Federal Hemp Definition Shift Threatens Crop's Consumer Market
Hemp acreage across the Ninth Federal Reserve District plummeted by about 85 percent from its 2019 peak by 2025, according to a report from the Federal Reserve Bank of Minneapolis. The decline occurred before the federal definition change that threatened the crop's consumer market.
Despite this collapse, national hemp acreage rebounded by 34 percent in 2025, and production value increased by 64 percent. However, growers still harvested more than 43,000 acres, exceeding an industry estimate of 30,000 acres needed to satisfy total U.S. demand.
The market faces additional uncertainty due to a federal hemp definition change scheduled to take effect on November 12. This change could restrict intoxicating products made from hemp-derived THC, including gummies, beverages, and other retail goods.