As the demand for hemp continues to grow with no sign in sight of slowing down, Greenhouse operations have taken notice. Experienced greenhouse growers are discovering that they can achieve better margins for hemp crops as compared to other perennials or standard produce. Hemp has taken the agriculture industry by storm since the passing of the 2018 Farm Bill and has bought a unique opportunity to the forefront for anyone involved at any stage of the supply chain.

Ornamental growers are especially interested in the prospect of growing crops that are not only gaining demand but also does well against environmental and economic swings. According to a survey done by Greenhouse Grower, 13% of the top 100 greenhouses are expanding into hemp in the coming years.

Increased hemp production is good for the industry and the end-user, but competition will likely start squeezing margins as the supply-demand curve balances out. Ornamental plants may also be affected by this shift, as lower supplies translate into higher prices in other sectors.

The experience of greenhouse companies translates well into hemp cultivation. This is a business venture that all greenhouse growers should consider.

Next Green Wave, Inc

Although the greenhouse industry is now catching up to speed with hemp demands, slow adoption early on left many hemp and CBD companies scrambling for solutions. Those forward-thinking companies like Next Green Wave saw a real opportunity to bring greenhouse and cultivation in-house. By vertically integrating their operations Next Green Wave was able to have ownership and control over the greenhouse production of their hemp, leading to improved efficiency, quality, yield, and cost reduction.

Rather than relying on third-party greenhouses Next Green Wave has 120 connoisseur cultivars on staff, advanced tissue culture technology, and a 3200 sq ft. research and innovation facility driving innovation and production.

A recent partnership with global powerhouse Intrexon will now enable the company to leverage its BotticelliTM platform, further advancing efforts into producing pathogen-free, plantlets of consistent quality to serve growing market demands.

Early Examples of Success and Big moves in the Hemp Industry

Village Farms

From large-scale vegetable crops grown in greenhouses across the U.S., Village Farms has found the ticket to escaping Texas labor costs. This is a State that offers very little room for error, with Mexican production constantly increasing. Hemp crops provide a new way to reduce overhead costs while reaping the benefits of hemp’s bio-availability.

Village Farms grows cannabis plants in greenhouses for both marijuana and hemp across the country.

Color Point

They took a 3.6 million square-foot operation and sold it off to the highest bidder for the growing demands of cannabis producer Red White and Bloom. Then, they took out another investment in Paris, Kentucky to jump into the hemp industry and opened up a 1.8 million square-foot facility. Color Point’s power plays into the CBD market is the perfect example of buying and selling at a huge profit in the hemp industry.

Skagit Horticulture

Another company that is taking the hybrid approach into hemp agriculture. Skagit Horticulture boasts a 2.6 million square-foot facility in Washington State. They’ve teamed up with a local hops farming coalition to cultivate 20 acres worth of hops in the Yakima Valley.

This is the perfect location for both protecting the crops and taking advantage of hemp’s natural robustness, like what is found in hops farms. Hemp clones are also on the table, as is transplanting them into other crops in addition to perennials, trees, bushes of berries, grapes, and finally hops. These experiments are meant to grant virus-free characteristics found in hemp.

Plus, the hemp plants can be cultivated and processed on the same hops equipment that farmers are already familiar with. Skagit is definitely trying to get everything they can out of the growing hemp industry, rather than ride the trends.

Speedling

This company is conventionally a sapling and seed producer based out of Ruskin, Florida. In May, Speedling decided to expand operations in its 3.7 million square-foot compound to include hemp crops alongside its 2 billion cuttings and seedlings for vegetables and ornamental plants. Look for this operation to expand into other locations based off of how successful they are already in this sector.

Rancho Tissue Technologies

The high-tech approach to cultivating the new generation of hemp crops, Rancho Tissue Technologies grows tissue cultures, micro-cuttings, and clones in the lab. Their 40,000 square-foot facility has a leg-up on the competition, dominating the tissue-culture market for a number of important crops. As with the greenhouse operations mentioned, Rancho specifically worked with ornamentals and smaller crops, like berries, but will be expanding their capacity for hemp cultures and genetics for hemp production.

Playing Both Sides

It is important to note that none of these major producers will be sacrificing any of their established presence in their respective markets. The hemp crops are strategically being produced in the background and in the off-season where they’ll create less of a stir with their retail customers. Companies that are taking a more aggressive approach will undoubtedly ruffle a few feathers of the major big-box stores.

This is only a temporary adjustment, however, as most of the greenhouse industry is expected to start following the money and converting their operations into hemp production. We’ll start to see more “changing of the old guard” when it comes to greenhouse producers. The old school ownership will eventually see it fit for them to sell off their facilities if they don’t want to play a part in the global transformation into the hemp industry.

Conventional Greenhouse Producers Pivoting Into Hemp Sector