RDE Inc. (RSTN)

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Hempseed production in Canada may reach record levels in 2017, according to an industry report that projects up to 150,000 acres planted in Western Canada this year.

There is some concern from farmers that this could create an excess of hempseed, causing prices to crash. Health Canada figures show just over 33,000 acres in production in 2016, after excess supply from previous years drove demand down. Over 100,000 acres were in production in Canada in 2014, and about about 85,000 in 2015. 1,195 licenses were issued in 2016 to conduct regulated activities with hemp in Canada.

Acreage has been increasing this year after 2016 saw an explosion in exports of hempseed from Canada to North Korea after demand there surged as consumers began replacing fish oil with hempseed. Sales surged from from $600,000 of exports to $45 million this year, according to Russ Crawford of the Canadian Hemp Trade Alliance. However, competition from China and the US is now driving prices down, and there is concern that many Canadian farmers will be unable to move excess hempseed.