South Dakota, one of the last states to legalize hemp, has surged to the forefront of national production. Within just three years, it claims the title of top hemp fiber producer, showcasing the state’s favorable conditions and the dedication of its farmers, positioning it as a key player in the hemp industry.
Pioneering South Dakota's Hemp Farming Success
John Peterson, a fifth-generation farmer and treasurer for South Dakota Industrial Hemp Association (SDIHA), shared his experience with South Dakota News Watch. Starting with 40 acres in 2021, his farm, Dakota Hemp LLC, expanded to 450 acres by 2024. His decision came after attending an industrial hemp growers meeting, which presented a promising future for fiber and grain hemp production.
“I realized mid-season (in 2021) that this crop is going to thrive here in S.D. and fits very well into a crop rotation on a large-scale across the state,” Peterson commented, noting the crop’s adaptability to the South Dakota‘s climatic conditions.
Similarly, the state's leadership in hemp production is highlighted by SDIHA board member Bill Brehmer. “We are going to try to hold that for next year. This will be our first year to dominate that category," Brehmer said. Following hemp’s legalization under the 2018 Farm Bill, the state overcame a gubernatorial veto to launch its program in 2021, rapidly expanding to over 3,000 acres across approximately 40 farms.
Ideal Conditions Boost South Dakota Hemp Market
The crop’s resilience and compatibility with local agricultural conditions have been a boon. Ken Meyer, SDIHA board president, told South Dakota News Watch, “Well-developed hemp genetics of Canada and Europe work well in our latitude.” According to Meyer, the state’s daylight hours and weather conditions have led to superior crop yields compared to other states, with significant benefits to soil health and subsequent crops.
South Dakota’s hemp is utilized for diverse applications, from animal bedding and hempcrete to topicial creams. The burgeoning hemp industry, valued at over $23 million in 2023 in South Dakota alone, is part of a nearly $24 billion national market, anticipated to grow to $30 billion by 2030.
Broader Cannabis Landscape In South Dakota
In a move to tighten regulations, Governor Kristi Noem (R) signed a bill in March banning the sale of unregulated hemp products, including Delta-8 THC, a cannabinoid which is commonly synthesized from hemp plants. While the state advances in hemp production, a recent poll indicates that 52% of South Dakotans oppose recreational cannabis legalization, with significant resistance from Republicans and Catholic leaders.
As the hemp industry continues to expand nationally, South Dakota faces the challenge of maintaining its leading position. “To stay No. 1, we’ve got to expand capacity,” Brehmer stated, stressing the need for increased processing capabilities to sustain their competitiveness.
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