Sanitas Peak Calls for 1% of Federal Ag Subsidies to Be Directed to Industrial Hemp Development
Industrial Hemp Summit
DANVILLE, Va., February 24, 2021 (Newswire.com) - The Fourth Annual Industrial Hemp Summit began today with Charles Wellso's industry analysis.
The federal government has the ability to create a development program that could become as successful as SBA loans, says Charles Wellso, founder at Sanitas Peak Advisory, a hemp-focused finance and advisory company.
Here is the issue:
Ninety million acres of corn are grown in the United States, a third of which goes to feed livestock here in the U.S. or to export markets such as China.
There are three main reasons to encourage alternative crops:
1) Consumption trends - The growing demand in the United States for plant-based protein to replace dairy and beef will translate into reduced demand for feed for livestock.
2) Environmental issues - There is a need for additional rotational crops in America. The lack of biodiversity is the leading cause of pollution seeping into the Mississippi river and despoiling marine life in the Gulf of Mexico.
3) Rural Wealth - Farmers need and deserve to increase their wealth, and the federal government wants to see its investment in farming lead to an improvement in lives in rural communities.
Politicians on both sides of the aisle love small businesses because they are so important to America's economic well-being. Encouraging alternative resources should be at the top of American political leaderships' list, as they will fuel small businesses. The reason to look carefully at industrial hemp is because the plant's diverse profile offers abundant new market opportunities in food, feed, and industrial applications, according to Tammy Dekel, co-founder at Sanitas Peak.
What the government must do is stimulate market linkages between the farmer, processor, and industry. For instance, in recent conversations with industry, Wellso stated his belief that consumer products companies like P&G, homebuilders like Lennar and motor companies like Ford would all support the incorporation of industrial hemp into their products, but they don't want to be the ones paying the premium to develop the hemp industry. So Sanitas Peak is encouraging the government to launch a development incentive program in support of North American industrial hemp.
The big idea is to encourage entrepreneurs who will build pilot programs that can lead to a national industry. Currently, the federal government is investing $22 billion annually via farm subsidies. By investing 1% of this or $200 million per annum for the next four years into supporting the development of this exciting new ag industry (industrial hemp), the government is likely to get a far better return on its investment, a wealthier ag community and healthier land.
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Source: Sanitas Peak