Cannabis: Estimated Costs Per Acre

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Farmers excited about the revenue potential from hemp’s flower varieties, compared to fiber and
grain varieties, might also want to account for how much more expensive it is to grow an acre of that
valuable flower.
The USDA looked at variable costs for farmers—which include non-land costs such as such as seeds,
labor, fertilizer and pest control—to estimate per-acre expenses. The USDA concludes that flower
producers pay a price for generous per-acre returns.
Hemp producers can expect to spend more than $19,000 per acre on variable costs for a flower
variety, while a fiber variety costs a farmer just $180 or so per acre to produce, and grain costs just
about $150 an acre to produce in variable costs.
Looking at variable yields and variable revenues together, the USDA noted how much risk hemp
producers take. A farmer who plants one acre of hemp, two-thirds of it for flower and another third for
fiber or grain varieties, could lose as much as $16,987 an acre or make as much as $6,260 per acre,
depending where the true yield, costs and revenue fall. In other words, profit potential is there in the
hemp industry, but profit is not assured for any hemp farmer.
Finally, the USDA also noted that variable costs do not account for the price of land nor land rent.

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Continue at:  https://hempindustrydaily.com/usda-hemp-rules-a-handbook-for-hemp-cbd-businesses/

 

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