Many people wonder how profitable is growing hemp. Curiosity about this topic is understandable because from 1 acre of hemp can be generated net profit of around $ 130 to up to $ 75,000.
The profitability of this business fluctuates strongly depending on what type of cannabis we choose and what will be the purpose of our hemp farming and whether it will be CBD oil, grains, fibers, or other products. There are also numerous factors and mistakes that should be avoided and understood in order to make this business profitable.

The hemp growing business has become increasingly noteworthy, piquing the interest of numerous farmers contemplating a shift towards hemp farming to gauge its profitability. To provide clarity about the hemp business, we address this and other commonly asked questions below. The information we’ve gathered stems from various sources and embodies thorough research.

#1 IS HEMP GROWING PROFITABLE IN 2023? 

Cannabis cultivation has been illegal in the US since the 1937. In recent years regulations have changed in many states and are becoming more liberal. Thanks to the new hemp legislation (2018 Farm Bill) the hemp market is born again and right now it is still in early stages. The new hemp law creates huge business opportunities for farmers as well as for cannabis processing companies.

Hemp is one of the most profitable cash crops in the world. Demand for hemp-made products is very high and generally, on the hemp market, the demand for hemp is greater than their supplies. According to some, the cannabis market is even insatiable.

However, cannabis breeding is complex and there are different varieties of cannabis grown for different purposes. Undoubtedly, the most profitable goal of growing hemp is the production of CBD oil and products based on it. Production of CBD-rich cannabis is even much more profitable than producing hemp rich in THC which is popular and smoked for recreational use. 

The hemp boom has already begun and and it’s unlikely to end soon. In 2018 total sales of hemp-based products in the US were about $1.1 billion  and are expected to more than double by 2022, according to New Frontier Data, a market research firm focused on the cannabis market. 

#2 IS HEMP BIGGEST AND BEST CASH CROP?

The graphic below illustrates the most profitable and most popular cash crops. This graphic is based on 2014 FAO and UN data, but the information it shows is still current and cannabis remains one of the most profitable cash crops on the market. The size of hemp farming and the value of hemp market has increased since 2014 but the unique and high value of cannabis remains the norm today.

The chart below, based on the Food and Agricultural Organization’s data, gives the hemp field value as $ 47 million per square kilometer (which is about 247 acres) . It should be added that this number is slightly overstated, but reflects the essence of hemp growing. Such high farming value is only achievable when growing CBD rich hemp, for the production of CBD oil, or for the sale of flowers rich in CBD. Many US farmers earn $ 75,000 in income from one acre of cannabis cultivated in proper way for CBD production. These data clearly show how profitable is growing hemp, especially hemp for CBD oil.

3# HEMP GROWING PROFIT PER ACRE

According to research conducted by Cornell University income from acre of cannabis cultivation in the US ranges between $ 130 to $ 730. However, this is only the value of cannabis grown for grain or fiber.

The profits are much higher, if it comes to CBD-rich hemp production.

Some sources specify CBD hemp income at $ 2,500 to $ 75,000 per acre. Such a wide spread of income is due to the fact that each hemp plantation has different CBD content. It depends primarily on the species and good quality of planted plants, as well as the harvesting method and the way CBD oil will be obtained later. So how profitable is growing hemp if we plant it on several dozen acres? Definitely huge, especially if we start the production and sale of CBD oil ourselves.

For example Blue Forest charges $35 to $40 per pound for the high-quality hemp it sells for CBD extraction. That compares to about $1 a pound for the kale it sells.  So if we assume that about 2,000 plants grow on 1 acre and each should bring at least 1 pound of high-quality CBD flowers, then 1 acre should easily produce $ 80 000 worth crops. 

Average time to harvest from 6″ clones is 90-120 days.

Read also: Is Dairy Farming Profitable in 2023? Ultimate Analysis

#4 HEMP GROWING COST PER ACRE

It costs approx. $ 8000 – $ 12,000 per acre to grow and harvest CBD hemp. This cost does not assume costs of equipment, land and water. Cost of growing and harvesting hemp for seeds or fiber is much lower than CBD hemp growing. This data comes from Ed Wassom, farmer from Colorado (see more here). 

Firstly you need to plant seeds or clones – usually there has to be planted 1500 – 2200 plants per acre. Good quality feminized 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. So planting seeds will cost you  over $1500 + cost of planting it per acre. For starters, the seeds aren’t cheap. 

Remember that how profitable is growing hemp depends on the quality of the seeds and how many % of CBD they give. It is worth paying a little more at the beginning for proven and the highest quality seeds.

Cost of clones is higher and when produced on a small scale 1 clone will cost about $3 (so  over $4500 per acre). Cost of retail clones is $ 4 -$ 7 each, so costs minimum $ 6000 – $ 10500 per acre.

