Hemp production was highly profitable for the United States last year in comparison to 2023.
Throughout 2024, the value of American crops shot up by 40 per cent year-over-year to US$445 million, according to recently released data from the U.S. Department of Agriculture.
The substantial increase was primarily driven by an increasing amount of floral hemp cultivation, demand for hemp-derived THC beverages in states without adult-use markets and a higher quantity of outdoor-grown hemp during the calendar year.
Floral hemp is cultivated specifically for the cannabinoids in its flower like cannabidiol (CBD) while regular industrial hemp is used for making products like paper, foods, coffee filters and fabrics. Hemp-derived THC drinks are particularly popular in states like Florida, Georgia and Texas.
The rate of floral hemp cultivation in the U.S. increased by 159 per cent year-over-year in 2024.
Meanwhile, the size of the nation’s outdoor hemp crops grew by 64 per cent to 45,294 acres. The value of outdoor hemp production also shot up by 46 per cent from 2023 to US$417 million, data from the USDA assessment shows.
Additionally, the yearly dollar amount generated from outdoor-grown hemp cultivated for seeds specifically skyrocketed by 482 per cent year-over-year to US$16.9 million.
The USDA’s latest National Hemp Report is in—and it brings some exciting news for the industrial hemp industry. This new data shows strong momentum building where it really matters for American agriculture: fiber, grain, and seed production.https://t.co/Y4xCY7iHJA pic.twitter.com/hlbZTfh14s
— National Hemp Assoc. (@NatHempAssoc) April 29, 2025
Read more: Glass House & UC Berkeley partner to study AI automation in hemp cultivation
Indoor cultivation slows, except for seeds
The aggregate value of indoor grown hemp decreased by 13 per cent to US$28.7 million last year. Greenhouse-bred floral hemp production in particular dropped by 35 per cent in quantity while its value declined by 30 per cent to US$18 million.
However, indoor-cultivated seed hemp production shot up by 91 per cent to 2,364 pounds with a 64 per cent rise in value at US$10.3 million. Hemp seeds are clearly gaining popularity, regardless of whether they are grown in the field or in a glasshouse.
With regard to one of the other topics in discussion, cannabis analytics firm Brightfield Group says the market for hemp-derived THC drinks in the U.S. will expand with a 14 per cent compound annual growth rate, reaching a value of US$750 million by 2029. Sales skyrocketed in the country last year, ascending by 274 per cent from US$102 million in 2023 to US$382 million.
Market analysts have also predicted immense growth for the hemp-derived THC beverages industry worldwide. Britain’s firm Euromonitor International says it will balloon by 1,615 per cent to reach a valuation of US$4.1 billion by 2028.
Hemp plants are comprised of nine parts — cola, trichomes, roots, pistils, stems, sugar leaves, bracts, branches and roots.
Read more: Green Thumb & Agrify bring hemp-derived cannabinoids to renowned Chicago venue
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