Growing Hemp
- Thread starter Griff
- Start date
The British Hemp Alliance have had a presence at Groundswell and always seem really positive... but the reality seems that we are a way off it being grown as a commercial crop.
The British Hemp Alliance did some good early work in establishing the causes of market failure in the UK where Hemp is concerned.
They also wrote some good position papers and engaged some key stakeholders early on, including major land holders as well as members of the HOL.
This was back in 2017 when everyone was still focussed on the CBD craze sweeping over from the states.
That all ended up with companies holding tonnes of completely or almost worthless cannabinoid extractions.
Buckets of the stuff piled up in warehouses all over.
Then in 2018 the US got their hemp farming bill, and everyone that could went mad growing fibre crops.
Years on the Americans are still learning that without a significant increase in crop processing capacity, you end up with lots of fibre and not many places to send it.
I am happy to say that by the end of this year we will have set up our first processing facility.
We have partnered with a farming group and a local University, and we are waiting to hear about some grant funding.
We want to not only pay a fair gate price, but to work with our farmers to ensure they get a share of the value they create, and to have real influence over the business model, to ensure farmers are at the centre of our business.
Once we establish this demonstrator facility here in Norfolk, we plan to expand across the UK working with similar farming groups and end use customers to ensure we build a national supply network that is robust and profitable for us all.
I am pleased to ay that both the Home Office and DEFRA have approached us and our colleagues in agriculture, to act as a working group that advises both bodies on industrial hemp policy.
This group has informed HO/DEFRA of the demands of the industry, and already we have seen a positive response in the form of concessions proposed to help make hemp farming easier and more attractive to get into.
We are keen to hear from farmers and farming groups outside of East Anglia who are interested in hemp, so please drop me a message and let's stay in touch.
Roger Perry
Member
I wish you the best of luck in your venture, it went from very high expectations here in Colorado to a major bust less than three years later.
Growing the crop it seems is the easy part, what comes afterwards is the tricky part.
- Location
- DD9.
As above, growing it is one thing, selling it is another. Lots of enthusiastic researchers but reality is there’s limited markets currently and Eastern Europe’s cost of production embarrasses us.
- Location
- Lincolnshire
Who's lined up to buy it then?
- Location
- DD9.
There’s very little infrastructure in place to handle the seed or the fibre. It’s a fashionable crop due to the C sequestration figures and there’s a lot of grant funding available for projects.
The most profitable part of hemp growing is that of the academics writing the research papers, with farmers taking all the risk. It’s not a viable cash crop in the UK yet in my opinion.
Thank you Roger. After seven years hard work, lots of lessons and advice from people like yourself, we believe that creating a unified and robust supply chain is key.
To do this we will be solely focussed on capacity and opening new locations scaled to suit demand. R&D will be key, so we have partnered with our local university.
Added to this we are part of a small group advising on government policy regarding hemp, which gives us some insight as to what is coming down the road regarding legislative changes etc.
Most importantly we will work hand in hand with our growers to ensure they get what they are owed, and in a timely manner.
- Location
- Lincolnshire
Good work. It really should be a crop that ticks a lot of boxes.
Although you briefly mention how the first processing facility is going to be financed, how close are you to Actually securing “Ample” financing for the facility site, planning application for the site, surveyors/ architects fees, the ground works, the buildings , processing machinery and surrounding storage areas, etc etc, another words from greenfield site to receiving the first loads of Hemp for processing?
Talk is cheap until one has to back it up with evidence of where the money is coming from with signed documents to prove it, and even then backers , banks have been known to pull out at the last minute.
That said I wish your project financial success.
Talk is cheap until one has to back it up with evidence of where the money is coming from with signed documents to prove it, and even then backers , banks have been known to pull out at the last minute.
That said I wish your project financial success.
Financing: UKRI grant applications submitted and awaiting final decision.
This grant would fund the first facility including rent, materials, wages and all associated costs as mentioned. Beyond grant funding we have commitments for half the pre-seed round, and several angel investor platforms awaiting the decision on the grant, as they are ready to support if we don not win this round.
Processing on farm brings down costs enormously, speeds up planning and allows us to begin operating at a smaller scale whilst we learn and make mistakes.
Planning will not be required, neither will architects, and there will be no greenfield site.
Machinery should begin arriving towards the end of this year, and we will begin a half shift for the first few months to get used to the kit etc.
Once we have got to a significant stage and have the funding secured and machinery ordere, I will begin our sales and marketing push to secure the final orders for year one.
Talk is indeed cheap, which is exactly why i have not said a word until we reached this stage.
Thank you for your challenges, and I look forward to your support in the future.