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Your Guide to Making a Foolproof Growing Operation Plan

Before you have a chance to put a single plant in the ground — or water, if you prefer the hydroponic route — you have to write a growing operation plan that will help you secure a permit and attract funding.

Some approach the cannabis industry with wildly unrealistic expectations. Yes, the industry has grown remarkably fast over the last couple of decades. As more states adopt medical and recreational cannabis laws, more businesses get to earn profits while serving their communities.

In 2019, the legal marijuana industry was worth about $13.6 billion. The federal government still lists cannabis as a Schedule I drug — absurdly putting it on the same level as heroin — but states have started to realize they can increase tax revenues and lower law enforcement expenses through legalization. As of April 2021, 35 states and the District of Columbia have legalized medical cannabis (with 16 of those allowing recreational use).

Growth in the cannabis industry often gets compared to growth in Silicon Valley. There’s a huge difference between the two, though. The cannabis industry learned from the dot-com bubble that you cannot get terrific results by throwing money at every idea. Investors and entrepreneurs need to take calculated risks that maximize their opportunities for success.

Those calculated risks and opportunities for success are summarized and explained best in business proposals written from a serious point of view.

Over the next several sections, we will attempt to offer a guide to making a foolproof growing operation plan that you can share with government agencies, partners, and potential investors. Writing a commercial cultivation business plan takes a lot of hard work, but we’ve seen it pay off for a lot of growers.

Hire a Master Grower Who Understands Cannabis

A few decades ago, underground cannabis growers could stick seeds in the ground, provide some basic cultivation, dry their buds, and sell their merchandise on the black market. Those people made ridiculous amounts of money considering the poor quality of their flowers. 

The industry has become much more professional and scientific. Today’s consumers expect to find the best products at stores and medical dispensaries. 

Hiring a master grower will make it much easier for your business to meet the expectations of today’s consumers. It will also help ensure that you have a true professional on your staff. Many master growers have degrees in horticulture, agriculture, and similar areas of study. They know things like what wavelengths of light you should use during the flowering stage and what beneficial insects will eliminate an emerging pest problem.

Master growers get paid well for their skills and experience. Expect to pay at least $100,000 plus benefits. In return, you get an educated professional who cares about and understands the cannabis plant. Investing in the best person you can find will make it much more likely that your grow operation produces extraordinary flowers. 

Write a Business Plan That Leads to Success

You will need to answer one basic — but critical — question before you can start researching the information that will make your growing operation plan successful. What type of commercial marijuana grower do you want to be?

For most people, this comes down to deciding whether they want to raise plants:

  • Outdoors on farmland in the fresh air.
  • Inside warehouses where they can control every aspect of the environment.  
  • In greenhouses where they can extend the growing season and keep costs reasonable.

Your choice will influence everything from your commercial grow room setup cost to how much you can earn selling wholesale cannabis flowers.

Let’s go through each option to get a better idea of the pros and cons that you should address in your growing operation plan.

Growing Cannabis Outdoors

Growing cannabis outdoors is usually your least expensive option for starting a cultivation business. There are a couple of downsides you need to consider before taking this route, though. For instance:

  • You lose a lot of control over your growing environment when you use outdoor farmland.
  • Your crops have more exposure to pests, animals, and people.
  • Cannabis grown outdoors has a considerably lower wholesale price than cannabis grown indoors.

On the positive side, some people simply prefer flowers that were grown outdoors. By choosing to grow your cannabis on a farm, you can market your products to that audience.

It’s important to consider that some farmland comes with more features that will help you succeed. If the land you buy doesn’t already have these features, you will probably need to spend more capital improving the property.

Essential features to look for when comparing farmland include:

  • Buildings where you can store your farm equipment and dry your cannabis flowers before sending them to wholesalers.
  • Buildings suitable for office space and potentially living on the property for a few days at a time during busy parts of the growing season.
  • Water and electricity.
  • Access to a major road that makes shipping easier.

When you write a business plan for an outside grow op, you will need to include any expenses related to these features. For example, farmland that doesn’t have easy access to electricity might require solar panels and batteries. Get a quote for the equipment and installation so you can add it to your business plan. It will give licensing agencies and potential investors a more accurate idea of how much it will cost to get your company off the ground.

Finding the Right Property for Growing Cannabis Outdoors

420 Property makes it easy for you to review farmland for sale and lease so you can choose an option that helps you meet your goals. 

Start comparing listings now so you can choose land for sale or land for lease

You can also use 420 Property to connect with professionals in your area who can help you evaluate the pros and cons of available farmland. You can get started by:

Indoor Cannabis Cultivation

Indoor cannabis cultivation has much higher startup costs than growing cannabis outdoors. In return, you get significantly more control over your growing environment and can charge higher prices for your flowers.

When you write a business plan for your indoor cannabis grow operation, you need to include the costs of:

  • Leasing or buying warehouse/industrial space for your grow op.
  • Commercial lighting that will encourage rapid growth.
  • Irrigation systems that ensure your plants get the right amount of water.
  • Substrates that provide macronutrients and micronutrients.
  • Racks and shelves where your plants will grow.
  • Supplies for trimming, drying, and packing your cannabis.

Most indoor grow ops find that they get the best results when they have several rooms that separate groups of plants. (This approach helps minimize the risk of disease and streamlines growing processes.)

If you need an architect to draw a blueprint that maximizes the potential of your warehouse space, you can use 420 Property’s listings to find someone in your area.

Keep in mind that your indoor grow op will use a lot of resources, including electricity and water. Estimate the amount of money you will spend on utilities so you can give your business plan an accurate estimate.

Finding the Right Property for Indoor Cannabis Cultivation

The cost of warehouse space for an indoor cannabis grow operation can vary significantly depending on factors like location, existing infrastructure, and size.

It makes sense to talk to a professional real estate appraiser before you spend money on warehouse space. That way, you will know whether the current owner has set a reasonable price.

Whether you decide to lease or purchase a warehouse probably depends on how much capital you have.

Regardless of which option you choose, 420 Property can help you explore your options. Compare listings for warehouse and industrial space for sale in your area if you want to buy a permanent location. If it makes financial sense for you to lease indoor space, compare the lease listings on 420 Property. Either way, you will get a warehouse space that fits your budget and helps you write a successful business plan.

Growing Cannabis in a Greenhouse

As far as expense goes, growing cannabis in a greenhouse gives you a happy medium between outdoor farmland and indoor grow ops. Greenhouses typically cost less to construct or lease than warehouse spaces, but you should expect to pay considerably more than you would for farmland. You also save money by avoiding the high number of inputs that indoor grow ops require. Instead of spending thousands on grow lights, your plants benefit from direct sunlight.

With that said, there are several expenses that you will need to include in your cannabis business plan when you choose to grow in a greenhouse. Some of the most important items include:

  • Irrigation that ensures your plants receive the right amount of water for rapid growth.
  • Heating and cooling systems so you can maintain a temperature that promotes healthy cannabis plants.
  • Humidity control so you can adjust the amount of moisture in the water.
  • Ventilation systems that will circulate the air and remove any fumes that could accumulate from pesticides, fertilizers, and other chemicals.
  • Sturdy shelving that can support your plants as they get larger and start to flower.

Finding the Right Property for Growing Cannabis in a Greenhouse

You have three options when you start growing cannabis in a greenhouse. You can hire someone to design and build your commercial greenhouse, purchase an existing greenhouse, or lease a greenhouse owned by someone else. 

If you want a greenhouse built to unique specifications, use 420 Property to compare listings from contractors. Many of them already have experience planning and building greenhouses where cannabis plants can thrive. Keep in mind, though, that you will have to purchase land in a green zone before you can build a greenhouse. 420 Property has hundreds of listings that will help you find land for sale.

If you want to start cultivating cannabis as soon as possible, you should buy or lease an existing greenhouse. After all, it will take some time for contractors to build your greenhouse and install the systems you need to grow healthy plants. 

Buying a greenhouse that’s already been built means you can start growing cannabis as quickly as possible. You will, however, need enough capital to either purchase the property or qualify for a private loan. A private lender will usually fund up to 70 percent of your purchase, which means you need enough money to cover the first 30 percent.

Explore 420 Property cannabis and hemp greenhouses for sale listings to find an option that matches your budget and production needs.

Leasing a cannabis greenhouse makes it easier for you to start growing crops soon without spending nearly as much money upfront. The downside is that you will never own the greenhouse you use. The owner could also increase your monthly payments after your first year in the greenhouse. That would put you in a difficult position of either spending more money to maintain your location or spending a lot of time moving your operation to a new greenhouse.

If you decide that leasing a greenhouse is the right option for your business plan, start comparing listings on 420 Property to find options that seem like good fits for you.

Sections Every Growing Operation Plan Should Include

Most states have a limited number of permits they can give commercial marijuana growers. That makes it incredibly important for you to write a business plan that provides all the information agencies need to determine whether you have effective ideas for meeting the needs of patients and consumers. The state does not want to waste a cultivation permit on a business that will fail within a few years.

Adding the following sections will make it much easier for you to address your state licensing agency’s concerns.

Before you get to work on your cannabis business plan, know that you can find hundreds of templates online. Some of them are useful because they include sections for specific states and areas of the industry.

Whether you decide to use a cannabis business template or write a business plan from scratch, make sure you get feedback from a cannabis business consultant and a cannabis business lawyer. They can ensure that you cover all the sections your state’s agency wants to review. They can also help you make decisions that should help your business succeed. They have years of experience in the industry, so listen to their advice.

The Executive Summary

Your executive summary provides an overview of your business plan, explains how your business can contribute to gaps in the state’s cannabis industry, and outlines the steps you will take to ensure success.

Your executive summary should also include:

  • The company’s mission statement
  • Your current capital and plans to raise funds
  • How you plan to use your capital
  • Projections that show you understand emerging trends and opportunities in the industry

Ideally, your executive summary should provide everything someone needs to know about your business. You don’t want to get bogged down in the details, but you should provide enough information to support your statements.

Company Description

This section should provide an overview of your business structure and plans. Cover your short-term and long-term goals, your target audience, and any staff members who have the experience to make your company successful.

Products and Services

In the Products and Services section, you should describe what types of products you plan to sell. For example, you might include descriptions of the strains you want to grow and the medical applications each strain offers.

Market Analysis

What aspects of your local market can your business fill? In this section, you should answer this question, describe trends you see in the cannabis industry, and note any relationships you have with distributors, producers, or other cannabis companies.

Strategy

Your state has rules that limit how companies can market cannabis products. Explain how you plan to grow your business without breaking those rules. You should also describe distribution logistics, how many employees you plan to hire, and the cost of running your operation.

Financial Projections

Your financial projections section will provide any historical data you have (this mostly applies to existing cannabis businesses that want to expand) and realistic projections of how much money you can expect to generate. Provide expected costs, revenues, and profits.

Do not feel tempted to inflate any of these numbers. Writing a business plan can expose vulnerabilities. Knowing the truth of your financial situation gives you an opportunity to make adjustments to improve your chance of success.

Innovate Constantly to Stay Ahead of Competitors

The legal cannabis industry is still very new compared to most industries. That means trends can evolve quickly. For example, many cannabis consumers have decided that they do not like smoking flowers. They want to use cannabis in healthy ways to enhance their lives. Smoking doesn’t fit into that goal. Instead, they prefer edibles and other options that do not require smoking.

You can still make plenty of money selling cannabis flowers to consumers. Companies that manufacturer edibles also need cannabis flowers before they can make their products.

In addition to tracking sales within your market, you should consider reading revered publications like:

Spend some time looking over these websites and magazines so you know what your competitors are doing to stay at the industry’s forefront.

Explore Your Cannabis Real Estate Options on 420 Property

No matter what type of property you need for growing recreational and medical cannabis in California, Florida, and other states, you can explore your real estate options on 420 Property. 

Find your next property today!

September 21, 2021Comments Off
The Advanced Guide to Getting Your Commercial Grow License

Before you spend too much time thinking about your commercial grow room setup cost or how you will develop relationships with retailers who will distribute your cannabis products to consumers, you need to get a commercial grow license that lets you cultivate cannabis plants legally in your state.

Since the federal government still considers cannabis illegal, you will have to rely on guidance from state laws. Unfortunately, each state has its own rules and regulations for the cannabis industry. Getting a commercial grow license in Colorado does not follow the same process as getting a commercial grow license in Oklahoma.

Since the legal cannabis industry involves so much diversity, this advanced guide to getting your commercial grow license will focus on generalities that apply to most situations and direct you to state-specific resources that will help you stay within the law.

