North Carolina’s hemp growers are increasingly moving away from growing cannabis flower and focusing more on industrial hemp stalks used for fiber. This shift reflects changing market conditions, regulatory pressure, and the rising demand for fiber-based products such as textiles, building materials, and composites. The change is driven by both economic and strategic reasons and could reshape the future of the state’s hemp industry.
What Is Industrial Hemp Fiber?
Hemp stalks contain two main types of fiber. The first is bast fiber, which comes from the outer layer of the stalk and is long and strong. The second is hurd fiber, which comes from the inner woody core and is shorter and softer. Bast fiber is often used to make textiles and composite materials.
Hurd fiber is commonly used for animal bedding, hempcrete, paper, and insulation. Hemp grown for fiber can be turned into renewable industrial materials and helps create markets that do not depend only on cannabinoids.
Bast Vs. Hurd
The bast fiber makes up a smaller part of the hemp stalk, but it provides most of the high-quality material used in textiles. The hurd fiber is usually less valuable per unit, but it has many uses in construction and bio-composite materials.
These two parts of the stalk are separated during processing. This is usually done with mechanical decortication, which removes the outer fiber from the inner core to produce usable materials.
How Fiber Is Used Today?
Industrial hemp fiber is very useful. It can be used to make:
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Clothes
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Paper
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Building materials
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Car parts
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Bioplastics (plastics made from plants)
Because hemp is versatile and good for the planet, many companies want to use it. It helps them move away from using wood or man-made materials like polyester.
North Carolina’s Hemp Market Shifts from Flower to Fiber
Historically, North Carolina’s hemp industry focused on the plant’s flowers to make CBD and other similar products. After the 2018 Farm Bill made hemp legal, many people believed the flower was the most profitable part of the crop.
However, several new trends are now encouraging farmers to switch their focus to the stalks for industrial use instead.
Market Pressures on Flower Production
Hemp flower, including CBD and THCA products, is facing a lot of legal uncertainty. Under current federal rules, THCA flower is legal if it contains less than 0.3% Delta-9 THC. However, North Carolina’s own rules have been slow to change, which has confused both farmers and shop owners.
At the same time, the price of CBD has been unstable. This makes it hard for small farmers to make a steady profit. Because there aren't always reliable ways to process or sell the crops, growing hemp for its flower is now much riskier than many people expected.
Fiber Emerges as a Strategic Alternative
On the other hand, industrial hemp fiber serves a much larger market that doesn't depend on cannabis drug laws.
Manufacturers and investors are looking at hemp fiber to make strong materials and eco-friendly products. Because of this, more farmers are switching to growing specific types of hemp that produce high-quality stalks and fiber.
NC’s Competitive Advantages in Fiber Hemp
North Carolina has several structural advantages that make a pivot to fiber attractive:
Legacy Textile Industry
The state of North Carolina has a long history of textile manufacturing, especially cotton production. This experience means existing factories and skilled workers could be used to process hemp fiber. As a result, the state could build a local supply chain that connects farms to finished textile products. Researchers and industry supporters say this connection could become an important advantage for North Carolina.
Processing Infrastructure
North Carolina is home to the Spring Hope hemp mill. This is the largest industrial hemp processing facility in the United States. It can break down hemp stalks to create fiber for clothing and strong building materials. Because this facility is local, farmers have a nearby partner that can buy their stalks for industrial use.
At the same time, groups across the state are organizing events to grow the industry. For example, the 2025 Global Industrial Hemp Fiber Summit was held in Raleigh. These events help people share technology, build business networks, and learn how to turn hemp fiber into successful products.
Research and Grants Supporting Fiber Quality
Local institutions like NC State University are receiving grants to study hemp harvesting methods and fiber quality. The goal is to help growers produce consistent and reliable hemp stalks for processing. This research investment helps reduce some of the risk for farmers who are shifting from flower production to fiber crops.
Economic and Sustainability Drivers
Many farmers view fiber production as a way to create new revenue streams and bring more stability to their farm income.
Diversification and Risk Management
Growing hemp for its flowers requires strict monitoring to keep THC levels legal, and the rules change often. In contrast, fiber hemp is judged by how much material it produces for industry rather than its chemical makeup. This means fiber growers are much less likely to deal with the policy changes or failed lab tests that often hurt flower growers.
Because there are fewer legal hurdles, many farmers find it easier to switch to fiber.
Environmental Sustainability
Hemp fiber is a renewable and biodegradable alternative to synthetic materials. It can help reduce the carbon footprint of industries such as textiles and construction. This sustainability advantage appeals to both growers and manufacturers, especially as companies increase their demand for environmentally friendly materials.
Challenges and Early Hurdles
While the move toward fiber has potential, it faces several major challenges.
Supply Chain Gaps
One of the biggest challenges in the U.S. hemp fiber market has been a “chicken-and-egg” situation. Farmers are reluctant to grow fiber hemp without nearby processing facilities, while processors are hesitant to invest without a steady supply of crops. This cycle has slowed the industry’s growth and expansion.
Economics of Fiber Versus Flower
Farmers who previously focused on growing hemp flower now need to adjust to different plant varieties and new harvesting methods for fiber production. Producing high-quality bast fiber and investing in specialized processing equipment also requires new skills and extra money. These challenges may make smaller farms slower to switch to fiber crops.
Regulation and Research Needs
As the hemp industry continues to change, growers need clear and consistent rules. More research is also needed on the best plant varieties, the right harvest time, and ways to build strong markets so fiber production can be profitable.
What’s Next for NC Growers?
The transition toward fiber is in its early stages, but momentum is building:
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North Carolina could develop a hybrid model that includes both flower and fiber crops.
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Enhanced regulations and expanded processing infrastructure will be necessary to support the adoption of fiber.
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Growers who diversify into fiber may secure more stable income streams while meeting the industrial demand for sustainable materials.
Conclusion
North Carolina’s hemp industry is moving from flower cultivation toward fiber production because of market pressures, regulatory uncertainty, and sustainability opportunities. Despite some challenges, industrial hemp fiber offers a versatile and eco-friendly crop that can help growers stabilize income and support emerging industrial markets.
