Hemp Farm Business Plan
You’ve come to the right place to create your Hemp Farm business plan.
We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Hemp Farms.
Below is a template to help you create each section of your hemp farming business plan.
Sample Hemp Farm Business Plan
Executive Summary
Business Overview
Abundant Harvest Hemp Farm is a startup hemp farming business located in Boulder, Colorado. The company is founded by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp industry since it became legal in the state of Colorado in 2014. Now that Jeffrey and Sharon have gained the essential experience and know-how involved in running an industrial hemp production farm they are ready to start their own business. Jeffrey excels in operations management, equipment safety, and the growing process, while Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. Jeffrey and Sharon are confident in their combined abilities to effectively manage a profitable hemp business. The duo plans on recruiting a team of experienced farm hands to perform the essential tasks involved in running a successful hemp farm including cultivating, harvesting, and trimming hemp products (flower, leaves, stems, and biomass) to be sold to other companies who produce CBD oil products.
Abundant Harvest Hemp Farm will provide superior hemp that is harvested by hand to ensure the best quality. The company will be the premier choice in Colorado for CBD businesses looking for quality and value in hemp products. Abundant Harvest Hemp Farm will charge its customers reasonable prices for its hemp products that are on par with competition, but unlike most of the hemp farm businesses that are in direct competition, the company’s hemp will be available year-round.
Product Offering
The following are the products that Abundant Harvest Hemp Farm will provide:
- Hemp flower
- Hemp leaves
- Hemp stems
- Hemp biomass
Customer Focus
Abundant Harvest Hemp Farm is a B2B business that will target all CBD processing, manufacturing, and extraction companies in Colorado. They will target CBD companies who value high quality, hand-harvested products at fair prices. No matter the client, Abundant Harvest Hemp Farm will deliver the best communication, service, and quality products.
Management Team
Abundant Harvest Hemp Farm will be owned and operated by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp production business since it became legal in the state of Colorado in 2014.
Jeffrey Moore is a graduate of the University of Colorado with a Bachelor’s degree in Agriculture. He has been working at a local hemp farm since 2014 as a Master Grower. Jeffrey excels in operations management, equipment safety, and the growing process. He will oversee the farm hands, crops, and equipment.
Sharon Moore has a Bachelor’s degree in Business Management from Arizona University. Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. She will manage the company’s finances, inventory, sales, and client relations, while monitoring the global industrial hemp market for fluctuations and changes.
Success Factors
Abundant Harvest Hemp Farm will be able to achieve success by offering the following competitive advantages:
- Potent hand-harvested hemp that is high quality, free of contaminants, and thoroughly inspected.
- Affordable prices for all customers and extra discounts for long-term contracts.
- Efficient indoor growing techniques using the latest technology to ensure high yields all year-round.
Download the hemp farm business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Abundant Harvest Hemp Farm is seeking $200,000 to launch its hemp farm business. The funding will be dedicated towards securing the land, building the indoor facility, and purchasing equipment and supplies. Funding will also be dedicated towards three months of operational costs, testing costs, and licensing costs. The breakout of the funding is below:
- Grow facility build-out: $70,000
- Equipment, supplies, and materials: $10,000
- Startup and operational costs: $90,000
- Testing and licensing costs: $2,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Abundant Harvest Hemp Farm.
Company Overview
Who is Abundant Harvest Hemp Farm?
Abundant Harvest Hemp Farm is a newly established hemp farm in Boulder, Colorado. Abundant Harvest Hemp Farm will be the most reliable, cost-effective, and efficient choice for CBD buyers in Boulder and the surrounding communities. Abundant Harvest Hemp Farm will provide superior hemp that is harvested by hand to ensure the best quality. The hemp farm will be the premier choice in Colorado for CBD companies looking for quality and value. Abundant Harvest Hemp Farm will charge reasonable prices for its hemp products that are on par with competition.
Abundant Harvest Hemp Farm will be able to manage the entire process of cultivation and harvesting. The owners will employ farm hands who have been working in the hemp business for several years to cultivate and harvest the hemp products. Abundant Harvest Hemp Farm removes all uncertainties and risks of potentially unsuccessful harvests from the buyer by ensuring its hemp products are reliably harvested all year-round while delivering the best customer service.
Abundant Harvest Hemp Farm History
Abundant Harvest is owned and operated by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp industry since it became legal in the state of Colorado in 2014. Jeffrey and Sharon have gained the essential experience and know-how involved in running a hemp farm they are ready to start their own business. Jeffrey excels in operations management, equipment safety, and the growing process, while Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. Jeffrey and Sharon are confident in their combined abilities to effectively manage a profitable hemp farm.
Since incorporation, Abundant Harvest Hemp Farm has achieved the following milestones:
- Registered Abundant Harvest Hemp Farm, LLC to transact business in the state of Colorado.
- Has selected the location for the facility and has begun negotiations for purchase of the property.
- Reached out to numerous contacts to include experienced farm hands to advise them on their upcoming hemp farm company in order to start recruiting employees.
- Began the licensing process to ensure compliance with all hemp farm regulations.
