business plan for growing hemp

Hemp Farm Business Plan Template

Written by Dave Lavinsky

Hemp Farm Business Plan

You’ve come to the right place to create your Hemp Farm business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Hemp Farms.

Below is a template to help you create each section of your hemp farming business plan.

Sample Hemp Farm Business Plan

Executive summary, business overview.

Abundant Harvest Hemp Farm is a startup hemp farming business located in Boulder, Colorado. The company is founded by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp industry since it became legal in the state of Colorado in 2014. Now that Jeffrey and Sharon have gained the essential experience and know-how involved in running an industrial hemp production farm they are ready to start their own business. Jeffrey excels in operations management, equipment safety, and the growing process, while Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. Jeffrey and Sharon are confident in their combined abilities to effectively manage a profitable hemp business. The duo plans on recruiting a team of experienced farm hands to perform the essential tasks involved in running a successful hemp farm including cultivating, harvesting, and trimming hemp products (flower, leaves, stems, and biomass) to be sold to other companies who produce CBD oil products.

Abundant Harvest Hemp Farm will provide superior hemp that is harvested by hand to ensure the best quality. The company will be the premier choice in Colorado for CBD businesses looking for quality and value in hemp products. Abundant Harvest Hemp Farm will charge its customers reasonable prices for its hemp products that are on par with competition, but unlike most of the hemp farm businesses that are in direct competition, the company’s hemp will be available year-round.

Product Offering

The following are the products that Abundant Harvest Hemp Farm will provide:

• Hemp flower
• Hemp leaves
• Hemp biomass

Customer Focus

Abundant Harvest Hemp Farm is a B2B business that will target all CBD processing, manufacturing, and extraction companies in Colorado. They will target CBD companies who value high quality, hand-harvested products at fair prices. No matter the client, Abundant Harvest Hemp Farm will deliver the best communication, service, and quality products.

Management Team

Abundant Harvest Hemp Farm will be owned and operated by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp production business since it became legal in the state of Colorado in 2014.

Jeffrey Moore is a graduate of the University of Colorado with a Bachelor’s degree in Agriculture. He has been working at a local hemp farm since 2014 as a Master Grower. Jeffrey excels in operations management, equipment safety, and the growing process. He will oversee the farm hands, crops, and equipment.

Sharon Moore has a Bachelor’s degree in Business Management from Arizona University. Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. She will manage the company’s finances, inventory, sales, and client relations, while monitoring the global industrial hemp market for fluctuations and changes.

Success Factors

Abundant Harvest Hemp Farm will be able to achieve success by offering the following competitive advantages:

• Potent hand-harvested hemp that is high quality,  free of contaminants, and thoroughly inspected.
• Affordable prices for all customers and extra discounts for long-term contracts.
• Efficient indoor growing techniques using the latest technology to ensure high yields all year-round.

Financial Highlights

Abundant Harvest Hemp Farm is seeking $200,000 to launch its hemp farm business. The funding will be dedicated towards securing the land, building the indoor facility, and purchasing equipment and supplies. Funding will also be dedicated towards three months of operational costs, testing costs, and licensing costs. The breakout of the funding is below:

• Grow facility build-out: $70,000
• Equipment, supplies, and materials: $10,000
• Startup and operational costs: $90,000
• Testing and licensing costs: $2,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Abundant Harvest Hemp Farm.

Company Overview

Who is abundant harvest hemp farm.

Abundant Harvest Hemp Farm is a newly established hemp farm in Boulder, Colorado. Abundant Harvest Hemp Farm will be the most reliable, cost-effective, and efficient choice for CBD buyers in Boulder and the surrounding communities. Abundant Harvest Hemp Farm will provide superior hemp that is harvested by hand to ensure the best quality. The hemp farm will be the premier choice in Colorado for CBD companies looking for quality and value. Abundant Harvest Hemp Farm will charge reasonable prices for its hemp products that are on par with competition.

Abundant Harvest Hemp Farm will be able to manage the entire process of cultivation and harvesting. The owners will employ farm hands who have been working in the hemp business for several years to cultivate and harvest the hemp products. Abundant Harvest Hemp Farm removes all uncertainties and risks of potentially unsuccessful harvests from the buyer by ensuring its hemp products are reliably harvested all year-round while delivering the best customer service.

Abundant Harvest Hemp Farm History

Abundant Harvest is owned and operated by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp industry since it became legal in the state of Colorado in 2014. Jeffrey and Sharon have gained the essential experience and know-how involved in running a hemp farm they are ready to start their own business. Jeffrey excels in operations management, equipment safety, and the growing process, while Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. Jeffrey and Sharon are confident in their combined abilities to effectively manage a profitable hemp farm.

Since incorporation, Abundant Harvest Hemp Farm has achieved the following milestones:

• Registered Abundant Harvest Hemp Farm, LLC to transact business in the state of Colorado.
• Has selected the location for the facility and has begun negotiations for purchase of the property.
• Reached out to numerous contacts to include experienced farm hands to advise them on their upcoming hemp farm company in order to start recruiting employees.
• Began the licensing process to ensure compliance with all hemp farm regulations.

Abundant Harvest Hemp Farm Services

Industry analysis.

The global market for hemp is an estimated USD $205M (as of 2020) with an expected compound annual growth rate (CAGR) of 6%, increasing to $310M by 2027.  Hemp is produced commercially in over 30 countries around the world. The hemp market is segmented into textiles, hemp seeds, and hemp bio-composites.

The hemp market in North America is expected to reach USD $87.5M by the year 2027. Increased legalization of CBD oil products is boosting demand in the United States.

With segments that range from biomass, flower, extracts, isolates, and distillates, the CBD market offers a diverse set of products. Hemp oil is in high demand for pharmaceutical products, skin care products, topicals, edibles, and more.

Industry operators can maintain a competitive advantage by offering unique cultivation and harvesting techniques. For instance, hand-harvested plants can produce up to 5% more CBD than machine harvested plants, which destroys buds.

Customer Analysis

Demographic profile of target market, customer segmentation.

Abundant Harvest will primarily target the following customer profiles:

• Small CBD processing, manufacturing, extraction companies in Colorado who are looking for premium, hand-harvested hemp.
• Mid-sized CBD processing, manufacturing, extraction companies in Colorado who are looking for premium, hand-harvested hemp.

Competitive Analysis

Direct and indirect competitors.

Abundant Harvest Hemp Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.

Boulder Harvest Hemp Farm

Boulder Harvest Hemp Farm provides premium hemp for CBD oil producers. Located in Boulder, Colorado, Boulder Harvest Hemp Farm is able to provide a local source of hemp flower and biomass that can be used to make a variety of CBD products. The hemp is cultivated and harvested using the latest equipment and technology to ensure efficient production. Boulder Harvest Hemp Farm is also able to deliver its hemp directly to local customers.

Boulder Harvest Hemp Farm’s promise is to provide its customers with high quality hemp products that they can then use to create their signature CBD oils. The hemp farm uses a stringent quality control process to ensure its customers receive only the best of the hemp its crops produce. Any damaged or imperfect product gets thrown out. Boulder Harvest Hemp Farm’s team of experienced hemp farmers assures the quality of the product.

Greeny’s Hemp Farm

Greeny’s Hemp Farm is a Boulder-based hemp cultivation business that provides outstanding raw hemp products for its B2B customers. Greeny’s Hemp Farm provides high quality hemp products harvested from all parts of the plant – the flower, stem, leaves, and biomass. This ensures no part of the plant is wasted. The owners of Greeny’s Hemp Farm are long-time hemp farmers so they understand what goes into cultivating the ultimate crop. Clients can depend on their attention to quality in all of their processes to provide the best hemp possible. By choosing Greeny’s Hemp Farm, customers can rest assured they are getting hand-harvested hemp that has been thoroughly tested and evaluated before being carefully packaged and shipped out.

High Health Hemp Farm

High Health Hemp Farm is a trusted Colorado hemp company that provides superior hemp products to CBD oil brands in Boulder and the surrounding areas. High Health Hemp Farm is able to provide its products at low prices because it operates on a lean overhead model that allows the company to pass on its cost-savings to its customers. The indoor hemp farm uses the most advanced technology and equipment to harvest its product, ensuring high yield with few employees needed.

Competitive Advantage

Abundant Harvest Hemp Farm will be able to offer the following advantages over its competition:

• Potent hemp that is guaranteed to be high quality and free of contaminants due to the company’s thorough inspection process of its hand-harvested crops cultivated by skilled farm hands.
• The company’s efficient production techniques allow for cost-savings that are passed on to customers.
• Efficient indoor growing techniques using the latest technology to ensure high yields and year-round harvests.

Marketing Plan

Brand & value proposition.

Abundant Harvest Hemp Farm will offer the unique value proposition to its clientele:

• Potent CBD hemp available year-round that has been thoughtfully cultivated and thoroughly inspected for quality.
• Affordable prices for all and extra discounts for buyers with long-term contracts.

Promotions Strategy

The promotions strategy for Abundant Harvest Hemp Farm is as follows:

Website/SEO Marketing

Abundant Harvest Hemp Farm will create and maintain a professionally designed website. The website will be well organized, informative, and list all products that Abundant Harvest is able to provide. The website will also contain up-to-date information and informative content on hemp, the industry, CBD trends, and other issues that would be of interest to B2B clients. The company will use SEO marketing tactics so that any time someone types in the Google or Bing search engine “Boulder hemp farm” or “hemp farm near me”, Abundant Harvest Hemp Farm will be listed at the top of the search results.

Social Media Marketing

The company will use social media marketing tactics to expand its reach and gain new customers. Abundant Harvest will maintain an active presence on various social media platforms including Twitter, Instagram, Facebook, YouTube, LinkedIn, and TikTok.

Word of Mouth/Referrals

Jeffrey and Sharon Moore have built up an extensive list of contacts over the years by providing exceptional products and customer service to their B2B clients. Jeffrey and Sharon have reached out to these contacts to let them know about the new hemp farm. Many have already signed commitments to follow the Moore’s to their new company and help spread the word of Abundant Harvest Hemp Farm to their networks.

Professional Associations and Networking

Abundant Harvest Hemp Farm will become a member of professional associations such as the National Hemp Association, Hemp Industries Association, U.S. Hemp Roundtable, and the Colorado Hemp Association. They will attend industry events and focus their networking efforts on expanding their client network.

Print Advertising

Abundant Harvest Hemp Farm will invest in professionally designed print ads to display in programs or flyers at industry networking events, in industry publications, and for direct mailers that will be sent to various CBD companies.

The pricing of Abundant Harvest Hemp Farm will be moderate and on par with competitors so customers feel they receive value when purchasing its hemp products.

Operations Plan

The following will be the operations plan for Abundant Harvest Hemp Farm.

Operation Functions:

• Jeffrey and Sharon Moore will be the Co-owners of the company. Jeffrey will oversee all staff and equipment, while Sharon will manage the finances and client relations. Jeffrey and Sharon have spent the past year recruiting the following staff:
• John Stephens – Sales and Marketing Director who will provide all sales outreach and marketing activities for Abundant Harvest Hemp Farm.
• Maria Johnson – Staff Accountant who will assist Sharon by providing all client accounting, tax payments, and monthly financial reporting.
• Bill Martinez – Quality Control Manager who will oversee the inspection process for all crops throughout the cultivation and harvesting process.

Milestones:

Abundant Harvest Hemp Farm will have the following milestones complete in the next six months.

9/1/2022 – Finalize contract to purchase the land.

10/15/2022 – Begin build-out of the facility.

11/1/2022 – Finalize employment contracts for the management team and farm hands.

11/15/2022 – Begin networking at industry events and implement the marketing plan.

12/22/2022 – Begin the cultivation process for Abundant Harvest Hemp Farm’s first crop.

Abundant Harvest Hemp Farm will be owned and operated by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp industry since it became legal in the state of Colorado in 2014.

Sharon Moore has a Bachelor’s degree in Business Management from Arizona University. Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. She will manage the company’s finances, inventory, sales, and client relationships.

Financial Plan

Key revenue & costs.

The revenue drivers for Abundant Harvest Hemp Farm are the hemp farm fees they will charge to the B2B CBD oil companies for the hemp products. The company will charge between $150-$250 per pound for its hemp products.

The cost drivers will be the overhead costs required in order to maintain an indoor year-round hemp cultivation and harvesting operation. The expenses will be the payroll cost, equipment maintenance, utilities, supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials.

• Average number of pounds of hemp produced per year: 10,000
• Average amount in sales per year: $200,000
• Average operational costs per year: $140,000

Financial Projections

Income statement, balance sheet, cash flow statement, hemp farm business plan faqs, what is a hemp farm business plan.

A hemp farm business plan is a plan to start and/or grow your hemp farm. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your hemp farm business plan using our Hemp Farm Business Plan Template here .

What are the Main Types of Hemp Farms?

There are a number of different kinds of hemp farms, some examples include: Food-grade Hemp, CBD Hemp, Hemp for Textiles, and Industrial Hemp.

How Do You Get Funding for Your Hemp Farm Business Plan?

Hemp farms are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a hemp farming business plan, a cbd oil business plan or a cbd business plan template.

What are the Steps To Start a Hemp Farm Business?

Starting a hemp farm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Hemp Farm Business Plan - The first step in starting a business is to create a detailed hemp farming business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hemp farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hemp farm business is in compliance with local laws.

3. Register Your Hemp Farm Business - Once you have chosen a legal structure, the next step is to register your hemp farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your hemp farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Hemp Farm Equipment & Supplies - In order to start your hemp farm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hemp farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Additional Helpful Template

Farm Business Plan

Hemp Farm Business Plan Template

Written by Dave Lavinsky

Hemp Farm Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their business. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hemp farm business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Hemp Farm Business Plan?

A business plan provides a snapshot of your hemp farm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Hemp Farm

If you’re looking to start a hemp farm, or grow your existing hemp farm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your hemp farm in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Hemp Farm Businesses

With regards to funding, the main sources of funding for a hemp farm are personal savings, credit cards, USDA/FSA loans, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a hemp farm is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a hemp farm. They might consider funding a hemp farm company with locations across the country, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

How to write a business plan for hemp farming.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hemp farm you are operating and the status; for example, are you a startup, do you have an existing hemp farm that you would like to grow, or are you operating a network of hemp farms?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the hemp industry. Discuss the type of hemp farm you are running. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of hemp farm you are running.

For example, you might operate one of the following types:

• Food-grade hemp: this type of hemp farm grows hemp for its seeds, which may be consumed in raw or roasted form, or pressed for oil and milk
• CBD hemp: this type of hemp farm grows hemp for the extraction of CBD from leaves and stalks. CBD hemp farms may also manufacture hemp products such as oils, supplements, or personal care products.
• Hemp for textiles: this type of hemp farm sells hemp plants to fabric producers
• Industrial hemp: this type of hemp farm grows hemp for industrial uses such as the production of paper, sanitary items, and biodegradable plastic

In addition to explaining the type of hemp farm you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, plantation acreage, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the hemp industry.

First, researching the hemp industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the hemp industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your hemp. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

These are examples of customers segments: Manufacturers, specialty retailers, end consumers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of hemp farm you operate. Clearly, manufacturers would want different services, and would respond to different marketing tactics than end consumers.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, if you are targeting end consumers, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most hemp farms primarily serve customers living in their same region, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other hemp farms.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes imports and other cannabis cultivators. You need to mention such competition to show you understand that not all fiber or supplement demand will be fulfilled by hemp.

With regards to direct competition, you want to detail the other hemp farms with which you compete. Most likely, your direct competitors will be hemp farms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of product creation do they engage in?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products?
• Will you provide products or services that your competitors don’t offer?
• Will you make it easier or faster for customers to purchase your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hemp farm, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of hemp farm that you documented in your Company Analysis. Then, detail the specific services you will be offering.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products and services you offer and their prices.

Place : Place refers to the location of your hemp farm. Document your location and mention how the location will impact your success. For example, is your hemp farm in a central location that will make transportation easier, etc. Discuss how your location might allow you to serve a greater volume of customers.

Promotions : the final part of your hemp farm marketing plan is the promotions section. Here you will document how you will drive customers to your business. The following are some promotional methods you might consider:

• Advertising in trade magazines
• Attending trade shows
• Advertising in local papers and magazines
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your hemp farm, such as tilling, planting, growing, and harvesting the crop, maintaining equipment, staying abreast of new technology and/or regulatory developments, processing paperwork, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to plant your 100 th acre, or when you hope to reach $X in sales. It could also be when you expect to purchase additional acreage, or when you expect to launch a new location.  

Management Team

To demonstrate your hemp farm’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in agriculture. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in hemp or farming in general and/or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you plant 40 acres or 400? Or will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $250,000 on building out your hemp farm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a manufacturer approached you with a $500,000 contract for hemp fiber, that would cost you $350,000 to fulfill. Well, in most cases, you would have to pay that $350,000 now for inputs such as seed and soil amendments, employee salaries, equipment, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hemp farming business:

• Location build-out including land preparation fees, construction of barns and production facilities, etc.
• Cost of equipment
• Payroll or salaries paid to staff
• Business and liability insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your hemp farm design blueprint or location lease.  

Putting together a business plan for your hemp farm company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the hemp industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful hemp farm.  

Hemp Farm Business Plan FAQs

What is the easiest way to complete my hemp farm business plan.

Growthink's Ultimate Business Plan Template  allows you to quickly and easily complete your Hemp Farm Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hemp farm business you are operating and the status; for example, are you a startup, do you have a hemp farm that you would like to grow, or are you operating multiple hemp farms.

Don’t you wish there was a faster, easier way to finish your Hemp Farm business plan?

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How to Start a Hemp Farm

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 30, 2023 Updated on May 15, 2024

Investment range

$45,800 - $1,077,300

Revenue potential

$200,000 - $400,000 p.a.

Time to build

12 – 18 months

Profit potential

$40,000 - $80,000 p.a.

Industry trend

Hemp is a versatile and relatively easy to grow plant that can be made into a variety of products, including rope, textiles, clothing, biofuels, and more. It can also be grown for CBD production. Hemp farming is also a rapidly growing industry, worth nearly $1 billion in the U.S. alone. If you have some land and want to try your hand at farming, hemp could be a great profit maker.

But before you start planting, you’ll need to understand the business. Luckily, this step-by-step guide details all you need to know to start a successful hemp farm.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

• Rapidly growing market
• Good for the environment
• Relatively easy crop to grow
• Regulated industry
• Hemp farming for fiber takes many acres to make a substantial profit

Hemp farming industry trends

Industry size and growth.

• Industry size and past growth – The U.S. industrial hemp production industry is worth $938.6 million in 2023 after growing 46.5% annually for the last five years.(( https://www.ibisworld.com/united-states/market-research-reports/industrial-hemp-production-industry/#:~:text=Industrial%20hemp%20production%20revenue%20is,expected%20to%20account%20for%207.8%25. ))
• Growth forecast – The U.S. industrial hemp production industry is projected to grow 2.7% in 2023.
• Number of businesses – In 2023, 9,410 industrial hemp production businesses are operating in the U.S.
• Number of people employed – In 2023, the U.S. industrial hemp production industry employs 36,026 people.

Trends and challenges

• Most hemp in the U.S. is grown for CBD oil because it’s the most profitable produce.
• Many USDA programs are available now for hemp farmers.
• The THC levels of hemp grown must stay within legal standards.
• Labor costs for hemp planting and production are extremely high, reducing the profit margins of hemp farms.

How much does it cost to start a hemp farm business?

Startup costs for a hemp farm if you already have the land are about $50,000, the bulk of which is a labor and operating budget. If you’re going to purchase land, your costs could be upwards of $1 million.

You’ll need a handful of items to successfully launch your hemp farming business, including: 

• Transplanter
• Irrigation system

How much can you earn from a hemp farming business?

When you grow hemp for CBD, you can probably make about $20,000 per acre per year in revenue. Your profit margin after labor and operating costs should be about 20%. 

In your first year or two, you could farm 10 acres, bringing in $200,000 in revenue. This would mean $40,000 in profit, assuming that 20% margin. 

As you gain traction, you might farm 20 acres. With annual revenue of $400,000, you’d make a tidy profit of $80,000.

What barriers to entry are there?

There are a few barriers to entry for a hemp farm. Your biggest challenges will be:

• Having or purchasing adequate land
• Learning the process of hemp farming

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Step 2: hone your idea.

Now that you know what’s involved in starting a hemp farm, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Analyze your competitors 

Research hemp farms to examine their products, price points, and what sells best.

• Make a list of hemp farms that offer similar products. 
• Review your competitors’ products – their features, pricing, and quality – and marketing strategies
• Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a hemp farm that grows for seed production, or a hemp farm with a hemp processing facility.

You might consider targeting a niche, such as CBD oil.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products

You’ll need to decide what type of hemp you want to grow and get the right hemp seeds . You could grow for the fiber that will be used for textiles, etc., for seeds, or for CBD oil.

How much should you charge for hemp?

Your prices should depend on market prices, but also on your production costs.

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will likely be companies that make CBD products. You can connect with business owners on LinkedIn, or you can call them directly.

