Federal Report: U.S. Hemp Industry Reaches $739 Million in 2025, Up 64% From 2024

A new federal report (PDF) shows the U.S. hemp industry posted a major rebound in 2025, with total production value climbing to $739 million, an increase of 64% from the previous year.

The data, released by the U.S. Department of Agriculture’s National Agricultural Statistics Service, highlights strong growth in both outdoor cultivation and controlled indoor production, with floral hemp continuing to drive the majority of industry value.

Outdoor hemp production accounted for the bulk of the market, reaching $646 million in total value, up 53% year-over-year. Farmers planted 49,267 acres nationwide, a 9% increase, while harvested acreage jumped 34% to 43,707 acres. This suggests not just modest expansion, but a notable increase in efficiency and follow-through from planting to harvest.

Floral hemp remained the dominant force in the industry by a wide margin. Production grown in the open reached 33.2 million pounds, a 60% increase from 2024, with total value hitting $574 million—nearly 90% of all outdoor hemp value. Harvested acreage for floral hemp rose 43% to 16,880 acres, while yield improved to 1,966 pounds per acre.

Despite continued volatility in hemp markets over the past several years, these numbers indicate a strong resurgence in demand for floral hemp, which is commonly used for cannabinoids like cannabidiol (CBD) and other derivatives.

Grain hemp experienced the fastest growth rate among major categories, more than doubling in production to 7.26 million pounds, up 112% year-over-year. The value of grain hemp surged 209% to $8.09 million, supported by a 55% increase in harvested acreage and significantly improved yields. While still a relatively small segment compared to floral hemp, the rapid expansion suggests growing interest in hemp for food and industrial uses.

Seed hemp also posted substantial gains, with production rising 190% to 2.03 million pounds and total value climbing to $49.7 million, up 193% from 2024. Increased acreage and higher yields both contributed to the surge, pointing to a strengthening market for hemp genetics and propagation.

Fiber hemp, however, moved in the opposite direction in terms of value. While production rose 11% to 67.3 million pounds and harvested acreage increased 14%, total value fell 13% to $13.5 million. The decline appears tied to lower pricing and slightly reduced yields, highlighting ongoing challenges in developing stable markets for hemp fiber products.

Beyond open-field cultivation, hemp grown under protection—such as in greenhouses and indoor facilities—saw some of the most dramatic gains. The total value of protected hemp production reached $93.3 million, a 225% increase from the prior year.

Floral hemp grown under protection led this surge, with production increasing 241% to 168,285 pounds and value jumping 354% to $81.6 million. This reflects the premium nature of controlled-environment cultivation, which typically produces higher-quality crops used for specialized cannabinoid products.

Additionally, the number of hemp clones and transplants produced under protection rose sharply to 1.08 million plants, up 203%, with total value increasing 339% to $1.96 million. This points to a growing infrastructure supporting future cultivation cycles and industry expansion.

Taken together, the report paints a picture of an industry that is regaining its footing after several turbulent years marked by oversupply, price compression, and regulatory uncertainty. The sharp increase in total value, combined with strong gains in floral, grain, and seed hemp, indicates renewed demand and improved market conditions.

At the same time, uneven performance across segments—particularly in fiber—underscores that the hemp industry remains in a transitional phase, with some sectors still working to establish consistent pricing and long-term viability.

Still, with overall value up 64% and multiple categories posting triple-digit growth, 2025 stands out as one of the strongest years for U.S. hemp production since federal legalization, signaling that the market may be entering a more stable and sustainable period moving forward.