Arturo Alvarez Demalde
Planting hemp is an exciting experience for first-time farmers. While hemp is quite a lucrative plant, cultivating this crop isn’t easy. The start of any successful hemp farming endeavor begins with an ample amount of research. Read on to learn more about starting your hemp farm.
Research Hemp Farming
There’s no way around it, growing hemp is complicated. Start breaking down this process by researching the USDA’s guidelines for hemp production as well as any information you can find about growing the product. One of the most important facts to keep in mind as you research is that hemp farmers aren’t legally allowed to exceed the federally mandated 0.3% THC limit.
In addition to adhering to the THC limit, the most successful hemp farmers operate on a significant amount of land. As profitability increases by acre, most experts recommend starting with 50 acres or more.
With this in mind, it’s also helpful to consider the soil conditions. The best conditions for hemp are warm-weather areas with organic-rich soil. It’s important to test your soil before cultivating a crop to make sure you have the best foundation for your new business.
Understand the Overhead Costs
Overhead costs are another factor to consider when starting a hemp farm. Equipment, land, and similar expenses aren’t cheap and these startup costs can set you back if you aren’t prepared for them. It’s estimated that hemp farmers can expect to pay $1,280 in fixed costs per acre. The cost of machinery averages to $800 while other items like an irrigation system are upwards of $4,500. The cost of labor for hemp harvesting per acre can also be pricy as well.
Aspiring hemp farmers that don’t have the funds to open a huge farm should consider starting small. While a tiny farm may not initially be lucrative, starting a hemp farm as a hobby is a great introduction to the industry.
Have a Business Plan
A business plan is an important first step in starting a successful hemp farm. While there are many details to consider when opening up your farm, a plan is one of the most important steps in starting your new venture. A successful business plan will help you navigate the pitfalls of entrepreneurship and prepare you for future success.
When drafting a business plan for your hemp farm, be sure to include sections like a SWOT analysis, sales strategies, operating plan, the organizational structure of the farm, and your financial plan to help forecast your future losses and profits. Why it’s good to be ambitious in your profit estimates, it’s best to start modestly.
Even though it’s possible to clear thousands of dollars worth of hemp with your farm, these estimates aren’t advisable for first-time farmers. With reasonable profit estimates, you’ll be able to meet all your expenses while breaking even and eventually turning a profit.
Don’t Forget Licensing and Registration
Even though it’s possible to grow hemp in your backyard, there are a few more steps involved if you plan to make this a lucrative career. According to the Farm Bill of 2018, each state must submit a hemp plan to help the state actively tack hemp farms within its borders. Ultimately, this means that each state has its own rules when it comes to hemp farming and hemp harvesting.
While each state may have a different set of regulations, you’ll likely need a permit or license to officially start farming hemp. Likewise, you may need to register within your country or city. Reaching out to the state’s agriculture department is also an important step in making sure you have all the permissions necessary to legally run a hemp farm. Working with an attorney can also potentially help you stay on the legal side of things.
Invest in Quality Equipment and Help
Even if your company starts as a small business, expect to start growing sooner than later. To turn a profit in the world of hemp, it’s important to invest in quality labor and equipment. Remember, when growing hemp, pests and weather can easily ruin your crop. This is why it’s important to work with a team of qualified individuals that will regularly check your field to maintain ideal conditions. With a great set of experienced workers and professional-level equipment, you’ll have the best yield when it comes time to harvest the hemp.
Hemp isn’t an easy plant to grow. When cultivated and harvested correctly, hemp is highly profitable. Keep this guide in mind as you navigate the ins and outs of opening your hemp farm.
