Textile and Apparel Industries

Legalization of Hemp Production and its Impacts on the US Hemp Export Competitiveness

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Abstract

Industrial hemp is a well-known crop for its diverse usage and significant contribution to the U.S. economy. The 2018 Farm Bill significantly aided the U.S. hemp industry by legalizing its widespread cultivation, fostering economic growth, and creating opportunities for farmers and businesses. This study examines the export competitiveness of United States hemp-based product categories and how the farm bill impacted the country’s export performance. Revealed Comparative Advantage and Normalized Revealed Comparative Advantage of sixteen product categories are calculated from 2017 to 2021. Only three product categories are identified as containing a comparative advantage throughout the five-year timeframe. The advantage fluctuated in three other categories, while the rest showed a consistent comparative disadvantage. Most importantly, the farm bill had little impact on their export performances. The findings will inform the policymakers about the farm bill's shortcomings so that they can prepare more industry-friendly legislation in the future.

Keywords: Hemp, 2018 Farm Bill, RCA, NRCA, US Hemp Industry

How to Cite:

Hasan, M. & Das, D., (2024) “Legalization of Hemp Production and its Impacts on the US Hemp Export Competitiveness”, International Textile and Apparel Association Annual Conference Proceedings 80(1). doi: https://doi.org/10.31274/itaa.17378