Since this guide focuses on commercial grow licenses, you won’t find comprehensive information about medical cannabis cultivation. If your state has legalized medical cannabis, contact the appropriate agency to apply for a medical grow license.

Cut Out the Red Tape and Buy a Cannabis License for Sale

Before getting into the weeds of state-based cannabis licensing, take a few minutes to browse the cannabis licenses for sale on 420 Property. The listings will show you licenses for cultivation and retail, but you can use the keyword filter to narrow your search.

If you don’t want to go through the hassle of applying for a license, you might find it makes more sense to purchase an existing license that will let you start your business as soon as possible.

Where to Get a Commercial Grow License in Your State

The following list will help you contact the right agency to apply for a commercial grow license in your state. Keep in mind that state laws change frequently. If you don’t see your state on this list, search the internet to learn more about getting a license there. You could discover that your state does not allow cannabis cultivation or that it just recently started accepting applications for commercial grow licenses.

Alaska

In Alaska, the Alcohol & Marijuana Control Office processes commercial grow licenses. The office’s website provides useful information that will help you complete all documents correctly and understand the cost of getting or renewing a license.

Arizona

The Arizona Department of Health Services can give you information about commercial cannabis cultivation. The department also has information about medical cannabis, so make sure you read the application process that applies to your plans.

California

California was one of the earliest states to embrace cannabis law reform. Despite its early adoption, it has complicated laws for medical dispensaries, recreational storefronts, and cultivators. You can find the information that applies to your licensing needs at the California Bureau of Cannabis Control.

Colorado

Colorado was the first state to legalize recreational cannabis. It has been at the forefront of cannabis legalization, but it also takes regulations seriously. You can learn more about getting a cultivation permit from the Colorado Cannabis website.

Illinois

Illinois recently passed recreational cannabis, so it’s still learning how to put some of its regulations in place. You can find the latest information about applying for a cultivation license on the Illinois Department of Agriculture website.

Maine

You can access cultivation and other types of permits directly from Maine’s Office of Marijuana Policy.

Massachusetts

You can get guidance for cultivation permit applications from the Cannabis Control Commission in Massachusetts.

Michigan

Reach out to the Marijuana Regulatory Agency for help applying for cultivation permits, opening storefronts, and understanding the state’s commitment to social equity within the cannabis industry.

Nevada

After years of trying to pass recreational cannabis laws, the State of Nevada finally succeeded in 2019. You can search existing licenses and learn more about applying for a commercial grow license from the Cannabis Compliance Board.

New York

New York only passed recreational cannabis laws in 2021, so it doesn’t have all of its licensing requirements in place yet. Unfortunately, the state has faced numerous setbacks. Visit the Office of Cannabis Management website to learn the latest news about the state’s progress.

Oregon

All cannabis applications get processed by the Oregon Liquor Control Commission. You can find applications and requirements on its website.

Vermont

Vermont’s Cannabis Control Board processes, approves, and rejects applications for commercial and medical grow licenses. See the board’s website for more information.

Washington

You will need to apply with the Washington State Liquor and Cannabis Board to get a commercial grow license. The website also offers regulatory guidance to help you submit a successful application.

How Much Do Commercial Grow Licenses Cost?

Obtaining a commercial grow license can cost quite a bit of money, but the price varies significantly from state to state.

In Washington, you must pay a $250 application fee and an annual license fee that costs about $1,500. Vermont charges considerably higher fees. Expect to pay an annual fee of $25,000 after your first year of production.

California has a rather complex fee system. The amount you pay depends on several factors, such as where you plan to grow your cannabis and how you expect to make money from your product. For example, a small outdoor grow operation can expect to pay $535 in annual license application fees, while a medium indoor operation will pay $8,655.

California also has diverse fees for renewing annual permits. A specialty indoor operation pays $19,540, while a medium indoor operation pays $77,905.

Considering the vast differences in commercial grow license costs, you should take extra care when filling out your application. You don’t want to waste money on an application that doesn’t accurately describe your cultivation location and methods.

The Expected Commercial Grow Room Setup Cost

Assuming that you plan to create an indoor grow room that will give you more control over your crops, you should consider how your setup costs will affect your budget. On average, commercial grow room setups tend to cost about $42 per square foot.

The type of facility and the equipment you choose can change that estimate significantly, though. Converting a warehouse into a grow room might not cost as much as building a greenhouse. Your irrigation, nutritional, lighting, pest control, and other systems will also influence how much your grow room setup costs.

Higher setup costs aren’t always a negative thing for commercial growers. If you want to care for 500 plants, you might find you can accomplish much of the labor manually. If you want to care for 5,000 plants, though, it potentially makes more sense for you to spend more money on an automated system that can measure moisture and soil pH to optimize growth.

Other Expenses to Expect Before Getting Your Commercial Grow License

Getting into the recreational cannabis industry isn’t a cheap endeavor. Spending money on the right products and services, however, can help ensure your success. You don’t want to lose thousands of dollars on permit fees and real estate because you didn’t want to spend money on helpful services and products.

You can use 420 Property to find trustworthy professionals with the experience you need to build a successful cultivation business. Some of the professionals you should talk to include:

  • Business consultants who can review your business plan and offer advice for improvement.
  • Accountants and CPAs who can help manage your money.
  • Architects and designers who can make the most of your indoor cultivation space.
  • Environmental experts who can recommend soil supplements to improve crop growth and health.
  • Appraisers who can help ensure you pay a reasonable price for your cultivation real estate.
  • Insurers who will make sure you have all of the policies needed to protect yourself, business partners, and company from liability.

If you do not have enough capital to fund your cultivation startup, 420 Property can help connect you with private lenders that work within the cannabis and hemp industry. Unfortunately, banks must follow federal laws, so they will not work with cannabis cultivators even when they operate in legal states.

Considering how quickly the recreational cannabis industry has grown over the last decade, it often makes sense for entrepreneurs to start their commercial grow operations as soon as possible. Otherwise, you could miss opportunities as states limit permits and other companies gain prominence with retail stores and customers.

Get a Commercial Grow License on 420 Property

Obviously, it can take a lot of work to get your commercial grow license. Save yourself the trouble by browsing the licenses available on 420 Property. Instead of filling out mountains of paperwork, you can buy an existing license directly from the current owner.

As more states legalize commercial cannabis, permits will become available on 420 Property. For example, many experts believe that Oklahoma will pass recreational laws to complement its medicinal cannabis dispensaries. If that happens, you might find that buying cultivation licenses helps you start growing as soon as possible.

Find your next 420 property today!

July 19, 2021Comments Off
Principles of Effective Indoor Cultivation Facility Design

Indoor cannabis cultivation offers several advantages that can give businesses significant control over the quality of their products. Trying to grow plants indoors, however, can also present several challenges that require creative problem-solving to overcome. Luckily, you are not the first person to think about indoor cultivation facility design, so you can build on the work of those who came before you.

Maximize Space to Increase Revenue and Lower Overhead

When you grow cannabis or other plants outdoors, you have a single light source that forces you to think about using a horizontal pattern. For example, you use rows when you plant crops in a field. By putting your plants in rows, you help ensure they all get adequate exposure to sunlight.

Indoor cultivation facility design doesn’t force you to think in horizontal terms. In fact, you can make the space considerably more efficient by thinking about your layout on horizontal and vertical levels.

When you maximize the space of your indoor grow operation, you can place racks several feet above each other. Depending on the type of cannabis strains you grow, you can expect them to reach anywhere from 4 to 7 feet tall. Arrange your racks like bookshelves with enough room in between for your plants. Suddenly, a 1,000-square-foot grow room with 15-foot-high walls gives you at least 2,000 square feet of space to grow your plants.

The taller your ceilings are, the more shelves and lights you can add.

Keep this in mind when you visit warehouse spaces that you might buy or lease. The floor’s size matters, but the room’s height matters just as much. The taller your room gets, the more plants you can grow.

You will, of course, need to install LED lights above each rack of plants. The light panels essentially act as artificial suns that your plants turn into energy to grow. Having more lights means spending more money on equipment and electricity. If the cost of your equipment and utilities is lower than the price of a “larger” warehouse space, then it makes sense for you to maximize the smaller area. By doing so, you increase your revenue and lower your overhead.

Are you still trying to determine how much warehouse space you need for your indoor cultivation facility? It probably makes more sense for you to lease a warehouse or industrial space so you can avoid the financial commitment of buying real estate.

Browse more than 100 warehouse and industrial spaces for lease on 420 Property to find options that look promising to you.

Grow Your Cannabis Plants in Multiple, Isolated Rooms

Ideally, growing cannabis indoors can help you avoid pests and diseases. When you have more control over your growing environment, you can keep out pests, viruses, and bacteria that damage crops.

Anyone who has spent enough time growing cannabis, however, has a horror story about an entire crop getting wiped out within days. Indoor cultivation might keep out most pests, but it also keeps out most beneficial insects. When something harmful finds its way into your grow op, it can destroy dozens or hundreds of plants before you have an opportunity to intervene.

You don’t have to risk all of your plants just because you decide to grow indoors. Instead, get grow room blueprints that include several isolated areas. Don’t just put up a partial barrier that lets you identify the different strains you grow throughout your warehouse. You want floor-to-ceiling separation that prevents viruses and pests from reaching your plants.

If something terrible happens to one room of cannabis, the isolation barriers will prevent the problem from spreading to other rooms. You might lose 100 plants, but you could save 1,000.

You can make your indoor cultivation facility design even more effective by requiring all employees to sanitize their equipment and change their clothes before working in the next room. If your gloves pick up cucumber mosaic virus while working in the Blue Dream room, changing your outerwear and gloves will prevent the virus from spreading to the Northern Lights room.

Do you need an experienced professional to build isolated grow rooms for your cultivation business? Explore listings on 420 Property to find a contractor who can improve the health of your grow op. Building isolated rooms is often an affordable way to save your business from financial ruin.

Design Your Cultivation Facility for Limited Contact

Disease prevention is so important that it deserves a separate — although slightly different — section. A virus can enter your facility through any number of ways. You might buy a diseased plant, your substrate might contain a virus, etc. More often than not, though, the virus gets spread by the people working in your cultivation facility.

Establishing strict guidelines for cleanliness will certainly help reduce the risk of disease. You can go a giant step further, though, by limiting access to your plants.

Honestly, your employees don’t need frequent access to your plants. The plants need light, water, and nutrients. They don’t need workers wandering through the rows, sniffing the wonderful aromas, and enjoying the stickiness of the buds. Yes, everyone wants to experience these joyous plants, but every physical interaction creates another opportunity for spreading sickness.

Adding windows to your walls is one of the easiest and least expensive ways to lower interactions between people and plants. You don’t even necessarily need glass windows. Sealed plastic can do the job perfectly well.

By adding windows to your walls, you create a way for employees to “check in” on plants without risking exposure to viruses. No one needs to enter the room to inspect leaves and flowers. Just look through the window to see how the plants are doing.

You can go as simple or extravagant as you want when designing rooms that limit contact between plants and workers. If you want to invest in an innovative design you believe will work better than standard windows, you can contact the architects listed on 420 Property. They should have the skills to draw blueprints that show precisely where windows, doors, viewing portals, and other features go.

Consider a High-Density Cultivation System to Increase Yield in Small Spaces

At this point, you might be thinking about the large warehouse space you leased or purchased. Hmm. It seems like you’ll need to divide that big space into several smaller rooms. In the process, you might need to rethink your whole approach to how you cultivate cannabis plants.

If you discover that building walls to separate grow rooms from each other leaves you with cramped spaces, consider adopting a high-density cultivation system.

This problem sounds very high-tech. Honestly, some of the systems are. You can find high-density systems that come with automated lighting and irrigation. You don’t need to tend your crops. The computer does it for you. You are 100% correct when you assume that these systems cost a lot of money!

You don’t have to opt for the latest, most expensive cultivation system, however. The simplest approach doesn’t cost much at all. You just need stable shelves that move along a rail. You may have seen shelves like these in libraries before. You walk into a room with a dozen bookshelves placed against each other. Before you can access the book you want, you need to move some of the shelves out of the way. Most of today’s models have motors that let you move shelves by pressing a button. If you want to go old school, though, you can still find systems that use hand cranks.

What matters most is that you get a way to consolidate your plants into the smallest space possible. Think about it this way: You only need space between rows when you want to walk down them and inspect your plants. The plants don’t need that much distance between rows. They will sit next to each other happily (assuming that you follow cleanliness protocols that prevent disease).

With a high-density system, you eliminate nearly all of the space between your rows. You practically double your production space!