Abundant Harvest Hemp Farm Services
The following are the products that Abundant Harvest Hemp Farm will provide:
- Hemp flower
- Hemp leaves
- Hemp stems
- Hemp biomass
Industry Analysis
The global market for hemp is an estimated USD $205M (as of 2020) with an expected compound annual growth rate (CAGR) of 6%, increasing to $310M by 2027. Hemp is produced commercially in over 30 countries around the world. The hemp market is segmented into textiles, hemp seeds, and hemp bio-composites.
The hemp market in North America is expected to reach USD $87.5M by the year 2027. Increased legalization of CBD oil products is boosting demand in the United States.
With segments that range from biomass, flower, extracts, isolates, and distillates, the CBD market offers a diverse set of products. Hemp oil is in high demand for pharmaceutical products, skin care products, topicals, edibles, and more.
Industry operators can maintain a competitive advantage by offering unique cultivation and harvesting techniques. For instance, hand-harvested plants can produce up to 5% more CBD than machine harvested plants, which destroys buds.
Download the hemp farm business plan template (including a customizable financial model) to your computer here
Customer Analysis
Demographic Profile of Target Market
Abundant Harvest Hemp Farm is a B2B business that will target all CBD processing, manufacturing, and extraction companies in Colorado. They will target CBD companies who value high quality, hand-harvested products at fair prices. No matter the client, Abundant Harvest Hemp Farm will deliver the best communication, service, and quality products.
Customer Segmentation
Abundant Harvest will primarily target the following customer profiles:
- Small CBD processing, manufacturing, extraction companies in Colorado who are looking for premium, hand-harvested hemp.
- Mid-sized CBD processing, manufacturing, extraction companies in Colorado who are looking for premium, hand-harvested hemp.
Competitive Analysis
Direct and Indirect Competitors
Abundant Harvest Hemp Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.
Boulder Harvest Hemp Farm
Boulder Harvest Hemp Farm provides premium hemp for CBD oil producers. Located in Boulder, Colorado, Boulder Harvest Hemp Farm is able to provide a local source of hemp flower and biomass that can be used to make a variety of CBD products. The hemp is cultivated and harvested using the latest equipment and technology to ensure efficient production. Boulder Harvest Hemp Farm is also able to deliver its hemp directly to local customers.
Boulder Harvest Hemp Farm’s promise is to provide its customers with high quality hemp products that they can then use to create their signature CBD oils. The hemp farm uses a stringent quality control process to ensure its customers receive only the best of the hemp its crops produce. Any damaged or imperfect product gets thrown out. Boulder Harvest Hemp Farm’s team of experienced hemp farmers assures the quality of the product.
Greeny’s Hemp Farm
Greeny’s Hemp Farm is a Boulder-based hemp cultivation business that provides outstanding raw hemp products for its B2B customers. Greeny’s Hemp Farm provides high quality hemp products harvested from all parts of the plant – the flower, stem, leaves, and biomass. This ensures no part of the plant is wasted. The owners of Greeny’s Hemp Farm are long-time hemp farmers so they understand what goes into cultivating the ultimate crop. Clients can depend on their attention to quality in all of their processes to provide the best hemp possible. By choosing Greeny’s Hemp Farm, customers can rest assured they are getting hand-harvested hemp that has been thoroughly tested and evaluated before being carefully packaged and shipped out.
High Health Hemp Farm
High Health Hemp Farm is a trusted Colorado hemp company that provides superior hemp products to CBD oil brands in Boulder and the surrounding areas. High Health Hemp Farm is able to provide its products at low prices because it operates on a lean overhead model that allows the company to pass on its cost-savings to its customers. The indoor hemp farm uses the most advanced technology and equipment to harvest its product, ensuring high yield with few employees needed.
Download the hemp farm business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Abundant Harvest Hemp Farm will be able to offer the following advantages over its competition:
- Potent hemp that is guaranteed to be high quality and free of contaminants due to the company’s thorough inspection process of its hand-harvested crops cultivated by skilled farm hands.
- The company’s efficient production techniques allow for cost-savings that are passed on to customers.
- Efficient indoor growing techniques using the latest technology to ensure high yields and year-round harvests.
Marketing Plan
Brand & Value Proposition
Abundant Harvest Hemp Farm will offer the unique value proposition to its clientele:
- Potent CBD hemp available year-round that has been thoughtfully cultivated and thoroughly inspected for quality.
- Affordable prices for all and extra discounts for buyers with long-term contracts.
Promotions Strategy
The promotions strategy for Abundant Harvest Hemp Farm is as follows:
Website/SEO Marketing
Abundant Harvest Hemp Farm will create and maintain a professionally designed website. The website will be well organized, informative, and list all products that Abundant Harvest is able to provide. The website will also contain up-to-date information and informative content on hemp, the industry, CBD trends, and other issues that would be of interest to B2B clients. The company will use SEO marketing tactics so that any time someone types in the Google or Bing search engine “Boulder hemp farm” or “hemp farm near me”, Abundant Harvest Hemp Farm will be listed at the top of the search results.
Social Media Marketing
The company will use social media marketing tactics to expand its reach and gain new customers. Abundant Harvest will maintain an active presence on various social media platforms including Twitter, Instagram, Facebook, YouTube, LinkedIn, and TikTok.