Where? Choose a hamp farm location

If you don’t have land, you’ll need to engage with a real estate agent to find suitable land that meets zoning requirements. Choosing a hemp farm location involves considering various factors to ensure the growth of healthy and productive plants. Here are the important factors to consider:

• Climate : Hemp thrives in a mild climate with adequate rainfall (25-30 inches annually). Check local weather data for consistency.
• Soil Quality : Opt for well-draining soil with a pH of 6-7.5. Sandy loam is ideal. Conduct soil tests to check nutrient levels and potential contaminants.
• Topography : Flat or gently sloping terrains are best for machinery access and efficient water drainage.
• Water Access : Ensure a reliable water source for irrigation, especially during dry periods.
• Sunlight : Choose a location with maximum sunlight exposure, as hemp requires at least 12-14 hours of daylight during its growing season.
• Local Regulations : Verify that hemp cultivation is legal in the chosen location and understand local regulations concerning THC levels, seed sourcing, and reporting.
• Pest & Disease Pressure : Check the history of the land. Previous crops can indicate potential pest or disease issues. Rotate crops to prevent soil-borne diseases.
• Proximity to Markets : Consider transportation costs and choose a location near potential buyers or processing facilities to reduce expenses.
• Neighboring Crops : Avoid cross-pollination issues, especially if you’re growing hemp for CBD. Ensure there’s a buffer between your hemp farm and potential pollen sources, like marijuana farms or other hemp varieties.
• Infrastructure : Ensure easy access to roads, storage facilities, and other necessary infrastructure.

Step 3: Brainstorm a Hemp Farm Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “hemp” or “CBD hemp”, boosts SEO
• Name should allow for expansion, for ex: “GreenFuture Farms” and “EarthBounty Enterprises” over “HempHarvest Haven” and “PureHemp Fields”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Hemp Farm Business Plan

Here are the key components of a business plan:

• Executive Summary: Provide a concise summary of your hemp farm business, including its purpose, location, and anticipated growth.
• Business Overview: Describe your hemp farming venture, highlighting the types of hemp products you plan to cultivate, such as CBD oil, fiber, or seeds.
• Product and Services: Detail the specific hemp products you will produce, along with any additional services like processing or distribution.
• Market Analysis: Analyze the hemp market, considering factors like demand for hemp-based products, legal regulations, and potential customer demographics.
• Competitive Analysis: Identify other hemp farms or suppliers in your region, emphasizing what differentiates your farm, such as organic farming practices or unique strains.
• Sales and Marketing: Explain your strategies for selling hemp products, including distribution channels, partnerships with retailers, and online marketing efforts.
• Management Team: If applicable, introduce key team members, such as agricultural experts, cultivators, and business administrators, showcasing their qualifications.
• Operations Plan: Describe the day-to-day operations of your hemp farm, from planting and harvesting to quality control and compliance with hemp regulations.
• Financial Plan: Present financial projections, including startup costs, crop yields, pricing models, and revenue expectations based on product sales and distribution.
• Appendix: Include any relevant certifications, licenses, or affiliations with agricultural organizations, as well as test results for hemp products if available.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to hemp farms. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your hemp farm will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company ( LLC ) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.  Here’s how to form an LLC .
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.  Read how to start a corporation here .
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital: Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like  Kickstarter  and  Indiegogo  offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like  Fundable  and  WeFunder  enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Your best bet may be to check the USDA website for programs you may be eligible for. 

Step 8: Apply for Licenses/Permits

Starting a hemp farm business requires obtaining a number of licenses and permits from local, state, and federal governments.

You’ll need either a state issued hemp license or be licensed with the USDA. Check with your state for specific requirements.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your hemp farm business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as  AgCode , farmbrite , or FarmLogic , to manage your planting records, crop care, and sales.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now” or “Order”. This can sharply increase purchases. 

Here are some powerful marketing strategies for your future business:

• Educational Workshops and Events: Host workshops or events to educate the community about the benefits of hemp, its various uses, and sustainable farming practices; this positions your farm as a knowledgeable and trustworthy source.
• Local SEO  — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Partnerships with Health and Wellness Stores: Forge partnerships with local health stores, gyms, and wellness centers to distribute your hemp products, tapping into an existing customer base interested in natural and holistic remedies.
• Social Media Challenges and Giveaways: Leverage social media platforms by organizing challenges or giveaways that encourage users to share their experiences with your hemp products, creating buzz and user-generated content.
• Farm Tours and Open Houses: Open your doors to the public through farm tours and open houses, offering a firsthand look at your cultivation process and fostering a connection between consumers and your brand.
• Community Sponsorships: Sponsor local events, sports teams, or community initiatives to enhance brand visibility, build trust, and showcase your commitment to the local community.
• Environmental and Social Responsibility Campaigns: Highlight your commitment to sustainability and social responsibility in your marketing campaigns, appealing to environmentally conscious consumers who align with eco-friendly practices.
• Collaboration with Influencers: Partner with influencers in the health, wellness, or sustainability niche to authentically promote your hemp products, reaching a wider audience and gaining credibility through trusted voices.
• Product Bundles and Loyalty Programs: Introduce product bundles that showcase the versatility of hemp and create customer loyalty programs to incentivize repeat purchases, fostering long-term relationships with your consumer base.
• Local Farmers’ Markets and Festivals: Set up stalls at local farmers’ markets and festivals to directly engage with potential customers, allowing them to sample and purchase your hemp products while enjoying community events.
• Customer Testimonials and Case Studies: Showcase success stories and testimonials from satisfied customers or even conduct case studies, providing evidence of the effectiveness and quality of your hemp products to build trust among potential buyers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your hemp farm meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your hemp farm business could be:

• Promoting environmentally friendly practices and producing high-quality hemp using organic and sustainable farming methods
• Cultivating hemp strains with high levels of cannabidiol (CBD) to meet the increasing demand for CBD-based products in the market
• Providing full traceability throughout the cultivation and production process, ensuring customers know the origin and quality of the hemp products they purchase

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a hemp farm business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in hemp farms for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in hemp farms. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a hemp farm business include:

• Laborers – plant and tend to crops, harvest hemp
• Salesperson – sell hemp products
• General Manager – manage crops, accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Hemp Farm – Start Making Money!

Since hemp farming became legal in 2018, the industry has taken off and is worth nearly $1 billion. It could be a great time to get in on the action by starting your own hemp farm. It’s a great way of life, and you can make a nice living. As the market continues to grow, you could expand your farm and build a hemp empire.

You’ve got the business know how now, so you’re ready to plant your seeds and get your successful hemp farm up and running!

• Hemp Farm Business FAQs

Yes, a hemp farm can be profitable. The profitability of a hemp farm depends on several factors, including the market demand for hemp and its derived products, the quality of the crops produced, the efficiency of the farming operations, and the ability to navigate regulatory requirements. Hemp is used in various industries, such as CBD products, textiles, food, and construction, presenting opportunities for revenue generation.

During a typical day at a hemp farm, various tasks are carried out to ensure proper cultivation and maintenance of the crops. These activities may include preparing the soil, planting and transplanting hemp seedlings or clones, irrigating the fields, applying fertilizers or nutrients, monitoring plant health, controlling pests and weeds, harvesting mature plants, and drying and curing the harvested hemp.

The growth potential of a hemp farm can be significant. As the demand for hemp and its derived products continues to rise, the market presents opportunities for expansion. Factors such as increasing consumer awareness, the legalization of hemp cultivation in various regions, and the development of new applications for hemp contribute to its growth potential.

A hemp farm can be classified as an agricultural business. It involves the cultivation and production of hemp plants for various purposes, such as CBD extraction, fiber production, seed harvesting, or other hemp-derived products.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Hemp Farm Name
• Create a Hemp Farm Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Hemp Farm - Start Making Money!

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How to Create a Business Plan for Hemp Farming

Interest in industrial hemp farming continues to build as more states follow the federal Farm Bill of 2018's lead and approve expansion of hemp production. But as the industry grows, many farmers will inevitably face some of the industry's unique challenges.

Whether you're considering hemp farming or have already incorporated it into your business, navigating these challenges can be tricky. But with some thoughtful planning and the help of an experienced hemp banker, you can better prepare for potential hurdles your business may face.

Set a business plan for hemp farming

Before clearing a field or turning over soil, you'll need to understand the costs of starting a hemp farm, along with the potential for future profit. A business plan for industrial hemp farming is often a necessity for those seeking a loan or other funding.

"In addition to the importance of having a strong business plan to help guide your day-to-day business decisions, business plans are an important component of establishing a lending relationship with most financial institutions," says Ryan Palmquest, Director of Hemp Business at First Citizens. "In fact, having a business plan or financial forecast in place before applying for a loan can help expedite the approval process."

Business plans generally include standard items, such as market information and financial projections. Not only is this information useful for investors or hemp-focused bankers, but it can also help you map out your new agricultural business and provide guidelines for spending and growth to keep you on track over the first several years.

Write a mission statement

Why are you starting a hemp farm? What are you hoping to achieve with this new opportunity? Writing a short mission statement allows you to narrow your focus and set goals for your new hemp farm.

Your final mission statement should communicate to others why you're in the hemp business, why you believe you can be successful and what you hope to accomplish in the industry. It can also help define your target customer. Will you sell hemp to textile companies, smaller businesses or both?

Develop a hemp business summary

In addition to a mission statement, your business plan should include a longer, more detailed description of your hemp farm. Describe your location, the size of your farm, how much hemp you intend to grow each year and any agriculture business or farming experience that will help you be successful. It may be helpful to read over the US Department of Agriculture, or USDA , Checklist for New Farms ( PDF ) to make sure you fully understand what you need to set up an agriculture business, such as agribusiness insurance , a business license or certificate, and the necessary equipment.

Your hemp business summary should also provide information about the local market for hemp. List some of your potential customers or local hemp buyers, and provide information on any established business relationships you intend to rely on as you start out. You may also want to discuss local competitors and point out any competitive advantage between your farm and theirs.

You also may want to include information on how you intend to set up your farm to comply with federal and state regulations, as well as how you plan to stay informed on the latest research. The USDA regulates hemp production under the US Domestic Hemp Production Program , while research into hemp farming is funded by its National Institute of Food and Agriculture to uncover best practices and new uses for the plant.

Plan your financial projections

The final component of your business plan will contain multi-year profit and loss projections. List out the anticipated costs of starting a hemp farm, and project your expected profit over the first 5 years. Your projections should include the following key items.

• Startup costs: Generally, these costs are one-time expenses, such as the land purchases, storage facilities and business software to help you maintain your finances. You'll also need to decide if you want to purchase or lease farm equipment .
• Ongoing expenses: These are the annual costs of operating your farm, such as seed, irrigation, fertilizer and labor.
• Projected income: As you begin to harvest, process and sell hemp, you'll make money from crop sales. Develop a projection to show how much you expect to produce and sell each year for the first 5 years.

Creating a business plan for hemp farming will ensure you're following a clear path and have a firm understanding of what it takes to start an agriculture business. A business plan is also required when applying for a farm loan.

As you progress through your first season of hemp farming, don't forget to review your plan periodically and update the document with new information and financial projections. It's also important to establish and maintain a solid banking relationship so you're financially prepared for anything that comes your way.

As a hemp-friendly bank, our market specialists have a deep understanding of the financial challenges you face in the business of hemp, including the complex nuances of the current regulatory environment. Learn more about our hemp expertise or connect with a hemp banker to get started.

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How To Write a Business Plan for Hemp Farm in 9 Steps: Checklist

By henry sheykin, resources on hemp farming.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Are you looking to start a business in the fast-growing hemp industry ? With the legalization of hemp in many parts of the world, the demand for products made from hemp is skyrocketing. According to the Hemp Business Journal, the global market for hemp products is estimated to reach $5.7 billion by 2020.

If you're interested in starting a hemp farm business, you need a solid plan. A business plan will help you define your objectives, set realistic goals, and identify potential challenges. In this article, we'll provide you with a 9-step checklist to guide you through the process of writing a business plan for a successful hemp farm.

Whether you're planning to produce hemp for paper, insulation, cosmetics, textiles or biofuel, these steps are essential to starting and running a successful hemp farm business. Keep reading to find out what it takes to get started in the hemp industry!

Conduct Market Research

Before investing resources into a hemp farm, it is critical to conduct thorough market research to identify potential customers and competitors. By understanding the current state of the market, you can better position your hemp farm to take advantage of opportunities and avoid potential pitfalls.

Here are some key areas to focus your market research:

• Identify the specific industry sectors that use hemp as a raw material for their products. These might include industries such as textiles, paper, building materials, cosmetics, and food and beverage.
• Determine the demand for hemp-products within these industries. Is there a growing trend towards using hemp instead of synthetic or other natural fibers? How much growth is projected in these industries and specific product lines?
• Understand the regulatory situation - is there a clear pathway to licensing for hemp farms in your region? What restrictions and regulations exist around the growing and processing of hemp? Is there a clear demand for locally grown hemp?
• Research your competitors - identify other hemp farms, both locally and nationally, and assess their products, pricing, marketing strategies, and any gaps that may exist in the market that your hemp farm could fill.
• Join online forums and social media groups related to the hemp industry.
• Attend industry trade shows and conferences to network and get an overview of industry trends.
• Seek out government and regulatory agencies that govern the hemp industry for up-to-date legislation information.

Conducting thorough market research will help you to better understand the potential for success in the hemp industry and to make informed decisions about the best way to position and market your hemp farm.

Determine Target Market and Industry Trends

Before starting a hemp farm, it is important to determine who your target market is for the hemp products you will be producing. This will help you understand what type of hemp to grow and how to market your products. The hemp market can be segmented into multiple categories such as paper, insulation, cosmetics, textiles, and biofuel. Identify which of these categories are most popular in the market and which have the most potential growth.

Next, research the industry trends for hemp products. Are there any new uses for hemp that are gaining popularity? Are there any companies developing new hemp products or changing the processing of hemp? Understanding these trends will help you create a business plan that is relevant and up-to-date with the industry.

• Conduct market research by reading trade publications and attending industry conferences.
• Identify your core customers and make sure your products meet their needs and expectations.
• Consider partnering with other businesses to maximize distribution and promotion of your hemp products.

By researching your target market and industry trends, you will gain valuable knowledge that will help you make informed decisions about the type of hemp to grow, the products to produce, and the marketing strategies to adopt. Keep in mind that the hemp industry is constantly changing and evolving, so stay on top of the latest trends and news to ensure your business remains competitive and successful.

Assess Startup Costs

Before starting a hemp farm, it is important to have a clear understanding of the startup costs involved. This will help you determine how much funding or investment you will need to secure before starting the business.

One of the most significant expenses will be the cost of the land and equipment required for cultivating, harvesting, and processing hemp. You will also need to budget for labor costs, transportation costs, insurance, and marketing expenses.

To assess your startup costs, consider the following:

• Land and Equipment: The cost of purchasing or leasing land and equipment can vary based on location and scale of the operation. Make sure you research the local property values and prices for farming equipment to get a better understanding of what you will need to budget for.
• Labor Costs: Determine how many employees you will need to hire and what their salaries will be. It is also important to factor in the cost of benefits and taxes.
• Transportation Costs: You will need to transport hemp from the farm to the processing facility and then to the customer. Budget for fuel, maintenance, and other expenses associated with transportation.
• Insurance: Protect your investment and business by purchasing adequate insurance coverage for your farm and products.
• Marketing Expenses: Develop a marketing plan and budget for marketing and advertising expenses such as website development, search engine optimization, content creation.
• Be realistic and conservative when assessing your startup costs. It is better to overestimate than underestimate and be caught short later on.
• Consider using a business plan template or software to help you organize and estimate your costs more accurately.
• Seek advice from experienced hemp farmers and industry experts to get a more realistic estimate of the costs involved in starting a hemp farm.

Assessing your startup costs will give you a clearer understanding of the funding or investment you will need to get your hemp farm business off the ground. Be thorough in your research, and ensure you have realistic estimates for all the costs involved.

Secure Funding or Investment

Starting a hemp farm business requires a significant amount of capital. A substantial investment is needed to secure a suitable property, purchase equipment, and hire knowledgeable staff. Therefore, it is crucial to secure adequate funding or investment to ensure a successful launch of the business.

Here are important steps to follow:

• Research potential funding sources: Research potential funding sources and identify the ones that are relevant to the hemp industry. There are various financing options, including bank loans, grants, venture capital, angel investors, and crowdfunding. It is essential to choose a funding source that aligns with your business needs and goals.
• Create a detailed business plan: Create a detailed business plan that presents a clear overview of the business, including financial projections, marketing strategies, and operational plans. The business plan should be comprehensive enough to convince potential investors that your business is a worthy investment.
• Look for investors: Look for investors who are interested in investing in the hemp industry. Attend industry events, seminars, and conferences, and network with potential investors. Also, consider partnering with other businesses that use hemp to create mutually beneficial relationships.
• Explore government funding: Look for government-funded programs that support agricultural businesses. Check for grants or loans that are specifically targeted towards growing hemp.
• Consider crowdfunding: Consider crowdfunding as another option for financing your hemp farm business. Crowdfunding platforms enable entrepreneurs to reach out to a large pool of potential investors who are interested in supporting innovative businesses.
• Be prepared to provide detailed financial statements to potential investors.
• Ensure that your business plan addresses all the key aspects of your hemp farm business.
• Be realistic about your financial projections, and don't overestimate your revenue potential.
• Build relationships with potential investors and investors already in your circle.
• Stay informed about trends and regulations within the hemp industry.

Securing adequate funding or investment is a critical step towards launching a successful hemp farm business. It is important to explore all potential funding options, create a detailed business plan, network with potential investors, and stay informed about industry trends and regulations.

Gather Necessary Permits And Licenses

When starting a hemp farm business, it is crucial to obtain the necessary permits and licenses to operate within your location legally. The regulations around hemp farming and production vary from state to state, so it is essential to consult with local government agencies to make sure you are complying with all requirements.

• Apply for a hemp license: Before starting your hemp farm business, you will need to obtain a license to grow hemp. This includes submitting an application to the state or the Department of Agriculture and paying any relevant fees.
• Comply with zoning and land-use regulations: Check with the municipal government to ensure that your location is zoned for agricultural use and that the land is suitable for hemp farming. Be sure to adhere to any regulations regarding pesticide use, water extraction, waste management, etc.
• Obtain necessary certifications: Depending on what kind of hemp products you plan to produce, you may need to obtain specific certifications or permits. For example, if you want to produce hemp for food, you may need to obtain a food processing license or a Good Agricultural Practices (GAP) certification.
• Apply for permits to transport and sell: You will also need to apply for permits to transport and sell your products. This will involve registering your business with the state, obtaining a tax ID number, and securing a permit to sell agricultural products.

Tips for Obtaining Permits and Licenses

• Do your research early on to determine which permits and licenses you will need to operate legally in your area.
• Be sure to give yourself plenty of time to obtain permits and licenses before starting your business. The process can be time-consuming, so it's best to start early.
• Consider hiring an attorney or consultant who is familiar with hemp farming regulations and can guide you through the process.

Once you have received all required permits and licenses, you can begin the process of creating your hemp farm business plan and preparing to launch your business.

Choose The Location Of The Farm And Assess Land Suitability

Choosing the right location for your hemp farm is crucial for its success. The ideal location must have good soil quality, access to water, proper drainage, and ideal weather conditions. Assessing the suitability of the land is a critical step that needs to be taken before making a final decision on the location. Here's what you need to do:

• Conduct a soil test: The first step in assessing the suitability of the land is to conduct a soil test. This test will determine if the soil has the right pH level, nutrient content, and texture suitable for growing hemp.
• Check for water accessibility: Access to water is crucial for any farm, but it's especially important for a hemp farm. Hemp plants require a lot of water during their growing phase, so it's important to ensure that there's a reliable source of water nearby.
• Assess drainage: Hemp plants can't sit in water for long periods, so it's essential to assess the drainage capacity of the land. Excess water can cause the roots of the hemp plant to rot, leading to stunted growth and crop failure.
• Consider the weather conditions: Hemp plants require a lot of sunlight for optimal growth, so it's important to consider the weather patterns in the area. Look for locations with long days and plenty of sunshine. Also, make sure to choose an area that's not susceptible to extreme weather conditions like severe winds, hailstorms, or flooding.
• Consider investing in a Geographic Information System (GIS) to analyze the quality of the land and identify suitable areas to grow hemp.
• Leasing land could be a better option for new farmers since it means lower costs, and it allows them to test their farming skills without making a significant investment.

Assessing the suitability of the land for your hemp farm is critical in ensuring the success of your business. Always seek the advice of experts like agriculture extension agents, county officials, and local farmers when assessing the land to ensure that you're making an informed decision.

Decide On The Types Of Hemp Products To Produce

One of the most critical decisions you'll make in starting a hemp farm is what types of products to produce. Hemp has a variety of uses, from textiles and paper to building materials and fuel - and that's only scratching the surface. Your decision will determine the direction of your business, target audience, and branding strategy.