Designate Areas for Each Life Stage of Your Plants

The cannabis plant’s needs differ throughout its life. Giving your plants what they want should improve their health, lead to higher yields, and increase the quality of your flowers. And let’s be frank. Everyone wants beautiful flowers. The more attractive your flowers are, the more retail stores will spend on them.

You need to create at least four separate areas for the life stages of your cannabis plants.

Stage One: The Germination Room

Cannabis seeds usually need between three and 10 days to germinate. During that time, you should give them 16 hours of light followed by eight hours of darkness. Too much or too little light exposure can slow their growth. You might think it makes sense to keep the lights on 24 hours a day to encourage rapid germination. Nearly every master grower will tell you not to do this. Imagine how well you would perform without any rest for several days in a row!

Stage Two: The Seedling Room

Once your seeds sprout and you see a couple of small leaves at the top, you can move them to the seedling room. After moving them to the seedling room, transplant the cannabis plants to individual pots. Over the next two to three weeks, they will grow more leaves and increase in size. At some point, you will look at your plants and recognize the well-known leaf pattern of cannabis.

You keep the light cycle to 16 hours on and eight hours off in the seedling room. These are growing babies. They need plenty of energy.

At this stage, give your plants a minimum amount of water. They have very shallow roots. Giving them too much water could damage or even kill your plants. Just keep the soil moist and trust your plants to do their jobs.

Stage Three: The Vegetative Room

Once you have what is obviously a cannabis plant, you want to move it to the vegetative room, where each plant has more space to grow. Move your plants into larger containers so their roots can deepen. At this point in the life cycle, they need macronutrients and micronutrients almost as much as they need light. You’ll probably need to add nitrogen to the soil to keep your plants fertilized.

Speaking of light, you want to provide 18 hours of light and six hours of darkness during this stage for your indoor grow operation. Anyone growing cannabis outdoors would want to get at least six hours of direct sunlight and as much indirect light as possible.

Your plants will grow rapidly during this stage. As they get larger, begin training and topping the plants. You want to encourage outward growth. Tall plants might look impressive, but they don’t usually produce as many flowers as plants that are kept on the shorter end.

Your plants will stay in the vegetative room for three to 16 weeks. It really just depends on the plant’s genetics and the growing environment.

At this point, you also want to double-check the sex of your plants. You don’t want any male plants near your female plants. Keeping them separate will encourage the female plants to grow larger, stickier flowers in an attempt to capture pollen from the male plants. Separating the plants will also prevent annoying seeds from growing in your buds. No one wants to discover seeds in top-shelf cannabis. That can ruin your brand’s reputation and make your team look like a bunch of amateurs.

Stage Four: The Flowering Room

As soon as you notice your maturing plants start to form little buds, move them to the flowering room. Your flowers will probably reach their full potential within nine weeks, although some strains take up to 11 weeks. Expect sativa varieties to grow slower than indica and hybrid varieties.

Finally, you get to cut back on the amount of light your plants get. Your marijuana plants should receive 12 hours of light and 12 hours of darkness to maximize flower production.

During this phase, you can trim some of the extraneous leaves from your plants. You want as much energy as possible to go to the flowers. Any energy devoted to continued plant growth will just reduce the potency and size of your nugs.

Stage Five: The Drying (Curing) Room

When your flowers finish growing, they will have a sticky coating on them. They should also have a pungent aroma. These are good signs of excellent cannabis!

Before you package and send them to your distributor, you need to dry the flowers (some people call it “curing” — the words mean the same thing).

Remove all the leaves from your plants and hang the stems upside down so that the flowers droop toward the ground. Do not throw away the leaves! They’re far less valuable than your flowers, but they still contain beneficial chemical compounds, including THC and CBD. If you own an extraction system, you can use it to remove compounds from your leftover plant matter. If you don’t, sell the plant matter to an extraction company. There’s no reason to let the leaves go to waste.

You can expect your flowers to dry for about two weeks. Some people claim that they get the best results by curing their buds for months. Perhaps they get slightly better results from their methods, but it’s not a cost-effective way to run an indoor cultivation facility. You need to sell your flowers as soon as they’re ready. Then, you can use the revenue to start the process over again with a fresh crop of cannabis.

Are you interested in adding an extraction system to your indoor cultivation facility design? You can find plenty of systems for sale on 420 Property. Companies also sell lab equipment that you might find useful when marketing your products to distributors and retailers.

Make Your Workflow as Efficient as Possible

Efficiency drives success in practically every industry these days. If you can’t produce quality items quickly, your competitors will edge you out. The cannabis industry might be full of friendly people willing to offer advice, but they’re also experienced entrepreneurs who recognize opportunities when they spot them.

Making your workflow as efficient as possible will lower your overhead by reducing the number of staff members you need and how many hours those people work each day. A good flow will also reduce confusion and encourage people to focus on each task.

Some labor efficiencies are pretty obvious. For example, you know that you will move your seedlings from your germination room to the seedling room. Why not position those rooms next to each other? Don’t unthinkingly put them at opposite ends of the building. That will force your team members to move fragile plants over a longer distance than necessary. It will increase your overhead and increase the risk of damaging plants.

Investing in automated systems can also improve efficiency and lower your labor costs. Automated irrigation systems don’t cost nearly as much as they did a decade ago. Many of them even include sensors that can provide the perfect amount of water for each plant. A human cannot water cannabis that accurately.

If you want a simpler system that costs less money, opt for drip lines that connect to all the plants in a room. That way, you only need to turn on the water, let the drip lines do their job, and turn off the water to avoid soaking the plants.

Another benefit of streamlining workflows through automation? You may already see this coming — reduced risk of disease. When you have someone going from plant to plant with a watering can or hose, you run the risk of spreading disease from one plant to hundreds of plants. An automated system or drip line system will not eliminate the risk, but it lowers the risk significantly.

Use 420 Property to Find Real Estate for Your Indoor Cultivation Facility Design

Many cannabis growers find that effective indoor cultivation facility design supercharges their business success. Making a few changes can have huge effects on your product quality, yield, and efficiency.

If you already have a facility design in mind, start browsing warehouse spaces for lease and warehouse spaces for sale on 420 Property. Otherwise, reach out to architects and designers who can help you create an indoor setup that helps your cannabis company thrive.

Find your next 420 property today!

July 19, 2021Comments Off
The Essential Checklist for Grow Operation Setup

You have a passion for growing high-quality cannabis that enhances the lives of consumers. That’s the first step toward building a successful business. Any cultivation experiences that you might have had, however, can’t completely prepare you for a commercial grow op setup. The following checklist will help ensure you have all the equipment, supplies, real estate, and professionals you need to cultivate cannabis products your buyers will love!

#1: A Space for Cultivating Your Cannabis Crops

You can’t start your business until you have a location where you can collect all of your supplies and equipment. Having a location could also help you get a cultivation permit from your state (more on that shortly). The question becomes, what kind of property do you need for a commercial grow op setup?

Warehouse Grow Operation Space

An existing warehouse might give you all the room you need for each stage of a plant’s development. Some people think they will get terrific results from a warehouse with one huge room. Technically, you can do that. You could set up a gigantic grow operation in an airplane hangar or similar structure. More often than not, though, successful cultivators choose warehouse grow op spaces with multiple rooms.

Why do you need multiple rooms?

The primary reason is that you don’t want to keep too many plants in the same space. If viruses or pests invade a room, they might spread to all the plants in that area.

By creating several rooms, you establish boundaries that make it difficult for viruses and insects to affect all your plants. You might lose the plants in one room (a tragedy in itself!), but you can protect hundreds of other cannabis plants.

The secondary reason is that you can establish independent spaces for each stage of a plant’s life. This makes it easy for all of your employees to know how they should treat your crops. The plants in the germination room get 16 hours of light each day. The mature plants in the flowering room get 12 hours of light. When you keep plants in designated areas, it becomes much easier for everyone on your staff — including those with limited experience — to care for the cannabis.

Obviously, buying a warehouse will cost quite a bit of money. Some warehouse and industrial spaces in green zones only cost a few hundred thousand dollars. Your business can probably afford to make that investment.

Explore the warehouse and industrial listings for sale on 420 Property to compare your options.

Maybe you’re brand new to the industry and you’re operating on a shoestring budget. In that case, you should consider leasing warehouse or industrial space. You can find plenty of green zone properties for lease on 420 Property.

#2: A Lighting System That Encourages Fast, Healthy Growth

When you grow cannabis on a farm or in a greenhouse, you don’t have to worry about lighting. The sun does the job for you. That’s not the case when it comes to a warehouse grow operation. You need an artificial source of lighting that will encourage fast, healthy growth.

Buying lights is going to cost money. Then, you need to pay for the electricity that runs the light panels or bulbs. The good news is that artificial lights give you control over the light spectrum, so you can potentially grow more cannabis flowers in your warehouse grow operation setup.

You actually want to use two types of lighting when growing cannabis indoors. That’s another reason that it makes sense to choose a warehouse with multiple rooms.

During the vegetative stage of a plant’s development, you want light that encourages the entire plant to grow. You want big leaves that absorb light easily. You want thick stems that will support big buds.

At this stage of growth, choose lights between 400 and 500 nm (scientists measure light wavelengths in nanometers, but you don’t need to worry about the details of how it all works). You won’t believe how much more quickly your cannabis plants grow under those lights than they do outside in the sunlight.

Once your plants start to flower, you want to switch to lights in the 620 to 780 nm range. This “warmer” range of the spectrum will encourage your plants to direct more of their energy to growing flowers instead of adding to their height.

(The science behind using the 620 to 780 nm light range for growing larger buds is actually pretty interesting. Typically, cannabis growing outdoors will flower during late summer. At this time of year, more sunlight gets filtered through the planet’s atmosphere. The plants have evolved to recognize this light range to mean that it’s time to reproduce before temperatures fall.)

#3: An Irrigation System for the Perfect Amount of Moisture

You have to love how much control a good commercial grow op setup gives you. Outdoor farms often have to deal with periods of too much and too little rain. Your plants are practically downing for half the time and parched the other half. A warehouse grow setup with a reliable irrigation system lets you give plants the perfect amount of moisture.

You have a few options when choosing irrigation systems. Honestly, any of them can get the job done. The one you choose depends more on how much money you can spend and how much work you want to do.

Drip Irrigation Systems

Drip irrigation systems are tubes that connect to all of your planting pots. Some of them hang above the pots, and some of them rest along the substrate. (Fickle cultivators may tell you to choose a system that’s as close to the substrate as possible. Reducing the amount of moisture on your plant might lower your risk of fungus. Sometimes a little fickleness is a good thing.)

When you want to water your plants, you connect the tube to your water supply and turn it on. When the plants have received enough moisture, you turn it off. That’s it.

Automatic Irrigation Systems

If you want to save time, give plants the perfect amount of water, and don’t mind spending more money, you can choose an automatic irrigation system. This type of system uses sensors to measure the amount of moisture in the substrate. When the level gets low enough, it delivers water to your plants. Once the levels look correct, it turns off the water. It really couldn’t get easier than that.

The Necessities of Irrigation

Regardless of what irrigation system you choose, remember that cannabis doesn’t like getting too wet. Standing water can cause mold and fungus. In extreme cases, it can also cause root rot, which will kill your plant. As long as you have moist soil without any standing water, you probably have happy plants!

#4: A Substrate Formulated Specifically for Cannabis

We mentioned substrates above but didn’t get into what it actually is. Generally speaking, the substrate is the material that your cannabis plants grow in. If you grow cannabis outside in the ground, the substrate is “dirt.”

Growers use the word “substrate” instead of dirt because it includes a wider range of options. And it sounds fancy. In all seriousness, though, the type of substrate you choose can have a big influence on your plants.

Some common commercial substrates include mixtures of:

  • Perlite
  • Vermiculite
  • Coconut fiber
  • Peat
  • Tree bark

These ingredients create a porous mixture that helps roots grow deep.

If you want to set up a hydroponic grow operation, you will probably use expanded clay pebbles as your substrate (and water, but that goes without saying).

DIY or Buy?

At this point, you’re probably wondering where to get enough of the right materials for your grow op’s substrate. You have two options. You can either make your own substrate or buy premixed substrate from a commercial supplier.

Any substrate that you buy from a respectable supplier will work well. You just need to call the supplier and talk to the representative. They might choose a specific option for you depending on the strain you grow, the temperature of your rooms, and other factors. It’s a complicated science, and they know what they’re talking about.

As you gain experience as a cultivator, you might want to experiment with mixing your own substrates. That’s perfectly fine. The internet offers endless recipes that will tell you how much of each material to include in the mix. The DIY approach can be fun, and you might discover that you get better results from a proprietary blend. Don’t expect your homemade substrate to outperform commercial options, though, until you’ve done a lot of research and testing.

