Land for hemp grow....

Whats the SOP for allowing someone to grow hemp on your property? Lease agreement? % of yield ?

Thoughts, suggestions…


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Out of curiosity, is it your land or are you acquiring the land?


You’d want a pro forma based on their previous experience growing hemp. You’d want them to definitely have experience, especially if you plan on taking a % based on their performance. The agreement describing the distribution of the yield at the end of the season needs to be very specific and clear, as the difference between gross yield and net yield can be huge.

In any case, you’d want a lease agreement that requires significant upfront payment. An experienced farmer will be willing to shell out $$$ up font knowing the potential profits to be had.

You’d want your lease to include specific clauses regarding the use: organic? soil testing? inputs? sprays? water usage? licensing? compliance checks? right of access? insurance required? site maintenance? odor, noise and visual restrictions? traffic? osha requirements for hired labor? equipment/product storage? utility usage? waste disposal? security? public safety? improvements?

Sometimes the simplest thing is to let go of taking any of the back end and ask for an upfront lump sum for the entire season.

What I was told is that the way it boiled down out west is farmers have usable land in the machinery laborers and investors give about 5000 per acre to pay for labor and material inside and at the end of the year the farmer in the investor split the profit