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Updated November 29, 2023
Farm Bill Primer: Selected Hemp Industry Issues
Hemp is a variety or cultivar of Cannabis sativa-the same
plant as marijuana-grown to produce nonpsychoactive
food, beverage, consumer, and industrial products. The
2018 farm bill (Agriculture Improvement Act of 2018; P.L.
115-334) legalized hemp by removing hemp (as defined,
see text box) from the definition of marijuana in the
Controlled Substances Act (CSA, 21 U.S.C. §§802 et seq.).
The 2018 farm bill further directed the U.S. Department of
Agriculture (USDA) to create a framework to regulate
hemp cultivation under federal law and facilitate
commercial cultivation, processing, marketing, and sale of
hemp and hemp-derived products. USDA published its final
hemp regulations in 2021. Other 2018 farm bill provisions
made hemp producers eligible for federal crop insurance
and agricultural research programs. Congress may consider
further amendments as it debates the next farm bill.
Overview of U.S. Hemp Cultivation
USDA reports that the farm-level value of total utilized
hemp production was $238.4 million in 2022, down from
$824 million in 2021 (Table 1). This total spans all
production types (i.e., grown in the open field or under
protection, such as in a greenhouse) and all market
segments (i.e., hemp flower, grain, seed, and fiber). Floral
hemp grown in the open was the dominant type of hemp
grown in 2022, as measured by total value and acreage. By
comparison, the value and acreage dedicated to hemp fiber,
grain, and seed production was lower. Floral hemp tends to
command higher market prices compared with other
marketable uses for hemp. (See CRS In Focus IF11860,
Production, Marketing, and Regulation of Hemp Products.)
In 2022, U.S. hemp growers planted 28,300 acres of hemp
and harvested about 18,300 acres, accounting for a small
share of total U.S. harvested cropland acres (<0.1%). The
difference between planted and harvested hemp acres may
reflect the difference between legal hemp that falls within
legal THC limits and noncompliant (or hot) hemp that
may not enter allowable U.S. marketing channels. USDA
estimates about 20% of hemp grown during the crop year
will exceed legal THC limits, demonstrating the inherent
risks to farmers of growing hemp within USDA's
regulatory framework. Harvested acres of hemp grown in
the open in 2022 included 6,850 acres for fiber, 5,379 acres
for grain, 812 acres for seed, and 7,105 acres of floral
hemp. (Reported acres across different market segments are
not additive given multi-crop production in some cases.)
Hemp is grown in all U.S. states under a USDA-approved
state plan or a USDA general license. The leading hemp
producing states, with more than 1,000 harvested acres
grown in the open (2022), were South Dakota (2,550),
Oregon (1,900), Montana (1,470 acres), Missouri (1,400),
and Kentucky (1,300). Production by state tends to be
highly variable year-to-year.
Terms and Definitions
Hemp-Defined as the plant Cannabis sativa L. and any part of
that plant, including the seeds thereof and all derivatives,
extracts, cannabinoids, isomers, acids, salts, and salts of
isomers, whether growing or not, with a delta-9
tetrahydrocannabinol [THC] concentration of not more than
0.3 percent on a dry weight basis (7 U.S.C. §I 639o).
Cannabinoids-No specific definition of cannabinoids exists in
the U.S. Code. Cannabinoids refer to the unique chemical
compounds produced in the Cannabis sativa plant, which are
known to exhibit a range of psychological and physiological
effects. There are more than 100 cannabinoids in the cannabis
plant. Tetrahydrocannabinol (THC) and cannabidiol (CBD) are
the two most well-researched and abundant cannabinoids.
See CRS Report R44742, Defining Hemp: A Fact Sheet.
Table 1. U.S. Hemp Production by Market, 2021-2022
Production Type and 2021 2022 Change
Market Segment ($million) (percentage)
Hemp Production in Outdoor Open Field
Floral hemp 623.2 179.0 -71%
Hemp grains 6.0 3.6 -40%
Hemp fiber 41.4 28.3 -32%
Hemp seed 41.5 1.5 -96%
Subtotal 712.2 212.4 -70%
Hemp Production Under Protection
Floral hemp 64.4 24.7 -62%
Hemp seed 23.7 0.6 -98%
Clones/Transplants 23.8 0.7 -97%
Subtotal 111.9 26.1 -77%
Total Farm-Level Value 824.1 238.4 -71%
Planted Acres (all uses) 54,152 28,314 -48%
Source: CRS from USDA's 2021 and 2022 National Hemp Report.
May not add due to rounding. Reported acres across different market
segments are not additive given multi-crop production in some cases.
Addressing Hemp in the Next Farm Bill
Hemp industry interests cover many national and regional
groups with different policy goals and priorities. These
priorities often are tied to the primary products they
produce and/or represent or may be based on the part of the
hemp plant used (e.g., whether hemp is grown for fiber for
industrial uses or for use in seed-derived food ingredients or
as a dietary supplement or wellness product). To date, the
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