Challenges and Considerations

Regulatory hurdles, such as excessive bureaucracy and the association with recreational cannabis, can deter farmers from entering the hemp trade. For instance, if a harvest exceeds the legal THC concentration limits, it must be destroyed, resulting in significant economic losses. Additionally, farmers need to consider their opportunity costs, as potential revenue from hemp must be comparable to earnings from other crops. In countries with high labour costs, specialized equipment for planting and harvesting is indispensable for a profit-oriented operation. The lack of required equipment and the necessary investments might deter farmers from making the switch to hemp. Incentives and subsidies can help overcome these barriers. Conversely, in countries with lower labour costs, market entry is less investment intensive.

Overall, the economic aspects of hemp and sustainability are closely intertwined. Hemp cultivation and value-added goods support economic growth, job creation, rural development, and export earnings (Yano & Fu, 2023; Kaur & Kander, 2023). For environmentally sustainable practices to achieve the desired social effects, such as job creation and rural development, they must be economically viable for all participants in the value chain.