Pa.’s first-time hemp growers had high hopes, but it could take years to see if the crop is worth it

Shellenberger has been promised a cut of the profits from this crop — if it makes a profit.

Processors of CBD hemp pay based on how much of the compound is in the plant. And the price has fluctuated.

At the beginning of the growing season, some farmers contracted their crop for $4 per percentage point per pound of hemp. For a crop that’s 10 percent CBD, that would have brought in $40 per pound.

But lately, prices have gotten as low as 50 cents per point — which would mean $5 per pound for that same crop.

Erica Stark, executive director of the Pennsylvania Hemp Industry Council, said more fluctuations in the market could come with impending regulations on growing and selling from the U.S. Department of Agriculture and Food and Drug Administration.

She said it will likely take a few years before the nascent hemp industry finds a balance between supply and demand, and a clearer picture of the market emerges.

Many farmers chose to grow CBD hemp this year because processors for the product already exist, and it promised a higher return on investment. But Stark said she thinks fiber hemp will outstrip CBD hemp’s potential, once there are enough processors to handle it. Right now, she said, there is a bottleneck between growers and processors that is limiting options for farmers.

At the so-called “HempPlex” in Red Lion, York County, Steve Groff is trying to widen that bottleneck.

He’s the founder of Groff North America, the state’s first industrial-scale hemp processor.

“A lot of the things that people like to talk about with hemp — with bio-plastics and textiles and car parts — those are all great ideas and doable, but we need large-scale supply chains that are consistent,” Groff said.

Key to Groff’s supply chain is a special machine called the HempTrain.

Watch the machine in action:

It was developed in Canada to process industrial hemp without breaking down the fibers too much. This year, Groff contracted 2,000 acres of fiber hemp from area farmers that the HempTrain will turn into mainly construction materials, like an additive to concrete.

He admits there’s still a lot to learn about hemp and he sees some years of volatility ahead for growers. But he believes in the crop.

“This industry isn’t going to go away. Certainly, there will be some farmers who don’t ever do it again, but many will persist, and we’ll have a great and growing industry,” he said.

The week before Thanksgiving, Mitch Shellenberger finished harvesting his 30 acres. He’s still waiting to hear if his crop will bring a profit. But he’s optimistic.

“I think next year will be very different because of the knowledge that we’ve gained this year,” he said. “But it certainly didn’t come without a lot of exhausting days.”