If you need help thinking through the issues and crafting an outstanding cannabis industry business plan, please feel free to reach out. The third criteria for clinical grade oils has to do with consistency, purity, and potency. Industrial hemp is gradually showcasing the potential to be a part of a growing trend towards developing renewable sources for industrial products currently sourced primarily from non-renewable sources. Cannabis growers should always focus on producing the highest quality crop possible. According to reports from our extensive research, the demand for insulation has been established and is growing as people upgrade older homes to be more energy efficient. Be aware of the banking issues. Note that hemp is adapted to a wide range of soil types and climates so most areas of the United States can easily enter the production chain. The capital requirements for Earth Hemp Fiber LP. Whatever extraction method you decide to use in your facility, it is important that you know all of the criteria needed to build for that method. It's not that you can't accomplish organic certification with ethanol extraction, it is just going to cost you a whole lot more. Other sources for contamination include carbon black or activated carbon that is typically used in ethanol extraction to remove chlorophyll from the ethanol. The seedlings are ready to transplant outdoors as the stems become more sturdy. We have certified fire inspectors on staff that allow us to help our customers navigate the NFPA standards and also choose processes that are low cost. Ensure you provide enough lighting from above to reach all parts of the hemp plants. Begin thinking about which hemp products you want to grow. Key considerations with locations are listed as follows: A. The second reason why we chose CO2 extraction over ethanol extraction had to do with cost. The hemp plant gives back to the soil after using its nutrients, making it a sustainable crop. One important consideration when selecting your facility is to look at how much power is available. Lets say that easiest means simplest-fastest-least costly. All leaves, stalks, and immature seeds must be removed to reveal only usable, mature hemp seeds. Hemp and cannabis biomass is an extremely absorbent material. If a hemp crop will not be harvested, a Crop Loss Report form must be submitted. That is why we chose supercritical CO2 extraction as a preferred method for extracting hemp. Contaminants are typically identified during incoming inspection but may show up later during processing as the oil becomes more refined. 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 plant. It has resulted into an unreliable supply of hemp fiber. The following table details the estimated solvent loss from ethanol extraction as a function of volume of hemp processed: Another source of solvent loss is incomplete recovery of solvent from the CBD hemp oil. Cross-contamination could happen when a solvent dissolves a low level contaminant from the biomass being extracted. Many first-time hemp harvesters are unaware that hemp seed on neighboring plants develops at varying and irregular rates. To add to the regulatory vibe, the federal legality of industrial hemp cultivation does not supersede state, county, or local regulations. Ask a Cannabis extraction expert about the right products and equipment for you to use for your extraction business. You will need to have plenty of power, not only for current operations, but also for the future. The purpose of Maryland's Hemp Program is to register industrial hemp growing sites and facilitate the research of industrial hemp in any aspect of growing, cultivating, harvesting, processing, manufacturing, transporting, marketing, or selling industrial hemp for agricultural, industrial, or commercial purposes. to analyse costs, estimated revenue, yield, initial investments and important metrics for your extraction business. But that's equivalent to about 3,800 acres, hardly a big dent in the decline. If you clone, it is essential to have a female flowering plant capable of transitioning into the flowering stage. It takes about 5 and 10 days for seeds to sprout. The plant is now ready for harvest, approximately 100 to 120 days after planting the seeds (around September or October). When treated and dried correctly, you can ensure every part of your hemp plant is profitable, from seeds to stalk. As our production process is finalized, and product quality and features are proven in the market. Although, no approvals are needed for the sale of the raw fiber or the non-woven matting products produced at EHF. The majority of factors influencing seedling growth are related to temperature. Hemp processing equipment can be scaled for 1 to 5 tons of extracted hemp per day. In charge of overseeing the smooth running of HR and administrative tasks for the plant, Defining job positions for recruitment and managing interviewing process, Carrying out induction for new team members, In charge of training, evaluation and assessment of employees, In charge of arranging travel, meetings and appointments. Merchants, a national building supply chain is also interested in the product, and is expected to concur to demonstrate the product after reviewing the technical testing report. EHF Pilot Processing Plant plans to focus on a selected