The latest hemp report from the U.S. Department of Agriculture (USDA) reflects sizable declines in the industry. Last year the value of hemp production fell by 71 percent, according to USDA’s National Agricultural Statistics Service (NASS). The National Hemp Report from NASS shows the collective value of all U.S. hemp production was $238 million in 2022. That total was $824 million the year prior. Data compiled in the report comes from surveys sent to thousands of hemp farmers across the country.
Planted hemp acreage declined by nearly 48 percent, down to 28,314 acres. Harvested acreage fell by a similar amount, down to 18,251 acres. The majority of planted acreage came from Montana, South Dakota, Oregon, Missouri, and Colorado. Overall prices for floral hemp grown in the open fell by 26 percent. However, hemp for grain prices increased by two percent nationally. Hemp for fiber prices fell eight percent. The largest price decline was seen in hemp for seed, falling by nearly 55 percent.
OBSTACLES FACING HEMP PRODUCTION
Industry groups say that the substantial declines seen in the hemp report are a reflection of U.S. Food and Drug Administration (FDA) policies. “Today’s USDA report makes clear what has been evident in the industry for years: The economic opportunity for U.S. farmers continues to decline, with the chief culprit being FDA’s inaction on regulating hemp extracts such as CBD,” U.S. Hemp Roundtable General Counsel, Jonathan Miller said in a news release.
FDA noted that a regulatory pathway for non-intoxicating cannabidiols known as CBD is still needed. Additionally, the department indicated legislative action would be required in order to develop CBD regulations. Chair of the House Oversight and Accountability Committee, Representative James Comer recently announced plans to investigate FDA’s “insufficient rationale for inaction.” A letter was sent to FDA Commissioner Robert Califf outlining the Committee’s need for supporting documentation for FDA’s decision not to move forward with regulating CBD.
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