Hemp farming startup costs are an essential consideration when deciding whether or not to enter the industry.
The hemp industry is booming in America, and many farmers are looking to get in on the ground floor. Whether converting existing farmland into hemp farms or starting anew, hemp farming startup costs can add up fast.
To help you prepare for your hemp farming endeavor, we’ve devised a basic list of hemp farming startup costs to help you plan and budget for success.
Hemp Farming Startup Costs to Consider
While hemp farm licensing fees are a necessity for any hemp farm in today’s world, there isn’t a one-size-fits-all cost across the US. In fact, most hemp farming startup costs depend solely on the state in which your company operates.
For instance, in Vermont, a hemp farming license only costs $25.00 per 100-acres farmed; but in North Dakota, the same license for 100 acres is $2,650.00. Notably, the costs of hemp farming licensing fees can range anywhere between these two sums.
So when you are calculating hemp farming startup costs, make sure to do thorough research about your particular state’s licensing fees and any additional fees relevant to your area.
Operational and Non-Operational Costs
Next, factor in the day-to-day operational and non-operational costs of managing a hemp farm.
Operational costs include things like soil tests, fertilization, and irrigation–things that are on-going necessities required to produce a successful hemp crop. Hemp Farm Business Plans gives a great breakdown of hemp farm startup costs based on a 10-acre growing area:
Operational Costs Per 10-acres
- Soil Tests– $4,200.00
- Fertilization– $2,500.00
- Weed Control — $3,000.00
- Irrigation– $3,700.00
Non-operational costs include expenses that don’t fall under the day-to-day use category. These fees include items related to the hemp farm, although they are not directly related to the actual growing process. Hemp farming startup costs are important to figure out before jumping in.
Non-Operational Cost Per 10-acres
- Suppliers– $2,000.00
- Transportation– $650.00
- Testing Fees– $1,500.00
- Inspection Fees– $700.00
- Security– $350.00
- Interest– $5,200.00
- Land Rental (if applicable)– $1,000.00
- Other– $1,500.00
Cost of Equipment, Labor, and Quality Hemp Seeds
Third, consider additional factors like hemp farming equipment; hemp farming labor; and the cost of quality, feminized hemp seeds.
Equipment and Labor Costs Per 10-acres
- Machinery– $800.00
- Machine Operational Costs– $3,000.00
- Irrigation System– $4,500.00
- Drying Barn– $6,000.00
- Drying Materials– $500.00
- Labor Costs– $50,000.00
Another one of the most critical hemp farming startup costs to consider is the hemp seeds you choose to sew.
Top-quality, feminized, high-CBD hemp seeds can account for up to $60,000.00 worth of expenses.
Invest in Quality Feminized Hemp Seeds
If you want to grow hemp for CBD, then high-quality feminized hemp seed is the only way to do so. Not only will it ensure a more favorable, CBD-rich, but it will significantly increase your ROI.
Female hemp plants naturally produce higher levels of CBD than male plants do. When male and female plants grow alongside each other, the males fertilize the females so they can produce more seeds, which will negatively affect the potency of the female plants’ CBD levels.
A crop of feminized hemp seeds will produce not only higher levels of CBD in each plant, but will produce more biomass, as well. This article on Why Feminized Hemp Seeds Are Important explains this in more detail.
Final Thoughts About Hemp Farming Startup Costs
Although feminized hemp seeds are a large portion of hemp farm startup costs, they are significantly worth it. The most successful hemp CBD farms take special care to grow the best female hemp plants on the market, and they do this by purchasing their feminized hemp seeds from quality companies such as Fortuna Hemp.
When you purchase seeds from us, you know that you will be getting seeds from the best genetics, which regularly test below the 0.3 percent THC limit. We are passionate about providing the hemp community with only the very best feminized hemp seeds available on the market.
If you are an experienced CBD hemp farmer and have any tips or insight for new farmers or farmers-to-be about what to expect with hemp farming startup costs, comment below! Or if you have any questions about hemp farming startup costs, feminized hemp seeds, or anything else hemp-related, please contact us. We’d love to speak with you!