Okay, you do not know what is hemp farming so let’s first start off at the beginning.
Hemp, or industrial hemp, is a variety of the Cannabis sativa plant species that is grown specifically for the industrial uses of its derived products.
Farming hemp is now federally legal. By letting hemp farmers apply, pay for, and submit their applications online through the CDA’s Hemp Online Portal, CDA hemp program manager Brian Koontz thinks Colorado will attract new hemp farmers.
“Colorado leads the nation in registered land area for industrial hemp cultivation,” Koontz says in a statement. “Our plant team has worked tirelessly for many months to keep pace with unprecedented demand and serve stakeholders across the state. This new registration process will help us continue to stand as a leader in the industry.”
“Colorado has embraced hemp on a wide scale over the past five years, with the CDA and Governor Jared Polis pushing tax and licensing policies that make it cheaper for hemp companies and farmers to establish headquarters in Colorado.
According to the CDA, 2,634 industrial hemp applications have been processed in Colorado since 2014, with a total of 89,743 acres and 15.4 million square feet of indoor grow areas registered in 2019 alone. Colorado farmers have harvested around 51,227 acres of hemp so far this year, the department adds.”
Farmers wanting to apply for a hemp license previously had to apply by mail. Hemp farming applications can now be done online. It is still illegal in most states to grow hemp in your basement unless you have a license from the department of agriculture.
How much do farmers make per acre of Hemp?
When you want to join the hemp industry it is important to know your potential hemp farming profit per acre that you can make. Your profit will come down to yield per acre times market price minus the cost of production. The segment of the industrial hemp market that you grow your crops in will impact your profit per acre as well as your equipment and how you plant your crops.
Price for Grain
The price for hemp grain ranges from $0.60 to $0.65 per pound. However, the average yield from an acre of hemp that you have planted and maintain well is about 1,000 pounds.
With the costs of production ranging from $300 to $350, you can make somewhere between $250 and $300 per acre.
Price for Fiber
The going market for hemp fiber is about $260 per ton, with the average yield being between 2.5 and 3 tons of hemp fiber per acre. Given that the cost of production is comparable to the hemp grain market, $300 to $350, you will make up to about $480 per acre in profit.
Price for CBD Oil
It is drastic when it comes to CBD oil because there are many factors that can influence your CBD. One of the primary factors is the cultivation method.
Depending on some factors, your CBD crop could be generating anywhere between $2,500 and $75,000 per acre. Yes, there is a huge range but there are different variables that influence this but the most important one is the CBD and THC ratio.
How Much profit can I make per acre?
Your profit per acre will depend on the type of hemp crop you are going to plant.
If you are interested in the more lucrative CBD market you will have to make sure that you understand all the factors into securing a high percent CBD yield, putting your crops closer to the $75,000 an acre range, rather than the $2,500 an acre range.
I hope you guys found this article interesting. Are you thinking about joining the hemp industry? Let us know.