A representative of Hemp Oil Canada, a hemp processor in Ste. Agathe, Man., says hemp growers around Dauphin, Man., may be signing contracts this year for 90 cents per pound but those prices only represent a fraction of the entire industry.
Kevin Friesen, seed production manager for Hemp Oil Canada, said the majority of contracted acres this year for conventional hemp grain are going for much less than 90 cents per lb.
Hemp Oil Canada has signed up about 80 percent of its acres for 2011. Contracts are averaging 60 to 65 cents per lb. for conventional grain and $1.05 for organic grain.
In the February 10 issue of The Western Producer, Chris Dzisiak, a Manitoba hemp grower, said he and other producers around Dauphin have signed contracts for 90 cents per lb.
In light of the dramatic increase in canola and other commodity prices over the last year, Dzisiak said hemp growers would be giving hemp seed away if they signed contracts for less than 90 cents per lb.
Those published comments prompted several phone calls to Friesen from producers wanting to cash in on high hemp prices.
However, 90 cents per lb. might apply to a variety called Alyssa, which is grown around Dauphin but not to other hemp grains, Friesen said.
“I think the reason they have the price that high is that people aren’t willing to grow it (Alyssa) for grain for less than that,” said Friesen, who grows hemp near Rosthern, Sask., but lives in British Columbia.
“Alyssa is really developed for dual (fibre and grain) or fibre usage. That’s where it shines, not so much solely for grain production.”
Most hemp producers in Manitoba, Saskatchewan and Alberta choose to grow varieties like Finola, CFX-1 and CRS-1, which reach maturity more rapidly and yield more than Alyssa, Friesen said.
“Producers in most areas simply stay away from dual or fibre varieties, as there simply isn’t a significant commercial fibre market and it’s easier to just grow grain.”
In 2010, most farmers grew conventional hemp grain for 60 cents per lb. and Dzisiak maintains that a five cent increase this year is insufficient, considering the price of canola has jumped more than 30 percent in the last 12 months.
