Industrial Hemp originates from the plant species of Cannabis sativa. Hemp is a source of oil, seed, and Fibre, grown in more than 30 nations. In the United States, there are drug enforcement laws that control production. The grower of Hemp must obtain a Drug Enforcement Agency permit to produce these types of industrial Hemp in the United States.
After knowing what exactly Hemp is, are you finally attempting your hand at the hemp industry? And want to know how much you can make out of it? Are you curious as to if Hemp can make you rich? In this article, we have discussed in detail how Hemp can benefit you?
While in some cases, it is the child’s play. You subtract the total revenue less total expense considering how many acres you farm. However, Hemp’s average return on investment per acre is not easy to address as it depends on many factors. The three primary products or factors that play a significant role are oils, seeds, and fibers. The distinct types of products play a role in determining how much you can make per acre.
Let us take a closer look and discuss further.
Firstly, let’s confine you to some intriguing and exciting information about Hemp. For cultivating Hemp for CBD (cannabinoids), one has to grow a specific type of flowering Hemp that comes solely from female plants. You must be mindful that hemp plants give Hemp Fibre a wide-ranging market of ropes, carpets, bags, clothes, and socks. According to Hemp Raw Marketplace, its prices can range from $10 per pound to $500 per pound or more, depending on the quality and demand.
Furthermore, hemp-derived cannabinoids are increasingly in demand-commodity following the passing of the 2018 Farm Bill. Thus, it has become both more accessible and profitable to do business in this industry.
Hemp can be harvested for its Fibre and seeds, which can fetch farmers between $60,000 and $100,000 per acre.
Presently, the CBD market is exploding along with demand. CBD is created from extracting oil from hemp seeds.
What component of the industrial hemp market you cultivate your crops for will severely impact your hemp farming profit per acre and the equipment needed? The three primary hemp crops are oil, seed, and Fiber.
What is the Price for CBD Oil?
The price range is extreme when it comes to CBD oil. It happens because the cultivation method is one of the fundamental factors.
For further knowledge, Agronomic and horticulture are the two hemp cultivation methods that one can use. The agronomic method is affordable and associates less risk. Unfortunately, it has lower yields of CBD. In horticultural practice, though this method leads to significantly higher outcomes of CBD, it is more expensive.
Depending on several factors, depending upon the farmers or users, CBD crops could be yielding anywhere between $2,500 and $75,000 per acre. This considerable range comes down to too many variables, but the most important is the CBD to THC ratio. The “Marijuana Marketing Act” defines Hemp as any part of the cannabis plant that contains 0.3 percent THC or less on a dry weight basis. Anything above this maximum THC threshold is “marijuana” and thereby federally illegal.
Thus, you must be utterly careful if you do not want to end up behind a prison cell.
The oil of the three crops is the most labor-intensive work and tricky to farm due to stress generated in producing the appropriate CBD to THC ratio.
On the contrary, fiber and grain production crops are much more homogeneous than traditional grain crops like wheat and corn. The fiber plants tend to grow 6-12 feet tall without branching. In comparison, grain plants tap out at about 9 feet tall and do branch. The shorter plants are preferred for harvesting reasons and don’t — thankfully — produce less grain than taller crops.
The one way to break down these digits would be to discern that your crop will generate about 10 percent CBD worth $25 to $35 per pound. So now you can get one pound per plant, roughly 2,500 plants per acre. It can directly help you to make about $60,000 per acre.
What is the Price for Fiber?
When we talk about fiber cultivation, Fibre is another easy-to-work hemp crop. The cost of farming this type of Hemp is around$300 to $350 per acre.
By using these figures, one can make up to $480 per acre in profit. Unfortunately, you must note that it does not encompass the cost of farming machinery, tools, and cost of post-harvest processing.
The two aspects that make it difficult to break into the hemp fiber market are China leads the market, and you must have a hemp mill within 30 miles to make your crops robust.
What is the Price for Seeds /Grains?
Now let’s discuss the seed price. Hemp seed has an exact market price as Fiber. An average price per pound is $.060 to $0.65. Although this amount may sound like a minimal number, it increases with the quality and production quantity.
However, you can harvest around 1000 pounds of hemp seed per acre. The production costs for the source is approximately $300 to $350 per acre. You can hope for making $250 to $300 per acre when farming hemp seeds by doing some quick math.
Note: This price estimate does not include any land or equipment costs.
Some Frequently Asked Questions
Is Growing Hemp for CBD Oil Profitable?
“While hemp is unbelievably profitable for farmers, growing it has its challenges,” he said. For starters, the seeds aren’t cheap. Good quality seeds guaranteed to provide high CBD levels and low amounts of THC that fall below the federally mandated 0.3% threshold can range from $1 to $2 each.
Similarly, It Is Asked, How Much Is an Acre of CBD Hemp Worth?
Currently, CBD is valued at about $3.90 per point. However, calculating it at a 10% average equals $39 a pound. Total pounds of 1,305 X $39 = $50,895 per acre. The per-acre value climbs with higher-quality Hemp that can produce more CBD oil.
How Many Pounds of Hemp Does It Take to Make CBD Oil?
Like with any other crop, hemp harvests also vary. With that said, an acre of Hemp typically makes a little over 100 pounds of CBD oil. Generally, forty pounds of the flower is used to make CBD oil.
Fibre and seed production, as discussed above, does not have relatively as high a market value but is negligible risk and reliable products to grow. But CBD, on the contrary, is the real catch to making a profit. To capitalize on that potential profit, though, the farmer must take a level of risk with its CBD TO THC production. With some trouble comes excellent profit in the future.