small number of well developed and accessible markets and users that have a range in quality requirements. Create a great business plan. Did you like this article? Products such as fiberglass insulation and plastic mulch always need heavy loads of non-renewable energy sources during their manufacture which emit greenhouse gasses. The harvested hemp bark can compost other plants that grow well in alkaline soils. Hemp farm is one of the most profitable agricultural and textile industries you can start in the United States today. The plant is now ready for harvest, approximately 100 to 120 days after planting the seeds (around September or October). Hemp and hemp-derived items are used in a variety of products, including: Hemp seeds and hemp oil extracted from compressed hemp seeds are high in protein, fiber, and magnesium. Extraction with Ethanol is a process that is typically run at low temperatures. Shears, snips, or scissors are the best tool to use. Maintains quality service by establishing and enforcing plant standards. The role of the Consortium Group is to provide advice and to support the development and operation of the Pilot Processing Plant and commercialization of industrial hemp processing in the US. A fact sheet from Central State University that explains the different types of hemp crops. Its important to remember that stems should not be chopped or broken during harvesting. The wood-like core fiber is used for animal bedding, garden mulch, fuel, and an assortment of building materials. Lee brings to Cayenne clients over 30 years of experience from his prior roles as a law partner in entertainment law, securities licensee, real estate broker, and multiple positions as a CEO/COO of early-stage media companies. Hemp and marijuana come from the same species of plant called Cannabis Sativa L. But hemp is not marijuana. Its big, really big, and growing like a pumpkin in September, but how big, no one knows yet. Second, industrial hemp can be a good source of revenue for farmers and can be sold for cannabidiol (CBD) oil production. Some jurisdictions apply national standards strictly and affect the driving up of start-up costs. Yes, moisture content will affect weight yield. Hemp plants thrive in full sunshine and should be grown to receive the optimum amount of light. Are you about starting a hemp processing company? Major direct costs include raw hemp material. After a week, remove the lids and give the containers a few minutes to restore oxygen levels. Table 1. When transplanting, plant hemp seedlings into pots at least 4 inches deep. Commercialized industrial hemp processing is still foreign and limited in the world. F. Are you aware of the covenants and restrictions on your building? Deep watering should be given one time per week. Hemp plants and marijuana plants are both Cannabis sativa, although marijuana typically contains higher levels of THC, the psychoactive component that gives users a high feeling. The THC content of the Industrial Hemp is required by law to be less than 0.3% by weight in the flower that is sold. The co2 extraction typically takes place above the supercritical pressure and temperature for CO2. Hemp bio fibre insulation is proven to have equal insulating effectiveness to that of fibre glass, and it is safe and easy to install. The forecast will allow you to understand how large your operation will need to be today and five years from now. We hope to ensure the commercial model also use the same zero-waste process operating on hydro-electric power and have a production capacity of 48,000 metric tones of raw fiber annually. Notably, it reflects a net loss from operations of nearly approximately $952,000 in 2023, improving to net earnings of over $843,000 by 2022. Historically, harvesting was done manually by hemp farmers to ensure the stalks would not be damaged. If you need to request an inspection/THC test, please contact the MDA . This 5 to 10% loss in ethanol is a huge cost driver for extracting ethanol. Using an oscillating fan to move air between the inside and outside is often beneficial. Starting a hemp related business is easy. "Going from brunette to blonde will start with ammonia or other alkaline agents which swell the hair shaft and open up the cuticles," said Rawling. The CO2 tank itself needs to be accessible to a semi truck if it is a large holding tank greater than 24 tons. The most significant expense categories are marketing, amortization of property and equipment and salaries, wages and benefits representing approximately 69 percent of overall expenses in 2023, and approximately 76 percent in 2023 and 75 percent in 2023. The process of hand-harvesting is also quite delicate. This focuses on storage and inventory of materials in each room used by each process. We believe that the well connected network of building supply centers across North America is an oiled and efficient distribution network for bio fiber insulation. We also plan to adopt a zero waste process in the plant, processing the industrial hemp raw material into three products, pure bast, fiber, hurds and fines. Shears, snips, or scissors are the best tool to use. "The next approach is using oxidants such . Performs cash management, general ledger accounting, and financial reporting for one or more properties. You will need a great business plan