Fraser Horton
Fraser Horton
Last Updated on April 13, 2022

In recent years, the production of the cannabis plant has increased as a result of more people becoming aware of the benefits of the cannabinoids in weed, such as cannabidiol (CBD), tetrahydrocannabinol (THC), and others. However, hemp farms have always been popular due to the use of the hemp plant for making hemp products such as hemp oil, hemp fiber for making rope, textiles, clothing, shoes, as well as other products such as paper, bioplastics, insulation, biofuel, and even food. 

Due to the versatility of use and the high CBD content, hemp growers started to grow even more hemp after the 2018 Farm Bill was passed. The bill made it possible for hemp growers to grow the industrial hemp plant and legally sell CBD products that have THC levels lower than 0.3%. President Trump signed the bill in 2018, after which the Department of Agriculture (USDA) began implementing key programs, the Drug Enforcement Agency (DEA) issued permits for the production of industrial hemp, and the United States Food and Drug Administration (FDA) began evaluating whether the CBD products comply with the regulation.

Consequently, the hemp industry started flourishing and hemp farming became even more popular. So, if you’ve been thinking about CBD hemp cultivation and you’re wondering how much CBD you could produce per acre of hemp, this article is for you.

The Essential Information When It Comes to Growing Hemp for CBD

Feminized seeds are essential for CBD and CBG production and CBD hemp plants require a lot of space to develop properly. To maintain a hemp farm successfully, you’ll need adequate space since the hemp plants grow twice as big in the first 2 months, so planting them with larger gaps between them will help not to crowd the plants and you’ll end up with plants that have flowers abundant in CBD.

Hemp farming is not that easy and requires hard work as hemp plants need to be weeded regularly. It’s also important to know more about the CBD hemp seeds that you purchase, such as plant genetics, plant characteristics, and other essentials so you know how to plant and take care of your plants.

Finally, maintaining hemp crops that are compliant with state and federal regulations is of utmost importance. It’s essential for you to test the hemp plants early and frequently so you can adjust the THC and CBD levels. To produce thriving plants, it’s necessary to purchase high-quality feminized hemp seeds. As the plants grow, make sure that you maintain the necessary growing conditions to prevent stressing out the plants so your products end up being of the highest quality. 

How Much CBD Is Produced per Acre of Hemp?

Hemp flowers contain the highest amounts of the cannabinoid CBD, while the unfertilized female plants have the highest concentrations of cannabinoids compared to male plants. Generally, the CBD concentration of high-quality plants is about 10% of what the hemp flower weighs when dry and is usually sold somewhere between $300 and $450 per pound. The biomass, or what is left of the hemp plant after the cannabis flower is removed, is a combination of the seeds, leaves, and other parts of the plant, and it sells for about $30-$75 per pound. 

To determine how much CBD you’ll produce per acre of hemp, you can use the following method:

  • If you cultivate 5 lbs of flower mass per plant that means that you’ll get 0.5 lbs of CBD per flower. (3 lbs of the flower’s weight x .1 = 0.3 lbs of CBD per flower)
  • Then you can multiply the quantity of CBD per flower by how many plants you have per acre. Let’s say that you planted about 2000 plants. 0.3 lbs of CBD per flower x 2,500 plants per acre = 750 pounds of CBD per acre of hemp.

This method gives accurate results if you’re raising the plant in ideal conditions that ensures the largest amount of CBD which can be produced.

ROI of Hemp Per Acre of Hemp

Now that you’ve planted your hemp farm, you’re interested in the return of investment (ROI) that your farm will give you. So, let’s see how much an acre of CBD hemp is in fact worth, but remember that the pricing of hemp may vary from state to state.

Hemp cultivation is highly profitable and in general it brings in between $40,000 to $50,000 ROI per acre. If we compare this to corn which brings about $1,000 per acre, we see why hemp farmers are interested in industrial hemp production. They’re growing hemp for the production of CBD oil, hemp fiber, and a lot of other products.

The market price for the hemp plant is about $226 per pound. So, if you have about 750 pounds of hemp per acre, you’d get a total of $169.500. Subtract all your expenses from the market price and you get your return of investment. 

Remember that the ROI of hemp biomass per acre is not that easy to determine as a lot of factors determine the ROI. 

What Affects the Average ROI of Hemp Per Acre?

There are a few conditions that can affect the return of investment of your hemp farm, and we’ll address those below.

Hemp Type

Apart from the hemp flower, the hemp plant has other parts (the biomass) which are sold at a much lower price compared to the plant. While grain and fiber crops are simpler to grow and maintain, the ROI for those products will be much lower compared to the return on CBD hemp. 

Compliance

Since CBD hemp risks developing large amounts of THC levels if it’s harvested too late, hemp growers whose hemp plants contain over 0.3% THC need to destroy their product since it’s not compliant with FDA regulations.

Hemp Processing Procedures

The more the hemp is processed, the higher the production cost for the final product is. For example, when growing hemp for CBD oil, hemp growers need to adequately store, dry, and cure the hemp plant, after which they need to extract the oil. Crude oil prices are much lower compared to distilled CBD oil. 

Genetics

When determining the ROI of hemp per acre, plant genetics play a huge role. Because the cultivar’s genetic code is the factor that determines the cannabinoid potential, growers would examine the hemp seeds before planting them in order for them to know whether the plant that will grow will meet the local hemp regulations. 

Supply Versus Demand

Lastly, the ROI of hemp per acre also depends on the ratio between the supply and the demand. As a matter of fact, the market saturation back in 2019 was a big example of how a lot of cannabis growers lost a lot of profit. The shrinking demand, large amounts of product, and lower-quality plant genetics can all force a farmer to sell their hemp below its market value.

Conclusion

To sum up, the amount of CBD that’s produced per acre of hemp mostly depends on the plant genetics, how close you plant the hemp plants to each other, as well as whether you maintain the growing conditions optimal. These are the factors that end up defining the price of your crops, as well as your ROI of hemp per acre.

The most important aspect when growing hemp is to make sure that the THC levels are below the federal recommendation of 0.3% THC or you could risk your plants being destroyed for not complying with federal regulation.

For more information on hemp farming and programs for hemp farmers visit the official site of the US Department of Agriculture. We wish you a fruitful growing season!

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