2018 Farm Bill

Federal Survey Reveals Hemp's Market Value For 2021

Federal Survey Reveals Hemp's Market Value For 2021

The results for the first countrywide survey authorized by the White House and proposed by the U.S Department of Agriculture show that hemp has hit an impressive $842 million in market value for 2021. 

The 2021 Hemp Acreage and Production Survey questioned 20,501 hemp growers covering 54,200 acres cross country, making this the first and most widespread assessment for hemp yet. 

Since hemp was legalized in the 2018 Farm Bill, the U.S Department of Agriculture (USDA) has wanted to evaluate and quantify the scope of this newly legal market. 

“The release of this landmark report provides a needed benchmark about hemp production to assist producers, regulatory agencies, state governments, processors, and other key industry entities,” USDA’s National Agricultural Statistics Service (NASS) Administrator, Hubert Hamer, said in a press release

The survey entailed a range of questions starting with the producer’s characteristics, such as their gender, race, age, and the duration of their farming career. 

The federal survey collected data on hemp’s expected value, outdoor production, acreage projections, and average yieldsThe assessment also incorporated information on the primary and secondary utilizations of the crop.

The majority of value comes from the outdoor floral production of hemp covering almost 16,000 acres and producing the bulk revenue reported in the survey at $623 million. 

According to the report, other revenue sources include hemp grown for fiber and seeds, grains for human consumption, CBD extracts, and smokeable hemp. 

Seed and fiber productions of hemp together contributed to $82.9 million and a combined acreage of 16,200 and grain hemp production scaling 8,255 acres and nearing a value of $6.0 million. 

Due to recently reported survey results, it has become evident on many levels that there is a need to adjust the strict regulations on hemp’s unreasonable THC thresholds. 

Jonathan Miller, general counsel for the U.S. Hemp Roundtable, expresses to Marijuana Moment that the main reasons for the significant decline in hemp’s commodity pricing and production are clear. 

It is “the lack of regulatory framework for CBD products combined with the burdensome testing and THC requirements for growers and processors.” 

Thankfully, the reported survey results have exposed the faults within the system, further instigating the introduction of the Hemp Advancement Act of 2022 and a revised 2018 Farm Bill. 

These two forms of new legislation could boost the hemp industry by altering the implemented test requirements and presumably raising the legal THC limit in hemp by three times its formal threshold of .03. In turn, providing the options of a more versatile and productive crop yield for producers. 

If these regulation changes became law, producers and processors would be confident that the future of hemp is looking brighter than ever. 

Newly introduced legislative acts aim to adjust hemp-derived CBD market sales issues, placing hemp in a pivotal yet positive position. 

For example, the Market Stabilization Act of 2021 and the Hemp Access and Consumer Safety Act push the FDA to approve hemp-derived CBD as a food ingredient and dietary supplement. 

Hemp-based CBD products are commonly used for wellness issues, such as relaxation, focus, sleep, and skincare. 

The majority of the plant can be used to make various products, and the options of its beneficial uses are endless. For example, the new hemp-derived CBD products introduced into the market consist of edibles, creams, bath bombs, hand sanitizers, sleep tinctures, facial serums, and that is just the beginning. 

Different hemp-derived consumption methods like high hemp organic wraps offer a yummy smooth-burning smoking alternative to the old-school tobacco leaf. 

Recently, the USDA has partnered with Cornell to promote hemp education and introduce teachings concentrated on genetics, cultivation, economics, and food science. These contributing factors ensure that hemp has a bright and stable future built on solid knowledge and love for the plant. 

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