Some of the most common questions on people’s minds when they look at the explosive growth of the hemp industry are: How profitable is hemp? Can hemp make me rich? How much can I make per acre of hemp? In some respects, this is simple to figure out. Estimate the profit per acre by considering how many acres you have to farm and the current market price and subtracting your estimated production costs. An experienced farmer probably knows this stuff off the top of their head, and a simple google search will give you lots of results if you’re just starting out. However, the major factor in how much you can make per acre of hemp is in the purpose of your crop. The three primary products are oils, seed, and fibers, each of which needs to be considered differently when trying to determine how much you can make per acre.
Ways to Make Money Growing Hemp
Farming hemp for fiber is the most similar to farming for other crops. The main difference from other crops, as well as from other types of hemp farming, comes post-harvest. In order to process hemp into usable fiber for sale, it must be processed in specialized hemp fiber processing plants. Most farmers will not have access to this equipment and need to consider the costs of either purchasing, building, or paying to have it processed elsewhere. In the field, one acre of hemp can produce around 2.5 to 3 tons worth of fiber. The average price of fiber changes, but is somewhere around $250 to $300 per ton. The actual cost of farming this type of hemp will vary, but an average example would be around $300 to $350 per acre. Using these numbers, the estimated profit could be somewhere around $480 per acre. Remember, that does not include the cost of post-harvest processing, farming machinery, tools, or the costs to acquire land.
Hemp seed has a similar market value as fiber, though seeds are more commonly measured in pounds rather than tons. An average price per pound is in the area of $.060 to $0.65. This may sound like a very small number, however you can expect to harvest around 1,000 pounds of hemp seed per acre of hemp. Like hemp grown for fiber, the production costs for seed is about $300 to $350 per acre. Doing some quick math, you can expect to make around $250 to $300 per acre when farming for hemp seeds. Again, this does not include any land or equipment costs.
This is the reason most people have gotten interested in hemp farming lately, and it’s no surprise. Hemp oil, specifically CBD, has been making headlines ever since it started becoming legal to grow. It’s currently one of the fastest-growing, and most highly profitable, industries around. Figuring out how profitable hemp oil actually is, though, is a bit more complicated than for fiber or seed. First, there are two main methods you can use to farm hemp for CBD – agronomic or horticultural. Agronomic is essentially the same as farming hemp as though it were any other crop. This comes with low risk, but also a smaller crop. Horticultural utilizes methods that grow the hemp in specific conditions meant for the cannabis plant. The former is much cheaper, while the latter is more expensive. Horticultural growing is also difficult to scale for most people. Depending on the method used and the amount of CBD produced, one acre of hemp grown for CBD can be worth anywhere between $2,500 and $75,000. The huge range is due to just how variable the difference in the two methods are. In addition, experience as a farmer can put your crop toward the top of that range if you know how to properly grow hemp to maximize CBD percentages. Growing hemp specifically for CBD purposes is more complicated. In addition to the costs for land and equipment, hemp grown for CBD must all be feminized. That means that every year new seeds or clones must be obtained for that season’s planting since your crop won’t produce any seeds of its own.
Hemp Farms Are A Business Opportunity
Still want to get rich on hemp? The opportunities are there, and can come in a wide range of options, each with their own advantages and disadvantages. Fiber and seed production don’t have quite as high a market value, but are a low risk and reliable product to farm. CBD, on the other hand, is the real money maker in the hemp world. To capitalize on that potential profit, though, a level of risk must be taken. No matter which choice you make, the hemp industry is stronger than ever, and only looking to continue rising as popularity increases. There’s never been a better time to invest your acreage in hemp.