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Industrial Hemp in the United States: Status and Market Potential

by Economic Research Service

Staff Report No. (AGES-001E) 43 pp, January 2000

Industrial hemp has been the focus of official interest in several States. However, hemp and marijuana are different varieties of Cannabis sativa, which is classified as a controlled substance in the United States. With Canada now allowing hemp production, questions have been raised about the demand for hemp products. U.S. markets for hemp fiber (specialty textiles, paper, and composites) and seed (in food or crushed for oil) are, and will likely remain, small, thin markets. Uncertainty about longrun demand for hemp products and the potential for oversupply discounts the prospects for hemp as an economically viable alternative crop for American farmers.

Keywords: industrial hemp, markets, bast fiber, hurds, seed, oil

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Last updated: Tuesday, March 24, 2015

For more information contact: Economic Research Service