How Much Does It Cost to Grow Hemp Fiber and/or Hemp Grain?

The hemp fiber segment dominates the global hemp industrial market on the basis of type with the largest market share at 20.9%. In addition to being used for construction purposes, an estimated 25,000 products can be made from hemp. Hemp fiber being a renewable resource is used in the production of daily use products such as paper, textiles, fuel, and construction materials and the growing demand for eco-friendly products will significantly contribute to the growth of the hemp industrial market. Breathability, antibacterial, and sustainability are key properties involved in the production of hemp fiber products. Hemp can grow quickly, and sufficient supply to build a house can be grown in 3 months on just about 3 acres.

Hemp seeds are extremely nutritious, containing 20-25% protein, 25-30% oil and 10-15% insoluble fiber, as well as oil containing >90% polyunsaturated fatty acids, which are a valuable addition to the diet of humans and animals. They are gluten-free and are an excellent source of nutrients for products created for the growing flexitarian market. The international food market for hempseed is estimated at $1 billion.

How Much Does It Cost to Grow Hemp Fiber and/or Hemp Grain?

The table below provides an indicative forecast for three hemp production options – fiber only, seed only, or fiber and seed. The projections assume existing access to land and equipment needed to grow and process hemp, and take into account only current operating costs. These figures are for reference only and are based on the best available data for 2019/2020.

	Fiber crop	Grain crop	Fiber & Grain crop
Hemp crop cycle	3 – 4 months	3 – 4 months	3 – 4 months
Estimated fiber yield per acre, pounds	8,951	–	8,025
Gross fiber value per pound	$0.11	–	$0.11
Gross fiber income per acre	$1,015	–	$910
Estimated grain yield per acre, pounds	–	805	805
Gross grain value per pound	–	$1.43	$1.43
Gross grain income per acre	–	$1,150	$1,150
Operating expenses per acre	$500	$650	$975
Transport costs per acre	$125	$125	$250
Total net income per acre	$390	$375	$835

Hemp Fiber and Grain Growing Annual Profit

Main Assumptions:

Growing Area: 50 acres (year 1), 150 acres (year 2), 250 acres (year 3)
Estimated time to 100% yield: 4 months
Minimum investment required: about $800-$850 per acre

Potential returns from one scenario of hemp fiber and grain growth, year 3:

Revenue + $564,728
Direct Costs – $218,554 (38.7%)
Operational Costs -$42,684 (7.6%)
Operating Income = $303,490 (53.7%)
Net Income (after depreciation, interests and taxes) = $209,232 (37.0%)

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'70% ready to go' business plan templates

Our hemp cultivation financial models and hemp cultivation business plan templates will help you estimate how much does it cost to start and operate your own hemp growing business, to build all revenue and cost line-items monthly over a flexible seven year period, and then sums the monthly results into quarters and years for an easy view into the various time periods.

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