Yes you read that correctly. China to import hemp under US trade deal. Hemp has now been added to the list of commodities that China will be required to buy more of under a new trade deal. U.S. Hemp, say hello to the global economy.
China To Import Hemp Under US Trade Deal
For a long time it was hard for anyone to buy hemp products in the United States; however, things have changed with the recent legalization of hemp. Our farmers depend on global trade for all commodities, and this stipulation for hemp under the new trade deal will be a huge win for hemp. Global trade is essential for commodities, and hemp is no exception. It is a big deal for China to import hemp under US Trade Deal.
This trade deal doesn’t specify how much hemp China must buy, but rather states that China must spend more money on a list of 200 agricultural commodities of which hemp is included. For the year 2020, China is required to buy $12.5 billion more in U.S. commodities than it did in 2017. And in 2021, China must buy and additional $19.5 billion more in U.S. Commodities.
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From Illegal Crop To Global Commodity
This trade deal is a huge win and a great development for hemp. We are starting to see hemp join the ranks of other commodities. Moreover, the reversal from the U.S. historically importing all hemp products to now producing and exporting hemp products is huge. The previously illegal activity of growing the cannabis plant will soon be a major source of GDP for the US. Ironic, isn’t it?
There are still people serving time in prison for growing this plant, but we are starting to see more support for this amazing plant as we realize the economic and health benefits this wonderful plant has to offer. We hope that we continue to make strides and find different ways that hemp and cannabis can help improve the economy, our health, and our environment.
Hemp as a Major Source of GDP
We foresee hemp being a major source of GDP for the U.S. in the not so distant future. It was less than a decade ago that soybeans were considered an experimental crop for U.S. Farmers. Look at soybeans today. The USDA reported that 4.45 billion bushels of soybeans were harvested in 2018. Many of those bushels are exported to countries like China. With China to import hemp under US trade deal, we hope to see hemp right next to soybeans as a major agricultural commodity.
It is not hard to imagine hemp making it’s own way to becoming a major agricultural commodity for the U.S.. Moreover, the inclusion of hemp in trade negotiations shows how far we have come, and what we can expect for hemp in the future. We hope that hemp can continue to be included with other major agricultural commodities in trade deals and agricultural policy.