What Is Industrial Hemp? Definition, Uses and US Production

What industrial hemp is

Industrial hemp is Cannabis sativa L. grown for its grain, fiber, seed or flower, with a THC level low enough to meet the federal hemp definition. It is the same species as marijuana. The law separates them by THC content; see hemp vs marijuana.

“Industrial hemp” was a common name long before it was a legal one. USDA uses it for the whole legal crop: the tables in its National Hemp Report are headed “Industrial Hemp” and cover floral hemp as well as grain and fiber.

The federal definition

Federal law defines hemp at 7 U.S.C. 1639o, added by the 2018 farm bill. As of October 9, 2026, the text in force says hemp is the plant Cannabis sativa L. and any part of that plant, including its seeds, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3 percent on a dry weight basis.

The November 2025 amendment

Congress rewrote that definition in Public Law 119-37, enacted November 12, 2025. The change sits in section 781 of Division B, the fiscal year 2026 agriculture appropriations act. The Congressional Research Service summarizes it this way:

• Total THC replaces delta-9 THC. The 0.3% dry-weight limit will count total tetrahydrocannabinols, including tetrahydrocannabinolic acid (THCA).
• “Industrial hemp” becomes a defined term, and the hemp definition explicitly includes it.
• Some products are excluded from “hemp”: seeds from plants above 0.3% total THC, intermediate hemp-derived products above 0.3% total THC, and final hemp-derived cannabinoid products with more than 0.4 milligrams of THC per container.
• Cannabinoids made outside the plant are excluded, along with cannabinoids the plant cannot naturally produce.

The amended statute defines industrial hemp as hemp that is:

1. grown for the stalk, the fiber from the stalk, or any other non-cannabinoid derivative;
2. grown for the whole grain, oil, cake, nut, hull, or other non-cannabinoid products of the seeds;
3. grown to produce microgreens or other edible hemp leaf products for people to eat;
4. a plant that does not enter commerce and is intended to support hemp research; or
5. grown for viable seed used only to produce the materials above.

When it applies

The amendment was written to take effect 365 days after enactment, which is November 12, 2026. A CRS report updated September 28, 2026 says Public Law 119-103, a continuing resolution, delays portions of the new definition until December 11, 2026. The exclusion of cannabinoids that the cannabis plant cannot naturally produce still takes effect November 12, 2026.

CRS also lists bills that would delay or repeal the change. None had been enacted when that report was updated. The hemp ban page tracks this in detail.

This section describes the law as of October 9, 2026. It is not legal advice.

The four product streams

USDA’s National Hemp Report splits the crop into four uses.

The grain and fiber uses in the table follow the Congressional Research Service report Hemp as an Agricultural Commodity.

USDA licensing: 7 CFR part 990

Hemp growers need a license or authorization. The rules are in 7 CFR part 990, the Domestic Hemp Production Program, published as a final rule on January 19, 2021 (86 FR 5680).

There are two routes. A grower is licensed under a State or Tribal hemp production plan approved by USDA (subpart B), or directly under the USDA plan (subpart C).

The main requirements for State and Tribal plans are in section 990.3:

• Land records: each producer’s contact details, a legal description of the land, and the license number.
• Sampling: a sampling agent collects samples within 30 days before the expected harvest. Producers cannot sample their own crop.
• Testing: labs report total THC (THC plus THCA) on a dry weight basis, with a measurement of uncertainty.
• Non-compliant crops: plants above the acceptable hemp THC level must be disposed of or remediated, then retested if remediated.
• Acreage: producers report hemp acreage to the USDA Farm Service Agency.

Section 990.6 covers violations. A producer who made reasonable efforts to grow hemp does not commit a negligent violation if the crop tests at no more than 1.0% total delta-9 THC. Three negligent violations in five years make a producer ineligible for five years. A person with a State or Federal felony conviction relating to a controlled substance is barred for 10 years from the conviction date, with a limited exception.

Note the testing rule already uses total THC for the crop in the field. The 2025 statute brings the definition of hemp itself into line with that.

US production in 2025

US hemp was worth $739 million in 2025, up 64% from 2024, according to the USDA NASS National Hemp Report released April 16, 2026. It is the latest report and covers the 2025 crop year.

Growers planted 49,267 acres in the open, up 9%, and harvested 43,707 acres.

Floral hemp is 89% of the open-field value from 39% of the harvested acres. Fiber is the reverse: about half the acres and 2% of the value.

Top producing states

Texas planted the most hemp in 2025 among the states USDA published. Data for several states is withheld to avoid disclosing individual operations.

The states specialize. Kentucky harvested 4,400 acres of floral hemp, the most of any published state. Texas, Nebraska, Kansas and Oklahoma each harvested 2,600 to 3,550 acres for fiber.

Next step

For the stalk side of the crop, read hemp fiber. For hemp in building, see US hempcrete companies.