Replacing Tobacco with Hemp in the Beqaa Is Financially Rewarding for Farmers and Government in Lebanon

Abstract

Lebanon has been grappling with severe financial and monetary crisis since 2019. In this context, minimizing losses and finding additional revenue sources to sustain state operations have become imperative. One potential solution is to replace subsidized tobacco farming, which has no economic value, with hemp farming for industrial and medicinal purposes. This shift not only ensures economic efficiency but also provides farmers with a moral and profitable crop. However, until now, there has been no scientific study examining the economic impact of hemp cultivation in Lebanon’s Beqaa area. To address this gap, we conducted a Cost-Benefit Analysis within a Business Plan framework to assess the benefits of replacing tobacco with hemp and to provide decision-makers with data-driven strategies. For this analysis, we obtained accurate data on tobacco farming from the state-owned Tobacco Monopoly (Regie), while data on hemp was sourced from existing literature and adapted to Lebanon. Our findings indicate that tobacco farming currently generates USD 828 per dunam for farmers but results in a net loss of USD 317 per dunam to the economy, a shortfall subsidized by the Regie. In contrast, hemp yields a net profit of USD 2405 per dunam, equating to an overall gain of USD 19,240,000 in the Bekaa Valley area. This stark contrast in profitability underscores the potential of hemp as a more lucrative and sustainable alternative to tobacco.