For now, just buy from a supplier with a reputation for excellent products and strong customer service.

#5: Cleaning and Sterilization Supplies

Far too many new cannabis cultivators forget to put cleaning and sterilization supplies on their grow operation setup checklists.

Disease is your enemy. It’s also cannabis’s enemy. Unfortunately, many viruses, such as cucumber mosaic virus and alfalfa mosaic virus, will quickly kill your plants. You can literally lose months of work within a couple of days. It’s a heartbreaking experience for everyone who helped grow the plants. Of course, it’s most heartbreaking for the business owner who faces significant financial loss and missed opportunities to build relationships with distributors.

Nearly all of the viruses that damage or kill cannabis get spread by contact. Giving your plants a few extra inches of space will help reduce the risk of disease. Realistically, though, that’s not how the viruses spread. They spread with help from humans.

Let’s say you use your pruning shears to snip off some leaves that a plant doesn’t need. You don’t know it, but that plant has a deadly virus. Then, you spot a cannabis plant on the other side of the room that could also use a good trim. If you don’t sterilize your pruning shears between plants, you will spread the virus to every plant you work on.

You can even spread viruses with your hands. It’s a great joy to run your hands through cannabis leaves. It’s so tempting to touch a sticky bud and get your nose as close as possible so you can breathe in the bouquet. You should enjoy the cannabis you grow. It’s a beautiful plant that enhances pleasure all over the world! After you touch a plant, though, you need to sterilize your hands. Otherwise, you could kill the very organisms that you love.

Products That Really Kill Viruses

If you hang out with friends who like to grow a few plants for personal use, you probably hear all kinds of opinions about how you should sterilize equipment to kill viruses.

For some reason, pine oil has become a trendy way to clean gardening tools. Pine oil is great for some things, but you would have to soak your tools in it for half an hour to kill pathogens. Even then, you might not kill them all. In other words, don’t use pine oil.

Cleaners that work include:

  • Bleach (use one part bleach to nine parts water)
  • Isopropyl alcohol (no diluting required)

These are your two best options. Each has good and bad things about it. Luckily, they’re both very inexpensive.

The problem with bleach is that you have to soak your tools for about half an hour to make sure you kill all pathogens. You can practically eliminate this problem by mixing a bucket of bleach water in the morning and placing your tools in the bucket after use. Hang them up to dry at the end of the day (or at any point of the day when you know you will not use the tools for at least half an hour).

Isopropyl alcohol is awesome because you don’t have to wait. It kills pathogens on contact. Put a spray bottle of it in each room. A couple of squirts will clean your tools within seconds, making your cultivation work more efficient.

What’s the downside to isopropyl alcohol? It has a pretty obnoxious odor. Depending on your sensitivity, it could cause a burning sensation in your nose and eyes. It works well, but it’s also annoying to work with.

#6: Racks for Your Plants

Hypothetically, you could grow your plants on the floor. Expect significant back pain by the end of your shift, though.

Realistically, you need racks that will hold your plants at a convenient height. If you want to maximize your grow operation setup, you can even use tiered racks. Take advantage of a room’s high ceiling to add more racks and grow more plants in the same room.

As you look into your racking options, you will find some high-tech designs that maximize space incredibly well. Have you ever been to a library that keeps all of its bookcases pressed against each other? You have to mechanically move the cases to find the book you want. That’s the kind of system that will really help you grow more plants in a small space. Expect to pay a premium for it, though!

#7: Safety Equipment for Workers

This is another group of items that gets left off of too many checklists. We think of cannabis as a friendly plant that eases pain and makes us feel good. Your opinion might change after you spend a few hours trimming buds.

The sticky resin that coats cannabis flowers can irritate skin terribly.

Make sure your team members have all the safety equipment they need to prevent injuries. Gloves are just the start. Since your employees probably work with fertilizers and other chemicals, you should also give them access to eye washing stations, goggles, and full-body coverings.

#8: Ventilation and Humidity Control

Cannabis likes a little humidity. It seems to love a cool breeze. You know what it hates? Chemical fumes that slowly accumulate in your grow rooms!

Ventilation and humidity control systems will solve these issues and keep your plants happy. The type you buy really depends on the size of your operation. A small room might only need a few fans. A multi-room commercial operation probably needs a full ventilation system.

Connect to Professionals on 420 Property for Grow Operation Setup Advice

At 420 Property, we do more than help you find real estate for cannabis cultivation and selling. Browse our list of professionals to find someone who can give you expert advice about setting up your commercial grow operation. Spend a little money on professional guidance so you can make more money selling your cannabis crop. It’s not a hard decision!

Find your next property today!

July 19, 2021Comments Off
How Much Does It Cost to Start a Grow Op?

How much does it cost to start a cannabis grow operation? It’s an essential question that you must ask yourself before you begin making serious plans to start a cannabis cultivation business. It’s an essential question … but it’s also a very difficult question to answer.

The fact of the matter is that numerous factors will influence how much you need for a grow op setup. Unfortunately, your expenses don’t end after you buy all the equipment and supplies you need to grow healthy cannabis plants.

The following article cannot give you a specific amount of money that you need to start a grow op. Even an experienced cannabis business consultant can only give you a ballpark figure.

We can, however, review some of the expenses that you can expect to encounter, give you some estimates, and explain how your business plan will influence the amount of money you need to get started.

Expenses to Expect When Deciding How Much It Costs to Start a Grow Op Setup

Let’s start by reviewing the expenses that every indoor cannabis grow operation can expect to pay.

Permit Fees and Taxes

Plenty of states pass recreational cannabis laws because they want to collect additional tax revenue. It’s a win-win for the state and consumers. It’s also a good thing for business owners who want to enter an extremely lucrative industry. Unfortunately, the arrangement means that you will spend a lot of money on permit fees and taxes.

The amount of money that states charge varies significantly from place to place. Most states will also charge you varying amounts depending on the size of your grow operation. If you have a fairly small grow op, you might pay a $1,000 application fee compared to the $5,000 fee that a large warehouse would pay.

Don’t make any assumptions about how much you will need to spend on your application and taxes. Your state has an agency that can give you accurate information. The agencies aren’t always as easy to find as you might think, though. Some states even let their alcohol bureaus regulate cannabis.

Get accurate fees and tax estimates by reaching out to an accountant or CPA with experience working in the cannabis industry. Plenty of knowledgeable professionals advertise their services on 420 Property. Look for listings in your area so you can talk to an expert who knows your local laws and fees.

Cultivation, Office, and Packaging Space

If you want to start an indoor grow op, you probably want to find warehouse space that has been zoned for the cannabis industry. Don’t assume that every building can become a cannabis grow operation. Most cities have strict laws about where you can grow cannabis.

You will also need room for packaging your products and conducting business.

How much space do you need in a warehouse? That completely depends on how much cannabis you want to grow and how much money you have to spend.

A lot of companies start by leasing warehouse space. Leasing has several advantages for startup businesses. For example, you get to avoid the large down payment you would need to get a mortgage — of course, that assumes that a lender will even give you a mortgage on property where you plan to grow cannabis. Instead of the high, upfront cost, you pay a monthly rate.

You also get to avoid much of the warehouse’s maintenance. If the water main breaks, your landlord will have to fix it. It’s not your responsibility because you don’t own the property.

Of course, there are disadvantages to leasing warehouse space. Some landlords with property in green zones don’t want to lease warehouse space to cannabis cultivators. As long as the federal government considers marijuana illegal, you will encounter people unwilling to do business with you.

You might also discover that your landlord wants to raise your monthly payments after the first year ends. You can always negotiate to keep your rate, but property owners don’t have to let you keep your business there once your year-long contract ends. They could simply raise your rent by such a large amount that you can’t afford the lease.

You can save yourself a lot of problems by using 420 Property to find warehouse and industrial space owned by people interested in the cannabis industry. The database has hundreds of listings with green zone properties for sale. The listings include information about price, size, and features, so you can make a decision that fits your business plan.

You can also browse hundreds of warehouse and industrial spaces for lease. Some of the listings include warehouses that various companies have used for years. Others will direct you to new buildings constructed specifically for cannabis cultivators.

Take time to review your options so you can get a good idea of how much green zone property costs to purchase or lease in your area.

Equipment and Supplies

The equipment and supplies your grow operation needs depends on how much you plan to grow and what you plan to do with plant material — if you plan to extract chemicals from plants, for instance, you might take a different approach to growing them.

Typically, you can expect to buy the following equipment for your indoor grow op:

  • Grow lights
  • Irrigation systems
  • Vertical racking
  • Ventilation
  • Humidity control
  • Trimming tables
  • Decarb oven tables
  • Drying equipment

Individually, these items don’t cost that much money. Together, though, they add up quickly.

You can often find LED grow lights that sell for about $1,000. An automated lighting system that covers a large space (approximately 30 x 100 feet), however, can cost as much as $15,000. Many companies start small and grow as they generate profits.

Your irrigation system will probably force you to spend the most money at once. Cannabis plants are very sensitive to moisture, light, and heat. You need to control those factors at all times. For a medium-sized irrigation system with a built-in carbon filter, you might pay as much as $100,000.

It often pays to shop around to find equipment and supplies at discounted prices. When growing companies want to get rid of their old grow lights and irrigation systems, you could get them at drastically lower prices. You might also find that you get cheaper prices when you buy from a company that’s going out of business. Unfortunately, not every cannabis cultivator succeeds in the competitive market.

You can search equipment listings on 420 Property to compare offers. Listings include:

When it comes to buying supplies for your grow op, try to purchase in bulk. You can often get discounted rates on fertilizers, soil substrates, and other essentials when you contact suppliers and request bulk pricing.

Utilities

How much does it cost to start a grow op? Just wait until you see your monthly bills for utilities. When you grow crops indoors, you have to replace natural sunlight and rain. That usually means spending a lot of money on electricity, water, and sewage.

You can potentially lower your long-term costs by investing in a solar power system. Solar power is a big upfront cost, though. If possible, you might want to choose a solar company that will extend your payments over several years.

Try to reduce your energy and water use as much as possible. Do not, however, put your plants at risk. Saving 20% on your monthly bills will not make up for a 20% reduction in flowers. You grow high-quality crops that people are willing to spend a lot of money on. Don’t let short-term savings prevent you from making long-term profits.

Employees

You can’t run a successful grow op on your own. In fact, you probably need a team of at least five people to operate a small indoor grow operation. Luckily, only a couple of those employees command high salaries.

Your master grower can earn anywhere from $80,000 to $150,000. The salary depends on the master grower’s experience and how many plants are under their care. You might also want to include incentive bonuses when the grower exceeds expectations.

If you produce extracts at your grow op, you can expect to hire an engineer who will earn at least $100,000 per year. You don’t have to include this person on your team. Many grow ops sell their flowers and other plant materials to companies that specialize in chemical extraction. The industry, however, shows a remarkable trend toward extracts. Keeping extraction in-house could help you cut out the middleman and earn higher profits.

Your other employees will need to fulfill tasks like checking plants, trimming flowers, and packaging products. Depending on your location, you can expect to pay them about $15 per hour. You might find that you can save money by hiring part-time workers who don’t receive benefits like health insurance and retirement plans.

Insurance

Every business needs insurance. As a cannabis cultivator, you will likely need general liability insurance that protects you from injury on the property. You will also need workers’ compensation insurance.

As an indoor grower, you can worry less about losing crops than farmers who grow their cannabis outdoors. Pests and diseases can get inside your warehouse, though. If you don’t address the problem before it harms your plants, you could lose everything. Crop protection insurance will ensure that you get paid a minimum amount of money. It’s probably not as much money as you would like, but it will cover your losses and give you another year to strive for success.

How Much Money Do You Need to Start a Grow Operation?

There isn’t a set rule for this, but many states want to make sure you have enough capital to start and run your grow operation. Depending on your location, you might not get a cultivation permit until you have enough capital on hand.

Generally, you can expect to need at least $250,000 in capital. The more money you have, though, the easier it is to get your license. You don’t necessarily have to spend all the money. The licensing agency simply wants to know that you have access to enough capital.

Make sure you include proof of capital when you submit your business plan to the licensing agency.

How Much Money Do Commercial Grow Ops Make?

Is all of this worth it? That depends on how well you manage your business and grow your crops. Most business owners expect to make $150 per square foot of growing space. That isn’t the revenue of a square foot. That’s the profit!

With a 1,000-square-foot grow operation, you’re looking at $150,000 in profit. No, that doesn’t make you an instant millionaire. It does give you more capital to invest in a larger facility and more efficient systems, though. If you grow your business a little each year, you could exceed $1 million per year within a decade.

