Thursday, June 1, 2017

Hemp Farming Expense & Revenue

Setup Expense:

Initial setup of 2,000 acres = $1,250 per acre = -$25,000,000
This includes all equipment, labor, irrigation, planting & processing plant
Process from initial land clearing to seeded soil = 6 Months

Operational Revenue:

Based on a current market rate for raw material per acre = $12,500
3 crops per year = $37,500
2,000 acres will produce = $75,000,000
Expected losses due to weather, insects, etc... - 25% = -$18,750,000
Net before expenses = $61,500,000

Operations Expense:

Based on daily operations -
labor, overhead, marketing and harvesting crop - 30% = -$22,500,000
Cost of initial setup = -$25,000,000
Cost to prepare and bring to market (Processing) = -$3,500,000

Net profits first full years operations = $5,250,000
Net profits second full years operations = $30,250,000

These are very rough estimates which are conservative and based on market research, analyses and first hand knowledge by the Managing Partners. Upon acceptance of our proposal, the Managing Partners will enter into a much deeper analyses and pre development strategy. Once final agreements have been made, we will need to survey proposed properties and devise costs related to prepping the land for agricultural use. We will need to analyze viable sources of water and the expense to bring that water to the site and distribute to crops. We will then devise a more precise budget and working timeline to further minimize unknowns and have a viable feasibility study and more precise projections.

Once the entire system is running soundly and we have established all requirements from seed to market and therefore reached optimum productivity for the 2,000 acres, we will begin to add acreage on a yearly basis to further increase productivity. Currently worldwide acreage used for Hemp Farming is 600,000. Considering this we can continue to effectively grow farming operations for generations to come, considering there are over 615,000 small independent farms throughout Haiti, much of this future growth will come through joining with them and centrally controlling the more complex processing and sales.