19-04-2025
South Dakota leads US hemp industry, though report shows Texas rapidly gaining ground
South Dakota continued to expand its industrial hemp footprint in 2024 as Texas quickly gained ground, according to the U.S. Department of Agriculture's 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 report, which was released on Thursday, 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 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, according to the report. 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.
This article originally appeared on Sioux Falls Argus Leader: South Dakota leads US hemp industry, though Texas gaining ground