This is not a guarantee. No one can guarantee how much money you make from your business. But it’s a good guess. It also explains why so many companies have gotten into the legal cannabis industry.

Search cannabis warehouses for sale on 420Property.com!

July 19, 2021Comments Off
7 Glaring Problems in Your Commercial Cultivation Business Plan

Writing an excellent commercial cultivation business plan puts you on the path to financial success. Unfortunately, many entrepreneurs new to the cannabis industry don’t have business backgrounds. You might love growing and sharing cannabis, but that doesn’t automatically mean you know how to run a business well.

Before you commit a significant amount of money, look for these seven glaring problems in your commercial cultivation business plan. A lot of people fail in the industry because they don’t identify and fix these issues. Addressing these issues can’t ensure financial success, but it will give you a much better chance in a competitive field.

1. Your Business Plan Underestimates the Cost of Equipment

Make sure the business plan includes accurate pricing for every piece of equipment you will need to cultivate cannabis. The types of equipment you need can vary depending on your growing method. Typically, though, your commercial cultivation business plan should include quotes for:

  • Lighting systems
  • Irrigation systems
  • Dark rooms
  • Computers that help automate processes
  • Heaters and coolers for controlling the temperature
  • Tables and shelves
  • Extraction systems

You might as well get quotes for the products and supplies your grow operation will need too. Individually, items like substrates, fertilizer, seeds, clones, and pots may not seem expensive. When you buy hundreds or thousands of them for commercial cultivation, though, the cost looks much more intimidating.

2. Your Business Plan Doesn’t Include All Taxes

Many state governments legalized cannabis cultivation and sales because they wanted to increase their tax revenues. Compared to the tax rates for other industries, cannabis tends to get charged quite a lot.

Unfortunately, the amount of tax that you will pay depends on your location and the size of your commercial operation. Since each state charges different percentages, it’s impossible to say how much you will pay.

Reach out to a cannabis lawyer, cannabis accountant, or CPA in your state to get accurate information for your business plan.

Cannabis taxes are complex, so you might feel tempted to avoid the subject. That’s a big mistake. If you can’t estimate your tax burden, you can’t write a business plan that shows how you will generate profits.

3. You Haven’t Had a Cannabis Lawyer Review Your Commercial Cultivation Business Plan

Since you’re interested in the cannabis industry, you probably already know that your business will have to follow strict laws and regulations. Again, it’s a frustrating topic because the laws differ in every state. One state might not have a problem with you growing cannabis at your storefront, while another will have a law that prevents you from growing the products you sell.

Unfortunately, you have to follow regulations regardless of whether they make sense to you. Your business plan also needs to include a section explaining how you will stay in line with your state’s laws.

Feel free to write a rough draft of this section, but don’t include it in your official commercial cultivation business plan until you’ve had a cannabis lawyer review every word. The section might come back in a completely different form than your original draft. Feel lucky that you hired a reliable cannabis lawyer willing to take the time to write a section that will appease regulators. Otherwise, you might not even qualify for a cultivation permit.

4. Your Business Plan Doesn’t Compare Buying and Leasing Space

There are pros and cons to buying or leasing space for cannabis cultivation.

When you choose to buy warehouse space, you don’t have to worry about your rent going up every year. You also get a piece of green zone real estate that will probably become more valuable over time. Then again, you have to pay for building repairs and maintenance. You also need a sizable amount of cash to purchase the real estate.

Leasing space means you have the freedom to move as your business grows. You also get to avoid the expense and headache of maintaining a property. Then again, you will always pay the owner rent. You might stay in the same location for decades, but you will never own the property. At least you don’t need access to extensive capital to buy the building outright, though.

Since buying and leasing will affect your finances, you need to include your decision and its financial effect in your commercial cultivation business plan.

There isn’t a right or wrong answer. You simply need to make a choice, understand how it will influence your money, and consider that influence when you write your business plan.

Remember that you can always use 420 Property to find cannabis properties for sale and cannabis properties for lease.

5. The Business Plan Doesn’t Include Every Step in Your Cultivation Process

Licensing agencies and potential investors want to ensure your business understands the most effective ways to produce cannabis products. You can prove your knowledge by including every step of your cultivation process.

Keep in mind that cultivators don’t always take the same approach to growing cannabis. For example, your business might have a room where you clone plants that have performed well in the past. A different grower might purchase seedlings from a company that fulfills that part of the growing process.

If you plan to take an innovative approach that most commercial cultivators do not use, include a proof of concept section in your business plan. You might have found that adding a specific organic fertilizer increases your yield significantly. If other growers don’t usually follow that advice, conduct some experiments so you can provide evidence that your approach gets good results.

6. You Haven’t Included Your Proof of Capitalization

Licensing agencies often want to make sure you have enough money — or at least a line of credit — that can get your business started. Your proof of capitalization requirements can differ depending on what state you want to grow in. Typically, you can expect to need access to at least $250,000 before a state licensing agency will approve your application.

Ideally, you should have proof of capitalization in excess of your state’s requirements. For example, if your state wants to see proof that you have $250,000, you should strive to show that you have access to $300,000 or $350,000. The more money you have on hand, the more likely it is that the agency will grant you a permit. After all, they don’t want to waste time processing the applications of companies that don’t have enough money to get their grow operations started.

7. Your Plan Misses Critical Services You Will Need From Professionals

Even if you already have staff members committed to working with your business, they probably won’t have all the skills you need to bring your commercial cultivation operation into compliance with the law and give it an excellent chance for success.

When finalizing your commercial cultivation business plan, include information from professionals known for their areas of expertise. Examples might include:

  • Plans from a construction contractor showing how you plan to arrange your growing system and how much it will cost to build.
  • A financial analysis from a cannabis business consultant that shows you have a solid plan for reaching your financial goals.
  • A report from a cannabis lawyer showing that you have processes in place to ensure your business follows state and local regulations.

You could write a successful business plan without this information, but it never hurts to give regulators extra assurance that you take the process seriously. A lot of people want to get into the cultivation industry. Reaching out to professionals and getting their written opinions displays your commitment to starting a cannabis business that will contribute to the state’s revenues, follow laws closely, and continue to grow.

Improve Your Commercial Cultivation Business Plan With a Green Zone Property

Does your cultivation or dispensary operating plan include a green zone location where you can reach your business goals? Start exploring your options with listings on 420 Property. You can narrow your search to properties for sale and properties for lease. You can also use keywords to search the directory for local green zone properties that have the features you need to start a new cannabis cultivation business.

Find your next property today!

July 14, 2021Comments Off
2021 Guide to Getting Into Growing Medical Cannabis

The cannabis industry has evolved rapidly since California became the first state to legalize medical cannabis in 1996. Today, 36 states and Washington, D.C., have medical marijuana programs. Eighteen states have legalized recreational cannabis. Given that more states have laws for growing medical cannabis, it makes sense for many entrepreneurs to focus on that area of the industry. Eventually, your state will probably make cannabis accessible to all adults. Until then, follow this 2021 guide to getting into growing medical cannabis.

Know Your State’s Laws for Growing Medical Cannabis

Don’t make any assumptions about your state’s medical cannabis laws. Growing medical cannabis in California is not the same as growing medical cannabis in Florida. Each state has its own set of unique laws and guidelines.

Alaska and West Virginia offer a glimpse into the radical differences between cannabis laws in the United States.

Alaska

The Alaska Department of Health and Social Services lets caregivers and patients grow up to six plants at a time. The state legalized medical cannabis by vote in 1998. The government tried to criminalize cannabis again, but the Alaska Court of Appeals sided with voters. If you want to avoid the restrictions of medical cannabis cultivation and sales, you now have the option to use and sell recreational marijuana. Alaska made recreational cannabis legal in 2014.

West Virginia

As of 2017, West Virginia allows medical cannabis for patients with select conditions, including terminal illnesses, chronic pain, post-traumatic stress disorder, and cancer. The West Virginia Health and Human Resources Bureau for Public Health has more information about qualifying conditions and the types of cannabis products allowed within the state. The law does not allow any home cultivation. Recreational cannabis is strictly forbidden by West Virginia law. Unfortunately, neither voters nor lawmakers seem keen on legalizing recreational use for adults.

Given the considerable differences between the states’ medical cannabis laws, you should contact your local agency for guidelines that will help you cultivate medical cannabis without breaking any rules. Take this very seriously. One mistake could mean that you don’t receive a license to grow cannabis. If you decide to grow cannabis without a license, you could face serious fines and jail time.

The following links will help you learn more about cultivating medical cannabis in your state:

Alaska Department of Health and Social Services, Division of Public Health

Alabama Medical Cannabis Commission

Arizona Department of Health Services Medical Marijuana

Arkansas Department of Health

California Bureau of Cannabis Control

Colorado Department of Public Health and Environment

Connecticut Department of Consumer Protection Medical Marijuana Program

Delaware Division of Public Health Medical Marijuana Program

District of Columbia Department of Health

Florida Department of Health Office of Medical Marijuana Use

Hawaii Department of Health Medical Cannabis Program

Illinois Department of Public Health

Louisiana Department of Agriculture and Forestry

Maine Office of Marijuana Policy

Maryland Medical Cannabis Commission

Massachusetts Cannabis Control Commission

Michigan Medical Marijuana Program

Minnesota Department of Health

Missouri Medical Marijuana Regulatory Program

Montana Department of Public Health and Human Services

Nevada Division of Public and Behavioral Health

New Hampshire Department of Health and Human Services

New Jersey Medical Marijuana Program

New Mexico Department of Health

New York State Department of Health

North Dakota Department of Health Division of Medical Marijuana

Ohio Medical Marijuana Control Program

Oklahoma Medical Marijuana Authority

Oregon Health Authority Medical Marijuana Program

Pennsylvania Department of Health Medical Marijuana Program

Rhode Island Department of Health

South Dakota Department of Health

Utah Medical Cannabis Program

Vermont Department of Public Safety Marijuana Registry

Virginia Department of Health Professions

Washington State Department of Health

West Virginia Department of Health and Human Resources Bureau for Public Health

Options for Cultivating Medical Cannabis

Medical cannabis cultivators usually rely on three growing options:

  • Indoor cultivation
  • Outdoor farming
  • Greenhouse cultivation

Each option comes with pros and cons that you should know before you invest in a property.

Indoor Cultivation Pros and Cons

Indoor cultivation is the most high-tech option for growing cannabis. It also tends to give you the most product for your space.

Pros:

  • You maintain extraordinary control over your growing environment, including the amount of light and humidity that plants experience.
  • Cultivators can adjust lighting conditions and temperatures to maximize cannabis flowering at specific times of the plant’s growth cycle.
  • Growers get better protection from pests and diseases, which makes it easier to grow large, healthy flowers that command high prices in dispensaries.
  • Since you control the environment, you can grow medical cannabis throughout the year regardless of seasonal changes.
  • Indoor cultivators can grow a lot of cannabis within small spaces.
  • You get excellent security from humans and animals that might want to access your plants.

Cons:

  • Controlling the growing environment means you have to invest a lot of money in equipment, such as grow lights, humidifiers, dehumidifiers, heaters, and irrigation systems.
  • Warehouse spaces in green zones often have high prices.
  • If a virus gets into your grow operation, it can affect your entire crop very quickly. You might have to destroy your plants and start over.
  • Some pests might get into the warehouse and feed on your plants. Unfortunately, your plants do not get protection from beneficial insects like ladybugs and praying mantises.
  • Unless you install solar panels, expect to use a lot of external resources like electricity and municipal water to grow your plants.

Compare cannabis warehouse space for sale listings on 420 Property!

Outdoor Cultivation Pros and Cons

Outdoor cultivation doesn’t yield as much cannabis, but it often has significantly lower costs. The land that you choose, however, will play a significant role in the success of your medical cannabis cultivation.

Pros:

  • Outdoor cultivation is the least expensive option for growing medical cannabis because you don’t have to invest in expensive equipment. While you need an irrigation system to maintain moisture, most of your inputs come directly from the environment.
  • Some consumers prefer cannabis grown outdoors because they feel the process is more natural, which could lead to better healing properties.
  • Many medical cannabis strains have been grown outdoors for centuries, so they adapt well to farm conditions.
  • You don’t need to use nearly as much electricity and municipal water to grow medical cannabis outdoors, which helps you save money and reduces strain on the environment.
  • You can introduce beneficial insects to help control pest populations.

Cons:

  • Exposure to the elements doesn’t always lead to positive outcomes. Any extremes, such as a severe storm or excessive heat, could cause significant damage to your crop.
  • You have very little security on a farm. Even if you erect a fence around the property, expect animals, especially deer and rabbits, to eat some of your crops.
  • Depending on your location, you may have a short growing season.

