Global Hemp Production – America Last

Have American Hemp farmers become too focused on CBD and not focused enough on the rest of the plant? Here’s a breakdown of where America stands on Hemp production globally.

🇨🇳 China: First Place.   Unquestionably the heavyweight champion. While exact figures are debated, China is estimated to account for roughly  50-70% of global hemp production. They dominate in fiber hemp for textiles and industrial applications. 

 🇪🇺 European Union (collectively): Second Place.  France, traditionally a hemp powerhouse, still leads the EU pack. Other notable producers include the Netherlands, Romania, and Lithuania. The EU focuses on diverse applications, including fiber for textiles, bioplastics, insulation, and automotive components.

 🇨🇦 Canada: Third Place. Emerging as a major player, particularly in hemp seed and CBD production. Their well-developed agricultural infrastructure and favorable regulatory environment contribute to rapid growth. 

🇺🇸 USA: Last Place. The US hemp industry is experiencing a resurgence after decades of prohibition. While it doesn’t crack the top three yet, its progress is noteworthy:

Legalization: The 2018 Farm Bill federally legalized hemp cultivation, sparking renewed interest and investment.

Production Growth:  Hemp acreage and production have been steadily increasing. However, the industry faces challenges like regulatory hurdles, banking access, and market competition. Some states, like Colorado, Montana, and Kentucky, are emerging as significant producers.

Hemps Potential Bright Future:

The global hemp market is projected to grow significantly in the coming years, driven by demand for Sustainable Alternatives. Hemp offers eco-friendly alternatives to cotton, plastic, and concrete. 

CBD Popularity:  The booming CBD market is fueling demand for hemp biomass.  Technological Advancements: Innovations in processing and product development are expanding hemp’s applications.

While China reigns supreme, the global hemp landscape is evolving rapidly. The US, with its renewed focus, has the potential to become a major player in this burgeoning industry. Is American Hemp Too Focused on Cannabinoids?

CBD-Centric: The American hemp industry heavily prioritizes CBD extraction. The 2018 Farm Bill explicitly legalized hemp-derived CBD, creating a gold rush-like atmosphere for production.  

Outside of cannabinoids like CBD, The U.S. and Canada hemp farmers are primarily focused on producing hemp seeds for food products, with less emphasis on fiber. The U.S. is growing in hempcrete and construction materials, but it still lags far behind Europe and China in industrial applications.

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 Major Products by Region (Non-CBD)

Region

Major Hemp Products

China

Textiles, paper, fiber for construction and bioplastics

United States

Hempcrete, textiles, seeds for food and feed

Canada

Hemp seeds for food (protein, oils), textiles

European Union

Fiber for textiles, bioplastics, insulation, automotive components

China is the global leader in hemp fiber production, while Canada and the U.S. are strong in producing hemp seeds for food products. The EU stands out in industrial applications, particularly in the automotive and construction sectors. Overall, China’s dominance in textiles and fiber production positions it at the forefront of the hemp industry, while the U.S. and Canada focus on expanding their food product markets, and the EU excels in sustainable industrial applications.

American Hemp: Shifting Focus from Green Rush to Green Future

The US hemp industry is at a crossroads. While cannabinoids have dominated headlines, a closer look at the global landscape reveals a compelling case for American farmers to diversify beyond CBD and embrace hemp’s full potential – particularly its power to combat climate change and create jobs.

Since the 2018 Farm Bill legalized hemp cultivation, American farmers, enticed by the “green rush” of CBD, have focused heavily on cannabinoid extraction.  But this singular focus might be shortsighted, considering:

Global Competition

Despite limited CBD production, China dominates the global hemp fiber and seed market, supplying roughly 70% of global demand.  American farmers are missing out on a significant chunk of this established market.

European nations, with generally more permissive THC limits, are exploring a broader range of cannabinoids, potentially outpacing the US in research and development of niche products.

Environmental Opportunity

 Carbon Sequestration: Hemp is a powerful carbon sink, absorbing significant amounts of CO2 from the atmosphere as it grows.  Cultivating hemp for fiber and building materials presents a crucial tool in the fight against global warming,  an opportunity largely overlooked in the race for CBD.Sustainable Alternatives: Hemp fibers offer eco-friendly alternatives to cotton (a water-intensive crop) and synthetic textiles derived from fossil fuels. Expanding into these sectors would align American agriculture with sustainable practices, reducing the environmental impact of various industries.

Job Creation

Revitalizing Manufacturing: Processing hemp fibers for textiles, construction materials, and bioplastics necessitates establishing domestic processing facilities, unlocking significant job creation in rural communities hit hard by declining manufacturing sectors.  

Beyond the Farm: A diversified hemp industry extends beyond cultivation, creating opportunities in manufacturing, research, product development, and marketing.  This ripple effect can revitalize local economies and foster innovation.

The Bottom Line:

American hemp farmers hold a winning hand, but it’s time to play all the cards. While CBD extraction offers lucrative possibilities, focusing solely on cannabinoids limits the industry’s  potential. Shifting focus towards hemp’s environmental and economic benefits, particularly in fiber and seed production,  presents a win-win scenario.  

By embracing hemp’s versatility, the US can become a leader in sustainable agriculture, combat climate change, create jobs, and build a resilient and prosperous future – a future far greener than any “green rush.” 

But non of this can be accomplished given the current legality of  hemp and marijuana, with a lack of access to banking and other massive restrictions Congress is putting America last.