Hemp Production Shows Substantial U.S. Growth but One State May Ban Much of It
- Dave Price
- 19 hours ago
- 2 min read
South Dakota is the unofficial hemp capital of the United States, at least if you look at acres harvested. Although, Texas is making a strong push. The USDA tracked state production of hemp in a report released this month. The report showed that hemp production is growing in some states but declining in others.
The 2018 Farm Bill defined hemp:
“the term ‘hemp’ means the plant species Cannabis sativa L. and any part of the plant such as seeds, all derivatives, and extracts, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3% on a dry weight basis.”
U.S. Hemp Production Value Approaches Half a Billion Dollars
The USDA shows how much the value of industrial hemp production nationwide has increased from 2023-2024.
2023: $318.8 million
2024: $445.4 million
The increase represents a gain of 39.7% in just one year. Part of the appeal for producers is hemp’s diversity of uses.
“Its stalk can be used to produce biofuel, auto parts, paper, upholstery, and fiber for cloth and other textile items. The stem can also be processed into building materials, industrial products and different kinds of papers. Industrial hemp seeds can be used to produce feed or food or the sources of oil that can be converted into a lotion or cosmetic products.”
South Dakota’s harvested hemp crops grew by an impressive total of 27% year-to-year. That is the result of planting 22% more compared to 2023. South Dakota Public Radio reports how rapidly the industry has developed.
The legislature legalized hemp production in 2021, becoming the 47th state in the country to do so. Four years later, no state harvests more hemp than South Dakota.
Some of the top producing states experienced larger annual harvest increases than South Dakota, which might put the state’s status as tops in hemp harvest in jeopardy.
South Dakota 3,700 (+27.6%)
California 2,600 (+36.8%)
Kentucky 2,500 (+106.6%)
Texas 1,500 (+1,263.6%)
The more than 12-fold increase in harvested planted acres demonstrates how much hemp production has exploded in Texas. However, Texas lawmakers are discussing bans on many legal hemp products – which the legislature legalized six years ago – because they say residents are abusing them.
The Texas Senate already passed a bill that makes nearly all consumable hemp products that contain THC (tetrahydrocannabinol) illegal. THC is the ingredient in cannabis that causes users to experience a “high.” The Texas House is also looking at passing restrictions on hemp use.
Some lawmakers say the original push to legalize hemp in the state was an effort to support non-consumable products like rope, rather than popular consumable uses in gummies, vapes, and drinks.
Texas has about 450 licensed hemp producers as part of the Texas Industrial Hemp Program. Some hemp farmers make between $500 to 800 per acre. Producers could lose more than $19 million in revenue if the legislature passes the hemp restrictions, according to the state.