Explore farmland for sale listings on 420 Property!

Greenhouse Cultivation Pros and Cons

Greenhouse cultivation gives you a middle ground between indoor and outdoor grow operations. It’s definitely worth exploring, especially when you want more protection than a farm offers but don’t want to invest in the expensive equipment an indoor operation requires.

Pros:

  • Companies make a wide range of commercial greenhouses that you can use to meet your production goals.
  • Greenhouses extend the growing season without forcing cultivators to use a lot of electricity and other resources that could harm the environment.
  • Greenhouses generally cost much less than indoor grow operations.
  • You can protect your cannabis plants from severe weather and most animals.

Cons:

  • Although cheaper than indoor grow operations, greenhouses often cost much more than farmland.
  • The confined environment could mean that a virus or infestation destroys your entire crop.
  • You get an extended growing season, but you might not be able to grow throughout the year.

Browse cannabis greenhouses for sale on 420 Property!

Making Money to Support Medical Cannabis Cultivation

Some people start growing cannabis specifically because they want to grow natural medicine that improves the lives of patients in their areas. Others start cannabis businesses strictly to make money. More often than not, medical cannabis cultivators understand that it takes both attitudes to grow cannabis successfully. You cannot continue growing when you don’t have enough money to support your operation. Then again, you can lose sight of patient needs when you grow exclusively for profits.

With that said, making money is obviously an essential aspect of medical cannabis cultivation.

Creating a Business Plan

Any state’s licensing agency will want to review your business plan to make sure you have the funds and process to meet the needs of patients. Spend time writing and adding details to your business plan. A good one will make it much easier for you to get a cultivation permit.

Your business plan will need to include several sections. You can step outside of the boundaries somewhat, but you must include:

  • An executive summary that gives readers a brief overview of your business plan. Focus on grabbing the reader’s attention with short, punchy sentences that will make them want to keep reading.
  • A solution section that identifies a problem you want your business to solve and how you plan to find a solution.
  • A market opportunity section that provides data about your market size, local trends in medical cannabis, how regulations will influence your processes, and what competitors already exist.
  • A strategic execution section that lays out a timeline of when you plan to reach milestones and how you will measure metrics to ensure progress.
  • A marketing section that discusses what makes your brand stand out, the products you plan to offer patients, how much you think you will charge for your products, how you plan to promote your products while staying within regulatory guidelines, and where you plan to offer your products to patients.
  • An operations section that explains your cultivation techniques. You should also discuss topics like security, personnel requirements, technology for your facility, and whether you already have real estate for your grow operation.
  • A compliance section is important for most businesses. It really stands out in the cannabis industry. Listing the regulations and how you plan to comply shows that you understand your obligations and how seriously the government takes cannabis.
  • A company section that describes essential team members who will make your business successful. If you already have a master grower prepared to work with you, this is the place to talk about that person’s credentials! You might also want to provide information about the professionals you consult when making cannabis business decisions.
  • A financial section that shows you have a solid plan for generating revenues over time. This section needs to provide straightforward information about your finances. If you plan to invest your personal wealth, describe how much you will contribute. If you have investors, list their contributions. Some states will want to see that you have a certain amount of capital before giving you a license. Fudging the numbers to get a license will only come back to haunt you. Be honest!
  • Appendices can include any additional information you think the licensing authority needs to know about you, your team, and your business proposal. It might include sales forecasts, market data, a profit and loss statement, and charts that provide visual evidence of your research.

Writing a persuasive business plan isn’t easy. Connect with a cannabis business consultant who has ample experience in the industry. Spending a little money now on a consultant could help you save a lot of time applying for your cultivation license.

Securing Funds for Your Medical Cannabis Grow Operation

How do you plan to fund your medical cannabis grow operation? Do you have enough money to purchase equipment, lease warehouse space, and pay employees? Getting started could easily cost $250,000, and that’s for a fairly small operation.

Unless you have quite a bit of money saved, you will need to rely on funders to start your business. Unfortunately, federal law makes it nearly impossible for you to get a small business loan from a bank or credit union. The good news is that private funders and lenders will often step in to fill the gap.

420 Property can help you explore options for:

You don’t necessarily need an excellent credit score to qualify for medical cannabis cultivation funding. You don’t have anything to lose by applying, so you might as well see whether you qualify. It could be a significant step to starting the business of your dreams.

Forming Relationships in the Medical Cannabis Community

Business success often depends on how well you can form relationships with other people in your industry. That applies to medical cannabis just as much as any other type of business.

Take time to get to know the people active in your local community of cultivators, caregivers, and dispensary operators. Attend conferences and meetings. Offer to exchange information and products (assuming that your laws allow this). Get involved in patient advocacy so you can grow opportunities for companies like yours growing medical cannabis.

The more you become a part of your medical cannabis community, the easier it becomes for you to form partnerships that lead to mutual benefits.

You might want to spend all of your time mixing strains to create a unique product for your brand. That’s great, but you have to balance your time in the lab with time socializing. Business isn’t all about numbers. It’s often about who you know and how much you’re willing to help others reach their goals.

Staying Current With Your Industry’s Latest Laws and Trends

The cannabis industry evolves rapidly! The regulations that shape your approach to marketing and sales today may not work within a few years. Make time to pay attention to changes that lawmakers suggest in your state. The introduction of any cannabis-related bill could affect your long-term business strategy.

You also need to keep up with trends within the industry. Know what types of strains patients prefer right now. Do your customers want to buy flowers or edibles? Do they prefer indica, sativa, or hybrids? Information from a few years ago might not mean much tomorrow, so you need to keep your eye on the future.

Choose Cannabis Strains Known for Their Medicinal Properties

Cannabis legalization has encouraged cultivators to create hundreds of new breeds. Patients often feel confused when they first start learning about how different strains can treat their ailments. Luckily, they have experienced caregivers who can narrow their options for them.

You might experience similar confusion when you start growing medical cannabis legally. With so many strains to choose from, how do you know which ones patients will want to buy?

Scientists still don’t have a full understanding of how cannabis and the endocannabinoid system work together to maintain health and remedy symptoms. Until we have concrete data that shows how certain amounts of THC, CBD, terpenes, and other chemicals interact with specific health concerns, you will have to rely on anecdotal evidence.

You might want to grow several types of medical cannabis to give dispensaries, caregivers, and patients some options. The following strains, however, have positive reputations for treating a variety of health problems.

Blue Dream

Blue Dream is a sativa strain that induces euphoria and happiness. Many people report that it helps them regain their appetites. That potentially makes Blue Dream a good treatment for cancer patients struggling to maintain their weight.

Cataract Kush

Technically, Cataract Kush is a hybrid strain, but it often has 20% THC that makes it feel pretty intense for inexperienced users. Cataract Kush is often recommended for people suffering from chronic nerve pain. Many people also find it uplifting and relaxing. Inexperienced users may feel anxious after using Cataract Kush. It’s powerful medicine that shouldn’t be taken lightly.

Lavender

Lavender is an indica strain with fairly low levels of THC and quite a bit of CBD. It’s known for helping people feel relaxed and happy. Caregivers commonly recommend it for patients struggling with insomnia. Many people also find that Lavender eases chronic pain. If you have anxiety, this is probably a good option for you since very few people report paranoia and other adverse effects.

Sour Diesel

Sour Diesel is a sativa-dominant cannabis variety frequently used to treat depression and stress. It’s known for its uplifting and energetic qualities. Equally importantly, very few people report feeling paranoid after taking Sour Diesel, which adds to its usefulness as a mental health treatment.

White Widow

White Widow is a hybrid strain with sativa and indica qualities. For many people, this is a “best of both worlds” solution because the sativa properties make them feel euphoric, while the indica properties help them relax.

Other Medical Cannabis Strains to Consider

Other strains popular for their medical applications include:

  • Crimea Blue
  • White Berry
  • Mazar
  • Satori
  • G13 Haze
  • A-Train
  • Northern Lights
  • Jack Herer

Find the Right Property for Medical Cannabis Cultivation

The cannabis industry relies on green zone properties that allow cultivation. When you see the number of properties available in your state, you might feel overwhelmed by the options. 420 Property makes the process much easier with listings that give you detailed information about indoor, outdoor, and greenhouse properties.

Find your property today and start growing medical cannabis!

July 7, 2021Comments Off
The Advanced Guide to Getting Your Commercial Grow License

Before you spend too much time thinking about your commercial grow room setup cost or how you will develop relationships with retailers who will distribute your cannabis products to consumers, you need to get a commercial grow license that lets you cultivate cannabis plants legally in your state.

Since the federal government still considers cannabis illegal, you will have to rely on guidance from state laws. Unfortunately, each state has its own rules and regulations for the cannabis industry. Getting a commercial grow license in Colorado does not follow the same process as getting a commercial grow license in Oklahoma.

Since the legal cannabis industry involves so much diversity, this advanced guide to getting your commercial grow license will focus on generalities that apply to most situations and direct you to state-specific resources that will help you stay within the law.

Since this guide focuses on commercial grow licenses, you won’t find comprehensive information about medical cannabis cultivation. If your state has legalized medical cannabis, contact the appropriate agency to apply for a medical grow license.

Cut Out the Red Tape and Buy a Cannabis License for Sale

Before getting into the weeds of state-based cannabis licensing, take a few minutes to browse the cannabis licenses for sale on 420 Property. The listings will show you licenses for cultivation and retail, but you can use the keyword filter to narrow your search.

If you don’t want to go through the hassle of applying for a license, you might find it makes more sense to purchase an existing license that will let you start your business as soon as possible.

Where to Get a Commercial Grow License in Your State

The following list will help you contact the right agency to apply for a commercial grow license in your state. Keep in mind that state laws change frequently. If you don’t see your state on this list, search the internet to learn more about getting a license there. You could discover that your state does not allow cannabis cultivation or that it just recently started accepting applications for commercial grow licenses.

Alaska

In Alaska, the Alcohol & Marijuana Control Office processes commercial grow licenses. The office’s website provides useful information that will help you complete all documents correctly and understand the cost of getting or renewing a license.

Arizona

The Arizona Department of Health Services can give you information about commercial cannabis cultivation. The department also has information about medical cannabis, so make sure you read the application process that applies to your plans.

California

California was one of the earliest states to embrace cannabis law reform. Despite its early adoption, it has complicated laws for medical dispensaries, recreational storefronts, and cultivators. You can find the information that applies to your licensing needs at the California Bureau of Cannabis Control.

Colorado

Colorado was the first state to legalize recreational cannabis. It has been at the forefront of cannabis legalization, but it also takes regulations seriously. You can learn more about getting a cultivation permit from the Colorado Cannabis website.

Illinois

Illinois recently passed recreational cannabis, so it’s still learning how to put some of its regulations in place. You can find the latest information about applying for a cultivation license on the Illinois Department of Agriculture website.

Maine

You can access cultivation and other types of permits directly from Maine’s Office of Marijuana Policy.

Massachusetts

You can get guidance for cultivation permit applications from the Cannabis Control Commission in Massachusetts.

Michigan

Reach out to the Marijuana Regulatory Agency for help applying for cultivation permits, opening storefronts, and understanding the state’s commitment to social equity within the cannabis industry.

Nevada

After years of trying to pass recreational cannabis laws, the State of Nevada finally succeeded in 2019. You can search existing licenses and learn more about applying for a commercial grow license from the Cannabis Compliance Board.

New York

New York only passed recreational cannabis laws in 2021, so it doesn’t have all of its licensing requirements in place yet. Unfortunately, the state has faced numerous setbacks. Visit the Office of Cannabis Management website to learn the latest news about the state’s progress.

Oregon

All cannabis applications get processed by the Oregon Liquor Control Commission. You can find applications and requirements on its website.

Vermont

Vermont’s Cannabis Control Board processes, approves, and rejects applications for commercial and medical grow licenses. See the board’s website for more information.

Washington

You will need to apply with the Washington State Liquor and Cannabis Board to get a commercial grow license. The website also offers regulatory guidance to help you submit a successful application.

How Much Do Commercial Grow Licenses Cost?

Obtaining a commercial grow license can cost quite a bit of money, but the price varies significantly from state to state.

In Washington, you must pay a $250 application fee and an annual license fee that costs about $1,500. Vermont charges considerably higher fees. Expect to pay an annual fee of $25,000 after your first year of production.

California has a rather complex fee system. The amount you pay depends on several factors, such as where you plan to grow your cannabis and how you expect to make money from your product. For example, a small outdoor grow operation can expect to pay $535 in annual license application fees, while a medium indoor operation will pay $8,655.

