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Since the USDA passed the Agricultural Improvement Act in 2018, hemp has been legal to grow in the United States, and demand for this agricultural product has become incredibly high. While hemp is commonly confused with marijuana, it does not contain the THC levels necessary to cause those engaging with the ingredient to get high, though it has a long list of uses that make it an incredibly versatile and lucrative crop. But exactly how much can you make per acre of hemp?
If you’re looking for a crop to invest your resources into in 2023, this is surely the question at the top of your mind. Below we’ll discuss how much on average you can make by investing in a hemp farm and how much a hemp farm is able to generate per acre.
How much can you make per acre of hemp farmland?
There’s significant variance based on the year and the quality of your harvest, but hemp grown for CBD could yield between $2,500 and $75,000 per acre, while industrial hemp could bring in somewhere around $450 per acre.¹
When looking at hemp from an investment standpoint, the most important consideration is how much it costs to grow and how great a profit you will be able to turn from your harvest. Let’s consider the revenue potential of hemp. For ease of communication, the numbers presented will be for a single acre—adjust as needed to suit the land you have to work with or the amount of money you’re looking to invest.
Hemp is a crop best grown in hot summer climates that also experience cold nighttime temperatures in loose, well-aerated loam soil. Because it’s a relatively durable and adaptable plant, it can also grow in many regions during autumn. It does present its challenges as a crop, however—if the soil has poor drainage, pH levels below 6.0 or above 7.5, or the season is not warm enough one year, you may grow a less profitable crop. Harvests will typically occur between June and November.
While many crops require a couple of years to mature before the plants are able to produce a full harvest, hemp is often ready to harvest just six weeks after it is planted. Perhaps more exciting is the fact that it will continue to grow throughout the season, typically allowing for multiple harvests.
How many plants to grow and how profitable that acre will be will vary dramatically between plants grown for CBD and those grown for textiles and other mass-market products. In the former circumstance, you’ll plant between 1,000 and 1,600 plants and tend to them individually. In the latter case, you’ll instead plant close to 400,000 plants per acre and grow them tall like wheat, then harvest seeds and use the remaining stalks for industrial products.
Why is hemp in such high demand?
For many investors, one question that needs addressing is, what makes hemp such a highly desirable crop? Since it’s not used as a drug, why does everyone want it? This is an important question, and something you’ll want to understand before you decide to invest in this crop.
Perhaps one of the most exciting things about hemp is its ability to take the place of many less sustainable materials for the production of goods we use every day in the developed world, including paper, rope, clothing, and shoes, as well as bioplastics, alternative fuels, and insulation. Hemp alternatives for these products are as effective as the originals, but also far more sustainable to produce. For example, since hemp requires far less water than cotton, is more resistant to weather and drought, and requires little to no pesticides, fabric made from hemp is much less harmful to the environment.
Hemp has also become more popular in our diets, as hemp hearts are great sources of protein, amino acids, and omega-3s, to name only a few of its nutritional benefits. Another popularly produced byproduct of hemp is CBD, which can be added to creams or taken as a supplement to help with anxiety and stress management as well as improve minor aches and pains in humans. It can even be given to aging pets in certain quantities to help with stiffness. Today you’ll find CBD in health food stores, beauty stores, nail salons, and coffee shops—it seems like consumers want to add it to just about everything.
The list of purposes and benefits of hemp is long, so there’s no better time to begin investing in this powerhouse of a crop.
Learn more about investing in hemp farming
Hemp has the potential to be incredibly beneficial and lucrative, but the crop can vary considerably. If you’re considering investing in hemp, seek out a farm that has experience in the industry, is located in a great climate, has nutrient-rich soil, and uses top-of-the-line equipment. How much can you make per acre of hemp? It varies dramatically based on the size of your harvest and the quality of your plants, so make sure you’re investing with a farm that has a history of high returns.
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West Coast U.S. Farmland
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Open to non-accredited investors
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