Last week, PanXchange hosted a webinar titled “The Forward Contracting Hemp in an Oversupplied Market.”
The session, which will soon be available to the public, covered many aspects of price risk management, including fixed-price transactions, crop insurance, sales contracts and various legal issues regarding contract terms.
Here are three key takeaways:
Bob Hoban, president and founder of Hoban Law Group, answered the viewer-submitted question “how can we move the industry forward?” According to Hoban, “The market will dictate that the get-rich quick deals that never really existed at all, and if they did, it was at a time that it was just a handful of farmers and processors. We just have to go back to basic agronomic fundamentals that require that baseline, that network, people knowing what to expect … those things don’t exist in this industry right now because everyone has been chasing a get rich scheme as it relates to industrial hemp cannabinoids. There is money to be made there certainly, but not until regulations are clear and distribution is global in scope or at least national in scope, and then the market is saturated on top of it. So, farmers need to keep doing what they are doing, but they need to listen to folks that have a different perspective. Just because you passed by a slot machine and the last person that pulled it won the jackpot doesn’t mean that every time you pull the slot machine arm, all this money comes out. That’s what the farmers, unfortunately, think about CBD, but we’re moving past that.”
Read the full article on Benzinga