to present your opportunity to partners, stakeholders, investors, lenders, vendors, major customers, service providers, and regulatory and licensing agencies. Hemp must be gathered and then cleaned. If YES, here is a detailed sample hemp processing business plan template & FREE feasibility report. The plants need an exchange of fresh air to rid themselves of carbon dioxide and heat. It can improve soil quality to grow other crops more efficiently. Hemp seedlings are delicate, so its essential to keep temperature variations minimal during the first three weeks of their growth period. You may even notice seeds on the same plant maturing at different speeds. If the room is too dark, plants wont produce enough photosynthetic components for growth. You must know your local laws regarding hemp farming before deciding on a location to grow your hemp. Do I have room to expand my operation for future demand? Submit a Harvest Report form to the Hemp Program. Whether youre cultivating industrial hemp for grain, fiber production, seeds, or CBD oils, the process is all the same. These are as follows: If your goal is to produce a quality product that complies with GMP requirements, you are going to need to have staff that can help you comply with those requirements.That typically means you need to have a quality assurance manager that is aware of the requirements And can Implement those requirements in your facility. Planting Supplies To assist plants in thriving without becoming susceptible to pests, fungus, or other dangers, youll need a well-ventilated grow tent or an alternative growing enclosure. 3. Provides manufacturing information by compiling, initiating, sorting, and analysing production performance records and data; answering questions and responding to requests. "industrial hemp" means the plant Cannabis sativa L., or any part of the plant including seeds, having a Delta-9-Tetrahydrocannabinol (THC) concentration of 0.3% or less, although this allowable percentage may be raised up to a maximum concentration of 1% THC if in the future federal law allows a higher . Lalmon LLC DBA AgFunnel.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. The 6 Steps of Industrial Hemp Processing. As a consequence, the FDA guidelines recommend that the solvents be brought back to a suitable state before Reuse. Farming on other soil types and on compacted or poorly drained land may result in different costs. Fahrenheit. If you're not going to cultivate your hemp and plan to get it from others, then one crucial key is to find a supplier that won't pull back when he/she/it gets a better offer. The forecast should drive your property plan, equipment plan, and your headcount plan. If you don't know how to make a forecast, you can contact us and we can help you define your business model so that you are able to make such a forecast. Boutique products that cater to classes of consumers rather than masses of consumers will always lag in the market compared to high volume product categories. The Consortium Group brings expertise of fiber supply equipment, process, management, and market access to the Pilot Processing Facility. 7. Do I have enough space to place utilities? Location for a processing facility is an important consideration in the overall cost of your project. Since the demand for hemp biomass is high, finding a buyer after harvest may not be that difficult. $4,000,550 will be used to finance the equipment costs, with an interest rate of 6.25 percent and an amortization period of 10 years. Create a stellar business plan and financial projections. We believe that these startup costs will be realized prior to full production of the Pilot Processing Plant. We are currently in discussion to purchase land from the state of Illinois in which the Earth Hemp Fiber LP Pilot Processing Plant will be situated. Application and Obtaining Tax Payers ID: Application for business license and permit: Leasing, renovating and equipping our facility: Generating part of the startup capital from the founder: Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: Creating Official Website for the Company: Creating Awareness for the business (Business PR): Health and Safety and Fire Safety Arrangement: Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry. Solvent loss comes from the incomplete recovery of that solvent from the hemp. Email : mirsaddogic15@gmail.com. Be sure youre in a state, county, and city that are supportive of hemp. If there is not enough power, you need to make sure that you can obtain an upgrade to your power system. All three markets were selected from an extensive list to allow for focused efficient and effective development of the market. As the deadline nears, youll notice seed heads developing from the bottom and working their way upward to maturity. To prevent evaporation, hemp seeds should be watered deeply once a week, early in the morning or evening. H2 occupancy is a special designation for facilities that have large amounts of solvent and flammable liquids. This post will walk you through some of the steps and issues to consider. The online application is available at this link. Hemp also contains antioxidant chemicals that protect cells from damage and may help to prevent cancer. Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives. We only share information that meets our high standards for quality, research, and transparency, so you can be confident you're getting the best guidance. As of this writing, 33 states (+ D.C.) allow the distribution of medical cannabis with THC (marijuana), and 11 states (plus D.C.) allow recreational cannabis with THC. Its important to know that some fields may only be suitable for fiber or oil crops. At an average density of 13.6 kg/m3, it sells for $3,400 /tones. Increases managements effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results, In charge of providing direction for the business. To add to the regulatory stew, the federal legality of industrial hemp cultivation does not supersede state, county, or local regulations. The market price of hemp seeds/hemp grain ranges between $0.60-$0.65 per pound. Hemp is typically sampled at receiving by quality assurance and a series of tests are conducted on the Hemp biomass in order to determine if the incoming material is contaminated with pesticides, solvents, heavy metals or if it has significant microbial content. Call Milos 7739995153. This requires someone who is Hands-On and has the physical strength to do simple maintenance tasks. In charge of signing checks and documents on behalf of the company, Serve as project manager of the plant; works directly with employees. We at EHF Pilot Processing Plant plan to focus on the development of a business that processes Bio fiber insulation for the building material market and non-woven matting for various final products, such as the horticultural market. Check out our Calculators and to analyse costs, estimated revenue, yield, initial investments and important metrics for your extraction business. Sales will be able to commence immediately upon start-up. We also plan to leverage the knowledge of locally based Concrete Building Supplies to enter this market. the FDA has recognized that contaminants buildup in the solvent over time as they are recovered and reused. Currently, about 15 states have come out with pro-hemp laws; the rest of the states are silent or vaguely neutral. Farmers must first research the hemp market, the legal environment of hemp, and the agricultural demands of this crop before starting a hemp farm. In Europe, the retail price of bio fiber insulation has changed from initially four times the cost of fiberglass to 1.6 times the cost. Male plants contain staminate or pollen that fertilizes female flowers. $3,000,000 will be used to finance the building construction at an interest rate of 7.50 percent with an amortization of 20 years. We service the United States, Canada, Mexico, Uruguay, Argentina, Peru, Central America, South America, Europe, Africa, Asia Minor. We at Earth Hemp Fiber LP have conducted a SWOT analysis for our Business model in order to identify the weaknesses, strengths, opportunities and threats to identify negative factors and current gaps to ensure a smooth start-up phase of our business and develop a plan to address these to insure profitable growth of our plant. Our start-up requirements are projected at approximately $2.2 million, and include initial inventory requirements and general start up expenses. Hemp is an agricultural commodity legalized under The 2018 Farm Bill as long as its grown in compliance with state and federal law. Our vision at EHF is to become the recognized leader in the hemp processing industry. Download our guide to effectively market your farm business. It is legal to grow in the US, but it is regulated, and you need a license to grow it. It is their job to record the data for the quality management system. Several plant humidifiers and relative humidity readers are available in the market, which is super useful. Our start-up requirements are projected at approximately $2.2 million, and include initial inventory requirements and general startup expenses. Mature blooming plants require temperatures between 68-77 deg. Over the years my leadership skills have led me to start my own cannabis business. Last but not least, analytical operators or quality control technicians are important for providing yield and in-process testing to the manufacturing facility. Honey Processing Plant Professional Beekeeper You will get detailed information regarding types and applications in Chapter 5 and 6. Before the hemp processing, the producers must dry the retted fiber to somewhere between 10-15 percent moisture. To produce hemp lawfully in a US state, you must first contact the city, county, and local zoning authorities and officials regarding any rules, codes, or conveyances that may need to be followed. Competitively priced commercial products for high quality fibre and insulation markets. During the planning and construction phase of the Pilot Processing Plant, the Board of Directors, working with the qualified delegates of the Consortium Group, will recruit qualified individuals for these positions, providing key individuals with on-site training in operating European plants. This refers to dividing light and dark into periods of 12 hours each. Maintains quality service by establishing and enforcing organization standards. CBD can be extracted from either marijuana or hemp, but legal CBD needs to come from hemp unless you are in a legal marijuana state. Wait if hemp is federally legal, whats the problem? There are so many different