California also has diverse fees for renewing annual permits. A specialty indoor operation pays $19,540, while a medium indoor operation pays $77,905.

Considering the vast differences in commercial grow license costs, you should take extra care when filling out your application. You don’t want to waste money on an application that doesn’t accurately describe your cultivation location and methods.

The Expected Commercial Grow Room Setup Cost

Assuming that you plan to create an indoor grow room that will give you more control over your crops, you should consider how your setup costs will affect your budget. On average, commercial grow room setups tend to cost about $42 per square foot.

The type of facility and the equipment you choose can change that estimate significantly, though. Converting a warehouse into a grow room might not cost as much as building a greenhouse. Your irrigation, nutritional, lighting, pest control, and other systems will also influence how much your grow room setup costs.

Higher setup costs aren’t always a negative thing for commercial growers. If you want to care for 500 plants, you might find you can accomplish much of the labor manually. If you want to care for 5,000 plants, though, it potentially makes more sense for you to spend more money on an automated system that can measure moisture and soil pH to optimize growth.

Other Expenses to Expect Before Getting Your Commercial Grow License

Getting into the recreational cannabis industry isn’t a cheap endeavor. Spending money on the right products and services, however, can help ensure your success. You don’t want to lose thousands of dollars on permit fees and real estate because you didn’t want to spend money on helpful services and products.

You can use 420 Property to find trustworthy professionals with the experience you need to build a successful cultivation business. Some of the professionals you should talk to include:

  • Business consultants who can review your business plan and offer advice for improvement.
  • Accountants and CPAs who can help manage your money.
  • Architects and designers who can make the most of your indoor cultivation space.
  • Environmental experts who can recommend soil supplements to improve crop growth and health.
  • Appraisers who can help ensure you pay a reasonable price for your cultivation real estate.
  • Insurers who will make sure you have all of the policies needed to protect yourself, business partners, and company from liability.

If you do not have enough capital to fund your cultivation startup, 420 Property can help connect you with private lenders that work within the cannabis and hemp industry. Unfortunately, banks must follow federal laws, so they will not work with cannabis cultivators even when they operate in legal states.

Considering how quickly the recreational cannabis industry has grown over the last decade, it often makes sense for entrepreneurs to start their commercial grow operations as soon as possible. Otherwise, you could miss opportunities as states limit permits and other companies gain prominence with retail stores and customers.

Get a Commercial Grow License on 420 Property

Obviously, it can take a lot of work to get your commercial grow license. Save yourself the trouble by browsing the cannabis licenses for sale on 420 Property. Instead of filling out mountains of paperwork, you can buy an existing license directly from the current owner. As more states legalize commercial cannabis, permits will become available on 420 Property.

July 7, 2021Comments Off
What Are the Types of Greenhouses for Cannabis Growing Operations?

If you plan to start a cannabis grow operation, you probably want to learn about the various types of greenhouses available. It’s not always an easy question to answer. What are the types of greenhouses? They often vary by size, shape, and material.

Some greenhouses have high ceilings that make them look like buildings. Others have low ceilings that make them look like extremely wide tents.

The following article will help you answer “what are the types of greenhouses?” for commercial cannabis growing operations. After a discussion of greenhouse options, you will learn about some of the systems and equipment that can make your cannabis grow operation even more successful.

Things to Consider Before You Start Exploring Greenhouses

Before you spend a lot of time comparing types of greenhouses, ask some questions that will help you choose the right greenhouse structure and material for your grow operations.

Some of the most important questions include:

  • Do you plan to grow your cannabis plants in the ground, pots, flats, beds, or hydroponic troughs?
  • What type of growing media do you plan to use, such as soil, compost, nutrient solutions, or soilless mixes?
  • Do you want to grow cannabis during specific seasons or throughout the year?
  • What is your annual production goal?
  • How much investment capital do you have to spend on your cannabis greenhouse?

You may not know the answer to every question just yet. That’s okay. Schedule a meeting with an environmental services professional to talk about how your approach to cultivation will influence your decision. You may find, for example, that it makes more sense for you to grow potted plants in high-quality dirt and nutritional supplements. Then again, a hydroponic system might help you reach your goals more easily.

You can also schedule a meeting with an architect or designer to talk about the structures, materials, systems, and amount of space you need for your business plan to reach its goals.

The Basic Types of Commercial Greenhouse Structures

Hypothetically, you can hire a greenhouse company to build practically any shape or size. A small number of options, however, have stood the test of time. While you might want to explore customizations, you will probably want to choose one of the following basic types of commercial greenhouses.

Quonset (Hoop) Greenhouses

You have almost certainly seen this type of greenhouse before. Many people have miniature versions in their backyards and on hobby farms.

With a Quonset — or hoop — greenhouse, you get a long, fairly narrow structure. Hoop greenhouses have arched structures because they rely on bent poles for support. More often than not, you can expect to cover the hoops with a plastic film that captures sunlight and retains heat.

Venlo Greenhouses

Venlo greenhouses offer excellent flexibility to meet the needs of cannabis in a variety of regions. Many cultivators choose Venlow greenhouses because they cover large areas, which means they can accommodate more plants.

Rooftop ventilation attracts a lot of cannabis entrepreneurs to this style of greenhouse. Some designs have air vents built into the roofs. You can adjust the vents to control how much air flows into your cultivation area. Controlling the air ventilation helps you maintain an appropriate temperature for your cannabis strains.

Other versions of Venlo greenhouses let you open the roof completely, which comes in handy on sunny days with near-perfect outdoor temperatures. 

Greenhouse designers and builders usually let you customize your Venlo so you:

  • Save money by harvesting sunlight and airflow.
  • Can choose between glass, film, and polycarbonate cladding.
  • Improve growing factors in hot regions.
  • Get a greenhouse that’s correctly sized for the number of plants you want to grow.

Talk to a greenhouse architect or designer to get the specific features that will improve your crop yield and health while helping you control overhead costs.

Gutter-Connected Greenhouses

Gutter-connected greenhouses look more like a row of transparent townhouses. They have triangular ceilings that collect water. When it rains, the water runs down the roofs into gutters that supply the greenhouse with the moisture necessary to grow healthy plants.

Gutter-connected greenhouses do not usually have curved designs like hoop greenhouses. They’re much more rigid. Because of this, you can expect to cover the greenhouse in panels. The panels provide similar services as transparent plastic — they collect sunlight and heat.

The Pros and Cons of Different Greenhouse Structures and Materials

All types of greenhouses have pros and cons. However, one will likely match your cultivation and propagation needs better than others.

Hoop Greenhouses Pros and Cons

Cannabis growers who choose hoop greenhouses usually want to grow plants directly in the ground, although some prefer to grow plants in pots and flats.

Pros of Hoop Greenhouses

  • Hoop greenhouses usually have affordable prices because they do not rely on expensive materials and are relatively easy to install.
  • Farmers can erect them to extend their growing seasons while exposing plants to natural sunlight and wind during the optimal growing time.
  • You can move a hoop greenhouse if you decide to relocate to a new farm.
  • Temperature control often involves little more than turning on fans or heaters that blow air through the tunnel.

Cons of Hoop Greenhouses

  • The plastic used to cover hoop greenhouses can get damaged rather easily by strong storms, so you might find yourself repairing or replacing parts every few years.
  • The hoop structure can minimize the amount of room you have on the sides of your greenhouse, which can feel like a waste of cultivation space.
  • Plastic coverings don’t offer as much protection from animals, pests, and disease as greenhouse panels (although they certainly work better than nothing!).

Gutter-Connected Greenhouses Pros and Cons

If you have visited recent cannabis greenhouses, you have probably seen gutter-connected designs that look like large, semi-transparent buildings. Large cannabis companies tend to prefer gutter-connected greenhouses, especially when they operate in urban or suburban green zones.

Pros of Gutter-Connected Greenhouses

  • The panels you choose for your greenhouse can capture specific light spectrums to improve cannabis growth.
  • The panels tend to last longer than plastic coverings, although an intense hail storm could damage them enough that they need replacement.
  • The gutters capture water, which you can potentially use on your crops.
  • You gain more control over the interior environment, but you will have to invest in systems for temperature, humidity, and other factors.
  • Gutter-connected greenhouses provide increased security and better protection from pests that want to nibble your plants.

Cons of Gutter-Connected Greenhouses

  • You will pay more for the design, materials, and construction of a gutter-connected greenhouse.
  • Gutter-connected greenhouses are stationary, so don’t expect to move them.
  • Panels don’t break often, but they cost a lot to replace when it happens.

Features and Systems You Should Look for When Comparing Cannabis Greenhouses

Whether you choose a hoop greenhouse or a gutter-connected greenhouse, the option will probably work well for your adult cannabis plants. As long as the plants get enough water and light, they will grow. 

You will, however, probably need more than water and sunlight to take your cannabis from a seed to a product consumers want to buy. That’s why you need to look for other features and systems when choosing a greenhouse.

You might not find all of the below features necessary for your cannabis greenhouse. Still, you should know about their benefits. Whether you decide to use them is up to you.

Germination Rooms

You can germinate your cannabis seeds inside your greenhouse. You will get better results, though, by germinating seeds in a controlled environment. A germination room or chamber should have the heating and fog system you need to get every seed started right. By controlling all of the variables, you should see faster germination times and healthier seedlings that will eventually grow wonderful flowers.

Supplemental Lighting

A greenhouse can only do its job well when your area has abundant sunlight. What happens when you experience a prolonged period of cloudiness or storms? Even a few days of cloudy weather could stunt your plants’ growth and throw off your schedule.

Supplemental lighting ensures that you always have the appropriate amount of light to keep your plants on track. You don’t need nearly as many lights as someone with a warehouse grow operation, but you should — at the very least — have some LED lights for days when the sun can’t energize your cannabis plants.

Irrigation

Obviously, your plants need water to thrive. Too much water, however, is just as deadly as too little water. A drip irrigation system should deliver the appropriate amount of moisture to your cannabis plants. In most cases, that’s a third of a gallon per square foot per day. Factors like temperature and soil can affect how much water your crops need, though, so make sure you check your system frequently for optimum delivery.

Water Purification

The quality of your greenhouse’s water can also affect your crops. Hire a professional to test your location’s water before you start your grow operation. Have them pay particular attention to pH levels, suspended sediments, hardness, electrical conductivity, and dissolved solids.

All water supplies contain some impurities, so you need to take this seriously if you harvest and use rainwater. Municipal water supplies can also contain chemicals that have adverse effects on plant growth. You wouldn’t mind using your municipal water to grow tomatoes in your backyard, but you might not want to rely on it to water your cannabis crops.

If the test reveals any concerns, invest in a water purification system that will help deliver clean water to your plants. 

Fertilization

All plants need nutrients to grow and flower. Current research shows that cannabis plants likely benefit from soil — or hydroponic water sources — rich in the macronutrients phosphorus, nitrogen, and potassium. 

Studies also show that some micronutrients might also improve cannabis health and flowering. Critical micronutrients include calcium, magnesium, and sulfur. 

When exploring fertilizers, look for options that include these nutrients. While there isn’t definitive research showing the benefits of boron, copper, iron, chlorine, zinc, molybdenum, and manganese, anecdotal evidence encourages using them.

When in doubt, talk to a horticulturist who specializes in cannabis plants.

Heating

During some parts of the year, your greenhouse may become too chilly to grow cannabis. Install a heating system to control the temperature. Most experts recommend hot water heating systems that provide ambient heat throughout the greenhouse. Heaters that radiate heat from a specific point may not heat the entire greenhouse. They could also burn plants near their heat sources.

Cooling

Excessive heat can stunt cannabis growth, so greenhouses in many areas should have cooling systems installed. Often, this just means installing fans that can circulate the air and maintain an even temperature throughout the interior. Many experts recommend horizontal airflow systems that circulate air from the floor to the ceiling.

Shelterbelts

High winds outside the greenhouse can affect the greenhouse’s interior environment. Areas that might experience high winds should use shelterbelts that slow the air’s movement. 

Storage

Your grow operation will need storage space that serves a variety of tasks, including storing chemicals and equipment, curing cannabis flowers, and separating dangerous items from agricultural items. 

Storage often exists as a building separate from the greenhouse. This makes sense because it typically costs less money to construct one or more small buildings than to add storage space to a greenhouse. Ideally, every square foot of your greenhouse should serve a role in cannabis production.

Office Areas

You need a place to conduct business and store records, such as your license to cultivate cannabis. Again, you do not want to waste space inside your greenhouse for office areas. You can either construct a separate building or use the same building where you store equipment.

