jachinboazicus

My family has recently been approached by a large company to partner in growing hemp on our family land. The net figures they are telling us is ~$20K/acre. We provide the land and labor, they provide the certified seed and processing post-harvest. What reservations do you have about the booming hemp growing industry, and what are some red flags around these kinds of operations and partnerships?

Great response, much appreciated. Sounds like you've had a similar experience. Your '50% of what's planted will fail' makes sense. Also, the partnership you describe almost exactly matches the discussions that we've had.

As to scaling and learning the crop, I completely understand. We're are talking with starting with ~15 acres, and scaling from there.

My thought is that investing ~$10K (drip systems, labor, etc) in a potential 'ground floor' industry is a wise move since that figure is negligible.

Also, the idea of growing hemp in the land of Mormons is just too good not to do.

Due diligence is definitely square 1, and something we've already done.

Interested to hear feedback from the expert.

If I Pre-contract it for $3.50 a CBD point;

They're quoting the same prices, so sounds like you figures are sound.

Beyond acquiring seed and processing and selling, $20K/acre is INSANE compared to our alfalfa figures. That said, I hear your point, but seems like something we'd learn to do over few (or more) years, and then go the route you describe.

I'm in UT. Curious to hear where your buddy's land is. What were they farming previous to hemp? We have been growing alfalfa on the land for generations.

Current contract is 70/30.