USDA Report Shows U.S. Hemp Industry Hit $739 Million in 2025, Up 64 Percent
Floral hemp accounts for most of the value, while grain production more than doubled year over year.
By CBDWorldNews Editorial Staff | April 26, 2026
The U.S. hemp industry posted its strongest year since the 2018 Farm Bill opened the market. Data released by the USDA’s National Agricultural Statistics Service pegs total hemp production value at $739 million for 2025, a 64 percent increase from the prior year. The numbers mark a sharp reversal from the contraction that hit the sector between 2020 and 2023.
Where the Growth Came From
Outdoor production drove the bulk of gains. Hemp grown in the open reached 33.2 million pounds, a 60 percent increase from 2024. Total outdoor hemp value came in at $574 million, representing nearly 90 percent of all open-field hemp value. Floral hemp, the category that supplies the CBD extraction market, remained the dominant segment.
Grain hemp posted the fastest growth rate among major categories. Production more than doubled to 7.26 million pounds, a 112 percent year-over-year jump. The value of grain hemp surged 209 percent to $8.09 million. While still a small slice of the total market, grain hemp’s acceleration reflects growing demand from food manufacturers and industrial buyers looking for domestically sourced hemp seed and hemp protein.
Fiber hemp also showed gains, though the segment remains niche. Most U.S. fiber hemp goes into building materials, textiles, and biocomposites. Several state-level incentive programs launched in 2025 to attract fiber processing facilities, which could boost this segment further in 2026.
Context Matters
The $739 million figure deserves context. Hemp’s production value peaked briefly in 2019 when speculative planting flooded the market with biomass that couldn’t find buyers. Prices crashed, farmers lost money, and licensed acreage dropped by more than 50 percent over the next two years.
“This isn’t 2019’s gold rush. The 2025 numbers reflect real demand pulling product through the supply chain, not speculative planting hoping to find a buyer.” — National Hemp Association statement
The rebound tracks with several factors. CBD product sales stabilized as consumers became more discerning and repeat buyers settled on trusted brands. Industrial applications in food and fiber created new demand channels. And the reduction in licensed growers between 2020 and 2023 brought supply closer to actual market need.
Regional Breakdown
The USDA data doesn’t provide a state-by-state breakdown in its summary release, but industry sources point to a few consistent leaders. Oregon, Colorado, and Kentucky remain top producers of floral hemp. Montana and North Dakota dominate grain hemp production, benefiting from existing agricultural infrastructure suited to grain crops.
New entrants are emerging. Several Southern states expanded hemp programs in 2025, with Tennessee and North Carolina seeing increased acreage. The warm climate and existing tobacco farming infrastructure in these states have made the transition practical for growers.
What the Numbers Mean for CBD
For the CBD sector specifically, the production data signals a healthier supply chain. The oversupply that depressed crude CBD prices in 2020-2022 has largely cleared. Prices for CBD distillate and isolate stabilized through 2025, and manufacturers report more consistent quality from domestic suppliers.
This matters for consumers choosing between CBD brands. Products built on stable domestic supply chains tend to offer better traceability and more reliable third-party testing. For help navigating today’s market, CBDProducts.com maintains updated reviews of brands with verified supply chain transparency.
The pet CBD segment also stands to benefit. The global CBD pet market is valued at roughly $577 million in 2026, with a compound annual growth rate of 32.5 percent projected through 2034. Domestic hemp supply growth supports the manufacturing base for pet-specific formulations. CBDPet.com tracks how these supply dynamics affect product availability and pricing for pet parents.
Industry Challenges Ahead
Strong production numbers don’t eliminate the sector’s problems. The federal ban on intoxicating hemp products set to take effect this fall still looms over companies that produce THC-containing beverages and edibles. Products with more than 0.4 milligrams of THC per container will become illegal under the current law unless Congress acts.
The $28 billion broader hemp-derived THC market — which includes drinks, gummies, and other products that pushed regulatory boundaries — faces the biggest threat. Traditional CBD companies focused on non-intoxicating products are better positioned, but regulatory uncertainty affects investor confidence across the entire sector.
Several bills are moving through Congress to address the timeline, including a bipartisan effort to delay the ban until November 2028. The outcome will shape whether the 2025 growth trajectory continues or stalls.
The Bigger Picture
Hemp’s $739 million production year tells a story of an industry that survived a brutal correction and came back leaner. The speculative excess is gone. The farmers still growing hemp are doing so because they have buyers. The companies still buying hemp biomass are doing so because they have customers.
That foundation, built on actual demand rather than hype, gives the sector a more credible path forward. Whether federal policy supports or undermines that path remains the open question heading into the second half of 2026.
These statements have not been evaluated by the Food and Drug Administration. CBD products are not intended to diagnose, treat, cure, or prevent any disease.
