Texas is the second most populous state in the U.S., only behind California. Yet, whereas California is home to the most non-hemp dispensaries in the nation, it is quite possible that Texas is home to the most ‘hemp dispensaries’ in the U.S.
A hemp dispensary differs from non-hemp dispensaries based on the products that are on the shelves and/or in the display cases in the retail location. For example, California permits the sale of cannabis products that are high in THC, whereas recreational products sold in dispensaries in Texas have to be derived from hemp.
In 2018, the national Farm Bill legalized industrial hemp production across the United States, including in Texas. In 2019, Texas passed state-level legislation to hemp implement a regulatory framework for the state’s emerging hemp industry.
“Here in Texas, House Bill 1325 was signed into law in June 2019 and authorizes the production, manufacture, retail sale, and inspection of industrial hemp crops and products. This also includes products for consumable hemp products which contain cannabidiol (CBD), as well as other edible parts of the hemp plant. The Texas Department of Agriculture opened the hemp licensing and permit application process online on March 16, 2020.” The Texas Department of Agriculture states on its website.
“In 2020, the first year the Texas Department of State Health Services began registering retailers, some 1,948 retailers were actively registered. By 2023, that number had jumped to 8,343. And in the first four months of 2024, the state has already seen more than 7,700 active registrations.” Texas Tribune stated in its original reporting.
“The state does not limit the number of dispensary registrations or hemp licenses it allows.” Texas Tribune also reported. “Retailers must pay an annual fee of $155 per location.”
The United States Department of Agriculture (USDA) recently released its annual hemp industry report. According to the USDA, “In 2023, the value of hemp production in the open and under protection for the United States totaled $291 million, up 18 percent from 2022.”
“Planted area for the Nation in 2023 for all utilizations totaled 27,680 acres, down 2 percent from 2022. The value of hemp production in the open for the United States totaled $258 million, up 22 percent from last year. Area harvested for all purposes in the open totaled 21,079 acres, up 15 percent from 2022.” the report also stated.
The report also found the following regarding subsectors of the United States hemp industry:
- Floral hemp in the open: United States floral hemp production grown in the open for 2023 was estimated at 8.03 million pounds, up 18 percent from 2022. Area harvested for floral hemp in the open in the United States was estimated at 7,383 acres, up 4 percent from last season. The average yield for 2023 floral hemp in the open was estimated at 1,088 pounds per acre, up 134 pounds from last year. The value of floral hemp grown in the open totaled $241 million, up 35 percent from 2022.
- Grain hemp in the open: National production of hemp grown in the open for grain in 2023 totaled 3.11 million pounds, up 28 percent from 2022. Area harvested for hemp grown in the open for grain in the United States was estimated at 3,986 acres, down 26 percent from last season. The average yield for 2023 hemp grown in the open for grain was estimated at 779 pounds per acre, up 327 pounds from last year. The value of hemp grown in the open for grain totaled $2.31 million, down 36 percent from 2022.
- Fiber hemp in the open: In 2023, production of hemp grown in the open for fiber was estimated at 49.1 million pounds, up 133 percent from 2022. Area harvested for hemp grown in the open for fiber in the United States was estimated at 12,106 acres, up 77 percent from last season. The average yield for 2023 hemp grown in the open for fiber was estimated at 4,053 pounds per acre, up 983 pounds from last year. The value of hemp grown in the open for fiber totaled $11.6 million, down 59 percent from 2022.
- Seed hemp in the open: Production of hemp grown in the open for seed in 2023 was estimated at 751,000 pounds, up 414 percent from 2022. Area harvested for hemp grown in the open for seed in the United States was estimated at 1,344 acres, up 66 percent from last season. The average yield for 2023 hemp grown in the open for seed was estimated at 559 pounds per acre, up 379 pounds from last year. The value of hemp grown in the open for seed totaled $2.91 million, up 96 percent from 2022.
The global cannabidiol (CBD) market was worth an estimated $7.6 billion in 2023 according to a market analysis by Market.us, and will climb to a projected $36.6 in value by 2033.