Our products will surely provide several key benefits to the direct user as well as to the environment. Even though the hemp plant contains less than 0.3% psychoactive THC, it is still illegal to cultivate and extract CBD from hemp under Federal law. The fiber can then be sold to the paper and cardboard recycling industry or further processed for value-added non-woven matting products such as biofibre insulation for the construction and building industry, and other bio fiber matting products such as those used in the horticultural industry. For ethanol extraction, approximately one gallon of ethanol is required to extract 1 lb of hemp. Contaminants that are identified in the quality inspection should be tested for build up in the extraction solvent during validation. Lee received his JD from the UCLA School of Law. On the other hand, if you decide to work with hemp fiber, the profits will change a bit. Maintains quality service by establishing and enforcing plant standards. Proper hemp drying after a harvest can improve the quality of the final product. If you are a current license holder and need to add or change locations, submit a Change Request Form. The majority of factors influencing seedling growth are related to temperature. Some hemp advocates say the U.S. Food and Drug Administration has stifled the industry. Our current estimates projects construction of one commercial processing facility every two years over a ten year period. 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. The most obvious indication is when the plant begins to form its first seeds. Harvesting is a straightforward process of removing the lowest seedpod from just below the stalk using clean cuts. 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. Once you have established your forecast, we are here ready to help you create a scaled property plant and equipment plan for your operation. Consider eight or more hours of sunshine each day. Cellulose insulation, in the form of hammer milled paper, is well established in the North American market, and market acceptance has been growing. You may also regulate oxygen and humidity levels by utilizing natural air. Female hemp plants produce slightly more THC than male plants do. Table 1. Also, interstate transportation of legal hemp is legal, but not all the states, counties, cities, and law enforcement agencies understand this. hemp, (Cannabis sativa), also called industrial hemp, plant of the family Cannabaceae cultivated for its bast fibre or its edible seeds. As a general rule of thumb, a solvent may be reused successfully 20-50 times. But the present cost for this bio fiber insulation product is approximately one and a half times that of mineral insulation products such as fiberglass. After the offering, Earth Hemp Fiber Processing Cooperative Ltd. (EHFPC Ltd.) will become a limited partner, along with those individuals and entities that purchase units pursuant to the offering. As a consequence, the FDA guidelines recommend that the solvents be brought back to a suitable state before Reuse. If the water drains readily, increase the frequency of watering. Indoor space licensed for hemp production has grown, hitting more than 168 million square feet this year, Hemp Benchmarks found. If youre searching for how to start a hemp farm, theres a lot to understand before planting your first seed. It is legal to grow in the US, but it is regulated, and you need a license to grow it. Create a stellar business plan and financial projections. Rough handling and high temperatures can degrade cannabinoids to a fraction of what they are on a live plant. The start-up using GM- and antibiotic-free starter cells taken from a single fertilised Angus cow egg and grows them into 'real meat cuts' in a controlled, laboratory setting. 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. All rights reserved. Be Hyper-vigilant About Harvest and Post-harvest Processes. It would help if you planned to harvest seeds to understand that this is a challenging operation. H2 occupancy is a special designation for facilities that have large amounts of solvent and flammable liquids. Our Pilot Processing Plant will increase rural infrastructure and rural sustainability through the introduction of an alternative, high value crop that can be produced in the majority of areas in the United States, where current cropping exists and rurally located processing facilities. So, the products that you may think are hot early on in your business plan may not be so popular in a year or so. This 5 to 10% loss in ethanol is a huge cost driver for extracting ethanol. The head of the hemp plant is deemed to have completed maturation approximately 90 to 100 days after planting. For example, suppose you wanted to process 1000 lb of hemp. Contaminants are typically identified during incoming inspection but may show up later during processing as the oil becomes more refined. Hemp bio fibre insulation is proven to have equal insulating effectiveness to that of fibre glass, and it is safe and easy to install. Its also important to use artificial plant grow lights, such as growing lamps indoors, for optimal growth. Currently, for quality hemp straw . This focuses on storage and inventory of materials in each room used by each process. Schedule a hemp sampling for compliance testing of hemp lots. History has it that hemp and flax fiber insulation have been produced in Europe since the mid 1990s, and have been in the market place in Europe for about twelve years. 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. 