Hemp cultivators are poised to be the top beneficiaries if America starts paying growers to requisition carbon as a way of tackling climate change.
However, there are several questions regarding whether the so-called carbon cultivation is possible or how hemp producers could specifically benefit.
Tom Vilsack, the Agriculture Secretary, has disclosed that his department will apportion $30 billion from his department’s Commodity Credit Corporation to pay growers to implement practices that may remove carbon from the earth’s atmosphere and inhibit global warming.
As part of Biden’s administration’s more significant Climate 21 project, the administration can repurpose those funds to set up a carbon market for paying growers.
Vilsack noted that the fund was set up during 1933 with a contract that particularly mentions creating and stabilizing markets.
The state-sponsored carbon bank may alter the hemp landscape in the following ways:
- Carbon payments may become an extra source of revenue for current hemp growers
- Carbon payments may urge growers to include hemp in their plant rotations, boosting America’s hemp production.
- Hemp growers may be motivated to cultivate varieties suited for house construction and other commercial purposes that confiscate carbon for multiple years.
Jonathan Miller (a lobbyist based in Washington DC and attorney of America’s Hemp Roundtable company) said that they see this as an incredible opportunity for the hemp sector and planet earth.
The American government is one of the many jurisdictions offering carbon payments to growers.
The Australian government is currently paying farmers to sequester carbon. Canada and the European Union are also considering a similar system.
The private industry also wants a piece of the cake. For instance, Germany’s Bayer AG announced yesterday that it’s including eight other jurisdictions in its Carbon system. Bayer AG is among the world’s biggest pharmaceutical companies, and its program pays growers about $9.00 per acre for not using tilling techniques when growing cover crops.