The National Hemp Report is a joint effort between the National Agricultural Statistic Service, Agricultural Marketing Service, and other USDA Partners. The report collected hemp information on: total planted and harvested area, yield, production, and value.

 

The USDA’s National Report on Hemp Production in the United States reported an overall decrease in 2022, but there are still reasons to be optimistic about the industry’s future. The hemp market is expected to continue to grow as manufacturing and consumer demand for hemp-based products increases. The introduction of Bill S.980, the Industrial Hemp Act of 2023, a National Hemp Association initiative, will provide a boost to the industry by removing barriers for farmers who want to grow hemp for fiber and grain. This will open the door to a global total addressable market valued at more than $15 Trillion. 

Despite the decrease in value, and an uncertain regulatory framework, the hemp industry is still generating significant revenue. The value of hemp production in the open was $212 million, and the value of hemp production under protection (ie greenhouse grows) was $26.1 million. In addition, the average yield for fiber hemp grown in the open increased by 450 pounds per acre, and the overall production of fiber hemp grown in the open totaled 21.0 million pounds. These increases suggest that there is still room for growth and improvement in the industry, particularly in the production of fiber hemp. The US had a total of 54,152 acres of industrial hemp under cultivation. The states with the largest areas under cultivation were Colorado, with 10,100 acres, and Montana with 7,900 acres.

The fact that horticultural hemp growers, those growing for cannabinoids, are using protection methods such as clones and transplants indicates that there is a growing interest in ensuring high quality products – something that both consumers and state regulators are demanding. This shows that there remains a willingness to invest in the industry and that there is potential for continued growth and innovation in the future.

Overall, the hemp industry is facing some challenges, due mostly to an exuberance in the space and over planting of cannabinoid outdoor (unprotected) grows. But there are also many reasons to be optimistic about hemp’s future, one that expands the fiber and grain sector. With continued growth and innovation, fair regulations and investment, the hemp industry has the potential to become a major economic force in the United States.

View the full report here.