Industrial Hemp

Revised April 2022

Farm Bill Information Here!


Industrial hemp is from the plant species Cannabis sativa and has been used worldwide to produce a variety of industrial and consumer products. Hemp is a source of fiber and oilseed grown in more than 30 nations. In the United States production is controlled under drug enforcement laws. To produce industrial hemp in the United States the grower must obtain a permit from the Drug Enforcement Agency (DEA).

Hemp and Marijuana

The confusion between industrial hemp and marijuana is based on the visual similarities of widely differentiated varieties of plants. By definition, industrial hemp is high in fiber and low in active tetrahydrocannabinol (THC), the psychoactive ingredient in marijuana that makes some cannabis varieties a valued drug. Canada and the European Union maintain this distinction by strictly regulating the THC levels of industrial hemp, requiring it to be less than 0.3 percent, compared to THC levels of between 3 to 30 percent in marijuana.

Most pro-hemp initiatives in the United States are now focused on defining and distinguishing between industrial hemp and marijuana. Some pro-hemp supporters would like to move the control of U.S. hemp production from the DEA to the USDA. Proponents of legalizing hemp also argue that new technology to distinguish THC levels both in the field and from the air will allow for adequate production enforcement.


Industrial hemp is marketed a fiber, as a seed, or as a dual-purpose crop. Although detailed market information for hemp is not readily available, estimates from Vote Hemp show that the total retail value of hemp products in the U.S. in 2020 was $4.6 billion. This includes food and body products, clothing, auto parts, building materials, and other products.


Cultivated industrial hemp plants usually consist of a spindly main stalk covered with leaves. Considered a low-maintenance crop, hemp plants typically reach between 6 to 15 feet in height. Depending on the purpose, variety and climatic conditions, the period between planting and harvesting ranges from 70 to 140 days. One acre of hemp can yield an average of 700 pounds of grain, which in turn can be pressed into about 22 gallons of oil and 530 pounds of meal. The same acre will also produce an average of 5,300 pounds of straw, which can be transformed into approximately 1,300 pounds of fiber.

Industrial hemp may be an excellent rotation crop for traditional crops, because it suppresses weeds and decreases outbreaks of insect and disease problems. Hemp may also rebuild and condition soils by replacing organic matter and providing aeration through its extensive root system.


Hemp as an Agricultural Commodity, Congressional Research Service, 2018.
Marketing Program for the Commercial Production of Hemp, USDA AMS
Hemp Industries Association - Association working to change regulations and policies prohibiting the use of hemp for commercial purposes.
Industrial Hemp in North America: Production, Politics and Potential, Cherney, J.H. and Small, E., Agronomy 2016, 6, 58.

Industrial Hemp Production, University of Kentucky Extension., Cheryl Kaiser, Christy Cassady and Matt Ernst. 2015.

Industrial Hemp Production, Pennsylvania State University Extension. Includes Sample Production Budget.

 Agronomic Hemp, D.W. Williams, UK Department of Plant and Soil Sciences and Rich Mundell, Kentucky Tobacco Research and Development Center.

National Hemp Association, Industrial Hemp Information. A non-profit corporation created to encourage trade and discourse among hemp professionals.
Vote Hemp, 2017. Vote Hemp is a national non-profit advocacy organization dedicated to a free market for industrial hemp.

U.S. Hemp Crop Report for 2016, Vote Hemp 2017

Vote Hemp, 2017. Production, Research and Legislation update.

Canadian Hemp Trade Alliance (CHTA)
European Industrial Hemp Association (EIHA).

Industrial Hemp/Oil Enterprise Budget - North Dakota State University 

Economic Considerations for Growing Industrial Hemp: Implications for Kentucky’s Farmers and Agricultural Economy Department of Agricultural Economics, University of Kentucky July 2013

Industrial Hemp Economics - Colorado State University