Industrial hemp is the cannabis plant grown for commercial and industrial purposes rather than for its psychoactive effects. Under U.S. federal law, hemp is defined as any part of the cannabis plant containing no more than 0.3% delta-9 THC on a dry-weight basis. That single threshold separates hemp from marijuana in the eyes of regulators, even though the two come from the same botanical species. Everything from the seeds to the stalks to the flowers can be harvested and turned into thousands of different products, which is why the global industrial hemp market was valued at $11.42 billion in 2025 and is projected to reach $71.53 billion by 2034.
How Hemp Differs From Marijuana
Hemp and marijuana are both Cannabis sativa, but they’ve been bred for very different purposes over thousands of years. Marijuana strains are cultivated to maximize THC, the compound that produces a high, often reaching 15% to 30% THC content. Hemp, by contrast, must stay at or below 0.3% THC to remain legal. At that concentration, hemp cannot produce any intoxicating effect.
The 2018 Farm Bill established this legal distinction at the federal level, removing hemp from the Controlled Substances Act and treating it as an agricultural commodity. To grow hemp legally, you need a license through your state’s hemp program, a tribal hemp program, or the USDA’s own production program. Crops are tested for THC content, and if a harvest exceeds the 0.3% limit, it must be destroyed.
What the Plant Is Used For
A hemp stalk has two main layers, and each one feeds different industries. The outer layer, called bast fiber, is long and strong. It gets turned into specialty paper, fabric, insulation, carpeting, and cordage. The woody inner core, called hurd, is lighter and more absorbent. Hurd goes into fiberboard, animal bedding, compost, paper filler, and serves as a base ingredient in plastics, paints, and sealants.
Textiles represent the single largest application, accounting for about 31% of the global market. The fiber segment overall, including automotive and paper uses, holds roughly 32% of market share. But hemp’s reach extends well beyond fiber. The food, beverage, personal care, cosmetics, and pharmaceutical industries all use hemp-derived ingredients, particularly from the seeds and the oil pressed from them.
Hemp Seeds as a Food Source
Hemp seeds pack a nutritional punch that rivals most plant-based protein sources. They contain roughly 25% to 32% protein by weight depending on whether they’re whole or hulled, putting them on par with lentils and beans while surpassing wheat. A 100-gram serving of hemp seeds delivers about 30 grams of protein, 700 mg of magnesium, 1,200 mg of potassium, 8 mg of iron, and 10 mg of zinc.
The fat profile is where hemp seeds really stand out. They contain both omega-6 and omega-3 fatty acids in a 3:1 ratio, which aligns with European Food Safety Agency recommendations for optimal intake. Most Western diets skew heavily toward omega-6, so hemp seeds offer a rare plant-based way to bring that ratio closer to balance. The seeds are also low in sodium, coming in below 5 mg per 100 grams.
How Hemp Is Grown
Hemp thrives in well-drained soils with a pH between 6.0 and 7.0. It does not tolerate wet ground or heavy clay, and it’s sensitive to soil crusting and compaction. The seedbed should be firm, level, and relatively fine, similar to what you’d prepare for a forage crop.
In most of the northern United States, hemp goes into the ground from May through early June. Some shorter-season Canadian varieties can be planted as late as mid-to-late June and still mature before the first frost. Hemp is a short-day plant, meaning it only begins to flower and mature once daylight drops below about 12 hours. This makes it well-suited to temperate climates with distinct seasonal shifts, and it means planting date directly affects how tall the crop grows before it starts putting energy into seed or fiber production.
Processing the Raw Stalks
Once harvested, hemp stalks go through a process called decortication, which separates the valuable outer bast fibers from the woody inner hurd. Traditionally this is done on dried stems with low water content. The stalks pass through roller-breaking machines that crack the woody core apart, then mechanical separation pulls the two layers apart. Some processors are experimenting with decortication on fresh, wet stems to see whether it preserves fiber quality better, though dry processing remains the standard in most operations.
Before decortication, many growers use a step called retting, where harvested stalks are left in the field or submerged in water so that naturally occurring microbes break down the pectin binding the fibers to the stalk. This makes mechanical separation easier and produces cleaner fiber.
Environmental Benefits
One of the most frequently cited advantages of industrial hemp is its ability to absorb carbon dioxide. A single hectare of hemp pulls roughly 22 tonnes of CO2 from the atmosphere during one growing season, according to research presented to the Australian Parliament. Because hemp matures quickly, some climates allow two harvests per year, potentially doubling that absorption. For context, a hectare of mature forest typically absorbs between 2 and 5 tonnes of CO2 annually, making hemp dramatically more efficient on a per-acre, per-year basis.
Hemp also requires less water than cotton and can be grown with minimal pesticide use, since the plant grows densely enough to shade out most weeds. Its deep taproot helps prevent soil erosion and can break up compacted ground, improving soil structure for whatever crop follows in rotation.
The Regulatory Landscape
Growing hemp in the United States requires navigating a layered regulatory system. You must hold a license issued under a USDA-approved state plan, a tribal plan, or the federal USDA program itself. Applications go through the Hemp eManagement Platform. Your crop will be sampled and tested for THC before harvest, and if it exceeds 0.3%, the entire field is considered marijuana under federal law.
One evolving area involves testing requirements. The USDA has delayed until December 31, 2026, the enforcement of a rule requiring all hemp to be tested by DEA-registered laboratories. This extension gives the industry more time to build out compliant testing infrastructure, but it also means testing standards vary by state in the interim. If you’re considering entering the hemp market, your state’s department of agriculture is the first stop for understanding local licensing requirements and compliance timelines.