Hemp Crop Outlook 2024

The PA and national hemp industries continue to evolve as hemp enthusiasts, investors, processors, and growers continue to find the best fit for the hundreds of hemp-derived products available today. Whether it is fiber for use in hempcrete, grain for poultry hens laying high omega-3 eggs, or hemp oil tinctures to relieve your stress; hemp is working its way into an impressive number of commercially available products and moving forward on many fronts. Pennsylvania is one of the states supporting and encouraging the development, growth, and use of this ancient plant.

As a matter of fact, led by Penn State, an interdisciplinary team of university, industry, and agricultural interests was recently awarded a $1 million National Science Foundation (NSF) Engines Development Award. The award will fund the development of the Pennsylvania Industrial Hemp Engine (PAIHE), which will support the manufacture and deployment of hemp bio-based products for application in green building construction, packaging, fabrics, renewable energy, and land remediation.

Pennsylvania was one of the first states to officially legalize and regulate the low THC varieties of this plant.  As with any new crop, the past few years have seen ups and downs in the industry. The initial promise of high value CBD products saw a flood of growers, many of whom never found a market for their crop.  Since then, interest has diversified and expanded into new areas to take advantage of the superior qualities of hemp fiber and the excellent nutritional profile of hemp meals and oils, etc.

Data provided by the PA Department of Agriculture shows that in 2023 in Pennsylvania there were

• 298 acres planted
• 170 acres harvested
• 215 licensed growers
• 52 licensed processors

This represents an increased percentage of acres planted for fiber in 2023, up to 21.5% of the share of hemp acres compared to 12% in 2022. With increased fiber processing capacity in 2024, there may be more interest in fiber acreage for 2024.  Many processors have just finished processing the overstock of hemp bales that were surplus following the 2019 season.

The 2024 hemp growers application period opened for renewals and new permits in October 2023 and is now rolling, however, permits are granted for the calendar year and each permit still expires December 31, 2024. The 2025 permit application period will open on October 1, 2024.

For renewing growers of fiber or grain crops, they can now apply for performance-based sampling which allows them to forgo compliance sampling if they qualify and are growing certain varieties. With this update for 2024, the Department now has 3 categories of performance-based sampling available:

1. for growers of micro-greens, greens, and hemp transplants;
2. for researchers; and
3. for growers of fiber and grain varieties.

PDA Hemp Program Coordinator Sarah Pickel has shared some details to explain a little more about the new fiber and grain performance-based sampling.  Sarah tells us "this is an option available to renewing growers who meet the following requirements:

• They have had a minimum of two consecutive years of growing hemp in PA and all hemp lots grown in the most recent two years met the THC compliance requirements of PDA.
• They underwent THC compliance sampling and testing using a PDA inspector or certified sampling agent and a laboratory on the PDA Registry of Approved Laboratories for Compliance Testing.
• They are not currently under a Corrective Action Plan (a result of a negligent permit violation).
• Are growing a fiber, grain, or seed variety that has been previously grown in PA with a minimum of three lots and has a history of <10% non-compliance in the Commonwealth (List of Low-Risk Fiber, Grain and Seed Varieties provided by PDA Hemp Program), OR are growing a fiber, grain or seed variety that has been certified by Health Canada, AOSCA, OECD or other organization that approves hemp varieties for seed certification and is not included on the PDA list of Prohibited Varieties.

Those approved for the performance-based sampling do not have to conduct compliance sampling on the low-risk or certified fiber or grain variety/varieties for a single growing season. [Random audit sampling of approved lots (≈5%) will be conducted by the Department to ensure compliance.] Growers who will qualify may fill out an application. The application form and list of low-risk varieties are found on the guidance document available on the Growing & Processing (pa.gov) page of our website (along with the guidance documents for the other types of performance-based sampling).  For any other variety that those approved growers would grow that would not qualify for performance-based sampling, that grower would have to complete compliance testing for those non-qualifying varieties."

To read the latest from Penn State's hemp fiber variety trials, download the 2023 Agronomy Research Report.
Interested in exploring hemp as a potential crop? The PA Department of Agriculture explains the permitting requirements and application procedure for existing and potential hemp growers. You should also check the Penn State Extension Hemp webpages.