The first step in making this decision is to conduct market research to determine the demand for different hemp products. Identify which products are in high demand, and also consider which products fit your strengths and expertise. Take note of product pricing, as well as production and distribution costs

Consider offering different types of hemp-based products to capture a wider market range . This could include products such as CBD oil, fabric, paper products, and hemp milk. Assess which products are the most profitable and can be realistically produced at your farm.

• Partner with other companies to produce specialized hemp products, such as building materials and fuel.
• Keep in mind that producing a wider range of products can also mean a more extensive distribution network, which can increase costs.

As you research the market and consider product options, consider what kind of brand image you want to portray. Are you going to focus on environmentally-friendly products? Or do you want to be known for a specific type of hemp product, such as high-quality CBD oils?

In conclusion, deciding on the types of hemp products to produce requires a careful balance of market research, cost analysis, and branding strategy. By offering top-quality products and establishing a unique presence in the industry, you'll have the foundation for a successful hemp farm business.

Develop A Marketing And Branding Plan

A strong marketing and branding plan is necessary to differentiate your hemp farm and products from competitors in the marketplace. This plan should outline your target audience, the benefits of your hemp products, and how you plan to promote and sell them.

• Identify your target market: Determine who your ideal customers are. Are you targeting businesses that utilize hemp in their products? Or are you focusing on consumers looking for natural and sustainable products?
• Highlight the benefits of your hemp products: Showcase the benefits your hemp products offer compared to traditional products. For example, hemp paper is more sustainable and environmentally-friendly than traditional paper.
• Create a strong brand identity: Develop a memorable name, logo, and tagline that speaks to your target audience.
• Establish an online presence: Create a website that showcases your products, mission, and values. Utilize social media platforms to engage with your audience and promote your products.
• Create a promotional strategy: Develop a plan to promote your hemp products to your target audience. Consider attending industry conferences and events, creating targeted ads, and building relationships with businesses that use hemp.
• Partner with influencers or bloggers who are passionate about sustainability and natural products to promote your brand.
• Include educational content on your website to educate your audience about the benefits of hemp-based products.
• Find unique ways to showcase your hemp products, such as hosting events or partnering with local businesses.

By developing a strong marketing and branding plan, your hemp farm and products will be able to stand out in a competitive market and attract both businesses and consumers looking for sustainable and natural products.

Create A Production Plan And Timeline

Once you have determined the types of hemp products you will produce, it's time to create a production plan and timeline. This plan will outline the steps you need to take to produce your products efficiently and effectively.

The production plan should include the various stages of hemp cultivation, harvesting, processing, and storage, and how long each stage will take. Consider the following factors when creating your plan:

• Availability of labor and equipment
• Seasonal changes and weather patterns
• Harvesting and processing techniques
• Quality control measures
• Storage and packaging requirements

Once you have a detailed production plan, you can create a timeline for each stage of production. This will help you identify any bottlenecks or areas where improvements can be made to increase efficiency and productivity.

Here are some tips to consider when creating your production plan:

• Make sure you have enough manpower, equipment, and supplies to handle production efficiently.
• Use technology and automation wherever possible to speed up the production process.
• Set realistic targets for each stage of production, and monitor progress regularly.
• Ensure that quality control measures are in place at all stages of production to maintain consistent quality.
• Plan for contingencies, such as weather disruptions or equipment breakdowns, to avoid delays in production.

By creating a detailed production plan and timeline, you can ensure that your hemp farm operates efficiently and produces high-quality products that meet customer needs. Regularly reviewing and updating your production plan will help you identify areas for improvement and maintain a competitive edge in the market.

Starting a hemp farm business requires an in-depth business plan to succeed. By following these 9 steps, you can write a comprehensive plan that incorporates industry research, startup costs, location selection, product development, marketing, and production plans. Investing time and effort into building a solid plan is crucial for attracting investors, securing necessary licenses and permits, and differentiating your hemp farm business from the competition.

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How to Start a Hemp Farm in 14 Steps (In-Depth Guide)

Updated:   January 17, 2024

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The global industrial hemp market hit over $5 billion in 2023. an over 10-fold increase. Strong growth will come from hemp-derived CBD products as consumer acceptance increases and more retail distribution channels carry hemp products. Opportunities also exist on the cultivation side. Hemp farming itself is rising with the demand for quality biomass.

As more states draft legislation for hemp production programs, now could be an ideal time to explore starting a licensed hemp farm. You can sell harvested material to processors extracting CBD oil, produce your own CBD products, or break into niche markets like hempcrete building materials.

This guide will walk you through how to start a hemp farm. Topics include sourcing hemp seeds and equipment, analyzing competing hemp farmers in the area, forming a hemp farm business plan through market research, forming an LLC, obtaining business insurance, and more.

1. Conduct Hemp Farm Market Research

Market research is essential to starting a hemp crop business. It offers insight into the best hemp plants, market saturation for licensed hemp producers, the best methods to grow hemp, and details on your target market.

Some details you’ll learn through hemp seed and farming market research include:

• A key driver of growth comes from the rising demand for hemp-derived CBD.
• Consumer adoption continues rising as CBD becomes more mainstream and trusted for wellness benefits backed by a growing body of research.
• More retail channels now carry CBD too, even pharmacies have added CBD topicals.
• While the lucrative opportunity seems to be in downstream products like CBD oil, opportunities in hemp cultivation and biomass production are expanding too.

That market price, along with yield size, will determine potential hemp farming revenues. Certain variables like genetics, planting density, harvesting timelines, and cultivation environment (outdoor, greenhouse, indoor) impact yields. So maximizing per acre output is vital for profitability.

2. Analyze the Competition

Analyzing the competition is critical for those looking to start a hemp farm business. This includes evaluating nearby brick-and-mortar farms producing similar crops and assessing the online presence of leading farms across your state and the country.

Some methods of getting to know industrial hemp farming competitors include:

• Identifying all operations within a 50-mile radius then use the USDA’s Ag Census data to compare acres in production, total revenues, number of employees, and other attributes.
• Driving by each farm and observe factors like growing/drying/storage facilities and environmental control equipment that impact yields.
• Talking to local wholesale CBD processors and determine which farms supply them currently.
• Evaluating online competition is equally important nowadays.
• Searching for highly rated CBD brands then work backwards to identify their supplying farms.
• Analyzing social media and website content of leading farms to set competitive benchmarks for positioning, photography/videography, content strategy, and more.
• Regularly monitoring competitor posts and SEO rankings to assess website traffic, follower growth, and engagement levels.

See which are rapidly gaining traffic and trace back to inform your inbound marketing and SEO approach. The most successful hemp farms today combine robust online visibility with high-quality cultivation practices. Doing competitive analysis on both fronts will set your future farm up for success.

3. Costs to Start a Hemp Farm Business

Starting a profitable hemp farm requires an extensive upfront investment to secure land, equipment, infrastructure, genetics, and staff. Based on my decades of experience assisting agricultural entrepreneurs. Here is an overview of typical startup and ongoing costs most hemp farmers encounter starting a hemp program.

Start-up Costs

• The first major startup cost is securing adequate acreage of prime farmland conducive to hemp production. Plan on a budget of $2,500 – $7,000 per acre to purchase or long-term lease property.
• Most successful CBD-focused farms start with at least 50 acres which would require around $150,000 upfront even if leasing.
• Essential farm equipment like tractors, tillers, planters, and irrigation systems can run $50,000 or more depending on acreage and level of automation.
• Drying/curing facilities are equally critical; high-capacity modular options run $200,000.
• Factor in another $25,000 for supplies like planting containers, soil amendments, pest control, and fertilizer.

Ongoing Costs

• Ongoing agronomy testing will be necessary too, about $1,000 per field test.
• Access to superior genetics can dictate yields; cloned seedlings from plant nurseries often start around $5 per plant with large farms planting 2,000 plants per acre.
• Licensing fees cost up to $3,000 annually
• Business insurance runs around $5,000 per year, and legal consultation of up to $3,000 initially.
• Simple field employee labor averages $15 per hour.
• Even basic drying barns require cement floors and climate controls representing at least a $50,000 project.

All said the first-year startup costs can easily exceed $500,000 growing hemp professionally. Breaking even may take 2 or 3 growing cycles demanding deep pockets and a long-term perspective.

This business does require higher investment levels than some others in the agriculture space (e.g. orchards or greenhouses ) and takes longer to start raking in some profits, but in the long term, it can be incredibly profitable.

4. Form a Legal Business Entity

When starting a hemp farm, choosing the right business structure is critical – this decision impacts taxes, legal liability, raising capital, and more. Here’s an overview of the pros and cons of each entity, a hemp farmer might consider before investing in commercial production:

Sole Proprietorship

A sole proprietorship is the simplest as it constitutes a single individual running the business without any legal separation between personal and business assets. However, the owner assumes unlimited liability – meaning creditors can seize personal assets like their home if the business fails. Also, sole proprietors pay higher self-employment taxes.

Partnership

Partnerships allow multiple owners to jointly operate the business but each partner assumes full liability for debts and lawsuits against the company. Partners must pay self-employment tax on their proportionate share of income which can be substantial in good years. Adding or removing partners also proves more complex.

Corporation

A corporation offers liability protection as shareholders are only financially responsible for their equity investment. But “C corps” face double taxation of both corporate income and dividends. Complex annual reporting is required and corporations can be more costly to establish and administer. Raising equity financing may be easier, however.

Limited Liability Company (LLC)

For most hemp farms, a limited liability company (LLC) is best. LLCs provide legal and tax flexibility along with liability protection similar to a corporation. Profits pass through to members avoiding double taxation and annual paperwork is minimal. Expanding ownership via adding members is simpler than with partnerships and personal assets are generally shielded.

5. Register Your Business For Taxes

Before selling any products or hiring employees, every hemp farm must obtain an Employer Identification Number (EIN) from the IRS, even if operating as a sole proprietor. An EIN serves as your business’s tax ID number for federal tax purposes.

Unlike your Social Security Number which connects to your tax returns, an EIN uniquely identifies your business’s tax obligations. It also enables opening a bank account, applying for licenses and permits, and hiring workers.

The EIN application only takes minutes on the official IRS website . Simply select “View Additional Types, Including Tax-Exempt and Government Organizations” then choose “Agricultural” as the type of business. Provide basic information like name, address, and ownership structure along with Social Security numbers of owners with more than 25% control.

After submitting online, your EIN will display immediately. The IRS does not charge any fees for obtaining or renewing an EIN. Just be sure to print the assignment confirmation letter for your records.

Additionally, visit your state government’s website to register for sales tax collection, as retail sales of hemp products would require paying state sales tax. The Small Business Administration’s website outlines state-level licensing in detail. Following proper registration procedures from the start will ensure full legal compliance.

6. Setup Your Accounting

Proper financial record keeping and accounting are critical when starting a hemp farm to accurately track expenses, manage cash flow, and remain IRS audit-ready. There are many options for business accounting, let’s walk through a few of them.

Accounting Software

Platforms like QuickBooks seamlessly integrate with bank/credit card accounts to import and categorize transactions, generate invoices, send payment reminders, and more. This eliminates manual entry and reduces human error risk. Customized reporting provides real-time visibility into income, expenses, account reconciliation, and taxes owed.

Hire an Accountant

While the software does the heavy lifting on categorization and reporting, hiring an accountant is still recommended. Expect fees of $100-150 per month for bookkeeping services like payroll, accounts receivable/payable, fixed asset tracking, and inventory management. Reconciling bank and credit accounts also ensure transactions are properly coded.

Open a Business Bank Account

Separate personal and business finances are essential for hemp farmers. Open a dedicated small business checking account and apply for a basic credit card. Provide your EIN, company financial statements, and ownership documentation when applying online. This establishes a business credit history independent of your SSN and personal profile.

7. Obtain Licenses and Permits

Operating a compliant hemp farm is critical. You’ll need a hemp production license and other permits to avoid penalties and maintain eligibility for federal crop insurance and disaster relief. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

At a minimum, you must apply for a U.S. Domestic Hemp Production Program through your state’s Department of Agriculture. This requires submitting a site registration application outlining the legal description, geospatial location details, and acreage dedicated to hemp cultivation along with license fees often exceeding $1,000.

Common secondary permits and licenses include obtaining an agricultural or greenhouse building permit for any new drying/storage structures, applying for a commercial feed, pet food, or fertilizer production license if selling hemp byproducts or oil and completing state-specific food safety certifications.

Documentation should be readily available on-site for inspection at all times. Any transport of plant materials or biomass over state lines requires accompanying manifests and THC potency certificates. Insurance brokers specializing in crop and agriculture businesses can also advise tailored coverage for potential risks.

8. Get Business Insurance

Operating an uninsured hemp farm exposes the business to massive financial perils, even existential threats, should an unforeseen catastrophe unfold. Insurance protects equipment investments and safeguards your livelihood.

Imagine a fire sparked by malfunctioning electrical wiring destroys your drying/storage facility along with 50% of inventory and processing machines. Or an infestation of spider mites damages 30 acres of crops days before harvest.

In both scenarios lacking insurance, you single-handedly bear the full cost of repairs, lost product, and operational disruption. For small farms, this could necessitate expensive loans, bankruptcy, or closing entirely.

Alternatively, comprehensive business insurance policies cover expenses related to property damage, inventory losses, equipment replacement, cleaning, and more from accidents, natural disasters, disease, theft, or vandalism. Common options recommended for hemp producers include:

• Crop insurance protecting against weather, pests, and low yields
• Commercial property coverage for buildings, machinery, and inventory
• General liability insurance covering bodily harm and associated legal claims

Work with an independent insurance agent familiar with hemp to access specialty providers and optimize coverage. Be prepared to provide details on operations, compliance documentation, inventory value projections, and risk management protocols on facilities. Premiums vary based on history, revenue, and exact perils covered but expect annual costs exceeding $10,000.

Business insurance is a crucial aspect of any floral business or one that involves plants of any kind due to weather volatility and overall protection coverage.

9. Create an Office Space

Operating a hemp farm requires dedicated office space to run the “business behind the business”, areas like sales, marketing, accounting, compliance, inventory, and order management. While much time is rightly spent outdoors cultivating, having an administrative home base enables professionalism and scale.

Home Office

A basic home office can provide cost savings and convenience for sole proprietors. Expect $2,000-5,000 to dedicate a room including a desk, file storage, computer, phone system, and supplies. Meetings with partners may prove trickier but remote collaboration tools help. Ensure proper permitting/zoning allowance for commercial activity at a residence.

Coworking Office

Coworking spaces like WeWork offer more flexibility to rent temporary offices, meeting rooms, and desks for $300-800 monthly depending on location and access needs. This allows meeting clients yet enables getting back to the fields quickly. However, privacy could be limited among other companies and storage access may necessitate upgrades.

Commercial Office

Long-term, leasing Class B/C generic office space in business parks or stand-alone buildings nearby offers the most professional setup while averaging $15-30 per square foot annually. Expect 1,000-3,000 square feet to be sufficient including private offices, conference capabilities, and kitchenette, with room for safe product storage. Having a more complete facility positions better for company growth too.

10. Source Your Equipment

Launching a hemp farm requires extensive equipment like tractors, soil amendments, irrigation systems, storage containers, and more. While buying new enables customization, significant cost savings can come from used purchases, rentals, or leases. Here are the top sources to acquire essential materials:

Purchasing new gives you warranty protections and confidence in full working order but tends to be the costliest. Specialized platforms like Farm Equipment USA along with dealerships offer the latest cultivators, dryers, and harvesting technology. Expect to pay 10-40% above used pricing but some new equipment financing can ease costs long-term if expanding rapidly.

Buying used equipment through auctions and classifieds often delivers major discounts, sometimes 50% or more. Farmers routinely upgrade machinery so functional, quality used inventory abounds. Check sites like TractorHouse for local availability. And don’t overlook Facebook Marketplace , Craigslist , and eBay for smaller accessories and tools.

Leasing major gear through dealers and finance providers also spreads payments over 3-5 years. This preserves capital for other startup costs. Some leases enable buying equipment at fair market value afterward – essentially a rent-to-own approach. Compare all options but buying well-maintained used goods is often optimal for most.

11. Establish Your Brand Assets

Establishing a professional brand builds credibility and earns customer trust in an increasingly competitive hemp marketplace. This requires strategic decisions on logo design, websites, signage, and other visual assets that cohesively express your farm’s identity and quality promise.

Get a Business Phone Number

An official business phone line like RingCentral also enables projecting legitimacy and providing responsive support. Toll-free numbers and advanced call routing to cell phones keep you connected in the field.

Design a Logo

Your logo merits thoughtful consideration as a recognizable farm emblem. While classic fonts and imagery like wheat graphics seem intuitive, more modern, minimalist crop-focused concepts could differentiate. Sketch ideas then create digital mockups at sites like Looka to finalize an iconic brand mark.

Print Business Cards

From logo files, order glossy business cards and aluminum signs for your office, storefront, or billboards through convenient online print shops like Vistaprint . These visual impressions build awareness and reputability with every client touchpoint.

Buy a Domain Name

Secure a branded domain name aligning with your farm identity. Check availability by searching sites like Namecheap before someone else claims your company’s ideal web address.

Design a Website

Building a custom responsive website to share your story, capabilities, products, and contact options is equally important. User-friendly site builders like Wix offer templates for showcasing farm imagery, blogging on topics like organic practices, and driving online orders. Or hire a freelancer from Fiverr if wanting advanced eCommerce.

12. Join Associations and Groups

While hemp farming requires extensive physical labor and agronomy expertise, connecting with fellow local growers and industry associations can provide invaluable mentoring, technical knowledge, and future partnership opportunities.

Local Associations

The California Hemp Association , Colorado Hemp Association , and state-level groups like them offer research on optimal seed varieties for local climates, updates on changing regulations, and collective lobbying for favorable farming policies. Tapping their expertise and being visible within the community sets you up for success.

Local Meetups

Sites like Meetup also enable finding hemp-focused networking events, conferences, and trade shows nationwide to exchange insights with peers and industry experts through panels, workshops, and mixers both virtual and in-person.

Facebook Groups

And don’t underestimate the power of niche social media communities relevant to hemp producers like the Hemp Farmers Co-Op and Hemp And Cannabis investors group on Facebook. Fellow growers frequently discuss solutions to crop threats, drying techniques, harvest/processing/storage best practices, and more within the groups.

13. How to Market a Hemp Farm Business

Distinguishing your hemp farm amid mounting competition requires thoughtful digital and traditional marketing outreach to drive customer acquisition and retention. While leveraging your network is the most affordable initial tactic, implementing ongoing paid advertising and referral incentives will prove essential to viable growth.

Referral Marketing

Satisfied buyers who organically endorse your operation after pleasant purchasing experiences can influence friends and other farmers more than any ad. Offer modest discounts for referrals that result in new sales – this mobilizes your first customers to become brand advocates.

Digital Marketing

• Run Google and Facebook ads geotargeting local searchers and those interested in hemp or CBD based on browsing habits
• Launch a YouTube channel documenting your cultivation techniques, farm history, and product offerings to build visibility
• Blog regularly about topics like hemp oil extraction methods, soil management, seed genetics, pest control, and other educational themes to attract visitors
• Foster reviews on Google Business Profile and platforms like Trustpilot to reinforce your reputation
• Engage audiences by sharing seasonal farm imagery on Instagram
• Enable email signups on your website to distribute harvest updates, specials, and other newsletters

Traditional Marketing

• Attending farmer’s markets and industry trade shows to sample products and connect personally
• Distributing flyers and brochures to health food stores and dispensaries selling hemp products
• Running radio spots on local stations aligning with your target rural demographic
• Sponsoring local events to gain brand exposure and goodwill

14. Focus on the Customer

Providing an incredible customer service experience is pivotal for hemp farms to drive referrals and repeat purchases in this burgeoning industry. With so many new brands and products flooding the CBD market, standing out through exceptional service (or faltering here) can dictate your company’s long-term viability.

Consumers today hold high expectations, fast inquiry response times, transparent ordering and shipping confirmations, proactive harvest/production updates, and lightning-fast issue resolution if any defects arise.

Farmers must internalize that they are not just selling hemp material, but an entire experience stretching from initial website discovery through to product delivery and beyond. Service touches encompass your email writing style, phone etiquette, shipment packaging, and post-purchase follow-up practices.

Brands that nail the customer journey at every step earn immense goodwill and word-of-mouth marketing. Enthusiastic buyer reviews, referrals to other grocers/processors, and repeat large bulk purchases are the fruits of getting service right.

In contrast, an impatient email response, unwillingness to customize an order, layers of phone menus, or refusal to address a legitimate quality complaint can immediately lose you a longtime advocate. Guard your reputation fiercely through service excellence. This earns the customer loyalty that is any farmer’s most valuable asset.

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How To Draft a Hemp Business Plan

Katie Devoe

Starting a hemp business is a wise investment choice. The benefits of cannabidiol (CBD) range from improved health to enriched soil. The 2018 Farm Bill permitted the legal production and distribution of hemp across the United States.

Formulating a hemp business plan requires detailing your objectives and creating a mission statement, gaining knowledge of the hemp industry and market by doing research, and crafting a problem statement. When creating a financial plan and assessing critical risks, hire an accountant to assist you with calculations and forecasts.