vendors, methods, and options to choose from that oftentimes the decision can be overwhelming. You would need 1000 gallons of ethanol to start out at a cost of $16-33 per gallon for food grade ethanol for a total cost of $16,000 to $33,000. We believe that the raw fiber for paper and cardboard recycling and hurds for animal bedding will generate significant cash flow for the company. Financing will be sought through a $3.5 million flexible loan from the state of Illinois at an interest rate of 5.5 percent, amortized over 10 years. The big shot way into the industry assuming you dont happen to already own a farm, a greenhouse, a processing facility, brands, and a distribution network is a vertically-integrated operation, also known as seed to sale, a step into big business with correspondingly high startup costs. Experience the sales, business and engineering experience of our management time and advisory board will prove a priceless weapon for us in this industry. To assist with root development, youll need a high-quality transplant mix. 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). Consider some important factors before planting seeds if you want to cultivate industrial hemp for grain production or CBD oils. The most common retting methods include water retting, green retting, warm water retting, dew retting, and chemical retting. So, it's important that you understand how much power you are going to need at startup. The program authorizes the U.S. Department of Agriculture (USDA) to approve plans submitted by states and Indian tribes for the domestic production of hemp and establishes a federal plan for producers in states or . It's important that you keep your business plan flexible enough so that you can create products that consumers want. Our gross revenues at EHF include direct sales revenues from basic fiber and shives/hurds products, wholesaled to the paper and horse bedding industry, respectively, and revenues from basic horticultural mat line product which is sold as a finished bio fiber insulation product to building supply retailers. Its also vital to have a cool, dry location where you can safely store your hemp seeds until the next production phase. Harvesting is a straightforward process of removing the lowest seedpod from just below the stalk using clean cuts. Is it for fiber, oil, or cannabinoids? They are typically trained on how to use the equipment and how to move materials in and out of the process. Our forecast of new construction is based on a slow growth of the natural fiber uses, biofibre insulation and biofibre/biomaterials industries. Starting a hemp processing business is a daunting task. Many states, counties, and cities simply havent yet gotten their respective arms around all the issues. Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries. Within 10 days of final crop destruction. We at EHF also plan to raise $6,500,000 in additional financing through an equity offering of Earth Hemp Fiber LP units. Here's a startup specifications checklist to aid in your facility search. As a rule of thumb, you're going to need at least 20,000 square feet for five-tons per day of processing. How to Start a Cut Flower Business in 19 Steps, How to Start a Tea Farm Sample Business Plan Template, How to Start a Peanut Farm Sample Business Plan Template, How to Start a Cucumber Farm Sample Business Plan Template, How to Start a Plantain Farm Sample Business Plan Template, How to Start a Sunflower Farm Sample Business Plan Template, How to Start an Avocado Pear Farm Sample Business Plan Template, How to Start a Hop Farm Sample Business Plan Template, How to Satrt a Bamboo Farm Sample Business Plan Template, How to Start a Cotton Farm Sample Business Plan Template, 13. Based on current estimates, we at EHF expect to wholesale bio fiber insulation for $2,200 per metric tone. Hemp Program. However, that might be overly optimistic. Hemp (Cannabis Sativa L.), as one of the oldest cultivated plants . But if youre not going to cultivate your hemp or you plan to get it from others, then one vital key is to locate a supplier that wont pull back when he/she/it gets a better offer. According to reports, the US retail consumer market for hemp CBD was estimated to have been $591 million in 2018 and projected to reach $22 billion by 2022 a CAGR of 147 percent. The modification and reengineering of the equipment and the construction of the plant is expected to require approximately 11 months, followed by two full years of limited production during the pilot testing of the processing and products. Whether you're processing hemp for CBD extraction or other industrial uses, the following post-harvest industrial hemp processing steps are required: 1. Although, the key difference between the two is their tetrahydrocannabinol (THC) content, the ingredient that produces the high when smoked. Also, check for mold; mold has probably grown inside the jars if you detect an ammonia odor, making them unusable. Going blonde frequently involves a multi-step double process. View details. Hemp is mostly confused with marijuana, another cannabis plant, and this has greatly affected the acceptance of hemp products in our society. Cooling the ethanol reduces the amount of extracted chlorophyll and waxes. We can also help you estimate the labor and overhead you should expect.