After a hiatus of almost 45 years, the 2014 Farm Bill reintroduced industrial hemp production in the United States through State pilot programs. This study documents outcomes and lessons learned from the State pilot programs and examines legal, agronomic, and economic challenges that may impact the transition from the pilot programs to economically viable commercial production.
What Did the Study Find?
Under the pilot programs, United States industrial hemp acreage reported by States increased
from zero in 2013 to over 90,000 acres in 2018, the largest U.S. hemp acreage since the 146,200 acres planted in 1943.
The State pilot programs restarted production of a crop that had not been grown in the United States for decades. Some challenges became apparent:
• establishing State legislation that allowed hemp to be grown or cultivated;
• acquiring critical production inputs (e.g., seeds, insecticides, herbicides) and credit;
• inconsistency between State requirements; and
• lack of basic data and information for decision-making.
The 2018 Farm Bill addressed many of the challenges identified in the pilot programs or authorized subsequent regulations to address them.
The pattern of establishment and expansion of industrial hemp was influenced by existing infrastructure, public sector support, relative profitability of alternative enterprises, and ultimately market development and economic returns. After the pilot programs, acreage continued to expand with 146,065 acres of hemp reported as planted to the U.S. Department of Agriculture’s
(USDA) Farm Service Agency in 2019.
To read full study, click on: https://www.ers.usda.gov/webdocs/publications/95930/eib-217_summary.pdf?v=7791.4