Hemp Poised to Become Fourth-Largest U.S. Crop

PORTLAND, OR – The hemp industry is poised to become the fourth major crop and a foundation for agriculture in the United States. That’s according to research from Whitney Economics titled “The Field of Dreams: An Economic Survey of the United States Hemp Cultivation Industry.” The survey concluded that, in its first year, even if only a small fraction of the biomass produced by the U.S. during the 2019 season makes it to market, hemp has the potential to become the third-largest agricultural crop in the United States by revenue, second only to corn and soy. Based on data from the USDA, the total revenue from cash crops in the U.S. last year was $197 billion. If hemp supply chain issues are resolved and the full value of the acreage is realized, the total value of the hemp biomass is an estimated $11.3 billion or roughly 6 percent of the total value of all cash crops. Other key findings include problems with the existing supply chain. Currently, 65 percent of growers do not have a buyer. There is one processor for every four growers averaging 138 acres per processor. The average hemp farm in the US is 27.26 acres, with 75 percent under 20 acres in size. Licensed acreage has increased over 450 percent year over year generating nearly 150,000 jobs.