The full worth of U.S. hemp manufacturing jumped 40% to $445 million in 2024, in accordance with the most recent Nationwide Hemp Report from the US Division of Agriculture (USDA). Whereas the spike might sign renewed momentum in a sector nonetheless recovering from the spectacular CBD crash that adopted the 2018 legalization growth, the story is way extra advanced—and much much less reassuring.

Almost all the progress got here from hemp flowers, cultivated primarily to provide unregulated intoxicating merchandise derived from them. Hemp fiber and grain, in the meantime, remained caught in low-value territory, with falling costs and stubbornly underdeveloped infrastructure, in accordance with the report, from USDA’s Nationwide Agricultural Statistics Service (NASS).

“We’re seeing a bifurcation of the market,” mentioned business analyst Joseph Carringer of Canna Markets Group. “On one facet, you’ve acquired the artificial THC growth, which is short-term and legally precarious. On the opposite, you could have fiber and grain, that are structurally sound in principle however not but economically viable in apply.”

The report, launched yesterday, paints an image of a hemp economic system rising extra reliant on controversial cannabinoid conversions than “true hemp” – grain and fiber – whilst states and lawmakers transfer to rein them in.

Hemp flower leads, once more

Hemp flowers remained the financial engine of the business in 2024. Farmers harvested 11,827 acres (up 60% from 7,383 acres in 2023), yielding 20.8 million kilos (up 159% from 8.0 million kilos). Regardless of a pointy improve in quantity, pricing held agency, leading to a complete market worth for flowers grown each open air and indoors of $415 million (up 43% from $302 million in 2023).

The typical yield per acre for flowers additionally rose to 1,757 kilos (up from 1,088 kilos in 2023), suggesting improved genetics, practices, or environmental situations.

Nonetheless, most of this worth got here from hemp flowers destined not for CBD wellness merchandise however for intoxicating derivatives like delta-8 THC. These artificial substances are produced by means of lab conversion of CBD and proceed to skirt marijuana laws as a result of a spot in federal legislation—although that window is quickly narrowing as extra states and lawmakers push again.

Fiber fields up 56%

Farmers harvested 18,855 acres of fiber hemp in 2024 (up 56% from 12,106 acres in 2023), producing 60.4 million kilos of fabric (up 23% from 49.1 million kilos). However yields dropped sharply to three,205 kilos per acre (down 21% from 4,053 kilos in 2023), and common costs continued to fall.

Because of this, the money worth of fiber manufacturing fell 3% to $11.2 million, down from $11.6 million in 2023. The disconnect between rising quantity and falling worth displays continued weak point in processing capability, provide chain maturity, and market pricing. At the same time as extra fiber is grown, there’s nonetheless no strong infrastructure to soak up it economically.

Grain: Small however regular

Hemp grown for grain rose modestly in 2024. Farmers harvested 4,863 acres (up 22% from 3,986 acres in 2023), yielding 3.41 million kilos of grain (up 10% from 3.11 million kilos). Nonetheless, yields fell to 702 kilos per acre (down from 779 in 2023), and pricing remained flat.

Nonetheless, complete worth elevated 13% to $2.62 million, up from $2.31 million the earlier yr. Whereas not a breakout, it was a step in the fitting route for a class the place the U.S. continues to lag behind Canadian imports.

Breakout progress for seed

The strongest share progress in 2024 got here from hemp cultivation seed. Growers harvested 2,160 acres (up 61% from 1,344 in 2023), producing 697,000 kilos of seed (down 7% from 751,000 kilos in 2023 as a result of decrease yields of 323 kilos per acre, down from 559).

But regardless of diminished yield, costs surged, and the whole worth of seed reached $16.9 million—an enormous 482% improve from simply $2.91 million in 2023. The class’s sturdy efficiency displays rising demand for specialised genetics and improved varietals because the market matures.