Farmers in the Midwest and Great Plains are planting much less hemp than they were two years ago, according to the most recent report from the U.S. Department of Agriculture.
But to David Lakeman — who leads the hemp and cannabis program at the Illinois Department of Agriculture —the smaller numbers may be a good thing.
He said there was a large surge of interest after the 2018 Farm Bill allowed farmers to grow cannabis plants with low levels of THC, the psychoactive agent found in marijuana.
“That excitement was real, but perhaps it outran infrastructure,” Lakeman said. “We have to build a whole industry of transportation, processing and markets. Now I think we’re starting to see a stabilization and what I hope is the beginning of a recovery for this industry.”
Sarah Stephens, who raises and processes hemp in Kansas, predicts the stabilization will lead to a tipping point for hemp growers. She’s seen improvements in seed breeding and growing techniques like row spacing, planting depth and machinery usage.
“We’ve gone through the trial and error and now we’re slowly headed in the right direction,” she said. “We’re headed toward an upward tipping point that will take us to a million acres of hemp in the not too distant future.”
Stephens grows industrial hemp through her company Tallgrass Hemp & Cannabis. Industrial hemp is used for grain and fiber production and processed into things like high protein food, animal bedding and building materials.
Unlike in other Midwestern states like Illinois and Iowa, Kansas saw a rise in harvested hemp since the USDA started keeping track in 2021. Stephens said Kansas hemp farmers can be confident someone will buy their crop with three processors in the state.
She said industrial hemp is a better fit for farmers in the Midwest and Great Plains than floral hemp, which is typically raised in greenhouses for its essential oils like CBD.
“If you’re a farmer that’s normally planting corn or soybeans, CBD is probably not right for you,” Stephens said. “The whole production is very different from row crop farming. But with industrial hemp, you plant it with a planter and harvest it with a combine.”
Stephens’ insights play out in the USDA data, which shows farmers in the region are moving away from their initial focus on raising floral hemp for CBD production.
“It’s been followed by a shift toward more industrial hemp for manufactured goods,” Lakeman said. “That’s less likely to generate profits at the percentage those CBD products did initially, but is more likely to see steady, relatively level returns on investment.”
In Iowa, farmers harvested just 51 acres of hemp in 2023, according to the most recent data. That’s down from 120 in 2021.
Scott Booher wasn’t surprised to see the decrease. He and his wife Megan grow just under an acre of hemp to make medicinal products for their company Four Winds Farm in Amana, Iowa.
“We knew three other people who started growing hemp just because we were,” Booher said. “A lot of the hemp farmers around here thought there was going to be somebody who was just going to buy all the hemp.”
