Hemp & CBD Farming

Hemp farmers grow industrial hemp (cannabis with less than 0.3% THC) for CBD extraction, hemp grain, fiber, or other hemp products.

Hemp farming legalized federally in 2018 Farm Bill but regulations vary by state.

CBD hemp commands highest prices but requires testing, processing relationships, and navigating complex regulations.

Hemp grain and fiber offer commodity markets.

Success requires understanding hemp regulations and compliance, growing and harvest knowledge, processing relationships or equipment, navigating volatile CBD market, and potentially organic or sustainable certification.

Pricing varies enormously—CBD hemp biomass $10-300+ per pound depending on CBD content and market conditions (highly volatile), hemp grain $0.30-0.60/lb, hemp fiber varies.

Hemp farming profitability depends heavily on market conditions and processing relationships.

Startup costs include hemp growing license and compliance, seed or clones (genetics important for CBD, $0.50-5 per plant), land preparation and equipment, irrigation system, testing for THC compliance (required), processing relationships or equipment, potentially drying facilities, and business formation totaling $10,000-50,000 per acre depending on approach.

Building customer base involves processing relationships for CBD biomass (critical before planting), grain buyers and contracts, fiber processors, potentially direct CBD product sales (requires processing), B2B relationships with CBD companies, or vertically integrating into CBD products.

Revenue comes from CBD biomass sales to processors, hemp grain sales, hemp fiber sales, potentially producing own CBD products (requires processing and licenses), or hemp food products.

Operating costs include seeds or clones annually, irrigation and inputs, THC testing (required and expensive), harvest and drying costs, processing fees if using extractors, compliance costs, potentially failed crops if THC exceeds 0.3%, and market volatility risks.

Challenges include regulations complex and vary by state, CBD market highly volatile (crashed from peaks), requires testing ensuring THC compliance (failed tests = destroyed crops), processing relationships critical (oversupply in some markets), capital intensive especially CBD production, and market saturation with hemp farmers.

Success requires thorough understanding of regulations and compliance, contracts before planting (don't grow without buyers), choosing appropriate hemp type for market and expertise, potentially starting with grain or fiber (less volatile than CBD), genetics and growing preventing hot crops (over 0.3% THC), relationships with legitimate processors or buyers, conservative financial projections (market volatility), and possibly waiting for market stabilization.

Hemp farming offers opportunities but requires careful market analysis and risk management.