If you have been thinking about setting up your own business and are considering growing your own hemp, you might be wondering what is involved and whether it is actually a profitable idea at all. With more states becoming more liberal in their attitudes to hemp and CBD oil, the time could be right to get your business up and running. But before you dive in, there are a number of things to consider first.
Will This Business be Profitable?
According to market research by New Frontier Data, hemp product sales are expected to grow to $2.2 billion by the end of 2022, which obviously suggest that there is a growing market for these types of products. Furthermore, thanks to the 2018 Farm Bill, hemp and hemp seeds have now been removed from the DEA’s list of controlled substances, meaning that hemp farming is completely legal.
It has been estimated that the achievable profits from one acre of industrial hemp could be as high as $40,000, making this type of business very appealing. Nevertheless, it is worth noting that the profits made from hemp farming will be dependent on a range of factors such as the expertise of the farmer, the type of hemp grown, and the products made from the plant material.
What to Consider?
If you are completely new to hemp farming, it is best to find out as much as you can about it before getting your feet wet. You will need to be prepared to invest not only your money but also your time to make your business a success.Thoroughly researching hemp farming before you begin is highly recommended.
The most obvious requirement is land. If you already have farmland, great.If not, you will need to buy some,which is probably where your biggest outlay will be. In addition to farmland, you will need to invest in irrigation equipment.
Hemp farming does require some other equipment and materials. For example, you should probably look at buying hemp extraction equipment, which you can get from companies such as Houston-based CedarStoneIndustry. Ongoing expenses will include seed stock or hemp starts as well as equipment for farming. You should also be aware that growing hemp is labor intensive, so you are going to need some help. If you intend to hire workers, you will need to factor in their wages as a weekly or monthly expense as well.
Something worth remembering before you begin is that you will more likely than not need a license. It is a good idea to get some professional advice about the state and/or local licenses that are required. You will also need insurance.
With so many different products that can be made from hemp, it is worth deciding on the most profitable product for your business. You can choose to harvest hemp seeds or hemp fiber and sell that, but most people who grow hempdo so for the purpose of extracting CBD oil. Before you decide on the type of product you are going to sell, you should start reaching out to potential buyers. The type of hemp that you grow will determine the type of products that can be produced with it. Knowing what potential buyers want will ensure you are growing the right type of hemp.
Some farmers prefer to grow a variety of hemp crops to diversify their product and ensure they can service a range of customers. However, when starting off, it is best to focus on one type of crop to get familiar with the process and determine how profitable it is for you.