Hemp is one of the most profitable plants in the world. With many states legalizing the use of cannabis for medicinal and recreational purposes, more entrepreneurs are looking to get involved in the industry. Just as there are many benefits to using hemp, there are also several ways to monetize this plant.
Making Money With Hemp
Founders that can find their way into the hemp industry stand to make a significant amount of money. Read on to learn just how much money you can make from this wonder plant.
About the Hemp Plant
If you’re hoping to make money off of hemp, growing the plant may be your first thought. Knowing how much money you’ll make in the hemp industry starts with understanding the various type of hemp crops. The three primary hemp crops include fiber, seed, and oil.
As hemp crops must have a THC of 0.3% or below, you must monitor this level as you grow the plant. If you plan to get involved in the agricultural side of this industry, it’s essential that you intentionally choose the type of crop you’ll focus on as each part of the plant returns a different value per acre in addition to the varying costs of production. By outsourcing processes like hemp drying, you’ll be able to maximize your return on investment and increase your overall profit.
What is the Price Point of Grain?
Interested in growing grain? Farmers that have the equipment and land to grow grain-producing crops may find the business to be more profitable. Typically, the going price for grain ranges between $0.60 – $0.65 a pound. While this may seem like a small amount, an acre of well-maintained hemp averages about 1,000 pounds. With this in mind, hemp farmers tend to make $300 per acre of grain.
What is the Price Point of Fiber?
Hemp farmers that are growing fiber may make a bit more than selling grain. Moreover, this crop is easy to fit into one’s crop cycles, helping farmers lower the cost of production. The market for hemp fiber averages $260 a ton, with a yield of 4 tons of fiber per acre. After factoring in related expenses, farmers can expect to make $480 per acre.
What is the Price Point of CBD Oil?
When it comes to the profitability of growing hemp, the numbers decline a bit with CBD oil. If you’re set on cultivating and selling CBD oil yourself, it’s important to focus on an effective cultivation method. Agronomic and horticultural are the two cultivation methods used when harvesting CBD oil. While agronomic is more affordable, this process has lower yields per acre.
With a high yielding crop, you can expect as much as $35 per pound with 2,500 plants for every acre, resulting in an estimated $60,000/acre.
How Can I Monetize Hemp-Related Products?
If you’re not interested in farming hemp or hemp drying, there are certainly other ways to make money in this industry. One of the most popular ways to monetize hemp is to sell cannabis-related products. While you can open up a physical dispensary in your area, one of the most affordable ways to start a hemp company is to do so online.
With a connection to a supplier, you can easily start your own brand. The most popular CBD products include sublingual tincture, edibles, vape concentrate, topicals, and capsules. With many products like CBD oil selling for $60 a bottle and hemp-infused lotion at $85, entrepreneurs with hemp brands can turn a huge profit. With an established and consistent customer base and a 50% markup or more, you can easily make several thousand dollars every month.
Thanks to the rise in e-commerce, many hemp rands operate solely online. Using social media and email marketing to advertise your products, you’ll be able to quickly grow a list of dedicated customers.
What Are Other Ways to Make Hemp Profitable?
Even if you’re not physically growing hemp or selling products yourself, you can still make money in the hemp industry. As hemp continues to grow in popularity, many more brands are looking to expand their companies and add new staff. As positions for graphic designers, copywriters, and social media managers become more important in connecting hemp brands with clients, this is another way to make a living with hemp. These positions typically range from entry-level pay to a fixed rate per project depending on your level of experience.
Hemp has the power to turn your small brand into a booming business. Keep this information in mind as you brainstorm the best ways to make this plant profitable.
