Hemp Cultivation and Crop Diversification: Implications for Ecosystem Services in Kentucky

Yunsun Park; Seong D. Yun; Brandy E. Phipps; Tyler Mark; Craig Schluttenhofer

doi:10.1002/aepp.70099

Hemp Cultivation and Crop Diversification: Implications for Ecosystem Services in Kentucky

Yunsun Park
, Seong D. Yun
, Brandy E. Phipps
, Tyler Mark
, Craig Schluttenhofer

Agricultural Economics

Research output: Contribution to journal › Article › peer-review

Abstract

This study examines the ecosystem benefits of expanding hemp cultivation by assessing its impact on crop diversity. Using scenario-based simulations and fixed-effect panel regressions with county-level data in Kentucky, we find that increased hemp acreage tends to enhance crop diversity, improving water quality and bird diversity. While agricultural policies aimed at small-scale farmers align with improving farm profitability, broader ecological benefits may remain limited unless they reach a sufficient scale. Our findings suggest that hemp-induced crop diversification can generate measurable non-market economic benefits through improvements in water quality and bird diversity, highlighting the need for practical and proactive policy measures that promote smallholder participation.

Original language	English
Number of pages	16
Journal	Applied Economic Perspectives and Policy
DOIs	https://doi.org/10.1002/aepp.70099
State	Accepted/In press - 2026

Bibliographical note

Publisher Copyright:
© 2026 The Author(s). Applied Economic Perspectives and Policy published by Wiley Periodicals LLC on behalf of Agricultural & Applied Economics Association.

Funding

This work was supported by the USDA‐National Institute of Food and Agriculture (NIFA) Sustainable Agricultural Systems (SAS) (2021‐69012‐35918). Our work is supported by the USDA‐AFRI Sustainable Agricultural Systems (SAS) grant no. 2021‐69012‐35918 from the USDA National Institute of Food and Agriculture (NIFA). Research also supported by the USDA NIFA and the Mississippi Agricultural and Forestry Experiment Station via Multistate Project W‐5133 (Hatch Project MIS‐043060). Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the view of the US Department of Agriculture and Mississippi State University.

Funders	Funder number
USDA‐National Institute of Food and Agriculture (NIFA) Sustainable Agricultural Systems (SAS)
USDA‐AFRI Sustainable Agricultural Systems (SAS)
US Department of Agriculture National Institute of Food and Agriculture, Agriculture and Food Research Initiative	2021‐69012‐35918
Mississippi Agricultural and Forestry Experiment Station, Mississippi State University	Multistate Project W‐5133, Hatch Project MIS‐043060

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 2 Zero Hunger

Keywords

bird diversity
crop diversity
ecosystem services
hemp
water quality

ASJC Scopus subject areas

Development
Economics and Econometrics

Access to Document

10.1002/aepp.70099

Cite this

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title = "Hemp Cultivation and Crop Diversification: Implications for Ecosystem Services in Kentucky",

abstract = "This study examines the ecosystem benefits of expanding hemp cultivation by assessing its impact on crop diversity. Using scenario-based simulations and fixed-effect panel regressions with county-level data in Kentucky, we find that increased hemp acreage tends to enhance crop diversity, improving water quality and bird diversity. While agricultural policies aimed at small-scale farmers align with improving farm profitability, broader ecological benefits may remain limited unless they reach a sufficient scale. Our findings suggest that hemp-induced crop diversification can generate measurable non-market economic benefits through improvements in water quality and bird diversity, highlighting the need for practical and proactive policy measures that promote smallholder participation.",

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PY - 2026

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AB - This study examines the ecosystem benefits of expanding hemp cultivation by assessing its impact on crop diversity. Using scenario-based simulations and fixed-effect panel regressions with county-level data in Kentucky, we find that increased hemp acreage tends to enhance crop diversity, improving water quality and bird diversity. While agricultural policies aimed at small-scale farmers align with improving farm profitability, broader ecological benefits may remain limited unless they reach a sufficient scale. Our findings suggest that hemp-induced crop diversification can generate measurable non-market economic benefits through improvements in water quality and bird diversity, highlighting the need for practical and proactive policy measures that promote smallholder participation.

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Hemp Cultivation and Crop Diversification: Implications for Ecosystem Services in Kentucky

Abstract

Bibliographical note

Funding

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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