The United States Department of Agriculture (USDA) National Agriculture Statistics Service (NASS) has released the results of its first Hemp Acreage and Production Survey.
The survey includes production data on hemp cultivation and value figures for the industry throughout the country. It also includes state-by-state production data based on weighted averages.
“The release of this landmark report provides a needed benchmark about hemp production to assist producers, regulatory agencies, state governments, processors, and other key industry entities,” said NASS Administrator Hubert Hamer in a news release. “Not only will these data guide USDA agencies in their support of domestic hemp production, the results can also help inform producers’ decisions about growing, harvesting, and selling hemp as well as the type of hemp they decide to produce. The survey results may also impact policy decisions about the hemp industry.”
The USDA sent out the survey on Oct. 18, 2021, to 20,501 hemp producers across the nation. Roughly 65% of individuals responded; however that number is not definitive, says Lance Honig, USDA-NASS Crops Branch Chief, adding that the USDA will release a "methodology and quality measures report" within the next couple days to reflect that number.
Honig says the 20,501 producers the survey was sent out to is not intended to represent the total number of producers in the U.S.
“The way we established that sample was a combination of people who we had some pretty good indication were maybe growing hemp,” he says. “But we also had to sample a large number of folks who we really didn’t know if they grew hemp to ensure that we had good coverage. … We are not producing any information on the number of producers yet. We will get that information from the 2020 Census of Agriculture.”
The survey collected data on the total production, acreage, yield, price, and value of hemp in the United States. "We feel like this establishes a necessary benchmark for hemp information and provides critically needed data for the entire hemp industry," Honig says.
“The information collected can help inform producers’ decisions about growing, harvesting, and selling hemp as well as the type of hemp they decide to produce,” Kevin Barnes, NASS acting administrator, said in an Oct. 13, 2021, press release. “The resulting data will also foster greater understanding of the hemp production landscape across regulatory agencies, producers, state and tribal governments, processors and other key industry entities.”
Here are key takeaways from the report:
2021 overall industrial hemp value in the U.S.: $824 million
Value of outdoor hemp in the U.S.: $712 million
Value of indoor/greenhouse hemp in the U.S.: $112 million
Total acres planted outdoor: 54,152 acres
Total area of hemp grown indoors/in a greenhouse: 15.6 million square feet
Total acres harvested: 33,480 acres
Hemp grown for fiber yielded the most total hemp produced at 33.2 million pounds.
Hemp grown for flower made up the most acreage, taking up 15,980 acres of production.
U.S. yield totals for hemp grown outdoors in 2021, in order of greatest to least based on product, were:
Fiber hemp—33.2 million pounds (with 27.6 million pounds utilized).
Floral hemp—19.7 million pounds (with 15.7 million pounds utilized).
Grain hemp—4.37 million pounds (with 3.96 million pounds utilized).
Hemp grown for seed—1.86 million pounds (with 1.68 million pounds utilized).
U.S. acreage dedicated to hemp production in 2021, in order of greatest to least based on product, was:
Floral hemp—15,980 acres
Hemp grown for fiber—12,960 acres
Hemp grown for grain—8,255 acres
U.S. values of each hemp segment in 2021, in order from greatest to least, were:
Floral hemp—$623 million
Hemp grown for seed—$41.5 million
Fiber hemp—$41.4 million
Grain hemp—$5.99 million
Some of the individual survey results within the report are withheld but are included in the total number, and Honig says that's due to the USDA's confidentially promises.
"We have some disclosure reports we follow to ensure the information we publish could not reveal any information about any individual," Honig says. "So in other words, if the data we collect either has too few people reporting, or if one individual reported a large enough version of that total [and] it could possibly tell something about that individual, that would be a violation of the confidentiality we promised them when we collected the information."
Industry Reactions
Jacob Zieminski, owner of Massachusetts-based Cavu Hemp, says the data collected through the survey will help the industry make more informed business decisions.
"This survey is a critical and fundamental step to the economic management of the hemp industry markets, state[-wide], regionally and nationally," he tells Hemp Grower. "Current state data and benchmarks lack standardization and accuracy, which in turn provides minimal value to cultivation, processing, manufacturing, retail, and R&D establishments. The hope is this data collection via survey is the foundation to providing accurate and timely data that can be used to support current and future business decisions."
Eric Steenstra, the president of Vote Hemp, says the survey results are "very encouraging" for how the industry has developed.
"The fact that they’ve documented the output on the cultivation side of the industry at $824 million is pretty impressive, and it shows also that the industry is starting to mature a bit with significant fiber, grain and flower [production]," Steenstra says. "It's the first time we're seeing that balanced like this."
Geoff Whaling, chairman of the National Hemp Association (NHA), adds that hemp reports may result in the USDA beginning to distribute taxpayer money toward hemp production.
"USDA is not going to invest taxpayer funds into standing up the hemp industry until they have the prerequisite research undertaken—research that may take another four years," he says.
Whaling notes that the value of the crop in comparison to the acreage grown shows "extraordinary potential."
"National Hemp Association is seeing the tide turning more to hemp fiber and grain. States like Montana have worked with advocates and companies like IND HEMP to build both the legislative and regulatory framework and funding support for this segment of the industry. Colorado is another fine example of a state aggressively working to advance this segment of the industry," Whaling says. "We hear from manufacturers all over the country seeking domestic sources of commercially viable hemp fiber and grain. Yet, without processing facilities—which will require years of significant investment—the journey toward scale will be a slow one. Fortunately, a handful of steadfast entrepreneurs are working to speed up the scale hemp needs to unlock its immense potential."
U.S. Hemp Roundtable General Counsel Jonathan Miller notes that the survey results illustrate the need for federal legislation to provide regulatory relief to U.S. hemp farmers.
"This survey and others like it are demonstrating a steep decline in hemp production and commodity prices nationwide,” he says. “The causes are clear: the lack of regulatory framework for CBD products combined with the burdensome testing and THC requirements for growers and processors. As floral hemp production for cannabinoid extraction continues to dominate the market, Congress needs to act by passing common-sense legislation to regulate CBD (HR 841, HR 6134 and S 1698) and other cannabinoids to provide regulatory relief for farmers (HR 6645). We encourage all hemp supporters to go to www.hempsupporter.com to use our federal advocacy portal to make your voices heard.”
This is a developing story and will be updated throughout the day.