Parking

A decently sized parking lot might not sound like an important part of your greenhouse. Just wait until you need to accept numerous shipments of soil, fertilizer, and equipment on the same day. 

Build your greenhouse in a location that lets you add a parking lot where you can load and unload items easily. You also need to provide a place for your employees to park. 

Outdoor Production Areas

Keeping in line with the idea that you should devote greenhouse space to growing cannabis, it makes sense to build outdoor production areas where employees can trim, package, weigh, and label cannabis products before shipping them to retailers.

Why Would You Choose a Greenhouse Over a Farm or Warehouse Growing Operation?

A greenhouse lets you extend your growing season, but you can do the same with a warehouse-based indoor grow operation. Why would a cannabis cultivator choose a greenhouse over a farm or warehouse operation?

Cannabis Greenhouse vs. Cannabis Farms

In some cases, cannabis greenhouses exist alongside cannabis farms. A greenhouse, however, has some advantages that you don’t get from farmland. Some of the reasons businesses choose greenhouses over standard farmland include:

  • Extended growing seasons that let them germinate seeds earlier and keep growing plants later — depending on your location, a greenhouse may even let you grow cannabis throughout the year.
  • More control over the growing environment. Standard farming works well for most crops, but you wouldn’t take the same risk when growing cannabis as you would when growing soybeans or corn. A greenhouse gives you more control over your growing environment’s temperature, humidity, moisture, lighting, and soil to help ensure a healthy crop.
  • Better security. You can erect a heavy-duty fence around a farm, but that will cost a lot of money and you still won’t keep out all the pests that want to eat your crops. You might not even keep out the deer. A greenhouse gives you greater security from harm done by insects, animals, and criminals.

If you still prefer farmland over a greenhouse, 420 Property can help you explore your options. Browse listings that offer details of land for sale and land for lease.

Cannabis Greenhouse vs. Warehouse Grow Operations

You can potentially save a lot of money by choosing a greenhouse over a warehouse grow operation. A greenhouse lets your plants get nutrients and energy directly from the sun. You might need to spend money on irrigation, but sunlight doesn’t cost anything.

In a warehouse, you need to supply every aspect of your plant’s needs, including water, nutrients, and artificial sunlight. You can easily spend $1,000 on commercial lighting for just a few plants. Then, you have to pay for the energy it takes to run the commercial lighting. The costs add up quickly.

If the costs were equal, most people would prefer warehouse grow operations since warehouses provide greater control and security. A warehouse costs so much more, though, that it often makes sense for businesses to build greenhouses.

If you are interested in setting up a warehouse grow operation, 420 Property can help you explore warehouse space for sale and warehouse space for lease.

How Much Should You Expect to Spend on a Commercial Greenhouse?

Given how many decisions you can make before having someone build your greenhouse, it’s not surprising that costs vary considerably. The amount of money you spend relies heavily on things like:

  • What type of greenhouse you prefer for growing your cannabis
  • Whether you purchase or lease land for your cannabis greenhouse
  • The location of the land you buy or lease
  • The types of systems you install for watering and feeding plants (manual systems cost much less than automated systems, but they also require much more work on your part)
  • The size of your greenhouse
  • Whether you plan to hire a horticulturist and other professionals to manage your plants

While it’s impossible to say how much you will spend, most experts say that cannabis entrepreneurs should expect to spend $40 to $50 per square foot on a greenhouse.

Explore Various Types of Cannabis Greenhouses for Sale on 420 Property

July 6, 2021Comments Off
The Pros and Cons of Buying a Cannabis Greenhouse

A crop of high-quality cannabis can sell on the legal market for millions of dollars. Many 420 entrepreneurs want to protect their crops from sudden changes in weather and hungry insects, so they turn to cannabis greenhouses. With the right cannabis greenhouse, you can cultivate an excellent crop of trending strains while protecting your plants from the outdoors.

Consider the pros and cons of buying a cannabis greenhouse before you commit to this option. There are obvious perks, but there are some downsides too. Knowing about the advantages and disadvantages will help you make an informed decision that benefits your cannabis business.

Pro: A Cannabis Greenhouse Can Extend Your Growing Season

If you grow cannabis on an outdoor farm, you have a limited growing season determined by your geographic area. During the early stages of growth, cannabis enjoys temperatures between 68 and 77 degrees F. Once your plants start flowering, you need temperatures between 65 and 85 degrees F. Most strains prefer it on the warmer side while they flower.

Outdoor cultivation doesn’t give you any control over temperature. You have some control over moisture and pest maintenance, but you can’t do anything about the temperature. That limits your growing season.

By moving your plants into a greenhouse, you extend your growing season by gaining more control over the temperature. During early spring, you can add heat to your greenhouse to grow young plants. By the time you near summer, you already have healthy cannabis plants ready to start producing flowers.

If it gets very hot in your area, you can protect your plants from excessive heat by cooling the greenhouse. A few fans kept at the greenhouse’s entrance and exit can create a breeze that encourages the plants to grow large, impressive flowers that dispensaries will want to purchase from you.

As the season starts to turn cold again, you can use the sun’s energy to produce an extra crop of cannabis. Some cultivators install heaters that let them continue growing throughout winter.

Con: Cannabis Greenhouses Can Add to Your Expenses

Cannabis entrepreneurs in the United States already face numerous challenges when trying to fund their businesses. Many states welcome new cannabis cultivators. The federal government, however, has not adjusted its laws to make cannabis legal. Since banks and credit unions must follow federal laws, they usually decline applications from cannabis companies.

The situation becomes difficult when you want to purchase a cannabis greenhouse instead of basic farmland for cultivation. First, you have to pay the extra expense of a greenhouse that’s large enough for you to grow crops. Second, you have to pay for additional utilities — such as gas and electricity — that help you control the growing environment.

It certainly helps that some private lenders understand the challenges you face. At 420 Property, you can find commercial cannabis and hemp real estate financiers willing to help fund your cannabis greenhouse.

Despite help from private lenders, it still costs more money to buy a greenhouse than farmland. Many business owners find the additional expense intimidating even though they understand that a greenhouse can help them generate more revenue over time.

Cannabis Greenhouse Tip: Explore the cannabis greenhouse listings on 420 Property to find an option that fits your business plan and capital.

Pro: Some Cannabis Strains Seem to Thrive in Greenhouses

Not all cannabis strains prefer the same growing environment. While some love the fresh air of the outdoors, others prefer the controlled environment of a greenhouse.

If you want to grow popular strains with high retail values, it makes sense for you to invest in a cannabis greenhouse. You might find that the greenhouse pays for itself over a few growing seasons.

Some of the best strains to grow in a greenhouse include:

  • Northern Lights
  • Jack Flash
  • Tahoe OG

These strains show tremendous resistance to mold, so they often grow well in moist, indoor environments. They can also tolerate mild changes in temperature, so you can grow them in small greenhouses without expensive equipment. Of course, it always helps to add equipment that improves irrigation, soil nutrients, light exposure, and other factors that influence growth.

Con: A Cannabis Greenhouse Doesn’t Offer as Much Control as Warehouse Cultivation

Cannabis greenhouse systems give you more control than growing cannabis outdoors. You do not, however, get nearly as much control over your cultivation environment as growers who choose warehouse cultivation.

A cannabis greenhouse can extend your growing season, but you still rely on the sun as your primary source of light and warmth. A cloudy growing season could mean you get small flowers that don’t command high prices. Warehouse cultivation gives you complete control over your plants’ environment.

Explore cannabis warehouse listings to decide whether you want to pursue this option.

Keep in mind that warehouse cultivation also comes with pros and cons. While you gain complete control over the growing environment, you also have to invest a lot of money in cannabis growing systems. When you remove the sun and rain from your growing operation, you have to pay for lighting and irrigation systems. You can also expect your utilities to cost quite a bit more than cultivators growing in greenhouses.

Pro: Cannabis Greenhouses Help Protect Plants From Pests

All kinds of insects and other creatures enjoy munching on cannabis plants. Some of the most troublesome pests include:

  • Spider mites
  • Black flies
  • Aphids
  • Inchworms
  • Caterpillars

Plenty of cannabis farmers also have horror stories of deer and other mammals destroying their crops. When animals get hungry, many of them don’t mind turning to cannabis. They might even get a psychoactive boost that keeps them coming back for more.

A cannabis greenhouse does not create an impenetrable wall that prevents all pests from harming your plants. It can, however, give you more control over the growing environment.

Perhaps some spider mites sneak into your greenhouse. Outdoors, you would have to spray your plants with insecticides to kill the pests. Those chemicals might save your crops, but they can significantly lower the value of your products, especially when you focus on consumers who prefer organic flowers.

Inside a greenhouse, you can manually remove spider mites and other pests without resorting to harmful chemicals. It takes a lot of work, but you can maintain the value of your plants by doing the job by hand.

Similarly — and much more easily — you can introduce beneficial insects that will control the pest population inside your greenhouse. Praying mantises and ladybugs, for example, will eat a lot of pests before they reproduce and become a major problem for your business.

Con: Cannabis Greenhouse Repairs Can Get Expensive

A cannabis greenhouse helps cultivators control their interior growing environments. What happens outside, however, is up to Mother Nature. Unfortunately, that can mean damage from weather events like windstorms and hail.

Repairing a cannabis greenhouse can get expensive. Of course, the amount of money required for repairs depends on the greenhouse materials and the type of damage that occurs. Fixing a rip in plastic lining probably won’t cost very much. Replacing a large greenhouse panel, however, could cost thousands of dollars.

Anyone getting into the cannabis cultivation industry should prepare for unexpected expenses. They might not happen this year, but they will happen eventually.

Greenhouse cannabis cultivators can protect themselves from unexpected expenses by purchasing insurance policies that pay to replace necessary systems and ensure the value of crops.

When learning more about cannabis business insurance, look into options such as:

  • Crop coverage — you could get up to $10 million in coverage for living plants.
  • General liability that pays for the care of anyone injured on the property.
  • Landlord coverage for cannabis greenhouse owners who rent their space to cultivators.
  • Equipment breakdown that will cover lost revenues when important equipment breaks.
  • Workers’ compensation that pays employees when they get injured on the job.
  • Product liability that protects you from the legal costs of defending your products.
  • Directors and officers liability that covers the legal expenses of executives.

Cannabis business insurance can cover practically any type of operation or event you can imagine. With the right level of protection, cultivators don’t need to worry about the high cost of repairing greenhouses and the systems that produce healthy plants.

Pro: Cultivators Can Choose Cannabis Greenhouses That Match Their Needs

A commercial cannabis greenhouse doesn’t look anything like the greenhouse your neighbor uses to grow vegetables. After all, you’re not growing for personal use. You want to start a business that serves thousands of consumers.

Commercial cannabis greenhouses come in a variety of sizes to meet your business’s unique needs. Popular structures include:

  • Freestanding greenhouses that you can erect practically anywhere.
  • Wide-span greenhouses that create a large, indoor area with a controlled environment.
  • Curved glass greenhouses that capture more sunlight throughout the day.
  • Low-profile greenhouses that don’t use as much energy to heat or cool.
  • Greenhouse lean-tos that can make an excellent addition to an existing warehouse grow operation.
  • Cold frames that extend the growing season at minimal cost.
  • High tunnel crop protectors that let your cannabis plants grow naturally while shielding them from extreme weather.

Obviously, you have a lot of options to explore. 420 Property makes the process easier by letting you review cannabis greenhouses and other green zone properties for sale. You can filter your results by area, listing type, or keyword. If you already know what type of greenhouse your business needs, you can quickly find the perfect solution. If you want to explore designs, you can use 420 Property to compare diverse structures on one website.

Con: You Need Land for Your Cannabis Greenhouse

When you buy a cannabis greenhouse, you might also need to purchase the land that it sits on. Even if you can buy a cannabis greenhouse and its related systems without buying a specific plot of land, you still need space for your greenhouse.

If you plan to purchase a greenhouse that isn’t already connected to a piece of land, you should take some time to explore green zone real estate for sale. You might also find that you can keep your expenses lower by leasing green zone land.

Pro: Investing Now Could Maximize Future Profits

The cost of green zone real estate will likely increase as the legal cannabis industry grows. Already, more states in the U.S. are exploring laws that would let more patients and adults access the products they desire. Investing in the right land, greenhouse, and grow systems now could give you a head start. While other businesses scramble to catch up with evolving laws, you will have a business model and cannabis greenhouse in place to start making money.

Find the Right Cannabis Greenhouse on 420 Property

Are you ready to start comparing available cannabis greenhouses? Search cannabis greenhouses for sale and cannabis greenhouses for lease on 420 Property.

July 3, 2021Comments Off
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