Word of Mouth/Referrals
Jeffrey and Sharon Moore have built up an extensive list of contacts over the years by providing exceptional products and customer service to their B2B clients. Jeffrey and Sharon have reached out to these contacts to let them know about the new hemp farm. Many have already signed commitments to follow the Moore’s to their new company and help spread the word of Abundant Harvest Hemp Farm to their networks.
Professional Associations and Networking
Abundant Harvest Hemp Farm will become a member of professional associations such as the National Hemp Association, Hemp Industries Association, U.S. Hemp Roundtable, and the Colorado Hemp Association. They will attend industry events and focus their networking efforts on expanding their client network.
Print Advertising
Abundant Harvest Hemp Farm will invest in professionally designed print ads to display in programs or flyers at industry networking events, in industry publications, and for direct mailers that will be sent to various CBD companies.
Pricing
The pricing of Abundant Harvest Hemp Farm will be moderate and on par with competitors so customers feel they receive value when purchasing its hemp products.
Operations Plan
The following will be the operations plan for Abundant Harvest Hemp Farm.
Operation Functions:
- Jeffrey and Sharon Moore will be the Co-owners of the company. Jeffrey will oversee all staff and equipment, while Sharon will manage the finances and client relations. Jeffrey and Sharon have spent the past year recruiting the following staff:
- John Stephens – Sales and Marketing Director who will provide all sales outreach and marketing activities for Abundant Harvest Hemp Farm.
- Maria Johnson – Staff Accountant who will assist Sharon by providing all client accounting, tax payments, and monthly financial reporting.
- Bill Martinez – Quality Control Manager who will oversee the inspection process for all crops throughout the cultivation and harvesting process.
Download the hemp farm business plan template (including a customizable financial model) to your computer here
Milestones:
Abundant Harvest Hemp Farm will have the following milestones complete in the next six months.
9/1/2022 – Finalize contract to purchase the land.
10/15/2022 – Begin build-out of the facility.
11/1/2022 – Finalize employment contracts for the management team and farm hands.
11/15/2022 – Begin networking at industry events and implement the marketing plan.
12/22/2022 – Begin the cultivation process for Abundant Harvest Hemp Farm’s first crop.
Management Team
Abundant Harvest Hemp Farm will be owned and operated by Jeffrey and Sharon Moore, a pair of seasoned hemp farmers who have been working together in the hemp industry since it became legal in the state of Colorado in 2014.
Jeffrey Moore is a graduate of the University of Colorado with a Bachelor’s degree in Agriculture. He has been working at a local hemp farm since 2014 as a Master Grower. Jeffrey excels in operations management, equipment safety, and the growing process. He will oversee the farm hands, crops, and equipment.
Sharon Moore has a Bachelor’s degree in Business Management from Arizona University. Sharon’s expertise lies in finance and budgeting, inventory management, and client relations. She will manage the company’s finances, inventory, sales, and client relationships.
Financial Plan
Key Revenue & Costs
The revenue drivers for Abundant Harvest Hemp Farm are the hemp farm fees they will charge to the B2B CBD oil companies for the hemp products. The company will charge between $150-$250 per pound for its hemp products.
The cost drivers will be the overhead costs required in order to maintain an indoor year-round hemp cultivation and harvesting operation. The expenses will be the payroll cost, equipment maintenance, utilities, supplies, and marketing materials.
Funding Requirements and Use of Funds
Abundant Harvest Hemp Farm is seeking $200,000 to launch its hemp farm business. The funding will be dedicated towards securing the land, building the indoor facility, and purchasing equipment and supplies. Funding will also be dedicated towards three months of operational costs, testing costs, and licensing costs. The breakout of the funding is below:
- Grow facility build-out: $70,000
- Equipment, supplies, and materials: $10,000
- Startup and operational costs: $90,000
- Testing and licensing costs: $2,000
- Working capital: $10,000
Download the hemp farm business plan template (including a customizable financial model) to your computer here
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials.
- Average number of pounds of hemp produced per year: 10,000
- Average amount in sales per year: $200,000
- Average operational costs per year: $140,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Hemp Farm Business Plan FAQs
What Is a Hemp Farm Business Plan?
A hemp farm business plan is a plan to start and/or grow your hemp farm. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your hemp farm business plan using our Hemp Farm Business Plan Template here.
What are the Main Types of Hemp Farms?
There are a number of different kinds of hemp farms, some examples include: Food-grade Hemp, CBD Hemp, Hemp for Textiles, and Industrial Hemp.
How Do You Get Funding for Your Hemp Farm Business Plan?
Hemp farms are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a hemp farming business plan, a cbd oil business plan or a cbd business plan template.
What are the Steps To Start a Hemp Farm Business?
Starting a hemp farm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Hemp Farm Business Plan - The first step in starting a business is to create a detailed hemp farming business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hemp farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hemp farm business is in compliance with local laws.
3. Register Your Hemp Farm Business - Once you have chosen a legal structure, the next step is to register your hemp farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your hemp farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Hemp Farm Equipment & Supplies - In order to start your hemp farm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hemp farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.