How Much Does It Cost To Grow Hemp Hemp Cbd Business Plan

How much does it Cost to Grow Hemp hemp cbd business plan

How much does it Cost to Grow Hemp hemp cbd business plan

These days, at least 47 countries cultivate hemp for commercial or research purposes. The largest producers of hemp are currently China, USA (hemp is legal in 46 states), Canada, Chile and France.

hemp cbd business plan

Outdoor cultivators produce at least one harvest per year in the fall. With perfect conditions outdoors, it is possible to yield up to 1 pound for each plant. It’s important to have at least two meters of space between the plants. The plants also need enough water and nutrients without contracting any diseases or being attacked by pests. Germinating the plants early in the season allows them to grow much larger and germinating the seeds indoors enables growers to control over the temperature and humidity.

The example below demonstrates how much does it cost to grow hemp on 10 acres.

Main Assumptions:

  • Projected CBD % of dry material: 10%
  • Price per % CBD oil: $2.15
  • Plants per acre: 1,500
  • Total harvested dried material per acre: 1,425 lbs

Hemp Growing Business Costs

Fixed costs ($1,280 per acre):

  • Machinery $800
  • Irrigation System $4,500
  • Drying Barn $6,000
  • Drying Materials $500
  • Land Rent $1,000

Operational costs ($12,690  per acre):

  • Soil Test $4,200
  • Transplants $60,000
  • Fertilization $2,500
  • Fertigation $500
  • Weed Control $3,000
  • Irrigation $3,700
  • Machinery Operational Costs $3,000
  • Labor $50,000

Non-operational costs ($1,225 per acre):

  • Suppliers $2,000
  • Transportation $650
  • Licensing Fee $350
  • Testing Fee $1,500
  • Inspection Fee $700
  • Security $350
  • Interest $5,200
  • Other $1,500

Total costs: $151,950 ($15,195 per acre)

Hemp Growing Annual Profit

Sales are about 14,250 lbs. per year:

  • Revenue + $306,375
  • Costs – $151,950 (49.6%)
  • Returns Before Taxes = $154,425 (50.4%)

We offer Hemp/CBD Business Plan Templates with a fully-functioning Excel financial model to break down your costs, so you know how much it will take to get into the cannabis business and forecast your profits. The model uses a mix of assumptions to estimate cannabis yields, all revenue and cost line-items monthly over a flexible seven year period, and then sums the monthly results into years for an easy view into the various time periods.



Keywords: hemp cbd financial model


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