University of Tennessee Releases Hemp Budget
6/10/2019 – The University of Tennessee released a hemp budget for CBD extraction production. You can download their budget in PDF or Excel at their website. You can change the data in the Excel budget to more closely reflect your expenses and price received. The default price received on their budget is $1.50 per percent CBD per pound of material. Their budget generally agrees with what we have seen other than the default price received. This price is lower than what we are seeing in most contracts, but may be inline with what the average price settles out to be as the industry matures. Dr. Jeanine Davis suggests that the labor costs in this budget is probably lower than what she is observing. That too could change in the future as production becomes more mechanized.
The University of Kentucky has hemp budgets available online. Their budgets only include variable costs while the University of Tennessee’s budget includes variable and fixed costs. Kentucky has budgets for grain and fiber as well as several CBD production budgets for various production systems.