WASHINGTON, D.C. (RFD NEWS) — U.S. hemp production expanded significantly in 2025, with total value rising to $739 million, signaling renewed growth in a sector that has faced volatility in recent years.
According to the USDA’s National Agricultural Statistics Service, overall hemp value increased 64 percent from 2024, driven largely by gains in floral hemp production. Open-field production accounted for $646 million of the total, with planted area rising 9 percent and harvested acreage up 34 percent year-over-year.
Floral hemp remained the dominant segment, totaling $574 million in value, up 49 percent, with production reaching 33.2 million pounds. Grain and seed hemp also posted strong gains, with grain value jumping 209 percent and seed value rising 193 percent, reflecting expanding demand in specialty markets.
Fiber hemp production increased modestly in volume but declined 13 percent in value, highlighting continued pricing pressure in industrial applications.
Production under protection also grew sharply, with value climbing 225 percent to $93.3 million, led by floral hemp and transplants.
The data show a sector regaining momentum, though it remains heavily concentrated in high-value floral markets.
The growth also comes as lawmakers in Washington consider a bipartisan effort to rework how certain hemp products are regulated ahead of a potential national ban.
The proposal would allow states to opt out of restrictions on intoxicating hemp products if they meet specific safety standards, including limits on synthetic compounds.
Supporters say the goal is to protect consumers while allowing the industry to continue growing, while critics argue stricter regulations are needed to address safety concerns.
On Tuesday’s Market Day Report, Tony St. James discussed why hemp is starting to regain momentum after several challenging years.
He pointed out that hemp has been grown in the United States for decades, but was phased out because of its association with marijuana. While the two are related, they’re not the same, and even after hemp was brought back in the 2018 Farm Bill, the industry has struggled to get everyone on the same page.
St. James says floral hemp continues to drive much of the industry’s value.
He notes fiber hemp production has increased, but value has declined, pointing to imports as a major factor. Much of that fiber is coming from countries like China, India, and Italy.
He also pointed to a sharp rise in production under protection, tied to the need to better control THC levels.
One of the biggest challenges, he says, is keeping THC levels from rising too high in the field, especially with unpredictable outdoor conditions.
Crops that exceed the legal THC limit have to be destroyed, which is why more producers are turning to protected growing environments where those variables can be better controlled.