Other costs connected with labour associated with hemp cultivation depend on the farming style. Extensive farming operations, such as the ones found in Canada or Europe, will have very little job impact since they are mostly machine driven, but orchard-style operations like the ones found most commonly in the U.S. are very labor intensive. During harvest, labor demand may require up to two people per acre and when cure drying even more.

Cost of buying good quality CBD extraction machine or devices will be at least a few hundred dollars to several thousand dollars.

Read also: Is Farming Profitable in the 21st Century? – Ultimate Guide

#5 WHAT IS THE FUTURE OF HEMP GROWING?

Hemp market, although still unsaturated, and still full of opportunities and chances may soon begin to saturate. This will result in a fall in CBD oil prices, as well as a fall in prices for hemp seeds and hemp fiber. 

On the other hand, in the world in most countries it is still difficult to get access to CBD oil and hemp breeding is illegal. For this reason, most likely CBD oil produced by the USA will be able to be sold for high prices for export abroad for many years to come.

Let’s look at what you see on Google Trends. As you can see, CBD, as well as many cannabis products are very popular and arouse great interest. It is possible that this interest will diminish over time, but it is so large that at least as much demand for hemp and CBD as now should be maintained.

#6 HOW TO START GROWING LEGAL HEMP?

Hemp can be a great way to diversify your farm. At the beginning you can try to cultivate it on only 1 to 5 acres to see how it goes. 

First of all check laws in your state. You must apply for a license for your hemp cultivation. In different states, the process of applying for a license looks a bit different, but generally, once you get the license it will be valid for several years. You will need to report on your hemp cutivation. 

It’s best to contact your state department of agriculture or hire lawyers who will get the license for you.

It is also very important that before you start growing and making your first investment in hemp business, that you learn a lot and get an idea about hemp cultivation. Educate yourself, contact other cannabis growers, read a lot of information, create your mini business plan and cost estimate. Such knowledge and preparation is especially important when it comes to growing hemp for CBD oil.

#7 THE BIGGEST PROBLEMS OF HEMP BUSINESS

One of the biggest problems to expect when growing hemp are the weeds that need to be removed, especially when the hemp plants are still young and small. Otherwise, the weeds will cover the hemp seedlings. When hemp is bigger weeds will cease posing threat to them.

Since hemp has no approved chemical insecticides or herbicides, farmers have to hand-weed everyday from roughly June 1 to August, when the hemp of the plants finally close the gaps in the rows that give sunlight to weeds.

When you produce hemp grains you will need to have mill nearby maximally about 30 miles away. Otherwise business and transportation will be probably too complicated to be profitable. Unfortunately there is not many hemp mills in USA. 

When growing hemp for fiber or biomas it is also good to hemp fiber point nearby.

This video mentions some of the most important mistakes beginning hemp farmers should avoid. 

#8 SHIFTING CORN OR SOYBEAN FARMING TO HEMP FARMING 

Many farmers wonder whether it is profitable to shift from corn, soybean or other farmland to hemp farming. The most important question is which crop is more profitable and what is the cost of shift?

At the beginning, it should be said that hemp grown for grain or fiber is more similar to soybean or corn. Whereas hemp grown for CBD oil is more labor-intensive. 

Usually irrigation and cultivation methods needed for hemp farming are known to tobacco farmers too. Also fruit farmers will generally have the knowledge to care for hemp. The land on which soybean wheat or corn grew would be perfect for hemp. Generally hemp grows more vigorously than corn, and requires less water and pesticides. 

Difference is that corn soybean has a lot of allowed legal pesticides and insecticides. By contrast, hemp does not have, so it will be harder to protect them from weeds and insects. Because of this there must be more labour done with the hemp farm.

INDUSTRIAL HEMP HARVESTING  

Harvesting industrial hemp fiber and grain.

#9 COMPETITION IN HEMP INDUSTRY

In recent years, rising interest in cannabis cultivation led to a significant increase in cannabis cultivation. Hemp planted in the U.S. more than tripled from 78,000 acres in 2018 to 285,000 acres in 2019. This increase in interest in cannabis cultivation is one of the manifestations of how profitable is growing hemp.

Competition in terms of CBD oil production is increasing, but it is still not large. Chinese have had a significant advantage in the production of hemp grain and hemp fiber, which has been exporting hemp fiber and seeds to the USA today. They are very competitive, but it is still  profitable to produce grain and fiber in America.

#10 BEST SOIL FOR HEMP

Hemp doesn’t really need very high-quality soil, but it does need other conditions for optimal growth. As far as location goes, ideal places are away from the equator and closer to the poles. Hemp needs flat fields with good percolation, hot days and cools nights, healthy supply of water and nutrients, and short summers. Most places apt for vineyards or high-valley fruits will be on the ideal side for hemp production.

To grow good quality organic hemp make sure you have good quality soil. Make sure your soil doesn’t have heavy metals. Hemp easily absorbs substances found in the ground. For this reason, especially hemp that will then be consumed should grow on thoroughly researched land containing no heavy metals or impurities.

