The value of the hemp industry fell more than 70% in 2022
According to data in a new report from the USDA, in 2022, the United States saw a sharp decline in the value of industrial hemp production, with the total value for both open and protected cultivation falling to $238 million, down 71% from the previous year.
Industrial hemp grown in the open accounted for $212 million of the total value, down 70% from 2021.
The planted area for all utilizations of industrial hemp in the open was 28,314 acres, down 48% from 2021, with the area harvested for all purposes totaling 18,251 acres, down 45% from the previous year.
Production of floral hemp grown in the open was estimated at 6.78 million pounds, a decline of 66% from 2021, with the area harvested for floral hemp down to 7,105 acres, 56% less than the previous season. The average yield for 2022 floral hemp in the open was estimated at 954 pounds per acre, a loss of 281 pounds per acre from last year.
Floral hemp grown in the open totaled $179 million, a decline of 71% from 2021.
National production of hemp grown in the open for grain was 2.43 million pounds, down 44% from 2021, with the area harvested for this purpose estimated at 5,379 acres, down 35% from last season. The average yield for 2022 hemp grown in the open for grain was estimated at 452 pounds per acre, down 78 pounds from the previous year. The value of hemp grown in the open for grain totaled $3.63 million, down 39% from 2021.
In 2022, production of hemp grown in the open for fiber was estimated at 21.0 million pounds, down 37% from 2021, with the area harvested for this purpose estimated at 6,850 acres, down 46% from last season. The average yield for 2022 hemp grown in the open for fiber was estimated at 3,070 pounds per acre, up 450 pounds from last year. The value of hemp grown in the open for fiber totaled $28.3 million, down 32% from 2021.
Production of hemp grown in the open for seed was estimated at 146,000 pounds, down 92% from 2021, with the area harvested for this purpose estimated at 812 acres, down 77% from last season. The average yield for 2022 hemp grown in the open for seed was estimated at 180 pounds per acre, down 350 pounds from last year. The value of hemp grown in the open for seed totaled $1.48 million, down 96% from 2021.
Hemp growers used 4.58 million square feet under protection for production, down 71% from 2021, with the 2022 value of hemp production under protection totaling $26.1 million, down 77% from last year. Hemp clones and transplants grown under protection in the United States for 2022 totaled 1.26 million plants, down 94% from 2021, with a value of $738,000, down 97% from the previous year.
With all categories of industrial hemp production experiencing significant decreases from the prior year, solutions for how to solve hemp’s dilemma are limited.
With increased scrutiny of Delta 8, Delta 10, and other Delta THC products, the declaration by DEA that THC O is a banned substance, and the lack of movement by FDA to create effective guidance for CBD to be marketed and sold as a dietary supplement or in food, the most lucrative part of the hemp industry has begun to dry out.