Secretary of Agriculture (and Natural Resources) Hunter Roberts spoke with Sioux Falls Rotary on Monday and spoke out against an agricultural product, cannabis:
Rotary Cindy Peterson also asked Roberts where he saw the future of cannabis and industrial hemp in South Dakota, a discussion that led him to make a distinction between products.
He said DANR is trying to prevent participation in THC-related products and directed these inquiries to the state Treasury Department. This department regulates adult marijuana programs in South Dakota.
THC, or tetrahydrocannabinol, is the main psychoactive compound in marijuana.
Roberts was more positive with hemp. The secretary said there is “opportunity to grow” in the industrial hemp market, mainly in terms of multipurpose applications such as building materials and feed filters.
According to the latest U.S. Department of Agriculture statistics, 1,850 acres of hemp have been planted in South Dakota to date. Roberts expects the industry to reach 2,400 acres by the end of the year.
He also claimed that the CBD oil market has “closed” [Dominik Dausch, “DANR Merger Has Come with Challenges, Secretary Hunter Roberts Says,” Farm Forum, 2022.04.29].
DA’s (NR) stated vision includes a “diverse agricultural economy.” Why would the Secretary of Agriculture (and these other things) first say that his department does not want to promote the diversification of agriculture by growing cannabis to make popular and profitable medicinal products, and then pack up its already timid aspiration to add a increased hemp plantation by three whole sections? to four claiming that CBD (cannabidiol) oil makes no money?
Roberts’ claim that the CBD has “sunk” is so obviously false that the Farm Forum cannot help but correct it:
According to Hemp Benchmarks, most major CBD companies reported average or slightly below average net income in 2021 compared to 2020.
The pandemic and supply chain problems have shut down stores across the country, limiting market growth, but the industry is still expected to expand over the next decade. [Dausch, 2022.04.29].
Dausch’s first source, Hemp Benchmarks, points out that the market’s disappointment with CBD oil does not stem from the real downturn, but from the failure to grow as fast as investors expected:
Although coronavirus has continued to affect the U.S. and the world this year, available information indicates that sales of CBD products have not recovered in the same way as many other consumer spending areas. A recent update of the U.S. CBD market industry published by Brightfield Group, a CBD and cannabis market research firm, estimates that retail sales of CBD products will reach $ 4.7 billion in 2021, just one 2.5% more than the $ 4.6 billion in 2020. [Hemp Benchmarks, “Analysis of Recent trends in Sales of Hemp-Derived THC & CBD,” 2021.12.01].
Dausch’s second source, Grand Review Research, said in February 2021 that the CBD market was down 6.1% from 2019 to 2020, but you are likely to see annual growth of 20% to 23% each year. for the next five years. Vantage Market Research predicts annual growth of 21.3% by 2028. Research and Markets predicts that the CBD jelly market will grow by 28.3% annually by 2028. The CBD market is growing in Europe. Many companies are being phased out after a large number of fans entered the market, but only because startups hoping to make money flooded the commercial space, not because demand has exploded.
SDCL 1-41-3.2 makes the Department of Agriculture (and Natural Resources) “responsible for researching and developing real-world information on issues affecting the state of South Dakota and its agricultural industry …” . Secretary Roberts, you should probably do your legal work and research and provide statements about market opportunities for South Dakota farmers.