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. Bio fiber insulation has been approved in Berlin for use in construction by the Deutsche Institute fur Bautechnik (German Institute for Constructional Engineering) under approval number Z 2311. The online application is available at this link. Its even better if you have space for pots with depths of 5 to 6 inches. We have seen many operators try to get around costly occupancy requirements by storing their flammable materials outdoors. A suitable reuse is defined by the original specifications for the solvent that is being used. This plant is made up of an inner layer called the pith surrounded by woody core fiber, which is often referred as hurds. When in doubt, start slowly with a dilution rate when fertilizing your seedlings for the first time. Issues of concern include resin content, purity, feminization, freedom from contamination, and, of course, cost. The objective is to maintain temperatures between 68 to 77 deg. Is there plenty of industrial hemp being grown within 200 miles of your location? Our focus at EHF will be to capture the value from the superior qualities of hemp fiber. Chemical retting is the fastest of all the processes. This gives your plants three weeks to grow before they are transplanted outside. Experience the sales, business and engineering experience of our management time and advisory board will prove a priceless weapon for us in this industry. The remaining $6.5 million is to be raised in 2023 through an offering of Earth Hemp Fiber LP (EHF) units on the financial market. It is important to insist that unknowns be flagged by your laboratory. Cross contamination then occurs when a contaminated solvent is used to extract a non contaminated batch. Do not build a business plan on products that have a very low demand associated with them or are considered boutique. Proper selection of the location will help you reduce costs, but needs to be balanced with convenience and availability of labor. This Program, The Colorado Department of Agriculture's Hemp Program, has a regulatory role (authority) that is limited to the cultivation (growing) of hemp only. Honey Processing Plant Professional Beekeeper You will get detailed information regarding types and applications in Chapter 5 and 6. Hemp and flax fibers are made predominantly from cellulose or fiber. Hemp and marijuana come from the same species of plant called Cannabis Sativa L. But hemp is not marijuana. 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. You must know your local laws regarding hemp farming before deciding on a location to grow your hemp. We believe that the raw fiber for paper and cardboard recycling and hurds for animal bedding will generate significant cash flow for the company as well. Where will my hemp processing facility be located? That is why CO2 extraction facilities often are much less expensive compared to ethanol extraction facilities in general. Statistically, hemp grown for fiber or oil doesnt contain high enough cannabinoids to make them viable for medical purposes. Production and administrative staff will be recruited during the construction phase of the Pilot Processing Plant. Hemp plants thrive in full sunshine and should be grown to receive the optimum amount of light. To properly pursue these opportunities, EHF has been established and will construct a processing facility in Illinois capable of processing up to 48,000 metric tones annually of hemp straw into Bio fiber and by-products. If youre germinating hemp seeds indoors, aim to do so in May. In keeping with a risk-based approach to process validation, the key risk to address with solvent reuse is cross-contamination. Banks, so far, are keeping their distance from cannabis companies, pending the possible enactment of the (SAFE) Banking Act of 2019 that prohibits federal banking regulators from penalizing banks that offer cannabis-related financial services. Presently, there is no commercial hemp fiber processing facility in the US to supply and grow these markets. If you reside in a state where hemp farming is legal, youll need to prove that your crops have been processed there. Growing industrial hemp. Be aware of the banking issues. One valuable service that we offer is a hazardous materials assessment. How to turn your crops into cash? The discussions include purchasing the land for approximately $1,200,000 with an incentive provided by the State that will give EHF approximately $1,200,000. The main difference is the resin content hemp is low resin, marijuana is high resin. It is also a big Advantage if the operator can conduct basic maintenance on the equipment. Checklists for Hemp Permit Application & Permit Requirements (PDF) Presently, about 15 states have come out with pro-hemp laws; the rest of the states are silent or vaguely neutral. For example, if 10% of the hemp To be extracted was water, and that water was removed during CO2 extraction, the denominator would be larger in the yield calculation, thereby giving a smaller yield number. 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. (EHF) has been formed pursuant to the laws of the State of Illinois for the sole purpose of establishing a commercial facility that will process and market products made from industrial hemp straw. This is applicable to the bulk business as much as it is to the consumer products category. All leaves, stalks, and immature seeds must be removed to reveal only usable, mature hemp seeds. Our Pilot Processing Plant is projected to achieve 30 percent (14,400 metric tones) processing capacity in the first year of operation, growing to 50 percent (24,000 metric tones) in year two, and just over 80 percent (38,400 metric tones) in year three. What is fair is to specify the throughput At the tonnage process per day and then look at the operating cost for that process. For the early phases of development, you generally want a fertilizer with a ratio of nitrogen (N), phosphorus (P), and potassium (K), which is equal to 3:1:2. Hemp is low-THC Cannabis sativa that is grown for CBD, fiber, food, and more. Even though many ethanol extraction equipment companies provide centrifuges and or presses to eliminate the amount of ethanol left over in the biomass, The best equipment will provide only a 90 to 95% recovery of the ethanol. CO2 extraction is a great way to accomplish this. Do I have enough space to place utilities? Durable high strength source of industrial fibre. Youll also discover that maintaining good air circulation throughout your cultivating area is critical for promoting successful growth. 