How to start a hemp business successfully

Starting any business is a commitment, not to mention a big risk both personally and financially. A decent amount of money will need to be invested into starting any new business, and it’s nerve wracking to think of the consequences if things go wrong. Fortunately, as long as you know what you’re doing and prepare yourself well, there’s no reason for your new business to go belly up. This is especially true of a hemp business; aside from the market research and sourcing customers, the rest of what you need to know is fairly cut and dried; how do you grow hemp, what equipment do you need, and how much does it cost?

How do you grow hemp?

Luckily, hemp is actually not a high maintenance plant. It doesn’t require specific soil or make much of a fuss about the weather, and some plants are even perennial, which means you don’t have to replant them year on year.

It’s also quite resistant to many pests and disease, and doesn’t require any complex nutrients or watering schedules.

What equipment do you need?

This doesn’t strictly come under equipment, but the first thing you need to think about is getting a license to grow hemp. Although hemp is not the same as marijuana, they are of the same species, and though the concentration of THC in hemp is much lower (less than 0.3% or less) than in marijuana, a license is still needed to grow this plant, and you can use it to create CBD products. CBD is not psychoactive like THC and it can be legally extracted from hemp plants – but you do need the license. So do that first!

You will also need land, some kind of irrigation system, and drying machines or equipment. A larger operation may also need a planting machine.

What does a hemp farm cost?

There are a lot of different things that contribute to the start up cost for hemp farm. Firstly, the license isn’t free – there is no cut and dried cost the getting it, as it varies from state to state, but this is definitely the first thing you should ascertain for your budget.

After the licensing fees, you need to take into account, operational (such as soil testing and irrigation) and non-operational costs (such as inspection fees and land rental), equipment costs, and labor costs. All of this adds up quickly, and to run a 10 acre operation, you could be looking at an up front investment of up to $20,000 – but of course, the cash you’ll need depends on the size of your operation and how much output you’re banking on.