If your soil is slightly polluted it can be still good to grow there industrial fiber hemp.

Soil testing is absolute must if you want to have high quality hemp and made of it products.

#11 HEMP WATERING

Young hemp plants do not need much water. However, large hemp needs a lot of water in the middle of summer when it is hot. Irigation systems are usually necessary. Most of hemp farmers use also plastic to cover ground under hemp plants to preserve moisture and protect plants from weeds.

#12 FERTILIZERS AND PESTICIDES FOR HEMP

Surely you can work with manure and ecological farming styles to save money. Generally hemp does not require much fertilizer however, some types of hemp and some lands require more than others. Some farmers say that deers do not eat hemp. Hemp is also more resistant to insects than most of other crops e.g. corn. Generally hemp is one of the most resistant and durable plants to farm.

#13 BEST CLIMATE FOR HEMP GROWING

There is many various cannabis species and different species are adapted to different climates.
Make sure to choose best one for your climate and geographical location. Some cannabis species need more light and others need less, so some will grow better in the south, towards the equator, and the other in the north. Cannabis generally likes warm summers.

#14 GROWING SEASON OF HEMP

It usually takes 90 to 120 days for hemp to grow and be ready to collect the crops. Hemp maturity is partly determined by the length of the day and the amount of sun it gets. Some hemp types need more time to become mature and some less. This varies with the location, but it is a summer crop that generally will be farmed between June and early November. Places closer to the poles will harvest earlier.

#15 HEMP HAS OVER 25 000 USAGES

Hemp is really wonderful plant with many usages. One of the manifestations of how profitable is growing hemp is the number of uses of hemp. It can be used to make food, clothes, medicines, as well as paper and many other things.

Hemp can be used for production of biofuels. For example Henry Ford, founder of the Ford Motor Company, created a plastic car in 1941 which ran on hemp and other plant-based fuels, and whose fenders were made of hemp and other materials. Ford had a plan to “grow automobiles from the soil.” (Note: a company in France is experimenting with a similar vehicle in current day.) according to National Hemp Association 

Hemp was also present in the times of beginning of USA. Benjamin Franklin used hemp in his paper mill – one of the country’s first – and the first two copies of the Declaration of Independence were supposedly written on hemp paper.

#16 CHOOSING HEMP SPECIES AND SEEDS

This is one of the most important steps when starting a hemp growing business. Hemp can be regular or autoflowering. Regular hemp starts flowering at the time based on sun’s cycle. Autoflowering hemp starts flowering…

There a few good sources of hemp seed. When choosing seeds for CBD-rich hemp it is imperative to grow only certified genetics that are safe for the environment, that will safely stay within the legal limits of THC, that are properly feminized to avoid the appearances of males, and ultimately that will provide a healthy and profitable crop.

How profitable is growing hemp for CBD oil depends primarily on the quality of the planted seeds. Poor quality seeds will gice several % of CBD, and the highest quality seeds may even have over 15% of CBD in plants.

Popular in USA known and tested seeds containing a large amount of CBD and THC below 0.3% are e.g. Cherry Wine, Lifter, or Berry Blossom.

#17 MOST PROFITABLE HEMP BUSINESS IDEAS

There are tens of thousands of cannabis uses, many of which are great materials for a profitable business. there is also many industrial hemp business ideas and industrial hemp usages. The most profitable hemp business ideas are:

• High CBD hemp cultivation for medical use is one of the most profitable fields of hemp business. 1 bottle of CBD oil costs up to $ 150 – $ 200.
• Health products with hemp oil, or CBD oil.
• Hemp flour 
• Fiber
• Hemp clothing – is very strong and long-lasting . Hemp clothing is also lightweight and absorbent, with three times the tensile strength of cotton.
• Hemp processing lab – buy hemp from farmers and make materials from it
• Hemp biomass production
• Hemp vitamins and supplements
• Body care hemp products
• Creams for pain – hemp oil is known for reducing aches and pains
• Hemp-plastic – it is possible to produce good quality eco-friendly plastic made of hemp

#18 EXAMPLES HOW TO GROW HEMP

In these videos you can see hemp growing in USA, its land regenerative benefits and some tips how to do it indoor and outdoor.

#19 HOW TO GET HEMP FARMING LICENSE? 

In this short video you have list of steps you must do, to get your hemp farming license. It is not that hard to get it.

#20 THE BASICS OF CBD FARMING  

We highly recommend this conference. You can learn from it many of the most important information about cannabis cultivation.

EXTRACTING CBD OIL 

interesting technique for producing CBD oil.

ONE OF THE MOST EFFECTIVE WAYS OF EXTRACTING CBD OIL

The method of obtaining pure CBD oil with alcohol or CO2  presented below is one of the best and most economical. Any farmer can produce something like this from his cannabis and sell the received extract for big money.

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