The total value of U.S. hemp production jumped 40% to $445 million in 2024, according to the latest National Hemp Report from the United States Department of Agriculture (USDA). While the spike could signal renewed momentum in a sector still recovering from the spectacular CBD crash that followed the 2018 legalization boom, the story is far more complex—and far less reassuring.
Nearly all of the growth came from hemp flowers, cultivated primarily to produce unregulated intoxicating products derived from them. Hemp fiber and grain, meanwhile, remained stuck in low-value territory, with falling prices and stubbornly underdeveloped infrastructure, according to the report, from USDA’s National Agricultural Statistics Service (NASS).
“We’re seeing a bifurcation of the market,” said industry analyst Joseph Carringer of Canna Markets Group. “On one side, you’ve got the synthetic THC boom, which is short-term and legally precarious. On the other, you have fiber and grain, which are structurally sound in theory but not yet economically viable in practice.”
The report, released yesterday, paints a picture of a hemp economy growing more reliant on controversial cannabinoid conversions than “true hemp” – grain and fiber – even as states and lawmakers move to rein them in.
Hemp flower leads, again
Hemp flowers remained the economic engine of the industry in 2024. Farmers harvested 11,827 acres (up 60% from 7,383 acres in 2023), yielding 20.8 million pounds (up 159% from 8.0 million pounds). Despite a sharp increase in volume, pricing held firm, resulting in a total market value for flowers grown both outdoors and indoors of $415 million (up 43% from $302 million in 2023).
The average yield per acre for flowers also rose to 1,757 pounds (up from 1,088 pounds in 2023), suggesting improved genetics, practices, or environmental conditions.
Still, most of this value came from hemp flowers destined not for CBD wellness products but for intoxicating derivatives like delta-8 THC. These synthetic substances are produced through lab conversion of CBD and continue to skirt marijuana regulations due to a gap in federal law—though that window is rapidly narrowing as more states and lawmakers push back.
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 pounds of material (up 23% from 49.1 million pounds). But yields dropped sharply to 3,205 pounds per acre (down 21% from 4,053 pounds in 2023), and average prices continued to fall.
As a result, the cash value of fiber production fell 3% to $11.2 million, down from $11.6 million in 2023. The disconnect between rising volume and falling value reflects continued weakness in processing capacity, supply chain maturity, and market pricing. Even as more fiber is grown, there’s still no robust infrastructure to absorb it economically.
Grain: Small but steady
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 pounds of grain (up 10% from 3.11 million pounds). However, yields fell to 702 pounds per acre (down from 779 in 2023), and pricing remained flat.
Still, total value increased 13% to $2.62 million, up from $2.31 million the previous year. While not a breakout, it was a step in the right direction for a category where the U.S. continues to lag behind Canadian imports.
Breakout growth for seed
The strongest percentage growth in 2024 came from hemp cultivation seed. Growers harvested 2,160 acres (up 61% from 1,344 in 2023), producing 697,000 pounds of seed (down 7% from 751,000 pounds in 2023 due to lower yields of 323 pounds per acre, down from 559).
Yet despite reduced yield, prices surged, and the total value of seed reached $16.9 million—a massive 482% increase from just $2.91 million in 2023. The category’s strong performance reflects growing demand for specialized genetics and improved varietals as the market matures.