Your hemp plan must clearly illustrate your vision. Your business strategy must be exact, concise, and straightforward. Here is a guide to drafting a hemp business plan.

Table of Contents

The Components of a Hemp Business Plan

There is immense profit potential in hemp production and distribution. Your hemp business plan must be designed with essential elements that promote efficient business practices.

Key elements of your business plan include the executive summary, business description, market plan, location, management, information about stakeholders, and a financial plan. [ 1. ]

The Executive Summary of a Hemp Business Plan

The executive summary introduces your hemp business plan. Here is where you’ll explain your goals and the sales forecast of your CBD business to potential investors.

This section must immediately explain the intent and desired goals of your hemp business while offering a condensed version of your overall business plan. [ 2. ]

Explain the Basic Aspects of Your Hemp/CBD Business

Briefly detail essential aspects of your business, including the name of your hemp company, capital required, target market, and estimated inventory turnover and sales.

An executive summary must be written after compiling your business plan and then presented to investors when you form your company. It summarizes your ideas, market, management, and financial planning.

Make it clear if you’re a startup business, improving an existing farm, or running a network of farms. Describe the nature and grade of your hemp farm.

It’s important to classify your hemp business based on the industry in which it will function —for example, the manufacturing, service, wholesale or retail sector.

Specifying the types of activities your business will be involved in gives potential investors a broader context for evaluating your company. Explaining your role in the hemp industry helps to define the focus of your business.

Mission Statement of the Hemp Business Plan

A mission statement is a detailed summary of the aims and values of your hemp business plan. It must be comprehensive yet concise.

A mission statement defines your business’s fundamental and unique purpose and direction. It also identifies potential customers. [ 3. ]

After determining your customers’ needs and desires, it’s time to create a mission statement. Clarify how your company anticipates satisfying recognized needs of your target customer.

After establishing a mission statement, begin drafting your business objectives.

Objectives of the Hemp Business Plan

Business objectives define vital operating aspects of your hemp business. Goals determine success, sustainable growth, and revenue.

Business objectives also synergize your company’s vision and intentions. They are the goals that will explain what your company aspires to achieve. [ 4. ]

Objectives are step-by-step explanations of the goals of your hemp business. Your business goals must be structured based on the “SMART” strategy. Goals must be Specific, Manageable, Achievable, Realistic, and Time-centered. [ 5. ]

Creating business objectives will help to define the direction of your company and highlight ways in which it can grow and improve . Revisit these objectives frequently to ensure you maintain your intended goals.

Business Description/Overview of the Hemp Business

This area of your hemp business plan outlines general aspects of your business. In this section, you will explain the background and history of the industry.

It is important to state that your CBD cultivation plan will contribute to the overall hemp market.

Illustrate Knowledge of the Hemp/CBD Industry

Research the industry and your competition. Examining your target market will help you strategize and direct your business activities.

Present your findings concisely and clearly. List the top companies in the hemp market. Briefly detail and compare their strategies to yours.

There are many credible ways to research your competition. For example, gather information from sources such as online sites, published studies, news outlets, economic quarterly subscriptions, trade magazines, and interviews with experts.

Detail the development of the CBD industry, including current trends and influences. Technology, competing global markets, operations, and productions are important influences to focus on.

These influences could impact your company both negatively and positively. Therefore, it’s important to anticipate potential problems and create smart business strategies.

Craft a Problem Statement Around Hemp and CBD Business

A problem statement addresses an issue in the market and how it impacts the needs and desires of your target consumers.

A problem statement explains how your business can meet the needs of your customers by bringing a new product to the market. [ 6. ]

How will your hemp business , hemp farm, or CBD cultivation business provide a service in a unique, inspired way?

It is important to know who your target consumers are and why they will choose your hemp business over other competitors in the field.

Identify Your Target Market for Your Hemp/CBD Business

The product distribution and profitability of your hemp business require gaining knowledge about the consumers your company is targeting. [ 7. ]

Essential to your hemp business plan is acquiring demographic information about your target customer, such as age range, geographic region, values, income levels, and spending habits.

Detail how your product will resonate with your target market. Explain what marketing methods you’ll use to both advertise your product and reach out to your target consumers.

Market Analysis/Marketing Plan of Hemp Business

The next step in creating your CBD business plan is market analysis. This plan must explain how you intend for your product to reach your customers.

This section expands on information from the previous brief description of your target market.

Market research analyzes aspects of your company’s potential market, including its potential growth, trends, and seasonality.

Market research is also important for helping you understand the viability of your product for customers.

Questions that guide a practical market research blueprint include: What are the shopping habits of potential customers? What are their preferences? Who are they? What are their beliefs, values, and dreams, and what are their priorities?

It is imperative to investigate your target market thoroughly. Knowing your customer helps you craft a problem statement.

As your market research develops, you can uncover your target customer’s problems, desires, and current solutions.

Industry knowledge, which should be briefly defined in your business description, is also an aspect of market research.

Competition or competitor analysis, geography, and online marketing help you increase your chances of succeeding in the hemp market.

Knowledge of hemp industry trends and the market’s current status is essential for business owners.

Advertising your product drives brand awareness and is a valued service to your customers.

Market research offers an advantage to business owners because essential information about potential customers directs business tactics and dramatically lessens risks.

Acknowledging the strengths and weaknesses of your competition further promotes your chance of success. [ 8. ]

How to Understand the COA of Hemp Products

A Certificate of Analysis (COA) is a vital document for any hemp business looking to establish trust, credibility, and long-term success in the industry. Provided by an independent, ISO-certified laboratory, the COA offers a detailed breakdown of a CBD product’s quality, purity, and safety.

When reviewing a COA, pay close attention to the following key components:

Cannabinoid Content

The COA will list the amount of each cannabinoid detected, focusing on CBD and THC levels. For full-spectrum products, THC should be below the legal limit of 0.3%, while broad-spectrum and isolate products should show non-detectable THC levels. Accurate cannabinoid content ensures your products meet legal requirements and customer expectations.

Contaminant Testing

A comprehensive COA will verify that the product has been tested for potential contaminants, such as:

• Pesticides and Herbicides : Organic hemp products should have non-detectable levels of these chemicals, which can be harmful if consumed.
• Heavy Metals : The COA will list tested metals like lead, mercury, and cadmium, confirming they fall within safe, legal limits.
• Mold, Residual Solvents, and Other Contaminants : Look for “ND” or non-detectable levels of these substances, which can compromise product safety.

Terpene Profile

This section details the terpenes present and their concentrations, providing insight into the product’s potential aroma, flavor, and effects. Understanding the terpene profile can help you better market your products and cater to customer preferences.

Verifying Authenticity

To ensure the COA’s legitimacy, always verify the testing laboratory’s contact information and look for an authorization signature. Some COAs even include QR codes that link directly to the lab for easy verification.

Investing in products with transparent, comprehensive COAs is crucial for the success of your hemp business. By partnering with reputable CBD manufacturers that prioritize robust testing and analysis, you can build strong customer relationships, establish brand loyalty, and position your business for long-term growth in this exciting industry.

Remember, in a market where regulations are still evolving, the COA serves as a powerful tool to differentiate your products and prove your commitment to quality, safety, and transparency. Embrace the COA as an essential part of your hemp business plan, and you’ll be well on your way to building a thriving, trusted brand.

Location for the Hemp Business

Location is an indispensable facet of your business plan. A favorable location that helps drive foot traffic to your retail hemp business can increase sales and profits.

Accessibility and availability of products promote customer satisfaction. It’s an excellent idea to have online shopping and home delivery in conjunction with a physical store.

A favorable business location enhances the image of your product and the general vibe of your business. It is important for business success to foster a sense of community.

Choosing the right location can help to satisfy your customers’ desires and needs.

Factors to consider when picking out the location of your hemp business include the weather, rent, availability of human resources, zoning, and permits.

It’s important to outline what attracted you to the site and explain why the forecasted foot-traffic patterns can help to increase sales. [ 9. ]

Management of the Hemp Business

A comprehensive account of your management team is required in your CBD business plan .

Include a summary of each business member’s qualifications, skill levels, competencies, and expectations.

Remuneration, incentives, share options, and conditions of employment should be described in this section. Your business plan is also where you’ll highlight information about your employee recruitment techniques.

Mention other necessary professionals who will help with managing your business, such as accountants, computer specialists, lawyers, advisors, and bankers. Explain the function, necessity, and position of each member.

Financial Plan of the Hemp Business

It is crucial that the financial planning of your hemp business is given adequate attention and thoroughly detailed. You should hire an accountant to assist in this vital aspect of setting up your business.

This section explains how resources and capital needed for your business will be acquired and utilized. 

The financial plan must include financial forecasting, which details the capital or resources needed to run your business. Capital or funds are either internal or external.

Internal finances could be drawn from business owners and retained earnings. External funds include loans, leases, and creditors.

Key aspects of financial plans are budgeting, break-even analyses, and cost controls. Financial documents such as income statements, balance sheets, and cash flow statements are also crucial for understanding the financial health of your business. Your company’s financial data must be analyzed and represented in detail. [ 10. ]

However, advice for financial planning extends beyond the scope of this article, so be sure to do research and get assistance from a qualified professional. It’s advisable to engage in realistic projections, forecasts, and expectations.

Critical Risks Regarding the Hemp Business

It’s essential to acknowledge the risks of being involved in the hemp business and to anticipate the hurdles your business may confront.

Indicating to investors whether you’ve dealt with past CBD-related problems will improve your business objectives.

Having strategies for successfully overcoming problems that may arise helps to illustrate to investors that their investment money is in capable hands.

However, as an entrepreneur, it is often necessary to take calculated risks, which can serve as an essential strength for operating a successful business. [ 11. ]

Your hemp business plan should be comprehensive and concise. It must contain critical features, such as an executive summary, mission statement, financial plan, objectives and a business overview. It must also provide information about market research, location, management strategies, and required risks.

When creating your hemp business plan, be conscious of your readers and potential investors. Make sure your business plan is engaging and well-researched. Ask experts such as accountants to assist with financial planning and market analysis.

• https://www.investopedia.com/terms/b/business-plan.asp
• https://ggu.libguides.com/business_plans/executive_summary
• https://www.entrepreneur.com/article/65230
• https://www.dummies.com/article/business-careers-money/business/strategic-planning/set-goals-and-objectives-in-your-business-plan-158846
• https://sproutsocial.com/glossary/business-objective/
• https://www.dummies.com/article/business-careers-money/business/general-business/how-to-create-a-problem-statement-in-business-analysis-162528
• https://www.verizon.com/business/small-business-essentials/resources/define-target-market-business-plan-150521881/
• https://www.wolterskluwer.com/en/expert-insights/market-analysis-for-your-business-plan#:~:text=The%20market%20analysis%20section%20of,and%20sales%20plan%20will%20rest.&text=a%20competitive%20analysis%2C%20which%20identifies,analyzes%20their%20strengths%20and%20weaknesses .
• https://smallbusiness.chron.com/steps-planning-business-location-58733.html
• https://www.nationwide.com/lc/resources/small-business/articles/small-business-financial-planning
• https://www.investopedia.com/articles/financial-theory/09/risk-management-business.asp

Katie Devoe is an entrepreneur, educator, and cannabis thought leader. She has been a guest speaker at numerous conferences and developed the CannaCertified cannabis education platform.

• Cannabis and Hemp Enthusiast • One of the first female business owners in the hemp and cannabis industry • Co-founder of one of the largest and most established CBD manufacturers in the country • Spent the past decade leading brands in the hemp and cannabis industry • Developed a certification program Connect with Katie on LinkedIn

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How to Start a Hemp Farm

So, you want to start an industrial hemp farm€”good choice! The 2018 Farm Bill finally made industrial hemp farming legal in the United States. The passage of the bill set off a bonanza of hemp farming, fed by the rabid popularity of CBD oil and the recent, growing interest in CBG oil. According to a market research report , the industrial hemp market could be worth up to $26.6 billion in the United States by 2025. That€™s all to say that hemp may be a highly lucrative crop for farmers.

If you€™re wondering how to start a hemp farm, you have a lot to learn before you plant your first seed. While tales of huge hemp profits are certainly alluring, farmers must make sure they fully understand the hemp market, the regulatory landscape of hemp, and the agricultural requirements of this unique crop before starting a hemp farm. Fortunately, we are here to help. We€™ve been working with farmers for years to help them earn the most from their hemp crop. Consider this your guide to hemp farming 101.

Step 1: Do Your Homework

Planting a new crop is exciting, and you may be itching to start buying seeds, especially if the planting window is quickly closing for the season. Resist the urge to rush into a new endeavor, especially one as complicated as growing hemp. Instead, be patient and do your homework. Learn everything you can about growing hemp and your state and local hemp regulations: Perform research online and speak with local farmers in your state who own hemp farms. Here are some of our favorite online resources for hemp farmers:

• USDA guidelines on hemp production
• The Institute of Cannabis Research at Colorado State University
• Hemp Industry Daily

Additionally, check to see if your state has a hemp grower€™s association you can join. This could be an excellent avenue to network with other local hemp farmers.

Step 2: Clarify Your Industrial Hemp Goals

It€™s best to start out with your goal in mind, then work your way backwards. Begin thinking about which hemp products you want to grow. For most hemp farmers, their hemp crop of choice is CBD oil, but some farmers choose to grow hemp for seeds or fiber.

Step 3: Begin Identifying Potential Customers

Ideally, you€™ll want to have customers lined up before you harvest your hemp crop so you have a fast and easy way to unload your harvest. Unlike with corn and grain, there are no hemp silos where you can drop off your hemp after harvest.

Finding customers early can also help you decide which strains of hemp seeds you should purchase. For example, if you find a CBD manufacturer who wants smokable hemp flowers (also called buds) with a specific terpene profile (the aromatic quality of the flower), you can search out hemp seeds to meet that need. You may also find customers who want a CBG oil supplier€”that could easily be you.

Step 4: Create Your Hemp Farm Business Plan

Yes, you knew this one was coming. Drafting a business plan is challenging, but to help inspire yourself, think of your business plan as a €œproof of concept€ test. It€™s far better to discover problems while in the planning stage of your hemp farm than out in the field when you€™ve already laid down a big investment.

Make sure your business plan includes important sections like:

• A SWOT ( Strengths, Weaknesses, Opportunities, and Threats) analysis
• Local hemp market overview
• Your sales strategy
• Your operating plan
• Your farm€™s organizational structure
• Your financial plan, including a funding analysis and profit & loss forecast

We strongly suggest that you keep your profit estimates modest. Many online articles like to tell stories of farmers clearing $40,000 or more per acre of hemp. While these profits may be attainable by some, it is unlikely that first-time hemp farmers will see this level of return. By keeping your profit estimates reasonable, you can ensure that you€™ll be able to meet your expenses. And if you beat expectations? Icing on the cake.

If you are having trouble developing your hemp farm business plan, reach out to your local hemp farmer€™s association if one exists. You may also want to work with an agronomist who has experience in hemp farming.

Step 5: Develop a Plan for Testing and Compliance

One of the unique challenges of starting a hemp farm is that farmers must abide by the USDA€™s strict guidelines regarding the THC content of their crop. According to these guidelines, your hemp plants must stay below a 0.3% THC threshold. You will be responsible for frequently testing your plants to ensure compliance, which is regulated by your state.

We recommend that you begin testing your plants a month after germination and test every two weeks. You may want to test even more frequently as you get closer to harvest. Search for a reputable testing facility now so that you can ensure that you€™ll be able to consistently and accurately test your plants.

Step 6: Create an Irrigation Plan

Hemp can thrive with a variety of irrigation systems, including surface drip irrigation, subsurface irrigation, pivot irrigation, and flood irrigation. Now is the time to decide what type of irrigation system you want to use, as it will affect your overall costs, especially if you need to purchase a new system.

Step 7: Get Your License/Permit/Registration

The 2018 Farm Bill requires that every state create and submit a €œstate hemp plan,€ which includes information on how the state will actively track industrial hemp farming within its borders. That means each state has its own regulations regarding hemp farming.

You will almost certainly need to request some form of license or permit in order to farm hemp in your state. You may also need to register with your local city or county. Reach out to your state€™s agricultural department to determine what type of permissions you need. You may also want to hire an attorney with industrial hemp experience to make sure all of your paperwork is above reproach.

Step 8: Invest in Equipment and Labor

What new equipment will you need to ensure the best outcome for your hemp crop? For example, if you plan on buying hemp seeds, we strongly recommend that you start them in a greenhouse. (Don€™t have a greenhouse? Try hemp starts instead of seeds.)

Hemp is also a labor-intensive crop, so it€™s a good idea to recruit a crew of experienced workers who can help you cull male plants, watch out for pests, and maintain ideal field conditions. We recommend checking your fields daily.

Step 9: Prep Your Fields

As the day to plant your first hemp crop grows closer, you€™ll want to make sure your soil is in ideal condition to help your plants grow fast and strong. The best way to prep your field will depend on your farm€™s soil conditions and your regional environment.

It€™s a good idea to test your soil for elemental sulfur, potassium sulfate, and rock phosphate to make sure the levels aren€™t too high. You€™ll also want to make sure your soil is well-drained before planting.

Step 10: Buy Your Hemp Seeds

With everything in place and planned out, it€™s time to purchase your seeds. If you€™ve performed steps two and three, then you should know exactly what type of hemp crop you want to cultivate. For example, perhaps you want to grow hemp specifically for CBG production or maybe you want to grow hemp with a fruity terpene profile.

Decide whether you want to invest in hemp seeds or hemp starts. (We don€™t recommend using hemp clones since they will never grow a taproot, which make the plants more fragile.) You may also want to consider purchasing early finishing seeds, which will allow you to stagger your harvest and use your labor more efficiently.

Look for a hemp seed company that has been around for at least a few years and is passionate about the genetics of their seeds. We strongly recommend that hemp farmers invest a little more upfront and purchase feminized seeds to ensure the highest resin yields possible. When male hemp plants pollinate females, resin yields are substantially lower. (Here€™s everything you need to know about feminized hemp seeds .)

Finally, if you find a hemp seed strain you want to try, purchase your seeds from the original company that created that hemp strain, not a seed reseller. The original company will be able to provide you with much more information and personal guidance during the planting, cultivating, and harvesting process.

At High Grade Hemp Seed , we are here to help you as you prepare to start farming hemp. We would be glad to tell you more about our many tried and proven hemp seed strains, including industry favorite Berry Blossom , Cherry Wine , fast-growing Auto Flower, and one of our newest strains, Matterhorn CBG , bred specifically to increase CBG production.

Contact us today €”we€™ll be happy to help you learn more about how to start a hemp farm.

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How to Write a Successful Hemp Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be especially helpful for hemp businesses that want to improve their strategy and raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the critical elements that every hemp business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Hemp Company Business Plan?

A hemp company business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Hemp Company Business Plan?

A hemp company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Hemp Company Business Plan

The following are the key components of a successful hemp company business plan:

Executive Summary

The executive summary of a hemp company business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your hemp company
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

If you are just starting your hemp business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your hemp firm, mention this.

You will also include information about your chosen hemp company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a hemp company business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the hemp industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, hemp company business customers may include small farmers who want to use hemp as a rotation crop. In contrast, your retail customers may be people who want to buy natural and sustainable products.

You can include information about how your customers decide to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or hemp services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your hemp business may have:

• Hemp is a sustainable resource
• Growing hemp doesn’t require pesticides or herbicides
• Hemp can be used to produce a wide variety of products
• There is a growing demand for hemp products
• Hemp has been used for thousands of years

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product or service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them, if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your hemp business via word-of-mouth.

Operations Plan

This part of your hemp company business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a hemp company business include reaching $X in sales. Other examples include shipping products to customers in all 50 states, having a product featured in a major publication, or partnering with a large retailer.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific hemp company industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Hemp Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : Everything you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Hemp Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include cash flow from:

• Investments

Below is a sample of a projected cash flow statement for a startup hemp company business.

Sample Cash Flow Statement for a Startup Hemp Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your hemp company . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A business plan is an essential tool for any hemp company business owner. By having a well-thought-out business plan, you increase the chances of your hemp company being successful.  

Finish Your Hemp Farm Business Plan in 1 Day!

How to Start a Hemp Farm

Hemp farming continues to gain popularity as a high-yield, (relatively) low-maintenance crop that manufacturers can process for a wide variety of commercial applications.

Learn how to start your own Hemp Farm and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a hemp farm by following these 10 steps:

• Plan your Hemp Farm
• Form your Hemp Farm into a Legal Entity
• Register your Hemp Farm for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Hemp Farm
• Get the Necessary Permits & Licenses for your Hemp Farm
• Get Hemp Farm Insurance
• Define your Hemp Farm Brand
• Create your Hemp Farm Website
• Set up your Business Phone System

We have put together this simple guide to starting your hemp farm . These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your hemp farm ?

Business name generator, what are the costs involved in opening a hemp farm .

Hemp farming requires land. Buying farmland — along with farming and irrigation equipment — will require a sizable, upfront investment if you aren’t already farming. If you’re already a farmer, your initial costs will mostly focus on seed stock or clones for starting crops. You’ll also need to secure any required state and local licenses as well as insurance. Most costs associated with growing row crops, such as fertilizer and pest control, are already factored in for annual operating costs.

