South Dakota continued to expand its industrial hemp footprint in 2024 as Texas quickly gained ground, according to the USDA - National Hemp Report.
As defined in the 2018 farm bill, the term “hemp” is a cannabis plant with a no more than 0.3% concentration of the chemical that results in a high, known as THC.
According to the recent released report, South Dakota farmers planted 3,900 acres of hemp – a 22% increase from 2023. They harvested 3,700 acres, up 27.6%. Most of that growth came from hemp grown for fiber, a product for which South Dakota reigns as the nation’s top supplier.
Texas farmers planted 4,900 acres, a 1,860% increase from last year. Only 1,500 acres of that was harvested, though.
Former Democratic state lawmaker Oren Lesmeister, a rancher from Parade, championed the bills that created South Dakota’s hemp industry. He now serves on the South Dakota Industrial Hemp Association’s board of directors. He said the Texas numbers mean little if farmers do not have a place to process their hemp.
“We’re kicking a_ _ and taking names when it comes to production and processing,” Lesmeister said.
South Dakota leads the nation in hemp processing and the production of hemp fiber, according to the report.
There were 13.6 million pounds of hemp harvested for fiber in South Dakota last year. That’s a 14% decrease, even as the number of acres harvested, 3,550, increased by 22%. Every harvested pound was processed. About 23% of the 59 million pounds of hemp processed in the U.S. was processed in South Dakota.
The mismatch between pounds harvested and acres planted is the result of lower per-acre yields for farmers. The average yield in the state dropped sharply by 30% in 2024, to 3,840 pounds per acre. Despite that, the value of South Dakota’s fiber hemp climbed to $3.54 million, a 50% year-over-year increase, buoyed by a 73% rise in price per pound.
Governor Larry Rhoden trumpeted the news in a statement sent to South Dakota Searchlight. He said rules and regulations that the USDA has implemented in recent years have allowed for the hemp industry to thrive in South Dakota “while ensuring the health and public safety of our residents.”
“Ag is king in South Dakota, and we are encouraged that our fiber-focused hemp industry continues to lead the nation,” he said.
The value of U.S. industrial hemp production reached $445 million in 2024, representing a 40 percent increase from the previous year, according to National Hemp Report data.
EDITOR’S TAKE:
Industrial hemp flourished during WWII when it was used for numerous products to support our troops and the war effort. It began a resurgence in the late 1970’s and early 1980’s, but saw initial resistance due to drug laws and drug enforcement efforts. Finally, in the 2018 Farm Bill it was sanctioned for production with a few caveats. From that time forward the growth has been noticeable. As the latest USDA report suggests, it has grown in acreage and value. While still not considered a major crop like corn or soybeans, industrial hemp offers additional diversification for those willing to grow it. These farmers also use plenty of trucks. Don’t overlook the smaller acreage farmer when putting together that customer prospect list.
