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ERS Report Explores Economic Viability of Industrial Hemp

USDA Economic Research Service (ERS) has published Economic Viability of Industrial Hemp in the United States: A Review of State Pilot Programs. This study documents outcomes and lessons learned from state industrial hemp pilot programs and examines legal, agronomic, and economic challenges that may affect the transition from the pilot programs to economically viable commercial production. Industrial hemp acreage in the United States was 90,000 acres in 2018. Challenges identified included difficulty acquiring production inputs and inconsistency between state requirements. The report notes that in the longer term, economic viability of hemp will be affected by competition from other crops, the regulatory environment, and global competition.