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. Support research and development for bio-composites. Is 1,070 PSI and 31 degrees Celsius. Apply for, and obtain, all necessary licenses and permits. Note that marijuana can consist of as much as 20 percent THC, compared to less than 1 percent for industrial hemp. The harvested hemp bark can compost other plants that grow well in alkaline soils. This technology decorticates and separates the plant material and processes the material into non-woven matting products, such as insulation. We feel this will be a valuable starting point for acquiring meaningful market information regarding current and future use of industrial hemp in the US. What does the permitting environment look like? While fiber and shives wholesaled to the paper manufacturing/recycling industry will be sold at $400 per metric ton. Financing requirements are expected to be funded through a $3.5 million flexible loan from the state of Illinois and traditional financing of nearly $9 million. Learn the secrets of successful farming: Tips, techniques and strategies for a prosperous farm business. Light meter often comes in handy to achieve the ultimate light requirements. What extraction method will I be using? You can make your forecast based on the number of units you expect to sell as a function of time. F2 occupancy is light industrial occupancy and does not have these added requirements. A long hose can fill those as long as they are located within a hundred feet of the delivery truck. Heres a list of some pointers for your first transplant: When it comes to growing flowering hemp plants, the rules are slightly different than when cultivated for fiber. Note that many states, counties, and cities simply havent yet gotten their respective arms around all the issues. A simple heat mat is often used to achieve this. The capital requirements for Earth Hemp Fiber LP. If your growing space is covered or tented, its critical to ventilate it properly. Youll also need to know which type of industrial hemp crop you want to grow before planting the seeds or clones. Hemp producers are required to file acreage reports with FSA, which includes these steps: Obtain a hemp production license or authorization number issued by USDA, state, or tribe. Keep seedlings in a warm (above 70F) location with 6-8 hours of direct to indirect sunshine and lightly water them each day. Starting a hemp related business is easy. No definitive agreement has been made. Whether youre cultivating industrial hemp for grain, fiber production, seeds, or CBD oils, the process is all the same. Research in North America and internationally is ongoing to develop processes and polymers suitable to utilize agriculture fibers as a replacement for glass fibers such as those found in fiberglass insulation. These capitalized start-up costs include $350,000 for research and development costs invested by EHFPC Ltd. associated with the development of the project, and $300,000 in organization costs that include general start up costs. Within 10 days of planting. My reasoning was that if a solvent-based extract such as ethanol extract was not good for inhalation, by extension it was not good for ingestion either. Since rare cannabinoids reside within the plant's oils, growers must be careful not to unintentionally damage them when harvesting or drying the crop. Grow hemp in a field with well-aerated soil with a pH between 6-7.5. But, marijuana is still federally illegal (as is hemp with more than 0.3 percent of THC) as a listed Schedule 1 substance. flower" industrial hemp. However, the energy cost is really not the key driver in the overall operating costs. Industrial hemp means the plant Cannabis Sativa L, and any part of such plant, growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3 percent on a dry weight basis. Once the product is commercial-ready and production levels are at commercial levels and sustainable, we at EHF will penetrate the building materials market through existing relationships, accessing national chains and buying groups. This is a benefit to many installers especially the do it yourself market. A fact sheet from Central State University that explains the different types of hemp crops. A timed grow lamp is very useful for ensuring consistency. Ask a Cannabis extraction expert about the right products and equipment for you to use for your extraction business. Break the soil up using a hoe or tiller to aerate it. Farmers should cut the plant into two or three-foot sections with a string trimmer and then chop it up with a wood chipper. Hemp is drought tolerant after six weeks, so dont be afraid to water less frequently if you grow indoors. Low-pressure sodium (LPS) lamps are preferable for indoor lighting, but high-pressure sodium (HPS) lamps work well if your space is large enough. Some jurisdictions apply national standards strictly and affect the driving up of start-up costs. In guidance published by the FDA in 2010, plans for the reuse of solvents must be accompanied by a Declaration of the maximum number of times the solvent can be reused. But if you're not going to cultivate your hemp or you plan to get it from others, then one vital key is to locate a supplier that won't pull back when he/she/it gets a better offer. Provides manufacturing information by compiling, initiating, sorting, and analysing production performance records and data; answering questions and responding to requests. Most hemp farmers cultivate under a futures contract with a manufacturing lab or processing company. Ensure you provide enough lighting from above to reach all parts of the hemp plants. Bast fibers form the outer layer. Hemp. To help your plants thrive, keep the pH balance between 6 and 7. In recent years, the U.S. situation on hemp is continually changing. It contains additional items you should add to the list in this article. The forecast will allow you to understand how large your operation will need to be today and five years from now. Plant Health. 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