What are the ongoing expenses for a hemp farm ?

Most ongoing expenses include buying seed stock or clones as well as farming supplies, maintaining farm equipment and buildings, paying worker salaries, and purchasing individual and farm insurance.

Who is the target market?

Hemp farming has both commercial and retail markets to consider. As a textile product, hemp’s commercial market includes businesses looking to compete with various products they can now make with hemp. Plastics, paper, building products, and fabrics are all products challenged by hemp.

In the retail space, customers buying hemp products tend to be younger and more liberal-minded although hemp fabrics and cannabidiol (CBD) sales reach into a wide range of demographic markets. College-educated people aged 25 to 50 represent a core group of hemp customers.

How does a hemp farm make money?

Hemp farms make money from the sale of their bulk, dried hemp.

Hemp is sold as a commodity so the market dictates the price. Farmers can sell their hemp plants as the fiber, the seeds, or both — with each option priced accordingly. Although prices continue to increase, as a market average, beware of ballooning figures based on speculators. Some in the industry fear hemp’s meteoric rise in popularity may cause a bubble similar to what the technology industry experienced in the early 2000s. Current wholesale prices vary between raw and processed hemp products, ranging from $3 to $3,000 per XXX.

How much profit can a hemp farm make?

Farming is a tricky business. While farmers don’t often turn a huge profit, it’s possible to keep overhead costs low by handling as much of the work as possible with a small crew. Hemp farming has the potential for good profits, but you must temper your expectations with the knowledge that Mother Nature can sometimes be a fickle and difficult partner. Average hemp farming profits typically fall in the range of $200 to $250 per acre.

How can you make your business more profitable?

Currently, hemp farming is experiencing a popularity surge. Offer the general public a chance to see what you do in an effort to destigmatize this plant. Many people will enjoy guided tours and farm visits. You might even consider using your farm as a backdrop for photo shoots. Some individuals would love to be immortalized on film, surrounded by your leafy greens.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your hemp farm is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a Hemp Farm Business. Learn more about licensing requirements in your state by visiting  SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a hemp farm

Because you’ll mostly sell to wholesalers, your advertising should feel more like an ad for your entire industry. Create a social media presence and business website to showcase your farming process. Use these platforms to share the final products manufactured from your hemp as well. People really like to see stores and the understanding of how this product can improve daily life is critical.

How to keep customers coming back

Clients will tend to stay with a commercial source as long as it delivers a fair price and a consistent product. Clients stake their businesses on your hemp supply. If you can align your crop rotations and harvests with your clients’ needs, you should also retain those customers.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Because hemp farming is, in essence, the same as cultivating other field crops, it’s a potential fit for individuals with experience farming and harvesting acres of crops. Many traditional produce and commodities (e.g., corn, soybean) farmers now include hemp in their crop rotations or transform entire fields for this industrious material. To prosper in this business, you’ll need a solid understanding of crop rotation, waiting and reutilizing strategies, pest prevention, and harvesting and baling.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a hemp farm ?

Much like any farm, most days involve monitoring existing farm systems and equipment as well as your crops. Farming often involves waiting for certain times — both for planting and harvesting. With hemp, the growth cycle averages 110 days. Farmers can stagger or “cycle” their fields between planting, growing, and harvesting to generate a larger annual yield and a constant flow of work. After harvesting and baling their hemp, farmers ship it to manufacturing plants around the country. As such, some daily operations may include the logistics of shipping and receiving.

What are some skills and experiences that will help you build a successful hemp farm ?

Farming experience is a great start. Growing crops involves much more than soil, water, and sun. Experience in the tractor saddle really can give you an edge. Understanding the business world and, specifically, the hemp market, also will prove critical to success. 

While this industry is poised to explode in popularity and demand, the structure and legality of hemp products remain subject to sweeping changes. Understanding the political nature of this crop and how to navigate dissenting opinions of your industry also will be essential.

What is the growth potential for a hemp farm ?

With the legalization of hemp farming around the country, many textile and clothing manufacturers now recognize the benefits of hemp fibers. Hemp has been used for thousands of years in numerous products, such as fabrics and rope. Today, modern manufacturing also uses hemp fibers as a biodegradable plastic replacement. Of course, there is the ever-growing cod market, which has been embraced by numerous citizens from all walks of life as a pain reliever and beneficial dietary additive. Overall, industry experts project hemp farming will remain increasingly popular and profitable for the foreseeable future.

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Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a hemp farm ?

Hemp farming requires a solid demand for your product. Luckily, that demand continues to grow more and more each day. Your business also will need big voices and backers to help share and promote your vision. These include industry leaders in textiles, fabrics, and building materials. The stigma of hemp’s relation to marijuana will continue to turn away some potential clients, but, more than ever, consumer approval seems too positive to ignore.

Align your business with other forward-thinking businesses and act as a voice for environmentally conscious farming. Hemp farming challenges some large industries, such as forestry and fossil fuels, so retaining a market share requires finding allies at all levels. Growing your support team and customer base will be key for growing your overall company.

How and when to build a team

Because of the nature of rotational farming, your team will ebb and flow. For harvesting and baling, your team will swell. But, you won’t need much help during the growing phase. A medium-sized farm may only need two or three people to keep it operating, for example, plus a few more field hands during harvest. A large-scale farm might need three to five equipment operators and a few more field hands to round out its team.

Useful Links

Industry opportunities.

• Business Opportunities Blooming in Hemp Industry

Real World Examples

• Glas Farm Michigan
• The Hemp Train

Further Reading

• USDA Hope for Hemp: New Opportunities and Challenges for an Old Crop
• A Beginners Guide for Growing Hemp

Additional Sources

• Hemp Industries Association

Have a Question? Leave a Comment!

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Find your state/county's agriculture data and USDA resources on your farmers.gov Local Dashboard !

Hemp and Farm Programs

The 2018 Farm Bill reclassified hemp, and it is now legal to grow industrial hemp. USDA’s Agricultural Marketing Service (AMS) has outlined how states and tribes can submit plans that enable producers to grow hemp in those areas. Eligible producers include those growing in accordance with USDA, state, and tribal plans or for research purposes. Learn more by visiting AMS’ Hemp Production webpage . 

USDA agencies that administer farm programs — including the Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS), and Risk Management Agency (RMA) — benefit hemp producers through crop insurance as well as farm loan, conservation, and safety net programs. 

On This Page

• View Hemp Programs FAQs
• Download the Hemp and Farm Bill Programs Fact Sheet (PDF)

Options for Hemp Growers

Crop insurance and safety net.

RMA's Whole-Farm Revenue Protection and Multi-Peril Crop Insurance coverage and FSA's Noninsured Crop Disaster Assistance Program provides coverage options to eligible producers.

Hemp producers may be eligible for FSA farm loans, such as operating, ownership, beginning farmer, and farm storage facility loans.

Reporting Hemp Acres

Licensed hemp producers are required to report planted acreage along with their license number to their local FSA office. Producers may also be eligible for FSA programs; additional requirements may be required.

Conservation

Eligible hemp producers are eligible for multiple NRCS conservation programs , including the Environmental Quality Incentives Program, Conservation Stewardship Program, Agricultural Conservation Easement Program, and Regional Conservation Partnership Program.

Learning More

Crop insurance.

Meanwhile, coverage through Multi-Peril Crop Insurance, or MPCI, is available to producers in certain counties. The pilot insurance program provides Actual Production History coverage for eligible producers in certain counties in Alabama, Arizona, Arkansas, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, Nevada, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin.

Information on eligible counties is accessible through the USDA Risk Management Agency’s Actuarial Information Browser . Read more in the November 30, 2020 news release .

Producers can now purchase coverage if they have a contract for the purchase of the insured hemp and meet all applicable state, tribal, and federal regulations. Crop insurance provisions state that hemp having THC above the 0.3 compliance level does not constitute an insurable cause of loss. Additionally, hemp does not qualify for replant payments or prevented plant payments.

Beginning with the 2021 crop year, hemp will be insurable under the Nursery crop insurance program and the Nursery Value Select pilot crop insurance program. Under both programs, hemp will be insurable if grown in containers and in accordance with federal regulations, any applicable state or tribal laws, and terms of the crop insurance policy.

To learn about crop insurance options, producers should contact a local insurance agent near them. Visit RMA’s Agent Locator to find an agent near you.  

Acreage Reports

Hemp producers are required to file acreage reports with FSA, which includes these steps:

• Obtain a hemp production license or authorization number issued by USDA, state, or tribe.
• File an acreage report with FSA, including the license or authorization number and identifying each field or subfield where hemp is planted. These fields could be referred to as a “lot” and includes greenhouses.
• Fiber – used for cloth, pressed plastics, ropes, animal bedding, paper, biofuel, packaging, concrete additives, spill cleanup.
• Cannabidiol (CBD) – grown for extraction of plant resin, which includes CBD and other phytocannabinoids to be extracted from the flower. Subject to FDA regulations, resin may be used in oils, lotions, cleansers, bath or other pharmaceutical or topical products.
• Grain – used for hemp hearts, crushed seed oil (not CBD), protein supplements (human or animal consumption)
• Seed – used for propagation stock, hybrids (non-human consumption)

Producers should contact their local FSA office  for more details on acreage reporting.

NRCS Conservation Programs

These NRCS conservation programs are available for producers meeting requirements: the Environmental Quality Incentives Program, Conservation Stewardship Program, Regional Conservation Partnership Program, and Agricultural Conservation Easement Program. 

Hemp producers growing in accordance with Section 7606 of the 2014 Farm Bill of the do not need to modify their conservation program contract for their continued participation. 

Hemp Pilot Farms

Before passage of the 2018 Farm Bill, producers could only grow hemp if they met the university research pilot requirements of Section 7606 of the 2014 Farm Bill. Now, producers can grow hemp if they meet those requirements or if they are growing in accordance with an approved State or Tribal hemp production plan.

Learn more about the regulatory status of State and Tribal hemp programs by visiting the AMS  Hemp Production webpage .

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Hemp Farm Business Plan Template

Whether you want to start your own hemp farm business or expand an existing one, you need a business plan. the following hemp farm business plan template lets you know what elements you need to include in a successful hemp farm business plan., fill the form to download business plan templates.

To ensure your hemp farm business success in this highly competitive market, you need a properly structured hemp farm business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their hemp farm businesses.If this is your first time writing a business plan, we’ll walk you through these sections and give you some key things to consider.

What kind of Industry is Hemp Farm?

Hemp, a plant species from the Cannabis family, has been used for centuries to manufacture a variety of industrial and consumer products.

As a brand-new industry, Industrial Hemp Production is currently experiencing explosive growth. Industrial hemp, also known as hemp, is a variety of cannabis with only trace amounts of tetrahydrocannabinol (THC).

Prior to 2018, hemp production in the United States was largely illegal.

However, the 2018 Farm Bill legalized hemp growing, on the grounds that the hemp grown contains less than 0.3% THC by weight.

As soon as hemp was legalized, the Industrial Hemp Production industry boomed. Companies flocked to the industry in order to take advantage of the high demand for hemp-based products.

The industry has experienced an immediate boom over the past five years, and companies are expected to settle into a more stable position.

Hemp prices will stabilize as companies expecting to turn a quick profit leave the industry. Thus, over the five years to 2024, industry revenue is expected to increase by 6.6% annually to $0.9 billion.

Among the major products and services offered by this industry are

• Food products
• Hemp-based CBD
• Supplements
• Personal care products
• Consumer textiles
• Industrial applications

Need a Business Plan Writer For Your Hemp Farm Business?

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Key Success Factors for Hemp Farm Business

Despite the challenges of the Hemp industry, We have identified five factors that can help you boost profitability, efficiency, and ultimately success.

• A high volume, low margin strategy: Operators are reporting a need to expand planted acres to remain price competitive in their market.
• Control of inventory: Operators must ensure their supply chains and inventories are managed so that harvests do not go bad in storage.
• Promoting hemp effectively: Since hemp cultivars are essentially interchangeable, industry players need to work hard to differentiate themselves from their rivals.
• Compliance with government regulations: Farmers must meet federal guidelines regarding the percent content of THC, the active chemical in marijuana, in their hemp harvest. Shipments of more than 0.3% THC are considered illegal.

What is a Hemp Farm Business Plan?

A business plan provides an overview of your hemp farm as it currently stands and outlines your growth strategy for the next five years. It explains your company’s goals and strategy for achieving them. Market research is also included to back up your plans.

A solid, comprehensive plan will serve as a road map for the next three to five years of the hemp farm business. Any bank or investor you approach will require a hemp farm business plan, so putting one together will be critical to securing funding.

In short, writing a business plan can help you succeed if you’re thinking of starting a hemp farm business or pitching to investors or venture capitalists.

Free: Business Plan Examples

Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.

Why You Need a Hemp Farm Business Plan

You can stay current with market trends by developing a hemp farm business plan. In addition, it lets you track results over time, test lead generation strategies, and develop new marketing approaches.

A business plan will help you raise funding and plan the growth of your hemp farm, increasing your chances of success. Your business plan should be updated on an annual basis as your company grows and changes.

Hemp farm business who have a business plan grow 30% faster than those who don’t, and 71% of fast-growing businesses have one.

The following is what a good hemp farm business plan will show you:

• Where you are right now
• What you want to achieve
• How will you get there
• How will you measure your success
• Where and when to make corrections

A hemp farm business plan is a living document that should be updated annually as your company grows and changes.

Funding Sources for Hemp Farm Business

The main sources of funding for a hemp farm are personal savings, credit cards, and bank loans. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay the loan and interest.

To gain this confidence, the loan officer will not only look at your financials. However, they will demand a professional plan. A well-developed business plan will ensure that they are confident that you can successfully run a business.

Other Assistance:  Direct farm ownership loans, Microloans, Direct operating loans, USDA Organic Certification Cost Share Programs, Farm storage facility loans, and Specialty loans for minority and women farmers, beginning farms, native American tribes and others.

Looking to Build Credit for Your Hemp Farm Business ?

Build your business credit quickly with an easy approval net 30 account from Wise Business Plans. Or check out the top 10 net 30 vendors to find the best one for you to help build your business credit .

How to Write a Hemp Farm Business Plan

To write a hemp farm business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a hemp farm business plan, or you can just download our proven  sample business plans  to get a better idea.

Hemp Farm Business Plan PDF and Word

Download our hemp farm business plan in PDF and Word here.

Executive Summary

The executive summary is the most important part of the document since it outlines the whole hemp farm business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.

It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.

Tell them what kind of hemp farm business you have and what stage you’re in; for example, are you a startup, do you have a hemp farm company that you want to expand, or do you have a lot of hemp farms?

Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.

• Provide a high-level overview of the hemp farm industry
• The name, location, and mission of your hemp farm company
• A description of your hemp farm business, including management, advisors, and a brief history
• Discuss the type of hemp farm business you are operating, Give an overview of your target customers., and how your company differs from competitors in the industry
• Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
• And give an overview of your financial plan

Check out these executive summary examples to help you write a perfect one for your hemp farm business plan.

Free: Executive Summary Examples

An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.

Company Analysis

The company analysis follows the executive summary as the second section of a hemp farm business plan. Your company overview will be short and clear, similar to the executive summary.

Even if they just have a few minutes, your reader has to understand what your company does and who your customers are.

The following sections will be included in your business plan’s Company Analysis:

• Company summary: Your company analysis will describe the type of hemp farm business you are running and its future goals. The type of hemp farm business you might be focused on ( Industrial hemp, Hemp for textiles, CBD hemp, Food-grade hemp, etc.)
• Company history: When and why did you start your hemp farm business?
• What milestones have you achieved so far? Your milestones could include served 100th customer, new contracts, etc.
• Legal structure and ownership: Do you have S-Corp status? Is it an LLC ? A sole proprietorship ? Describe your legal structure.
• Mission statement: An overview of your hemp farm company’s guiding principles. Learn how to write a perfect mission statement .

Industry Analysis

You need to include an overview of the hemp farm business in the industry analysis you performed before sitting down to write your hemp farm business plan.

While this research may appear to be unnecessary, it helps you to build strategies that maximize business opportunities while lowering or avoiding the identified risk.

Furthermore, market research can improve your strategy, especially if it identifies market trends.

The third purpose for conducting market research is to demonstrate to readers that you are an industry expert.

Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.

• Give a quick overview of the hemp farm industry. Define the hemp farm business in terms of size (in dollars), historical background, service region, and products.
• Examine previous trends and growth patterns in the hemp farm industry.
• Identify the market’s major competitors.
• Who are the market’s key suppliers.
• Determine the factors that have an impact on the hemp farm industry. These might include government regulatory rules and other businesses’ competitive activities.
• Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
• Describe how your hemp farm business intends to position itself in the industry. Concentrate on how your hemp farm can benefit from opportunities highlighted in the industry.

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Customer Analysis

The first condition for a hemp farm business is to identify its target customers clearly. Customers can be categorized into the following segments: Pharmaceutical companies, Practitioners of complementary medicine who use, CBD) oil, (CBD) oil distributors and Small-scale businesses that utilize cannabis (CBD) oil as a raw material, end consumers, fabric producers, etc.

The customer analysis section is an important part of any hemp farm business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the product will meet those requirements.

Customer analysis may be divided into two parts: Psychosocial profiles and Demographic profiles .

With regards to demographics, include information about: the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.

Competitor Analysis

Who are the main competitors in your target market, and what makes them your main competition? How will you beat them? Use competitor analysis to:

• Identify the strength and weakness of your hemp farm business competitors.
• Search for opportunities to distinguish your hemp farm business from competitors.

The first step is to determine who your direct and indirect competitors are.

The direct competitors consists of other hemp farm companies.

When it comes to direct competitors, you should describe the other hemp farm business you compete with. It is most likely that your direct competitors will be hemp farm business located nearby.

Customers may use indirect competitors in addition to direct competitors. This includes cannabis imports as well as other cannabis cultivators. You must mention such competition to demonstrate that you understand that hemp will not meet all fiber or supplement demand.

Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your hemp farm business— but keep an eye on the indirect competition as well, just in case.

Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.

You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:

• Prices – Are they offer cheaper hemp farm products or more costly than you and other competitors, what value do buyers get for that price?
• Quality – Are they offer premium hemp products, the perceived worth in the eyes of the customers
• Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
• Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers

The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium hemp products? Will you offer unique hemp products that your competitors don’t offer? Will you offer better pricing or will you offer greater customer support?

Consider how you will outperform your competitors and include them in this portion of your hemp farm business plan.

Free: SWOT Analysis Examples

Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.

Marketing Plan

Creating a marketing plan for a hemp farm business involves identifying the target demographic and finding hemp farm products that suit their preferences.

As part of your marketing plan for a hemp farm company, you should include:

Pricing and Product Strategy

Your hemp farm business must offer products that are quality based and different from those of your competitors. Research what your competitors offer and how they price their hemp products. Unique products identifies your hemp farm business as the place to go for unique products and differentiates it from others.

Placing and Promotions

Place refers to the location of your hemp farm. Record your location and explain how it will affect your success. Is your hemp farm, for example, at a central location that will facilitate transportation, and so on? Discuss how your location could allow you to serve a larger number of consumers.

Promoting your hemp farm business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your hemp farm business. A few marketing methods you could consider are:

• Advertise in the yellow pages (local directories)
• Advertising through relevant business magazines, newspapers, TV and radio stations.
• Introducing the CBD hemp farming company by mailing introduction letters and brochures to businesses that use hemp and cannabis plants and seeds.
• Listing hemp products on yellow pages adverts (local directories)
• Attend relevant international and local expos, seminars, and business fairs.
• Join local chambers of commerce and industries in order to sell hemp products.
• Encourage word-of-mouth marketing from loyal and pleased customers

You should also think about your hemp farm’s Unique Selling Proposition (USP), which should explain why clients should choose you over other hemp farm businesses. Ensure that your USP is reflected in your marketing.

Pro Tips: If your are DIY business plan writer, this guide on how to write a marketing plan in a business plan might be helpful for you.

Operations Plan

While the previous sections described your goals, your operational plan in a business plan discusses how you will achieve them.

An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.

Your operations plan should be divided into two individual parts, as seen below.

Everyday short-term processes include all tasks associated with running your hemp farm, such as tilling, planting, growing, and harvesting the crop, maintaining equipment, staying up to date on new technology and/or regulatory developments, processing paperwork, and so on.

Long-term goals are milestones you hope to reach. It may be the date when you expect to finalize lease agreement or when you hope to reach $X in sales. Another example would be when you expect to hire your Xth employee or start a new location.

Management Team

When writing a hemp farm business plan, the management section’ outlines your management team, staff, resources, and how your hemp farm business ownership is structured.

This part may be easily organized by dividing it into the following points:

Ownership Structure

Internal Management Team

External Management Resources

Human Resources

This section outlines your hemp farm business’s legal structure. If your company is a sole proprietorship , it may simply be one phrase. It might be longer if your company is a partnership or a corporation . You should make it a point to clarify who owns what part of the business.

