for indefinite periods. The instability of cannabinoid compounds meant that by the time buyers were ready, the CBD levels had dropped, and farmers were left holding the bag. 

By 2021, acreage planted in the U.S. had fallen to 54,152 acres. Despite his fondness for hemp, Bunting harvested his last crop in 2022. That year, acreage dipped below 2018 levels to 28,314 acres. In 2023, 27,680 acres were planted nationally. Even with the decline in supply, prices have been slow to bounce back. In 2019, some farmers were getting upwards of $96/lb for CBD-grade hemp. In 2023, USDA reported the average U.S. price at $31.60/lb, and that is if you can find a buyer. 

Corporate Consolidation

While many farmers were losing out, Texas company Delta Agriculture saw the price crash as an opportunity. Delta Ag was founded by oil tycoons drawn to hemp for what they saw as a resemblance to the oil and gas industry. In a 2022 interview, chairman John Paul Merritt said of the company’s “big-ag approach” to hemp: “We knew that with the price of hemp crashing and our farming practices, we could be the lowest-cost provider of hemp and take market share.” In 2021, Delta Ag planted 5,000 acres of hemp to produce flower for CBD; grain for animal feed, supplements, and cosmetics; and fiber for textiles, paper, and insulation. In 2022, as farmers were pulling out, Delta Ag doubled its acreage. 

Today, massive players that can ride out oversupply dominate the market. By its estimates, Delta Agriculture supplies 70 percent of biomass for every CBD product. Other indicators of today’s CBD market are the lack of regulation, the proliferation of FDA warning letters, and products that do not contain the ingredients they claim to contain. A 2021 study found that 84% of CBD products tested did not contain the potency claimed on their labels. Even more concerning, the same study found that one in four brands did not test for substances such as heavy metals, pesticides, and other contaminants.

In 2023, the FDA committed to developing new regulations for CBD, concluding that existing regulatory frameworks are insufficient. Greater oversight may reveal the role this fickle plant ought to play in our agriculture system. At the end of the day, hemp may not be appropriate for mass-scale production by mega-corporations. Cannabinoids are unpredictable; the slightest environmental change can throw them off. That’s why, according to Monroe, you’ll hear from just as many people that CBD “doesn’t work for them” as you’ll hear that it’s a “wonder drug.” Monroe suggests, “When you buy commercially available CBD products, there is no telling what is in them: They could be far less potent than they claim, or they could have higher levels of one cannabinoid over others.” 

Resistance Through Relationships

Meanwhile, in Chatham County, NC, Ellis Herbs is a different story. Each of Monroe’s plants is tested for a breakdown of the exact levels of CBD and other cannabinoids. Armed with precise information, Monroe can customize his products with confidence. Relationships with his customers enable him to understand their needs, whether it involves a complex balance of various cannabinoids or a simple topical cream containing essential oils. The relationship with the customer also means they can try again if something doesn’t work. When they find something that works (and more often than not, they do), they can sign up for a subscription to the product, creating CSA-style stability for Monroe’s business. Because he never sold to a third party, he was aware of the 2018 rush and consequent price crash, but it had no discernible effect on his business. This year, he hopes to expand from his half-acre plot to five acres. 

In Warren County, NC, Rick Brown also got through the 2018 hemp gold rush relatively unscathed. A fourth-generation farmer dedicated to creative regenerative practices, Brown grew tobacco until 2017 but now grows commodity and specialty crops in rotation with hemp, which he grows primarily for fiber. He started with small-scale CBD production, but as Brown says, the writing was on the wall with the hemp industry. “I knew we had to diversify. I was originally interested in hemp for fiber, so when CBD prices crashed, that’s where we focused our energy.” Brown’s fiber contract requires the buyer to put up half the cost of production up front. He advises anyone looking to enter this industry: Know your market and have a plan. Understand the opportunity before you invest. Ensure you’re supported with a contract that invests as much as you do.

While fiber accounts for most of his hemp production, Brown also markets CBD through his brand Hempfinity, contracting with a local hops distillery to make CBD syrups, tinctures, capsules, and more. Like Monroe, Brown tests each batch to accurately reflect the chemical profile so people know what they are getting. Also like Monroe, Brown’s CBD operation centers on relationships. When prices crashed, Brown kept up a modest CBD production to meet the needs of Hempfinity’s loyal customer base, most of whom live in North Carolina. “People rely on it. So we had to keep growing it.” 

For Brown, it all starts with relationships on the local level and building strong communities. It is, after all, the relationships we form that give our lives meaning. We choose whether to approach those relationships with intention and care. In many ways, hemp embodies this lesson. We can treat this remarkable plant like other staples of the agricultural economy: produce it on a mass scale and watch it slip into the control of a few corporations. Or, we can cultivate it within our communities, for our communities, with intention and integrity. Hemp, for its part, may only cooperate with the latter.

Alexandra Spring is a consumer protection and antitrust attorney in the Vermont Attorney General’s Office and a freelance writer. The views expressed herein are the author’s and do not reflect those of the Attorney General’s Office.