Hemp Economics: How to Turn one Acre Into a Million Dollar Value
Turn one acre into $1,000,000 worth of CBD products by going from plant to product with CBD rich Industrial Hemp. By utilizing our cultivation, processing, manufacturing, and marketing services we present a unique opportunity for Midwest farmers to drastically increase profits by turning their hemp biomass into CBD products sold direct to consumers.
Industrial Hemp cultivation for cannabinoids is an emerging industry poised to be worth billions. We urge farmers interested in growing Industrial hemp to go beyond cultivation, and to process their biomass into retail ready consumer products. With Agronomics USA, building your own vertically integrated Hemp brand has never been easier. Through our stream lined plant to product process farmers are able to maximize the value of your industrial hemp biomass and build a profitable CBD brand.
Many farmers jump into Industrial hemp with high hopes to get rich selling their hemp biomass only to ask themselves after harvest "What what do I do with all this hemp?" With Biomass prices leaving little profit on the table and the extract market being heavily saturated, many farmers are struggling to monetize their biomass. By taking your biomass to finished product you are able to not only maximize profit, but find stability within this emerging market.
Farmers interested in growing industrial hemp don't need to grow more than an acre to achieve big profits. Below we will show you step by step how to turn one acre into a million dollar value. These numbers are conservative estimates based on our experience within cultivation, processing, manufacturing and sales in 2019.
Our projections are based on our split harvest cultivation strategy utilizing an early harvesting strain like T1 at 4ft spacing, and a later harvesting strain like Sweetened or BaOx at 5 ft spacing. One acre split between T1 and Sweetened or BaOX would be 2050 plants per acre. With both strains it is easily achievable to yield at least 1lb per plant and 10% CBD. It is not uncommon for farmers to yield more than 1lb per plant and higher than 10% CBD. For our projections we use these easily achievable bench marks. After drying the value of your material can be calculated by Weight x Percentage points of CBD x Value per point = per acre gross value. In this case 2050lb @ 10% CBD x$0.75 per percentage point of CBD leaves you with a per acre gross value of $15,375. After Subtracting your expenses you are not left with much profit if any. Much greater profits can be achieved processing your material into Hemp Extract. CLICK HERE TO LEARN MORE ABOUT HEMP CULTIVATION
Extracting your biomass not only increases its value, but also concentrates your material and increases its stability. Our experience has shown that an easily achievable yield for extraction is one liter of winterized decarboxylated crude oil for every 30lb of dried biomass. Although with higher percentage CBD material yeilds can be as high as 18lb per liter. Based on a 30lb per liter yield, one Acre with 2050 plants yielding 2050lbs of dried biomass can produce 68 liters of winterized decarboxlyated crude oil. After extraction the value of your material can be calculated by current market prices per liter in this case 68 liters X $450 per liter = $30,600 per acre gross value. CLICK HERE TO LEARN MORE ABOUT HEMP EXTRACTION
Distilling your Crude material not only increases its value, but brings it to a state where it can be infused into a consumer product. 60% yield on distillation is easily achievable and often exceeded. Once distilled, 68 liters of crude oil should yield a minimum of 40 liters of full spectrum distillate. The value of your distillate can be calculated by liters x Market value. In this case, 40 Liters x $1,000 = $40,000 per acre gross value. CLICK HERE TO LEARN MORE ABOUT CRUDE OIL DISTILLATION
Turning your Distillate into Isolate creates a THC free pharmaceutical grade ingredient ready for infusion, but is not a means of increasing profit. Not only do you lose volume going from distillate to isolate, but you do so for no increase in value. With a 60% yield from distillate to isolate, you can expect 24 Kilos per acre. At the current market value of $1,000 per kilo, you would reduce your gross value from distillate to only $24,000 per acre with isolate.
The infusion of hemp extracts into manufactured products is the secret to maximizing the value of your industrial hemp crop. By taking your own isolate and distillate and infusing it into private label CBD products, you are able to produce 40,000 units of 750mg products. Selling them at and industry low price of $29.95 ($0.04/mg of CBD) you would be looking at a per acre value of $1,198,000.
Become a preferred partner today and gain priority access for extraction and drastically decrease your manufacturing and brand development costs.