This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your hemp farm business. Ideally, you and/or your team members have direct expertise in the hemp farm business. If this is the case, highlight your experience and skills.

Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with hemp farm business.

An advisory board would consist of 3 to 7 people who would serve as mentors to your hemp farm company. They would assist in answering queries and providing strategic direction.

If necessary, search for advisory board members with expertise running hemp farm business.

Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches. 

The final topic to consider in the management area of your hemp farm business plan is your human resource needs.

Recommended Resources: Learn how to write a management team section in a business plan.

Financial Plan

As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.

Read Later: How to write a financial plan in a business plan.

Income Statement

A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.

As you develop your income statement, you need to develop assumptions. For instance, Will sales grow by 2% or 10% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.

Free: Income Statement Template

Create a financial statement for your business by downloading our free income statement templates.

Balance Sheet

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

The balance sheet shows your hemp farm business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:

• Assets: Tangible goods with the monetary worth that the company owns.
• Liabilities: Debt owing to a company’s creditor.
• Equity: The net difference when the total liabilities are subtracted from the total assets.

The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.

Create a pro forma balance sheet for your hemp farm business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.

Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.

For example, spending $150,000 to build out your hemp farm business will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.

Similarly, if a bank write you a check for $100,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.

Cash Flow Statement:

Your cash flow statement will help you determine how much money you need to start or grow your hemp farm business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hemp farm business:

• Location build-out costs include land preparation fees, barn and production facility construction, and so on.
• Equipment costs
• Payroll or salaries paid to employees
• Business insurance
• Payroll or salaries paid to staff
• Legal expenses
• Amount spent on advertising

Free: Balance Sheet Template

Create a financial statement for your business by downloading our free balance sheet templates.

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.

Bonus Tip: Learn how to write a business plan appendix for your hemp farm business.

Summary of the Hemp Farm Business Plan

A hemp farm business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the hemp farm business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your hemp farm business.

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Since 2010, Wise business plans’ hemp farm business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

Get started on your business plan on hemp farm  today!

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GLOBAL HEMP MARKET AND THE DEMAND FOR ITS BUSINESS

It has been projected that the global industrial hemp market will grow at a compound annual growth rate of 34% to $26.6 billion by 2025. Hemp acreage in North America and the European Union countries has reached massive levels in 2019, which is nearly 310,000 acres and about 120,000 acres respectively, and the global acreage has been more than 650,000 acres. Understandably, the business demand is rising given its lucrative scope for revenue generation. This is why you will need expert business plan writers to draw the attention of your investors.

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Executive Summary

Market Overview

Sales Strategy

Operating Plan

Organizational Structure

Financial Plan

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Industrial hemp is the plant Cannabis Sativa L (or any part of such plants) with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3 percent on a dry weight basis. Often Hemp and marijuana are confused as the same thing. But marijuana, which is also a variety of the same plant, contains a higher production of THC levels and low CBD levels. Actually, cannabis with a THC of 0.3% or less is federally regulated and marijuana contains a much higher concentration of this compound. Our professional hemp business plan writers have extensive experience in writing custom marijuana dispensary business plan.

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Thinking Hemp? Have a Business Plan

Ernie Neff November 14, 2019 Alternative Crops

Jeff Sharkey, executive director of the Florida Hemp Association , moderated a panel discussion on federal and state hemp policy at the recent Florida Industrial Hemp Conference and Exhibition in Orlando. 

“Getting the (hemp) application and licensing is reasonably straightforward,” Sharkey says. “The Department of Ag (Florida Department of Agriculture and Consumer Services) wants people to be successful.” 

Sharkey says his association advises members and clients that they have to see the whole supply chain and value chain in the hemp industry. “That means if you want to grow it … have a clear idea before you put the first seed in the ground how you’re going to cultivate it, how you’re going to test it, how you’re going to dry it and how you’re going to process it.” He suggests that growers should know what kind of product they want to develop. “That’s critical. You have to have a real business plan.”

“This is a booming industry around the country,” Sharkey says. “I think Florida has a real opportunity … There’s so many applications and uses of hemp.”

Sharkey also says some of the 450 attending the conference had questions and concerns about the timeline for Florida’s hemp rule development. He says Florida had to make some changes to its initial rule in order to be consistent with federal U.S. Department of Agriculture rules. “I think at the end of this calendar year we’ll be ready to go, and growers and manufacturers will be able to request licenses and approvals for cultivation and manufacturing,” he says.

Many landowners in Florida have an interest in growing hemp. Some in the citrus industry are considering it as an alternative crop that might be planted on some of the hundreds of thousands of acres of former citrus land lost to HLB.

Hear more from Sharkey about the panel discussion in this interview with Southeast AgNet’s Tacy Callies:

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CBD Hemp Farming Business Plan [Sample Template]

By: Author Cynthia Ejike

Home » Business ideas » Healthcare and Medical » CBD Business

Are you about starting a CBD hemp farm? If YES, here is a detailed sample CBD hemp farming business plan template & FREE feasibility report.

Starting a CBD hemp farm is one sure way of earning good money in the United States of America owing to the fact that the usage of hemp is now becoming acceptable in a host of states.

CBD hemp farming is known to be a profitable business and it has evolved from small scale backyard gardens to a global industry in all countries where it’s carried out.

Countries in the Caribbean, South America, North America, Europe, Asia, Australia and Africa are known to be in the forefront when it comes to cultivating cannabis.

If you have an interest in starting your own CBD hemp farming business, then you need to talk to a lawyer to know if it is allowed in your area and the limit that is expected of you.

A Sample CBD Hemp Farming Business Plan Template

1. industry overview.

Hemp is a distinct variety of the plant species Cannabis sativa L. that grows to a height of anywhere from 4-15 ft. (1.2-4.5 m) and up to 0.75 in (2 cm) in diameter. This plant is made up of an inner layer called the pith surrounded by woody core fiber, which is often referred as hurds.

Bast fibers form the outer layer. This bast fiber is mostly attached to the core fiber by pectin—a glue-like substance. The primary fibers are used for textiles, cordage, and fine paper products. The wood-like core fiber is used for animal bedding, garden mulch, fuel, and an assortment of building materials.

Because of its similar leaf shape, hemp is mostly confused with marijuana, another cannabis plant. Although, the key difference between the two is their tetrahydrocannabinol (THC) content, the ingredient that produces the high when smoked. Marijuana can consist as much as 20 percent THC, compared to less than 1 percent for industrial hemp.

But even with this difference, some countries are redundant to legalize growing of hemp (especially the united states), since there is a fear this will make it more difficult to control the use of the drug. Most hemp varieties also have a hollow stalk that have a very high fiber content (35 percent), in contrast to marijuana varieties that usually have a solid stalk having low fiber content (15 percent).

CBD hemp farming business is a line of business that is categorized under the Plant & Flower Growing industry and players in this industry grow nursery plants , such as trees and shrubs; flowering plants, such as cannabis, foliage plants, cut flowers, flower seeds and ornamentals; and short rotation woody trees, such as Christmas trees and cottonwoods et al.

These flowery and nursery plants can either be grown under cover or in an open field. The CBD hemp farming industry is indeed a fast growing industry and pretty much active in countries such as United States of America, Columbia, China, Ecuador, Italy, France, united kingdom and Jamaica et al.

Statistics has it that in the United States of America alone, there are about 223,123 registered and licensed CBD hemp cultivation companies responsible for employing about 763,189 people and the industry rakes in a whooping sum of $6 billion annually.

The industry is projected to enjoy 28.3 percent annual growth between 2013 and 2018. It is important to state that there is no company with a lion share of the available market in this industry in the United States of America.

A recent report published by IBISWorld reveals that the CBD hemp farming industry, which includes both employer and non – employer establishments that grow hemp for medical and recreational use, flourished over the five years to 2018. Watershed legalization victories in recent years, most notably during the 2016 election cycle, proved that the cannabis industry is one of the fastest growing industries in the US.

In 2016 alone, eight states passed initiatives to legalize marijuana. According to New Frontier Data, over one-third of the US population now live in states with newly expanded access to legal marijuana. Consumer attitudes are also accelerating legalization efforts at the state level. Gallup reports that an estimated 80.0 percent of US citizens approve of legal access to CBD hemp.

In additional to the regulatory vibe, the federal legality of industrial hemp cultivation does not supersede state, county, or local regulations. It simply means a state, county, or city can impose greater restrictions than the federal government has.

Presently, about 15 states have come out with pro-hemp laws; the rest of the states are silent or vaguely neutral. Note that many states, counties, and cities simply haven’t yet gotten their respective arms around all the issues. In general, you can’t cultivate hemp in any specific U.S. county without a permit. Also, the FDA currently bars the inclusion of CBD in food products.

Also, interstate transportation of legal hemp is legal, but not all the states, counties, cities, and law enforcement agencies understand this. Banks, also, are maintaining their distance from cannabis companies, pending the possible enactment of the (SAFE) Banking Act of 2019 that prohibits federal banking regulators from penalizing banks that offer cannabis-related financial services.

Aside from the fact that CBD hemp is grown outdoors, either on natural soil or in pots of pre-made or commercial soil, it can also be grown indoors in a soil-like medium under artificial light, adding fertilizer when the plants are given water.

Cultivating cannabis indoors is more complicated and expensive than growing outdoors, but it allows the cultivator complete control over the growing environment. Plants of any type can be grown faster indoors than out due to 24-hour light, additional atmospheric CO2, and controlled humidity which allows freer CO2 respiration.

One thing is certain about CBD hemp farming business, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to sell your produce because there is always a ready market for them.

2. Executive Summary

Rex Morgan® CBD Hemp Farms, LLC is a registered and licensed CBD hemp farm that will based in Sioux Fall, South Dakota – United States of America and we will sell our products in and around South Dakota because we know that our products will be in high demand due to the demographic composition of South Dakota.

We chose South Dakota because South Dakota Governor Dennis Daugaard on March 17, 2017 signed SB 95 into law. The law added cannabidiol to the list of Schedule IV controlled substances and excluded it from the definition of marijuana, but specified that the CBD must be a product approved by the United States Food and Drug Administration (FDA).

Rex Morgan® CBD Hemp Farms, LLC we will be involved in growing a distinct variety of the plant species Cannabis sativa L for medical and legal recreational use.

At Rex Morgan® CBD Hemp Farms, LLC we are well positioned to become one of the leading CBD hemp farms in the United States of America, which is why we have been able to source the best hands and resources to run the business with. We have put process and strategies in place that will help us employ best practices when it comes to bringing out the best in this line of business.

Rex Morgan® CBD Hemp Farms, LLC is a private registered company that is owned by Rex Morgan and his immediate family business. The company will be single handedly managed and financed by Rex Morgan and his immediate family members at least for a period of time before welcoming other investors.

3. Our Products and Services

Rex Morgan® CBD Hemp Farms, LLC will be involved in the growing of CBD hemp and cannabis plant for the United States’ market. We will ensure that we do all that is permitted by the law in the United States of America to maximize profits and achieve our business goals and objectives.

We will cultivate and supply;

• Cannabis sativa L.
• Other related cannabis and hemp plants

4. Our Mission and Vision Statement

• Our Vision is to become one of the top 10 CBD hemp farms not just in the United States of America but also on the global stage.
• Our mission is to go into full – time commercial cultivation of hemp and other similar nursery plants and flowers that will not only be patronized in the United States of America, but also exported to other parts of the world.

Our Business Structure

Rex Morgan® CBD Hemp Farms, LLC is a hemp farm that intends starting small, but hopes to grow big in order to compete favorably with leading farms in the industry both in the United States and on a global stage. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.

At Rex Morgan® CBD Hemp Farms, LLC, we will ensure that we hire people that are qualified, hardworking, goal getters, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Operating Officer

General Farm Manager

Administrator/Accountant

Farm Workers/Field Workers

• Sales and Marketing Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervises other section managers
• Ensures compliance during project executions
• Provides advice on the management of farming activities across all section
• Responsible for carrying out risk assessment
• Uses IT systems and software to keep track of people and progress of the growth of different species of marijuana
• Responsible for overseeing the accounting, costing and sale of farm produce after harvest
• Ensures that farming goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Handles all financial transactions for the company
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily farming activities across the various farming sections.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis.
• Accountable for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Serves as internal auditor for the company
• Responsible for carrying out core activities such as; Seedlings – Vegetative Growth – Cloning – Sexing – Flowering – Harvesting – Curing – Producing Seeds – Pests and Pest Control –
• Handling common plant problems
• Handles Sod installation / hydro – seeding
• Handles weeding or fertilizer and / or pest control application
• Handles farm maintenance services
• Assists in transport working tools and equipment from the office (store) to site and back to the office
• Works closely with the General Farm Manager to achieve the organizations’ goals and objectives

Sales and Marketing Officer

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

6. SWOT Analysis

As a world – class CBD hemp farming business, we look forward to maximizing our strengths and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Rex Morgan® CBD Hemp Farms, LLC;

Our strength as a CBD hemp farming business is the fact that we have healthy relationships with loads of major players in the industry. We have some of the latest farming tools and equipment that will help us grow these plants in commercial quantities with less stress.

Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the CBD hemp farming business in the whole of Sioux Fall – South Dakota under our payroll.

Our weakness could be that we are a new CBD hemp farming business in the United States; it might take some time for our organization to break into the market and gain acceptance especially from well – established companies who are the leading buyers of hemp plants and seeds. Another weakness is that we may not have the required cash to promote our business the way we would want to.

• Opportunities:

The opportunities that are available to us cannot be quantified, research shows that the United States cannabidiol (CBD) oil market size was treasured at USD 3.36 billion in 2015 and it is anticipated to witness a predictable growth rate of 9.0 percent from 2016 to 2024.

This industry is a thriving industry, and as a matter of fact, there are about 200 different types of cannabidiol (CBD) oils that are used all over the world, and the United States of America plays a main role in total demand.

Going forward, the additional health profits of cannabidiol (CBD) oils are anticipated to trigger their demand in pharmaceutical and medical applications. We are ready to take advantage of any opportunity that is available in the industry.

CBD hemp plants and products generated from the plant or seed struggle to compete with conventional healthcare products due to the alternative and unconventional nature of their treatment. External competition from traditional drugs and healthcare providers is expected to grow in 2018, representing a potential threat to the industry.

So also, economic downturn is a threat for our business. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new CBD hemp farming business in the same location where our target market exists.

7. MARKET ANALYSIS

• Market Trends

A notable trend shows that prior to the establishment of the first legal cannabis market in Colorado, United States, growers of the plant in the American State of Washington experimented with the use of cannabis waste for pig food.

In early 2013, potent cannabis waste products were mixed into the feed of four pigs during the last four months of their lives, resulting in a weight increase of 20 pounds (9.1 kg) to 30 pounds (14 kg) that was registered before the pigs were sent to slaughter in March 2013.

Washington State’s draft regulations prescribe that cannabis waste must be “rendered unusable prior to leaving a licensed producer or processor’s facility,” and adds that mixing it with food waste is acceptable. The European Food Safety Authority reported in 2011 that “no studies concerning tolerance or effects of graded levels of THC in food-producing animals have been found in literature.”

It is on record that revenue generated by CBD hemp cultivators/plants industry has maintained positive growth because in recent time, a growing number of individuals earned additional income, resulting in high demand. External factors such as demand from dispensaries impact industry performance.

Another common trend in the CBD hemp farming business is that most players in the industry are no longer concentrating only on cultivating CBD hemp plants. They now find it easier to run their own CBD oil extraction business.

8. Our Target Market

As you would expect, the end users of CBD hemp and those who benefit from the business value chain of the marijuana grower industry is all encompassing. In view of that, we have created strategies that will enable us reach out to various individuals and businesses that would need our hemp plants and seeds.

Below is a list of the people and businesses that we will market our products to;

• Pharmaceutical companies
• Alternative medicine practitioners that use cannabidiol (CBD) oil
• Cannabidiol (CBD) oil merchants
• Small scale businesses that make use of cannabidiol (CBD) oil as part of their raw material.

Our Competitive Advantage

Rex Morgan® CBD Hemp Farms, LLC is fully aware that there are competitions when it comes to selling hemp/cannabis plants and seeds, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in Sioux Fall – South Dakota.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.

Our competitive advantage lies in the power of team and we have healthy relationships with loads of major players in the industry; both suppliers and buyers within and outside of the United States. We have some of the latest CBD hemp farming tools and equipment that will help us grow these plants in commercial quantities with less stress.

Aside from our relationship and equipment, we can confidently say that we have some the most experienced hands in the CBD hemp farming business in the whole of Sioux Fall – South Dakota under our payroll.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round CBD hemp farming business that will sometime in the nearest future also engage in CBD oil extraction and hemp processing.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Rex Morgan® CBD Hemp Farms, LLC is in the CBD hemp farming business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.

We will generate income for the business by growing CBD hemp plants and other related plants for medical recreational use.

10. Sales Forecast

From the survey conducted, we were able to discover that the sales generated by an average CBD hemp farming business depends on the size of the farm, and other related plants that they are involved in.

We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from our first year of operation and build the business from survival to sustainability.

We have been able to examine the plants and flower grower industry cum CBD hemp farming business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the projections that we were able to come up with for the first three years of running Rex Morgan® CBD Hemp Farms, LLC;

• First Fiscal Year (FY1): $240,000
• Second Fiscal Year (FY2): $450,000
• Third Fiscal Year (FY3): $750,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters, and unfavorable government policies . Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are quite aware that the reason why some CBD hemp farming companies hardly make good profits is their inability to sell off their farm produce as at when due.

Our sales and marketing team will be recruited based on their vast experience in the CBD hemp cultivation industry and they will be trained on a regular basis so as to be well equipped to meet their set targets and the overall business goal of Rex Morgan® CBD Hemp Farms, LLC.

Our goal is to grow Rex Morgan® CBD Hemp Farms, LLC to become one of the leading CBD hemp farming businesses in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Sioux Fall – South Dakota but also in other cities in the United States of America.

In summary, Rex Morgan® CBD Hemp Farms, LLC will adopt the following strategies in marketing our cut flower;

• Introduce our CBD hemp farming business by sending introductory letters alongside our brochure to businesses that make use of hemp and cannabis plants and seeds.
• Advertise our business in relevant business magazines, newspapers, TV and radio stations
• List our business on yellow pages’ ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Join local chambers of commerce and industries with the aim of marketing our products
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be willing to utilize every available means to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

Below are the platforms you can leverage on to boost our CBD hemp cultivation brand and to promote and advertise our business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
• Install our Billboards in strategic locations all around Sioux Fall – South Dakota
• Distribute our fliers and handbills in target areas
• List our CBD hemp farm in local directories / yellow pages
• Advertise our CBD hemp farming business in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

Some of the factors that will help you sell your harvested CBD hemp seeds and plants at the right price is dependent on your strategy while some of the factors are beyond your control.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our CBD hemp seeds is to sell them at competitive prices hence we will do all we can to ensure that the prices of our farm produce are going to be what other farmers would look towards beating.

One thing is certain, the nature of the hemp farming business makes it possible for farmers to place prices for their farm produces based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your harvest the better for your business.

The fact that we are going to be offering our farm produce at cheaper prices does not in any way means that we will sell unhealthy plants. Selling our CBD hemp plants and seeds at a lower price than what is obtainable in our competitors farm means that we will only reduce our profit margin and gain sales margin.

• Payment Options

The payment policy adopted by Rex Morgan® CBD Hemp Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payments options that Rex Morgan® CBD Hemp Farms, LLC will make available to her clients;

• Payment via bank transfer
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for farm produces purchase without any stress on their part.

13. Startup Expenditure (Budget)

From all available statistics and facts available to us, we have been able to come up with an estimate of what we intend spending in the bid to establish our CBD hemp farming business in Sioux Fall – South Dakota. This is what it would cost us to setup Rex Morgan® CBD Hemp Farms, LLC in Sioux Fall – South Dakota, U.S;

• The Total Fee for incorporating the Business (CBD hemp farming business) in United States of America – $750.
• The budget for key insurance policies, permits and business license – $2,500
• The amount needed to hire business consultants – $2,000
• The amount needed to acquire/lease a farm land – $50,000
• The amount required for preparing the farm land (for the cultivation of hemp / cannabis seedlings and fencing et al) – $30,000
• The cost for acquiring the required working tools and equipment / machines / flower pots et al – $200,000
• The amount required for purchase of seedlings and mineral nutrients solutions – $20,000
• The Cost of Launching an official Website – $600
• The amount required for payment of workers for a period of 3 months – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $300,000 to start a medium scale but standard CBD hemp farming business in the United States of America.

The nature of CBD hemp farm does not require an office space, most people that run CBD hemp farms operate directly from their farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried out.

Generating Funds/Startup Capital for Rex Morgan® CBD Hemp Farms, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business.

