Florida Agricultural Advantages

• Hemp grows 4 times faster than most other woody or grain crops
• Hemp can grow on the natural irrigation of 50”+ inches of annual rainfall
• Hemp requires no fertilization
• Hemp requires no pesticides
• Hemp makes an excellent cover crop and helps condition the soil
• Hemp can grow in almost any configuration, climate, or conditions
• Hemp will yield $600-$1200 per acre/crop depending on the strain
• Florida is currently one the world’s largest importer of Hemp products
• Hemp will yield multiple times a year
• Hemp could rescue struggling citrus farmers

Market Size

In 2011 Florida had 47,500 commercial farms, using a total of 9.25 million acres.

The following discussion is based on utilizing 2 million acres or less than ¼ of the total land currently in production.  It does not include or consider that millions of acres that are not in current farm production, but potentially could be.

2 million acres is a relatively conservative estimate of over all hemp production considering the crop per acre yields and the fact that many citrus farmers are in desperate need of an alternative to letting their ag status expire because of dead or dying citrus.  None the less it is a reasonable starting point for real discussion of how the industry is brought to Florida.

The following are potential dollars exchanged.

What Could Florida Do?

Agriculture

• Research and Development = $100,000,000
• Farming – 2 mil acres x $1000/acre = $2,000,000,000

Total = $2,100,000,000

Processing

• Harvesting  – 2 mil acres x $450/acre = $900,000,000
• Seed Collection and Preparation  – 2 mil acres x $50/acre = $100,000,000
• Stalk – 2 mil  acres x $50/acre = $100,000,000
• Leaves – 2 mil acres  x $50/acre = $100,000,000
• Flowers and Buds – 2 mil acres $100/acre = $200,000,000

                                                                                              Total = $1,400,000,000

Manufacturing – hemp grown for different uses have different yields.  The following uses a 500k acre assumption and what the potentials may be at conservative estimates.

• Bio Mass –  good yields average 5 tons/acre x  $75/ton = $187,500,000
• Bio Fuel – good yield is 16 gal/acre x 500k acres x $2.50/gal = $20,000,000
• Industrial Oil – good yield 16 gal/acre x 500k acres x $7.00/gal = $56,000,000
• Plastics Production – yields average 5 tons/acre x $75/ton = $187,500,000
• Building Materials – yields average 2 tons/acre x $125/ton = $125,000,000
• Industrial Products – good yields average 5 tons/acre x $75/ton = $187,500,000
• Textiles – 2.5 x  the averages of cotton in GA = $1,500,000,000
• Animal Food – average yield ½ ton/acre x 500k acres x $.50/lb = $250,000,000
• Health Supplements – yields average 1 tons/acre x $125/ton = $62,500,000
• Beauty Products –  yield 16 gal/acre x 500k acres x $12.00/gal = $96,000,000

2.3 million acres would be approximately ¼ our current farmed lands – taking the top 2 and bottom 2 industry projects that would produce –

                                                                                                Total = $1,832,500,000

 

Distribution

• Physical Forms
• Geographical and Hub
• Transportation*

Total = $54,545,454

Sales**

• Traditional Market Integration
• Retail
• Direct
• Multi-level Marketing

                  Total = $4,200,000,000

Regulation

• Monitoring and Tracking

4 x the estimated cost of Colorado

Total = $36,000,000

 

 

Grand Totals = $9,623,045,454

 

*Assumed to be truck transport at 22 tons per truck at $600 per short haul.  Average of 1 ton per acre x 2 million acres

**Assumed to be processing plus manufacturing plus 20%

***All the above numbers are conservative estimates based on ranges found within research.  They are intended as a starting point and may be subject to change and review.  Whenever possible, the lower value was chosen from the ranges available so that if given a choice, the lesser revenue scenario was utilized.