Flax vs. hemp (continued)
Flax, much like hemp, has a myriad of commercial uses, many of which overlap with industrial hemp as a fibre and food crop (i.e., seed). It turns out that flax has had marginal success in the United States. Flaxseed prices peaked in 2004-2005 at nearly 700 Canadian Dollars per ton, but are projected to drop to 325 Canadian Dollars per ton in 2006.
For anyone seriously considering flax (or hemp) as a rotational crop, the Canadian government has published a useful guide called Flaxseed: Situation and Outlook. The guide states: "The US is forecast to produce 0.43 Mt of flaxseed for 2005-2006, a sharp rise from the 0.27 Mt per year produced for the previous 3 years. The increase is due to a rise in seeded area resulting from the unusually high flaxseed prices of 2004-2005." U.S. farmers, not wanting to miss the pricing peak, are ramping up production for a record U.S. 2006 harvest. Free market economics dictate that, barring any drought, frost or other externalities, the markets will shoulder a much lower price in light of greater supply.
Ok, but what yield rates does one need to sustain to make money from flax? Canadian farmers need about 32 bushels per acre yield rates if they are to cover their costs. However, in 2000 Canadian farmers only managed to harvest approximately 20 bushels per acre.
That said, it's somewhat puzziling why Canadian farming acreage dedicated to flax has been on the rise. The short answer seems to be that farmers are willing to gamble that prices will rise again, and therefore include flax as a rotational crop.
Where processing facilities exist, especially processing facilities that target niche commercial segments (e.g. organic flaxseed oil), things seem to be going well. This is perhaps the biggest takeaway for soon-to-be industrial hemp farmers in the U.S.: entrepreneurs must link with co-operatives and local governments to ensure success. I'll have some examples shortly on HemperFi.
Comments
Semper Flax!
Let's not forget that flaxseed just got a great bump in publicity -- according to Barry Bonds' grand jury testimony on steroids use, his trainer gave him something he thought was flaxseed oil.
If flaxseed oil got the prices of the illegal steroid THG ("the clear) more often, we'd have a booming flax economy.
But seriously, isn't part of the problem with building industrial hemp and flax farming cooperatives the general trend toward consolidation in U.S. farming? Big Agriculture is looking for the highest profit margin on their crops, and flax doesn't make the grade. What can we do to convince the big guys -- not just the small farmers who already understand its utility -- that flax can be a profitable crop for them? Marketing toward environmentally conscious consumers in California and elsewhere has to happen first to create the kind of demand that will force Big Ag to take a second look.
Posted by: Josh Green | April 9, 2006 01:50 AM
Thanks for posting!
Whether well intentioned or not, I believe that big ag threatens inchoate product/markets like industrial hemp or flax. Take a look at what big ag did to Manitoba farmers when industrial hemp was just taking off.
I believe that a slow, managed ramp-up of markets and consumer awareness over the next 3-5 years would be vastly preferable when compared to the highly cyclical effects fo big ag gettin' in on the party.
Posted by: Manuel | April 9, 2006 10:15 AM
Caution: Flax seed oil is go for only benefical for short periods of time, over several months it can become very toxic. However, Hemp nutritional value is one of the most perfect food resources, because it is the best-known essential fatty acid and is high in protein.
It is also the highest scored for the ecology. Please refer to the baook called: Fats that Heal Fats that Kill, Udo Erasmus, Ph.D., (Alive, Vancouver, 1994)
Posted by: karan | June 18, 2006 01:25 AM
Caution: Flax seed oil is go for only benefical for short periods of time, over several months it can become very toxic. However, Hemp nutritional value is one of the most perfect food resources, because it is the best-known essential fatty acid and is high in protein.
It is also the highest scored for the ecology. Please refer to the baook called: Fats that Heal Fats that Kill, Udo Erasmus, Ph.D., (Alive, Vancouver, 1994)
Posted by: karan | June 18, 2006 01:25 AM
Caution: Flax seed oil is go for only benefical for short periods of time, over several months it can become very toxic. However, Hemp nutritional value is one of the most perfect food resources, because it is the best-known essential fatty acid and is high in protein.
It is also the highest scored for the ecology. Please refer to the baook called: Fats that Heal Fats that Kill, Udo Erasmus, Ph.D., (Alive, Vancouver, 1994)
Posted by: karan | June 18, 2006 01:25 AM