Rex Morgan® CBD Hemp Farms, LLC is a family business that will be owned by Rex Morgan Cephas and her immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

• Generate part of the startup capital from personal savings and sale of stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Rex Morgan® CBD Hemp Farms, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our CBD hemp seeds and plants a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Rex Morgan® CBD Hemp Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts : Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of farm land in Sioux Fall – South Dakota: Completed
• Conducting Feasibility Studies: Completed
• Startup Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Design of The Company’s Logo: Completed
• Printing of Packaging/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Building of beddings and fencing for the farm: In Progress
• Purchase of the needed farming tools, machines and equipment: Completed
• Creating Official Website for the Company : In Progress
• Creating awareness for the business (Business PR) : In Progress
• Farm land Treatment, Health and Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (CBD hemp seeds and plants merchants, transporter/haulage and suppliers of seeds, mineral nutrient solutions, pesticides and insecticides): Completed

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Professional Cannabis cultivation business plan from OGScapital

Our cannabis dispensary business plans have helped 200+ clients attract more than $300m in financing

OGScapital knows the secret to preparing a business plan for medical cannabis that will raise the money you need.

Results-driven solutions

Your business plan for dispensary will comply with all investor requirements. Our dedicated team will emphasize your business idea’s unique advantages and attractiveness, highlighting the market potential, investment returns, and competitiveness of your value proposition.

Strategic advice

We do more than structure your inputs in a professional way. We also take our internal knowledge and market research into account. We will challenge your business idea, adding best practices and providing guidance that will make your ideas more attractive to investors.

Experienced team

All of our experts are MBA fellows from TOP10 schools. Together, we can boast wide-ranging experience working in senior positions in top investment banks, consulting companies like PWC, Deloitte, UBS, and Morgan Stanley and serving Fortune 1000 clients.

High-quality market research

Your cannabis business plan will include market analysis and research from globally recognized research firms including IBISworld, Datamonitor, MarketLine, Statista, etc. In addition we are using our network of industry experts and opinion leaders.

Full customization

Each document is prepared from scratch, with rich and eye-catching design that utilizes graphics, tables, pie charts and illustrations. No templates and no ready-made solutions. Three MBA consultants will work on your cannabis manufacturing business plan.

Fundraising

OGScapital connects you with our extensive and global network of investors. Our network includes different profile of investors, such as venture capitalists, private equity funds, angel investors, banks/private lenders and international financial institutions.

Key types of cannabis business plan

OGScapital has huge experience in delivering add value to various cannabis businesses

Cannabis Dispensaries & Distribution

Hemp/Cannabis Processing & Packaging

Hemp/Cannabis Cultivation

Hemp and Cannabis Products

Our solution

OGS with help you meet your goals by creating a business plan for cannabis dispensary that will comply fully with all investor and government body (licensing) requirements.

Specifications:

Users:   Family & Friends Seed Funders, Angel Investors and Venture Capitalists, Government Bodies and Private Equity Funds

Document size:  40-50 pages

Timeframe:   12 days

Graphic design:  included

Unlimited revisions:  included

Assigned team:   3 senior experts with a project lead

Rush Delivery Service:  Available

Document contents:

• Executive Summary
• Competitive Analysis
• Business Model
• Mission/Goals
• Products and Overview of facilities
• SWOT Analysis
• Marketing Mix
• Market Analysis
• Market Forecast
• Exit Strategy
• Business/Operating Strategy
• 5 Forces Analysis
• Marketing Strategy
• Use of Proceeds

Illustrative cannabis cultivation business plan sample

Our investor-ready business plans for cannabis dispensary are designed by our team of graphic designers.

Cannabis Business Plan PDF

Cannabis Business Plan Sample

How much does an OGScapital cannabis processing business plan cost?

Our fees are highly competitive and entirely reasonable, scaling up or down according to task complexity

What sections will be included in the hemp business plan?

Content varies depending on the client’s needs. We know that making a cannabis cultivation business plan for investors is not a one-size-fits-all process.

All documents, though, include the following key sections: market analysis, business model description, operational strategy, goals, financial model, etc

Can you guarantee that my business plan for dispensary will lead to successful fundraising?

We can guarantee that the hemp business plan we prepare for you will comply fully with investor/lender requirements. However, we cannot take responsibility for the success of your fundraising efforts—there are simply too many factors that we cannot control (e.g., your credit score, relevant experience, etc.)

Cannabis Business plan

OGSCapital will provide you with complete cannabis growing business plan for a reasonable fee.

OGScapital will work closely with you and provide guidance throughout the process.

Your cannabis dispensary business plan in 4 easy steps

Fill out  our online form

We will begin writing a  business plan for dispensary for investors and issue a draft within 10-15 days.

We consider your comments, revise as necessary, and issue the final hemp business plan.

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OGS Capital was very easy to work with and I am extremely satisfied with the final product. I would highly recommend.

∙ John Floyd from Sunset Farms Hydroponic Produce LLC

I had a perfect experience with ogscspital. They are a specialized team that adviced or took over the entire creation of the perfect fitting and powerful business plan for my business.

∙ Emilia from Ecosort

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I worked fir business plan and dialed with ALEX,peofessional ,highly committed and suppertive .

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Work is beyond exceptional. Alex and his team provide thorough research and deliver a top-notch product.

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OGS helped us with our Start-Up business plan that is helping uplist to the OTC QB Market. The speed of the initial draft and the edits are impeccable.

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I ve experienced a very professional service from Alex from day one. He was really engaged with the process, asked a lot of questions, collected lots of information in order to put together a comprehensive and very strong business plan.

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OGScapital was established in 2006 by 8 partners. Since then, we have become the #1 business plan company with a track record including more than 5,000 satisfied clients. OGScapital has a specific team of consultants focused on Cannabis industry only. In addition we have wide-ranging experience working in globally recognized investment banks and consulting companies (PWC, Bain, Deloitte) and serving Fortune 1000 clients.

OGScapital was established in 2006

Our documents have helped attract $300m+ for cannabis projects

Our senior experts have experience spanning 42+ industries

Our track record includes 200+ happy clients from cannabis industry

Our team includes 60 consultants including 6 cannabis professionals

OGScapital has access to a network of 300+ investors

Our clients

More than 5,000 companies have used OGScapital’s services.

How to start a cannabusiness?

Starting a cannabusiness can be an exciting and rewarding venture. Depending on the state where you plan to operate, the requirements to start the business can vary greatly. Before getting started, you should conduct some research to ensure you are up to date on all applicable technologies, regulations, and laws.

According to recent data, the legal cannabis industry has the potential to create jobs and stimulate economic growth. The top cannabis researcher Brightfield Group states that the US cannabis market is estimated to reach over $50.7 billion in annual sales by 2028.

Source:  https://blog.brightfieldgroup.com/brightfields-2023-us-cannabis-market-forecast

No matter which part of the cannabis industry you choose to focus on, there are a few basic steps you should take to start your cannabusiness.

1. Research the Cannabis Market

Before jumping into the cannabis business, take the time to conduct thorough market research. The weed growing business plan includes researching the size of the market, industry regulations, and potential customer base. You should also research the competition in the area where you plan to operate and look for opportunities to distinguish yourself from the competition.

2. Draft a Business Plan

Once you’ve done your market research and determined which segment of the cannabusiness you wish to enter, the next step is to create a comprehensive marijuana business plan sample, this plan should address all aspects of the business, including the product or service you plan to offer, pricing, financial projections, and marketing.

3. Obtain Licenses and Permits

Cannabusinesses are subject to different levels of regulation depending on the state in which they operate. To be legally compliant, your business must obtain all necessary licenses and permits. This includes registering with the state taxation and revenue body and acquiring a business license as well as a Certificate of Occupancy, zoning permits, and any other applicable permits. Additionally, you may need to pass another set of tests or receive a certification specific to your type of business.

4. Choose Your Business Structure

The type of business structure you choose for your cannabusiness will determine the size of your business, the amount of taxation you pay, and how your business is managed. Some popular weed business plan’s structures include sole proprietorships, partnerships, limited liability corporations, and corporations.

5. Develop Your Brand

Once you’ve obtained the necessary licenses and permits, it’s time to start developing your brand. The marijuana business plan includes developing your business’ logo, mission statement, and other touchpoints. Additionally, you should create a website and social media profile to promote your business.

6. Set Up a Payment System

Since cannabis is still largely a cash-only industry, you must implement a payment option allowing your customers to pay in cash. You should also consider accepting digital currency, such as Bitcoin or Ethereum.

7. Create an Inventory System

Since you will be dealing with various cannabis products, one of your top priorities will be setting up an inventory system. The cannabusiness consultingX includes documenting and tracking all inventory received, stored, and sold. You should also create a system for tracking customer orders and managing customer accounts.

8. Hire the Right Employees

You cannot run a successful cannabusiness without the right staff. Ensure that you hire experienced employees who are knowledgeable about the industry and have impeccable records.

Starting a cannabusiness plans X can be a complex and costly endeavor, but it also provides a unique opportunity to make a significant impact and capitalize on the burgeoning legal cannabis industry. Simply follow the steps listed above, and you will be well on your way to operating a successful cannabusiness.

Cannabis Business Plan Consultants

Cannabis business plan consultants provide custom-tailored business planning solutions for cannabis businesses. They are experts in analyzing and interpreting the local, state, and federal regulations and laws that are specific to cannabis businesses. Consulting services may include assistance with obtaining the necessary licenses and permits, developing a comprehensive business plan, evaluating market analysis, financial planning and forecasting, creating marketing strategies, and more.

Due to the evolving legal landscape and the increase of opportunities in the cannabis industry, cannabis business consultants have been in demand in recent years. As cannabis cultivation X products become legal for both medical and recreational use in several US states, many investors are turning to cannabis business plan professionals to profit from the economic benefits of hemp cultivation.

Recent updates in financial tutorial X show that the cannabis industry in the US is experiencing significant growth. Its income varies depending on the state and the specific segment of the industry; This amply demonstrates how profitable it may be for anybody interested in cultivating, researching, or selling cannabis to jump on the bandwagon.

Be aware that the market for cannabis businesses has already reached saturation in the places where it is legal. A new firm must have a comprehensive cannabis growing business plan if it wants to succeed. OGS Capital will be your safe choice if you want to seek advice to build an effective cannabusiness plan.

1. Growing Hemp

Growing hemp is a profitable venture, especially for those who have the proper business plan. Different states have developed laws that permit growing hemp, and growing and selling cannabis is often taxed. The potential for large-scale growth in this field makes it attractive to many investors. In terms of consulting, the experts at OGS Capital can help cannabis business owners to develop a comprehensive business plan that includes outlining the legal and financial aspects of the business.

2. Cannabis Distribution

The cannabis industry is growing rapidly, and many entrepreneurs are turning to independent distributors to build profitable businesses in this fast-growing sector. However, this is a highly competitive space, as numerous businesses are in this field. A cannabis distribution business plan should include a detailed analysis of the market and potential competition, as well as an evaluation of the company’s objectives, potential profit margins, and strategies for marketing and sales. OGS Capital’s team of experts can help to create a custom-tailored business plan cannabis nursery that not only satisfies investors but also is well-suited to the business owner’s goals.

3. Wholesale Hemp

Wholesale hemp refers to the bulk purchase and sale of hemp products, typically from a producer or distributor to a retailer or other business entity. Hemp is a variety of the Cannabis sativa plant species that is grown specifically for industrial purposes.

As the cannabis industry continues to expand, more businesses are turning to wholesale hemp to diversify their offerings. A wholesale hemp business plan should detail the steps to be taken to register the business, secure a license, choose inventory and other supplies, develop prices, and more. The business plan should also include projections for potential profits and market analysis. OGS Capital can help entrepreneurs create a comprehensive business plan for their wholesale hemp business.

4. Recreational Cannabis

The recreational cannabis sector is experiencing a surge in demand. Many entrepreneurs are now investing in businesses that produce, sell, and distribute recreational cannabis products. A  recreational cannabis business plan  should provide an overview of the company’s objectives, include a market analysis, and outline marketing, sales, and distribution strategies. A complete cannabis business plan should also include financial forecasts and projections for potential profits.

5. Medical Hemp

The phrase “medical hemp,” also known as “medical cannabis” or “medical marijuana,” refers to cannabis plants or products that are used therapeutically to treat a variety of illnesses and symptoms. It includes substances known as cannabinoids, among which tetrahydrocannabinol (THC) and cannabidiol (CBD) are the two most well-known and extensively researched.

The psychoactive component in marijuana, THC, is what gives users a “high,” whereas CBD is not psychoactive and has grown in popularity because it may have medicinal benefits. It is highly important to mention that many different medical illnesses and symptoms are treated using medicinal hemp.

Business owners must be well-seasoned in the laws and regulations that govern this field if they wish to succeed. A medical hemp business plan should include a comprehensive legal analysis and overview of the proper license and permit requirements.

6. Cannabis Cultivation and Extraction

Cannabis cultivation and extraction are two important sectors in the cannabis industry. It requires a thorough business plan that includes an analysis of the market and potential competitors, strategies for acquiring investors, and a thorough financial analysis.

A cannabis cultivation and extraction business plan should also include a brief legal overview and the necessary steps to maintain legal compliance. OGS Capital provides cannabis business plan consultants that can help create a comprehensive plan for your cannabis cultivation and extraction business.

7. Is It Profitable To Start a Cannabis Business?

With the ever-growing movement to legalize cannabis at the state and federal levels, the industry is poised for explosive growth in the near future. This creates an incredible opportunity to capitalize on the increased demand for cannabis products and services. Currently, the industry already generates billions of dollars in revenue each year, so someone looking to make a good profit could succeed in the cannabis industry.

According to  business news daily , in the United States alone, the legal marijuana market is projected to grow from its current value to $72 billion annually by 2030. This means more money and opportunities for those willing to invest in cannabis businesses. Additionally, cannabis businesses have plenty of potential to make money from selling marijuana, CBD products, edibles , and more. With the right business plan and strategies in place, cannabis businesses can experience significant financial success.

8. Choose OGS Capital to Launch Your Cannabis Business Successfully

With a comprehensive understanding of the cannabis industry, OGS Capital has the experience and knowledge to create a successful cannabis business plan for startups and existing businesses in this industry. OGS has been involved with the cannabis business since its inception, helping to shape the industry and provide guidance to our clients. Our team of expert consultants helps businesses in the cannabis industry develop and execute strategies that maximize their profits and achieve their goals. With years of experience in financial modeling, market analysis, and operational management, we create optimized, data-driven plans that help our clients seize opportunities and minimize risk.

At OGS, we tailor our cannabis business plan to our client’s specific needs and goals. We identify key issues to consider, such as regulations, licensing, product design, financing, marketing, and sales. With the current trend of legalization, the cannabis industry is rapidly growing and becoming more competitive. Our plan will help our clients stand out in a crowded industry.

An OGS Capital cannabis business plan is the blueprint you need to help you remain competitive in today’s constantly changing market. With our experienced team of cannabis specialists, you can easily navigate this new and complex industry. Call us today to get your cannabis business plan started.

What makes a cannabusiness successful?

A successful cannabusiness considers many factors, including a clear vision and business plan, an understanding of the regulations and laws, marketing and networking opportunities, knowledgeable staff, access to industry know-how, effective management practices, and an ability to provide quality products or services. Quality control is also essential, as the reputation of the business depends on it. Finally, funding or the ability to fundraise is also important as it helps the business grow and tap into additional markets.

Is managing a dispensary hard?

Managing a dispensary can be difficult, as numerous local and state regulations must be followed. It also requires an understanding of inventory management, merchandising, and customer service. In addition, businesses must monitor fluctuations in the markets to ensure prices are competitive and profitable while at the same time adhering to the law.

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Hemp Farm Business Plan Template [Updated 2024]

Hemp Farm Business Plan Template

If you want to start a Hemp Farm business or expand your current Hemp Farm, you need a business plan.

The following Hemp Farm business plan template gives you the key elements to include in a winning Hemp Farm business plan.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Hemp Business Plan Example

I. executive summary.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name], located in [insert location here], is a hemp farm that grows high-quality hemp products. Located on over 160 acres, the farm grows cannabigerol (CBG) strains and cannabidiol (CBD). The Company has some of the latest farming tools and equipment that will help it grow these plants in commercial quantities.

Products Served

[Company Name] will be able to provide customers with high-quality hemp, which includes:

• Food-grade hemp
• CBD (which is extracted from leaves and stalks)

Customer Focus

[Company Name] will serve manufacturers and regional distributors, as well as end consumers. The company will reach end consumers via their ecommerce platform.

Management Team

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a hemp farm operations manager for the past [xx] years.

[Company name] will also employ an experienced sales manager to sell to manufacturers and regional distributors. This will be a skilled salesperson trained in farm sales by [Founder’s Name]. An assistant manager will manage the day-to-day operations of the farm.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There is currently a high demand for good-quality hemp products in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the products, supporting the business after launch.
• The Company’s location is within 100 miles of numerous potential customers and contains hundreds of acres of arable land.
• The Company has the latest farming tools and equipment that will help it grow these plants in commercial quantities with less stress.
• The management team has a track record of success in the hemp farming business.
• The Hemp business is a proven business and has succeeded in communities throughout the US.

Financial Highlights

[Company Name] is currently seeking $400,000 to start the company. Specifically, these funds will be used as follows:

• Land and Equipment: $250,000
• Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

Who is [company name].

[Company Name], located in [insert location here], is a new, independent hemp farm focusing on producing high-quality products for its clients. Located on over 160 acres, the farm grows cannabigerol (CBG) strains and cannabidiol (CBD).The farm-grown hemp contains no THC, but the plant can be used for its CBD properties, which provide pain-killing, anti-inflammatory and digestive help without producing a high. [Company Name] is fully equipped with the latest technology and equipment used in the hemp farming industry.

[Company Name]’s History

[Founder’s Name] is an entrepreneur with a passion for hemp farming who seeks to cater to the needs of people through modern hemp farming. [Company Name] will become a recognized hemp farming company in [Location] offering high-quality hemp produce.

[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for a hemp farm.

Since incorporation, the company has achieved the following milestones:

• Developed the company’s name, logo, and website
• Determined equipment and inventory requirements
• Began recruiting key employees with experience in the hemp farming industry

[Company Name]’s Products

• Food-grade hemp (which may be consumed in raw or roasted form, or pressed for oil and milk)

III. Industry Analysis

[Company Name] competes against large-scale hemp producers and companies in the US. Since the legalization of hemp, over 30 states have licensed hemp farms, nearly 17,000 state hemp licenses have been issued, and more than 500,000 acres of hemp have been licensed nationally. The US industrial hemp market was estimated at $1.9 billion and will grow at a CAGR of 21%.

The market is gaining high momentum as several application industries are adopting the use of hemp products owing to its benefits. Players involved in the market produce variable quantities and qualities of industrial hemp as well as variants, in terms of seed size and oil composition.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will primarily serve manufacturers, and regional distributors, along with end consumers of hemp products. Distributors and manufacturers of hemp produce in the region see growth in interest in hemp products and need such ingredients for suppliers. These businesses typically gross from $5 million to $50 million in annual revenues and source their supplies from within a 100-mile radius of their facilities.

Customer Segmentation

The Company will primarily target the following customer segments:

• Regional Distributors: Regional distributors source hemp products from small and medium hemp farms, and sell them to manufacturers who process, package and sell the products.
• Manufacturers: Small manufacturers that process hemp produce work directly with local farms to keep costs low whenever possible.
• End-consumers: The Company will sell it products to this segment, who have a valid hemp license and reside within 100-mile radius of the farm.

V. Competitive Analysis

Direct & indirect competitors.

Hemp Farms USA Hemp Farms USA is one of the large-scale hemp producers in the US, owning a 12,000 ha area for agriculture. It has long-standing partnerships with leading FMCG and pharmaceutical companies and has thrived in the business for the past 10 years. It also has automated equipment and machines, which helps in improving its operations and reducing costs. Hemp Farms USA has many contracts with large manufacturers and wholesalers.

Hemp Land Hemp Land was established in 1995 and is a very well-known company that provides good quality hemp products to companies. It majorly targets local companies and retailers. Moreover, it has a very good brand value, and its product packaging is second to none. Hemp Land is located in [location], and it has a very effective distribution and supply chain network.

Hempalot Hempalot has been a CBD hemp producer for over 10 years. Hempalot is now one of the ten largest Hemp producers in the US. The Company’s packaging and processing units are located in [location]. It has recently acquired two hemp farms with a very high production capacity. With this acquisition, Hempalot has also joined the elite hemp produce club, which has already made its foray into the hemp plantation business. However, Competitor 3 does not produce other hemp products and focuses on CBD only.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management: The Company’s management team has xx years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Relationships: Having lived in the community for xx years, [Founder’s Name] knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
• Quality products at affordable pricing: The Company will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.
• Location: [Company Name] will be able to service the entire metropolitan area of [company location] and its surrounding areas.

VI. Marketing Plan

The [company name] brand.

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the hemp production industry. Customers can expect high-quality raw products with affordable pricing and excellent packaging.

The [Company Name] brand will focus on the Company’s unique value proposition:

• Efficient and Effective Delivery network
• Good Packaging
• Quality products at affordable pricing
• Providing excellent customer service and customer experiences

Promotions Strategy

[Company Name] expects its target market to be distributors, manufacturers and end-consumers. The Company’s promotions strategy to reach the audience includes:

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Public Relations [Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its services in various media outlets like television stations, radio shows, etc.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of various forms and technologies of hemp farming and post customer reviews that will increase audience awareness and loyalty.

