ROI of Hemp: How Much CBD Is In Hemp Oil?
If you’re looking to begin growing hemp for the purpose of extracting CBD oil, you likely are wondering what the ROI of a single hemp plant is. As you’re starting a business, you need to understand the financial side of your operation in addition to the technical side.
One of the main questions asked is how much CBD oil can be extracted from a single hemp plant, as well as how much CBD oil can be produced from one acre of hemp plants?
The answer is more complex than you might expect, when you take into account the differences between the quality of your plant, what end product you’re looking to achieve, and your method of extraction. Whichever CBD extraction process you choose will impact how much CBD can be extracted from your hemp.
How Much CBD Oil Can Be Extracted from a Hemp Plant?
Answer: On average, one hemp plant can produce approximately one pound of CBD oil.
This pound is in the form of crude oil, which can be used on its own or further distilled into a more refined end product. If you have an acre of hemp plants, you could yield up to 1,500 pounds of flower and extract approximately 200lbs of crude CBD oil worth about $300 per kilo, earning you about $27,300 per acre based on current Summer 2020 market pricing.
Amount of End Product
The amount of CBD oil you extract decreases if you’re looking to produce a more refined end product, like CBD isolate (approx. yield 140lbs per acre) or broad-spectrum CBD distillate (approx. yield 160lbs per acre). If you’re just looking to extract crude oil, you’ll extract a larger volume of oil than if you refine it down further.
Amount Per Acre
If you’re harvesting hemp plants for the purposes of extracting CBD oil, you will need to grow only female plants, which are the ones that flower. The flower (or bud) of the hemp plant contains the trichomes with the highest amount of CBD, making it the best and easiest way to extract CBD oil from the plant. On average, you can grow about 1,500 hemp plants per acre if you’re growing for CBD oil.
Factors that Impact CBD Amount
Of course, these total numbers are just estimates. There are a variety of factors that can impact how much CBD could be extracted from a single hemp plant.
Some of these factors include:
- Quality of plant (genetic potential, length of cultivation cycle)
- Method of extraction (ethanol, carbon dioxide, or hydrocarbon)
- Efficiency of operations (impacted by the skill level of your technicians, familiarity with the equipment, etc.)
As your business grows and becomes more efficient, you’ll likely be able to increase your production and productivity, as you become more familiar with the machines.
Industrial Hemp vs. Hemp for CBD Oil
Hemp plants grown to harvest CBD require different planting techniques than hemp plants that are grown for more industrial or manufacturing purposes.
With hemp grown for industrial purposes, you can grow many more plants per acre—around 400,000 plants. These plants can be male varieties since you don’t need the flower to harvest CBD, and the plants grow much taller, allowing for more volume per acre. Hemp plants grown for the purpose of extracting CBD oil require more space, so you can grow fewer plants per acre.
Precision Equipment for CBD Extraction
Precision Extraction offers high-volume, high-quality ethanol extraction equipment optimized for hemp extraction.
Our extraction experts provide a simple explanation to how much CBD is in hemp oil, potential ROI, and factors to consider.