Overall, Total Planted Hemp Acreage in U.S. Relatively Unchanged, But Details Matter
The U.S. Department of Agriculture Farm Service Agency (USDA FSA) released its January batch of Crop Acreage Data for the 2023 Crop Year, finalizing hemp planting data from this past growing season. Overall, 2023 saw a small increase in planted acreage even as the number of producers contracted.
CBD Acreage Declines, Operators Report Processors Buying Biomass from Central America
The cannabinoid hemp sector saw another significant contraction in production in 2023, following a roughly two-thirds decrease in planted acreage from 2021 to 2022.
Based on available data, the top three states for cannabinoid hemp production in 2023 are Kentucky, Oregon, and California. Kentucky and Oregon also led the way in cannabinoid hemp acreage in 2022, with Montana the third largest producer and Colorado the fourth.
A Kentucky hemp grower provided some observations on the cannabinoid hemp market in his area to Hemp Benchmarks this month. According to the individual, “Several processors I know have been trying to keep their plants running by purchasing biomass from Central America. One processor told me that if the early days of hemp in the U.S. [were] the Wild West, that dealing offshore in Central America is definitely the Wild Wild West.”
He added that biomass from American growers appears to be in very short supply. However, he noted that he is currently holding a significant amount of biomass “to see if the prices … increase once the imports work their way through the processor’s needs.” Additionally, “In my area of Kentucky interest in growing a 2024 hemp crop is virtually nonexistent.”
Fiber Production on the Rise, but Primarily in a Handful of States
Just like last year, fiber was the only type of hemp to see production gains in 2023. Average plot sizes expanded by about a quarter, resulting in fiber plantings exceeding the 10,000 acre threshold for the first time since hemp’s legalization in 2018.
The top states for fiber hemp production in 2023 were Montana, South Dakota, and Idaho, with the three states combining to account for nearly half of the country’s total fiber acreage (47%, specifically). In 2022, Montana was third in the nation in fiber hemp planted, after Texas and Missouri.
In South Dakota, contract prices for hemp fiber in the state were reported to be $300 per ton in 2023, up from $210 – $230 per ton in 2022.
Grain Production Stagnant, Concentrated in Northern Plains & Mountain West
Grain hemp saw the smallest year-on-year change in its planted acreage of any hemp type. 2022’s acreage represented a 40% decline from 2021.
Montana, South Dakota, and Idaho also made up the top states for grain hemp production in 2023, combining to account for 76% of the national total. In 2022, South Dakota and Montana were joined in the top three grain hemp states by North Dakota.
Contract prices for conventionally-grown hemp grain in South Dakota were $0.55 – $0.65 per pound in 2023, while those for organic hemp grain were $1.10 to $1.30 per pound. Just below, we note hemp grain prices set by the federal government for the purpose of administering certain insurance programs.