Yellow Page Marketing The Company shall announce details about its presence and services in the yellow pages and other local directories to keep readers informed about the company’s various products. The purpose of yellow pages is to maintain a directory of the business records in alphabetical order.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the hemp products. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.

VII. Operations Plan

Functional roles.

The assistant manager will run the day-to-day operations of the farm, including scheduling and assigning the work of farmhands, sourcing and purchasing supplies and basic equipment, keeping the company’s books, maintaining legal licenses, handling insurance, and ensuring that the company meets government regulations.

Additional roles required include farm hands, packaging and maintenance personnel.

VIII. Management Team

Management team members.

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a farm operations manager for the past [xx] years. [Founder] graduated from the University of ABC, where he majored in Arts.

[Company name] will also employ an assistant manager to manage operations. This will be an experienced operations manager who will be trained in farm operations by [Founder’s Name]. Furthermore, a sales manager will be hired to focus on marketing, sales, and customer service to distributors, manufacturers, and end-consumers for [Company Name] products. These two individuals will either have undergraduate business degrees or years of relevant operations or sales experience.

Hiring Plan

[Founder] will serve as the CEO. To launch the hemp farm, the company will need to hire the following personnel:

• Farmhands [Number]
• Logistics and Supply Chain Manager [Number]
• Assistant Manager [Number]
• Sales Manager [Number]

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sale of hemp products to its customers. The major costs for the company will be the cost of land and equipment, as well as staff salaries. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $400,000 to launch its company. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows:

Key Assumptions

  5 Year Annual Income Statement

Comments are closed.

SNAP cuts, school lunches and crop protections: 2024 Farm Bill proposal in simple terms

The 2024 farm bill proposal includes changes to conservation, snap benefits, tribal scholarships and commodity protections, including dairy, livestock and crops..

The deadline for a new Farm Bill is quickly approaching — and with the upcoming U.S. presidential election and political campaigns at their peak, some critics say it may not even happen until next year.

Nonetheless, the U.S. House of Representatives and the U.S. Senate unveiled overviews of their Farm Bill drafts on May 1.

Here's everything you need to know about the Farm Bill.

When is the deadline and other key dates for a new Farm Bill?

The 2018 Farm Bill was set to expire last year, but lawmakers extended it for another year. Congress is required to sign a new bill by Sept. 30, or the bill will extend until Sept. 30, 2025. The bill is revised every five years.

The House is expected to unveil a complete draft of the upcoming Farm Bill by the end of the week ahead of the committee markup on May 23. According to the Library of Congress, the markup is the key step for a bill to advance to the floor and determines whether the measure pending before a committee will be recommended to the full Senate and whether it should be amended in any substantive way.

A markup concludes when the committee agrees, by majority vote, to  report  the bill to the chamber.

Who drafts the Farm Bill?

Members of Congress who sit on the Senate and House Committees on Agriculture, Nutrition and Forestry are primarily responsible for drafting farm bills.

Are Republicans and Democrats in agreement?

The 2018 Farm Bill was extended last September amid stalled negotiations between the Republican and Democratic Parties, mostly witnessed in the differing bills between the House and Senate. On May 1, both Agriculture Chairs for the House, G.T. Thompson (R-Pa.), and Senate, Debbie Stabenow (D-Mich.), released new individual Farm Bill drafts that again rivaled one another.

One of the biggest challenges: cannabis and hemp.

In the House's draft, there is no mention of cannabis, while the Senate's draft "lowers regulatory barriers for farmers who are growing industrial hemp for grain and fiber" and "eliminates the ban on persons who were previously convicted for a felony relating to a controlled substance from participating in the program or producing hemp."

More: After giving the green light in 2019, Texas Senate is looking to review, revise hemp law

What is in the Farm Bill?

The Farm Bill is a $1.5 trillion program that consists of a lot more than just crops and livestock. In fact, it impacts everyone in one way or the other, whether through school lunch and government assistance or support of natural resources, such as our forests.

The legislation is broken into 12 sections, or titles. Each title addresses different aspects of agriculture and related sectors. Here's a summary of each title:

• Commodities : Covers price and income support for farmers producing non-perishable crops, dairy and sugar, along with agricultural disaster assistance.
• Conservation : Includes programs for natural resource conservation on working lands and land retirement and easement programs.
• Trade : Covers food export subsidy programs and international food aid.
• Nutrition : Encompasses SNAP and other nutrition programs to assist low-income Americans, as well as school lunches.
• Credit : Focuses on federal loan programs to help farmers access financial credit.
• Rural development : Supports rural economic growth through business and community development, rural housing and infrastructure.
• Research, extension, and related matters : Funds farm and food research, education and extension programs.
• Forestry : Addresses forest-specific conservation programs.
• Energy : Encourages biofuel production, renewable energy installation and energy-related research.
• Horticulture : Includes farmers market programs, research funding for horticultural crops and organic farming initiatives.
• Crop Insurance : Provides subsidies for crop insurance premiums and supports the development of insurance policies.
• Miscellaneous : Covers various advocacy and outreach areas such as support for beginning, socially disadvantaged, and veteran farmers, agricultural labor safety, workforce development and livestock health.

What are some of the recommended changes in the drafts for the new Farm Bill?

There are some fairly significant changes in the initial drafts of the new Farm Bill. Some of the major changes in suggested drafts and their respective chambers:

• SNAP Cuts (U.S. House): The proposal suggests maintaining the Thrifty Food Plan without factoring in inflation adjustments, potentially leading to a reduction of approximately $30 billion in SNAP funding over the next decade. Over time, these cuts would amplify, resulting in diminishing adequacy of SNAP benefits.
• Price Loss Coverage Increase (U.S. House): Price Loss Coverage Reference prices would increase by 10% to 20% depending on the commodity, simultaneously enhancing income protection for growers through the Agriculture Risk Coverage program and crop insurance.
• Reallocate Conservation Funding (U.S. House) : Incorporating Inflation Reduction Act conservation funding into the bill, the U.S. House proposes to remove the restrictions that limit money for climate-smart practices. Instead the funding would be reallocated toward modifications to the Conservation Reserve Program and reauthorize funding for feral swine eradication. It would also create a new Forest Conservation Easement Program.
• Support for Underserved Producers (U.S. Senate) : The Senate's bill seeks to increase financial support and price loss coverage for underserved producers (non-male and communities of color). The Senate also increases PLC by only 3 to 5%.
• Rural Childcare Improvements (U.S. Senate): Prioritize projects for childcare facilities in rural areas.
• Environmental Quality Incentives Updates (U.S. Senate) : Expands the purposes of EQIP to include "promoting environmental quality and climate change adaptation and mitigation as compatible goals with agricultural production and forest management; assisting producers with complying with local, State, and national regulatory requirements concerning climate change adaptation, mitigation, and resilience; and providing flexible assistance to producers to install and maintain conservation practices that sustain food and fiber production while sequestering carbon, increasing drought resilience, reducing greenhouse gas emissions, and conserving energy."
• Farm Transitions (U.S. House):  Reauthorize the Commission on Farm Transitions-Needs for 2050 and make improvement based on Committee Member Yadira Caraveo’s (D-Colo.) bipartisan legislation.
• Farmland Tracking (U.S. House):  Refine reporting mandates within the Agriculture Foreign Investment Disclosure Act to enhance monitoring of acquisitions of U.S. farmland by Chinese and other foreign entities.

Don't call them DINKs. Many childfree adults are ALICEs.

• DINKs are known for having disposable income, but some childfree adults are also struggling.
• In fact, many childfree adults are ALICEs — asset-limited, income-constrained, and employed.
• Without dependents, many low-income workers have a harder time accessing tax credits and government assistance.

America's DINKs — dual-income couples with no children — are known for having disposable income and spending their paychecks on major investments, luxury vacations , and early retirement .

These households have previously told Business Insider that they can spend extra money on their lifestyle because they don't have any child-related costs. By definition, DINKs aren't necessarily rich , but they do have a reputation for living a life of freedom and excess cash.

A growing number of child - free adults , however, are falling through the cracks of the US economy. Many low-income childfree adults fall into the ALICE category — people who are asset-limited, income-constrained, and employed. Twenty-nine percent of US households make too much to qualify for government assistance but not enough to comfortably afford daily life . And ALICEs who aren't parents face unique challenges: it is especially difficult to qualify for financial help or tax credits without young children, even if you need the help.

According to a report published in April by the Brookings Institution, the US doesn't have a strong financial safety net to support childfree ALICEs. This is partly because having financially dependent children is a prerequisite of some government assistance programs .

Poor, non-elderly adults who are not raising children and don't qualify for disability benefits made up nearly 106 million people in 2017, according to a Census analysis . What's more, they have a higher risk of experiencing homelessness and long-term poverty, per the Brookings report.

Low-income adults without children face barriers to government assistance

Low-income, childfree adults have a higher likelihood of falling into poverty, and often stay in poverty long-term because they can't access assistance, wrote Robert Greenstein, the author of the Brookings report.

Related stories

"The safety net for these non-elderly childless adults is so limited, those non-elderly adults who are poor tend to be poorer than others living in poverty," wrote Greenstein, who is also a visiting fellow of economic studies for the Brookings Institution, which is affiliated with The Hamilton Project, an economic policy initiative.

The report found that half of the Americans living in "deep poverty" — those with incomes that are at or below 50% of the poverty line, which is $7,290 annually for one person — are childfree adults not receiving disability benefits.

Greenstein wrote that this population is at a disadvantage when applying for government support, especially as it comes to tax credits and housing assistance, even if their household income is low.

For example, they don't qualify for the child tax credit , which allows families with dependents to receive thousands of dollars in tax breaks each year. The Earned Income Tax Credit — which offers refundable tax credits for low- and moderate-income workers — is also very limited for childfree employees, who receive fewer than 4% of the EITC's overall benefits, according to the Brookings report.

Greenstein also wrote that over 7 million low-income adults who are between the ages of 18 to 61 and don't live with minors pay more than 50% of their income on rent — making them severely rent-burdened. The majority of these adults don't receive any state or federal rental assistance.

Additionally, parents can more easily access SNAP food benefits than childfree adults because they are exempt from having to work a required amount of hours each week to receive assistance.

Many Social Security and Medicare programs also primarily offer assistance to older adults, excluding adults under 62.

Although strengthening the US financial safety net for this population is complex, Greenstein offered a few solutions. He suggested expanding the Earned Income Tax Credit to benefit more adults without children, along with removing the extra qualifications childfree adults must meet to access SNAP benefits.

An expansion of Medicaid through the Affordable Care Act would also allow more adults to get the healthcare they need — even if they don't qualify for disability benefits or Social Security, Greenstein said.

Are you making an income above the poverty line but still struggling to afford daily life? Have you faced challenges qualifying for government assistance because you don't have children? Reach out to this reporter at [email protected] .

Watch: Supreme Court strikes down Biden's student-debt relief plan

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More From Forbes

Selling a business: 6 considerations for a successful exit.

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Business owners meeting with financial professional.

The year 2023 may have been a slow year for mergers and acquisitions (M&A), but the downturn came on the heels of the biggest year on record. According to Statista, there were 50,000 deals in 2022 . Even better? The 2024 frenzy is just getting started .

If you dream of handing over the reins through an acquisition and walking away with a big win, it’s time to start planning. Exiting your business on your terms takes preparation.

From early planning to sound financial records, market research to team dynamics, let’s explore the to-do's that will build a strong narrative, showcase your company's value, and get your ducks in a row—years before you even hit the market.

1. Decide if You are Personally Ready to Sell

The critical first step in selling is vetting your own readiness. Are you prepared to part with a business entity that you’ve likely built from the ground up?

This goes beyond emotional attachment. Coachvox AI founder Jodie Cook points out that readiness could be due to a lack of motivation. “Perhaps you’re bored and ready for a new challenge,” she says, as one of the signs that it may be time to sell your business. “You want to solve bigger problems and let go of ones you have seen before.”

If you’re considering selling, start with yourself. Are you in a good place to rest on your laurels and move on to something else?

2. Prepare Your Team Well in Advance

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The same concept of gauging personal readiness applies to your team. Selling a company can be a dramatic event for everyone involved.

The obvious threat here is termination. Harvard Business Review reports that the average M&A within the same industry leads to 30% employee redundancy.

Even if your employees have a fair chance of surviving the transition, are they prepared for the flood of changing processes and expectations that new employers bring? If you're considering selling, make sure to invest in preparing your team beforehand. It’s not just important for the survival of your operation. It’s part of being a trusting leader and a good person.

3. Prioritize Clean Books to Support Your Company’s Valuation

Bookkeeping is an easy-to-overlook area of acquisition preparation. You’re not talking about profit margins or investor funding, which makes it easy to downplay its importance.

Nothing could be further from the truth. One look at a sloppy or uncertain set of books could be enough to dissuade a potential buyer. Financial clarity is paramount, and to make matters more complicated, many SMBs don’t have a dedicated CFO on staff. If that’s the case for you, platforms like Hub Analytics can help interpret and audit your company’s bookkeeping to provide insights and shed light on potential errors.

Having five years or more of clean bookkeeping is one of the easiest ways to justify your valuation or asking price. Without this multi-year runway of financial records, any buyer or private equity firm will critique your financials to drive the price down.

Proper data collection and clean analysis—especially in an area as crucial as bookkeeping—can yield insights that don’t just help you direct your brand in the here and now. They also give you a cleaner, smoother, more profitable exit in the future. Ensure you have a system in place early on to maintain and track best-in-class financials.

4. Build and Understand Your Ideal Buyer Profile

Next, consider the buyer landscape. What kind of M&A partner do you want to court?

Dena Jalbert, CEO of Align Business Advisory Services , which specializes in M&A advisory for middle market companies, emphasizes the importance of understanding buyer types. “Strategic buyers are particularly interested in companies with strong growth potential or a unique market position that complements their existing offerings,” she explains.

Identifying the right buyer ensures alignment of interests and a potentially better deal for the seller. It’s worth understanding early in the selling process.

5. Set the Stage Early to Prepare for Your Exit

Once you’ve assessed yourself, your staff, your customers, your market, and your value in the eyes of potential buyers, it’s time to start setting the stage to accelerate a healthy, high-profit acquisition. Michael Portegello points out that many IPOs take 12-18 months.

Portegello is a former executive at a Big Four professional services firm who has helped countless companies achieve successful exits. In a recent LinkedIn post , he wrote, “I have seen IPOs get chaotically accelerated by months to meet favorable market conditions. I have also seen transactions where the window abruptly closed. My advice is to start earlier than the timelines suggest or increase the urgency of preparation during this period if you are already in it.”

Even if an IPO isn’t coming for a while, don’t put off preparation. Assess your financial readiness, maintain strict compliance, and ensure that you address operational and organizational readiness in the lead-up to your IPO window.

6. Maintain Long-Term Momentum

Finally, don’t let your company lose steam because you’re thinking of parting ways. On the contrary, a thriving business with no future won’t appeal to a buyer.

Keep running things with the same vigor and creativity that got you this far. Maintaining stability is obviously a priority in the lead-up to a sale, but don’t let that get in the way of planning for future growth , too. Continuing to innovate and expand your market reach can not only make your business more attractive to potential buyers but also ensure its long-term viability, regardless of whether a sale occurs.

Plan Early for a Successful Exit

There are many considerations that business owners should keep in mind when preparing for an M&A. Evaluate everyone impacted by the event. Gauge your landscape and potential buyer fits. Keep clean books. Maintain momentum. If you can do all that, you can set the stage for a successful exit that pays handsomely and sets the stage to turn your next big idea into a thriving business.

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Gov. Gavin Newsom proposes painful cuts to close California’s growing budget deficit

California Gov. Gavin Newsom unveils his revised 2024-25 state budget during a news conference in Sacramento, Calif., Friday, May 10, 2024. (AP Photo/Rich Pedroncelli)

California Gov. Gavin Newsom unveils his revised 2024-25 state budget during a news conference in Sacramento, Calif., Friday, May 10, 2024. California has a budget deficit of $27.6 billion, Gov. Gavin Newsom announced Friday — a gap so wide that he’s proposing eliminating 10,000 vacant state jobs and cutting spending across 260 state programs. (AP Photo/Rich Pedroncelli)

California Gov. Gavin Newsom unveils his revised 2024-25 state budget during a news conference in Sacramento, Calif., Friday, May 10, 2024. Newsom said the state’s budget deficit has grown by $7 billion. In January, Newsom said the deficit was nearly $38 billion. However, in March Newsom and lawmakers agreed on some actions to reduce that deficit by $17.3 billion. Now, Newsom says the remaining deficit is $27.6 billion (AP Photo/Rich Pedroncelli)

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SACRAMENTO, Calif. (AP) — California’s budget deficit is at least $45 billion, a shortfall so large it prompted Gov. Gavin Newsom on Friday to propose painful spending cuts impacting immigrants, kindergarteners and low-income parents seeking child care in a state often lauded for having the world’s fifth-largest economy.

Officially, Newsom said the state’s deficit is $27.6 billion. But really, it’s closer to $45 billion when including previous spending reductions that Newsom and the state Legislature agreed to in March. Including reductions in public education spending, which Newsom has not included, the deficit would be even billions of dollars more, according to recent analysis by the nonpartisan Legislative Analyst’s Office.

The size of the deficit is important as it will shape the national perspectives of Newsom, who is a top surrogate for President Joe Biden’s reelection campaign and who is widely believed to harbor presidential aspirations of his own. Newsom has spent much of his time in office basking in the glow of historic budget surpluses that allowed him to greatly expand state spending. But back-to-back budget deficits — with more on the horizon — are testing California’s commitment to those increases.

So far, Newsom has not gutted some of his splashiest policy advancements, including free kindergarten for all 4-year-olds and free health insurance for all low-income adults regardless of their immigration status. But as Friday’s proposal showed, Newsom is willing to chip away at some of those promises to balance the budget.

While Newsom has not taken away health insurance from anyone, he proposed the state stop paying for health care workers to care for some 14,000 disabled immigrants in their home. That would save the state $94.7 million. While he hasn’t pulled back the state’s commitment to expanded kindergarten, he proposed eliminating $550 million that would have helped school districts build the facilities they need to teach all of those extra students.

After promising to pay for child care for another 146,000 children from low-income families, Newsom on Friday proposed pausing that expansion at 119,000. And after promising to boost how much money doctor’s get to treat Medicaid patients , Newsom on Friday proposed canceling $6.7 billion that had been set aside to do that.

The cuts prompted outrage from across the political and ideological spectrum. Anthony Wright, executive director of the consumer advocacy group Health Access California, said the removal of in-home care for immigrants with disabilities would result in those people becoming “further impoverished or end up in much more expensive nursing home care.”

Yolanda Thomas, a member of the Child Care Providers United negotiations team, said cutting the child care slots means “we cannot build a stronger economy when our lowest paid workers ... don’t have somewhere safe to send their children during their shifts.”

For every question on Friday, Newsom had a similar response.

“I prefer not to make this cut. These are programs, propositions that I have long advanced, many of them,” he said. “But you’ve got to do it. You have to be responsible.”

Before the coronavirus pandemic, California’s revenues were growing at about 5% per year. From 2019-20 through 2021-22, revenues grew an astounding 55%. That’s because California got a lot of money from the federal government to blunt the impact of the pandemic. And it’s because the stock market had historic increases, fueling a rapid expansion of wealth among California’s richest residents — generating a tax windfall for the state .

State budgeting is a guessing game, where governors and lawmakers have to predict how much money they will have and plan to spend it. Following the bountiful years of the pandemic, California’s guesses have been way off. The Newsom administration now predicts state revenues will be $83.1 billion lower than they thought for the 2022-23 and 2023-24 fiscal years.

“If you knew that those were unrealistically high and totally unsustainable revenue levels, why wouldn’t you put a little bit more in the reserves,” said state Sen. Roger Niello, a Republican and vice chair of the Senate Budget and Fiscal Review Committee. “If that’s the case, you know it’s going to come crashing down and you are going to have a big deficit to cover.”

Newsom defended California’s previous budget actions, noting the state Constitution required the state to return a big chunk of that surplus to taxpayers in the form of rebates. Newsom said it “provided a lot of support at the time to people who needed money.”

“I feel like we were doing the best we could under that circumstance,” he said.

Newsom on Friday repeatedly vowed he would not sign a sweeping tax increase on individuals. But he did propose suspending a popular tax deduction for businesses, which many see as a tax increase.

In total, Newsom is proposing $32.8 billion in cuts over two years, including eliminating 10,000 unfilled state jobs and an 8% cut to state operations — including things like eliminating landlines. He promised there would be no layoffs, furloughs or salary cuts for the state’s more than 221,000 state workers.

Democratic legislators applauded Newsom’s effort to deal with multiple years of deficits and vowed to protect spending for social safety net fundings and classrooms.

“Nobody knows what challenges California may face, so we must always stay prepared,” Assembly Speaker Robert Rivas and Assembly Budget Chair Jesse Gabriel said in a joint statement. ___ This story has been corrected to show that Newsom proposed eliminating $550 million for school facilities, not $500 million.