This slide i’ve attempted to break down the agronomic and the economic considerations really from everything to planting density to harvest concentrations and considerations the height of the plant the price and also the production processes that may be associated with some hemp cream of these end uses this information was consent contained from the congressional research service which did a study of the available literature on the production practices and the pricing information through third-party private price reporting services but again this is just based on a snapshot.
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What the industry is still doing and what the industry is currently evaluating so i think again this speaks to the variability that’s even associated within hemp for fiber or hemp for biomass production not only state to state but also farm to farm in the u.s while there’s great interest in expanding hemp production there’s so much uncertainty about the econo the economics of doing so they are environmental concerns adaptation concerns agronomic considerations product development that are associated with one the long-term feasibility but also the survivability of the hemp industry as with most other crops the technology employed to produce hemp the timing and the nature of these cultural operations are going to be highly dependent upon the end use for which that product is being produced and what i’ve shown here is just the variable expenses such as the chemicals the fertilizers the transportation the seed costs the drying the labor as well as some of the marketing regulatory expenses that may not be associated with the other crops that we commonly produce here in louisiana such as licensing fees sampling fees inspection fees etc then there’s also the fixed cost of machinery and the land that are required to produce this crop the production economics for hemp as you can see on this slide have a pretty significant range.
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And that’s going to be dictated by end use the biggest thing on this table that jumps out is the seed of the transplants is hemp grown for biomass where a direct seed can be drilled into the ground those seed costs are anywhere between 60 or 100 per acre but then if you’re looking at a plastic culture system or transplants of industrial hemp that are going to be grown for flower or cbd production then the actual slip can range anywhere from five dollars to nine dollars per individualized plant and when those plants are scaled over a rep farm acre well then that number can jump to between five and seven thousand dollars per acre very very substantial very interesting uh from a crop standpoint but also it’s just one cog in the wheel of all the different production costs that are associated with hemp most of which we are still researching and we still don’t know i’ve attempted to look at some of the usda data some of the data that’s vetted by universities such as the university of kentucky arkansas tennessee some work at the ad center is doing to really start to compare and contrast some of the production systems that are associated with industrial hemp.
