US hemp production grows 40% in 2024, reaching $445 million in value

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U.S. hemp production surged in 2024, according to a recent report released by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS).

The annual value of U.S. industrial hemp production grew to $445 million in 2024, representing a 40% increase from the previous year.

The growth was driven by a substantial increase in acreage planted, particularly for floral hemp, which saw a 159% jump in production compared to 2023.

The rebound – which is examined in the upcoming MJBiz Factbook second-quarter update – signals a dynamic shift following recent years of volatility for the nascent industry.

The U.S. hemp sector continues to realign after initial turbulence following legalization in 2018, marked first by a rush of new entrants, overproduction and falling prices.

But hemp demand has been increasing.

A boom in hemp-derived THC drinks has expanded nationwide in states such as Texas, which are without regulated access to traditional marijuana products.

And that’s leading major players in the marijuana industry to enter the THC-infused beverage market.

Outdoor production sparks gains

The sizable increase in floral hemp production outdoors – the NASS report calls it “open field” growing – suggests renewed confidence in cannabidiol (CBD) and other high-value extracts, including hemp-derived THC, which often operates outside the laws of regulated marijuana markets.

Hemp planted outdoors for all purposes reached 45,294 acres in the United States in 2024, up 64% from the previous year.

The value of outdoor hemp production rose 46% year-over-year to $417 million, representing the sector’s clearest growth.

Image of the MJBiz Factbook cover and sample pages — More information about the MJBiz Factbook Q1 Update is available here.
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Harvested acreage for all outdoor purposes grew to 32,694 acres, up 55% over 2023.

Notably, floral hemp produced outdoors experienced dramatic growth, with total production climbing to 20.8 million pounds, a 159% increase from 2023.

The corresponding harvested area reached 11,827 acres, up 60%.

Average yield also improved significantly, with floral hemp grown outdoors in 2024 averaging 1,757 pounds per acre, 669 pounds more than last year.

The total value for outdoor-grown floral hemp rose to $386 million, up 43%.

Grain hemp also experienced moderate expansion, with production rising by 10% to 3.41 million pounds and harvested area increasing 22%.

However, yields declined to 702 pounds per acre, down 77 pounds year-over-year.

Despite this, grain hemp’s value rose 13%, totaling $2.62 million.

Outdoor production for fiber hemp reached 60.4 million pounds, a 23% increase, though average yields dropped to 3,205 pounds per acre from 2023.

The value of fiber hemp underperformed relative to other sectors, falling 3% year-over-year to $11.2 million, despite large increases in harvested area.

Hempseed production under outdoor conditions was mixed; although harvested area was up 61% to 2,160 acres, total output fell by 7% to 697,000 pounds as average yields declined.

The value of outdoor hempseed spiked dramatically, reaching $16.9 million, an increase of 482% over last year, reflecting market price volatility and possibly a shift in demand for certain seed types.

Indoor production lags

Meanwhile, hemp grown under protection – in structures such as greenhouses, hoop houses or other enclosed agricultural facilities – posted mixed results.

The area used under protection grew by 9%, to 3.52 million square feet.

But the total value for hemp grown under protection fell 13%, to $28.7 million, indicating continued margin pressure stemming from higher input costs, persistent oversupply in some segments and shifting demand patterns.

Clones and transplants saw sharp contractions, with total production dropping 62% to 356,000 plants and value almost halving to $446,000.

Floral hemp under protection also fell, with production down 35% and value dropping 30% to $18 million.

On the other hand, seed hemp grown under protection increased to 2,364 pounds (up 91%) with the value for this segment climbing 64% to $10.3 million.

(Note: AI assisted in summarizing the key points for this story.)

Andrew Long can be reached at andrew.long@mjbizdaily.com.