A Vermont family lost their fifth-generation farm after the hemp market collapsed, leaving them buried in debt and unable to pivot to adult-use cannabis, according to a detailed account published by the farmer.
The unnamed farmer described a cascade of failures starting with the 2018 Farm Bill hemp boom, followed by market oversaturation, pandemic disruptions, and Vermont's slow adult-use rollout. The farm had been in the family for over a century before closing permanently.
"We went all-in on hemp because everyone said it was the future," the farmer recounted. But that future never materialized. By 2019, Vermont hemp prices had crashed from projected highs to unsustainable lows as farmers across the country flooded the market with biomass.
The Hemp Trap
The 2018 Farm Bill legalized hemp cultivation nationwide, triggering a gold rush mentality among American farmers. Vermont issued 1,047 hemp licenses in 2019 alone. The state's hemp acreage exploded from 539 acres in 2018 to over 9,000 acres by 2019.
But demand never kept pace. CBD extraction facilities became overwhelmed. Wholesale biomass prices plummeted from $40-60 per pound in early 2019 to under $5 per pound by year's end. Many farmers, including this Vermont operation, had already invested heavily in infrastructure and cultivation.
The farmer detailed taking on significant loans for hemp processing equipment and expanding cultivation areas. When the market bottomed out, those debts became insurmountable. Banks that had eagerly financed hemp operations in 2018 grew skittish about cannabis-related lending by 2020.
COVID and the Final Blow
The pandemic hit Vermont farms hard in 2020. Supply chain disruptions made equipment repairs difficult. Labor shortages complicated harvest. And the farmer's plan to transition into Vermont's adult-use market—which launched retail sales in October 2022—came too late.
Vermont's regulatory rollout moved slowly compared to other Northeast states. The state legislature passed adult-use legalization in 2018 but didn't authorize retail sales until 2020. Licensing delays pushed the first dispensary openings to late 2022, years after cultivators needed alternative revenue streams.
By then, the Vermont farm had already defaulted on loans. The family sold the property to cover debts in 2023.
Market Oversaturation Continues
The farmer's story reflects broader trends in cannabis agriculture. Vermont now has over 200 licensed cannabis cultivators competing for limited retail shelf space. The state's small population—just 647,000 people—can't support the supply.
Wholesale cannabis prices in Vermont have dropped below $1,000 per pound for outdoor flower, according to recent market data. That's a 60% decline from 2022 prices. Many cultivators operate at a loss or barely break even.
"The same thing that happened with hemp is happening with cannabis," the farmer wrote. "Too many growers, not enough buyers, and no path to profitability."
Other Northeast states face similar challenges. Maine has over 9,000 active cannabis licenses for a population of 1.3 million. Massachusetts cultivators report wholesale prices down 40% since 2021.
What Smaller Farms Face Now
Family farms lack the capital reserves of multi-state operators. They can't absorb years of losses while waiting for markets to stabilize. The Vermont farmer noted that corporate cannabis companies with deep pockets are buying distressed agricultural properties at below-market prices.
Vermont's Agency of Agriculture has acknowledged the cultivation oversupply problem but has no mechanism to limit licenses. The state's Cannabis Control Board continues accepting new cultivation applications.
For the fifth-generation Vermont farm, the outcome is final. The family has left agriculture entirely. The farmer now works outside the cannabis industry and described the experience as "watching everything your family built just disappear."
The property's new owners plan to use it for non-agricultural purposes.
This article is based on original reporting by hightimes.com.
