2022 Economics of Growing Hemp for Cannabidiol (CBD) in NYS
John Hanchar, Farm Business Management Specialist
Northwest New York Dairy, Livestock & Field Crops
Economics of Growing Hemp for Cannabidiol (CBD) in NYS: Expected Costs, Revenues and Returns for Three Hemp CBD Production Systems, 2022
Hanchar, J., S. Shelnutt, D. Vergara, L. Pashow, Cornell University/CALS, and CCE
Summary
- Estimated variable costs of production per hemp plant equal $9.84, $9.64, and $4.42 for the greenhouse, high tunnel, and outdoor scenarios, respectively, while fixed costs per plant total $33.95, $9.36, and $0.26 for the three scenarios, respectively.
- Initial value of production (revenue) estimates equal $6 per plant, but value of production varies by output price and % point CBD per pound of plant material.
- Estimated returns above variable costs per plant equal negative $3.84, negative $3.64, and $1.78 for the greenhouse, high tunnel and outdoor hemp CBD production systems.
Introduction
Currently in New York State (NYS), the economic viability of hemp production, processing, marketing and other activities for various end uses are subject to considerable risks and uncertainties - production, marketing, legal, human resources and financial (Pashow and Hanchar). The NYS Office of Cannabis Management (NYSOCM) is working to establish, clarify the legal framework, environment in which hemp industry firms will operate. Other work focuses on addressing other sources of risk and uncertainty.
As risks and uncertainties are addressed, industry firms will evaluate hemp enterprises for viability. What are the conditions for entry or exit? What enterprises, at what sizes make sense? For farm business owners, information needed to best understand the situation, and make decisions include the expected costs of production for various enterprises -fiber, grain, CBD, multipurpose, and others. Information regarding optimal production systems and practices by end use will also help producers with decision making.
The purpose of this work is to estimate expected costs, revenues and returns for three hemp CBD production systems in NYS: greenhouse; high tunnel; and outdoors, where the outdoor scenario is similar to a horticultural setting for vegetable production. The work adds to previous analysis from NY (Hanchar and others), and to analyses from other states.
Working Paper 2022 Economics of Growing Hemp for Cannabidiol (CBD) in NYS (pdf; 323KB)
- Open this pdf to read the full working paper
Dairy
Livestock
Grazing
Forages
Grains
Upcoming Events
2026 Forage Congress
March 12, 2026
Nunda, NY
Due to the unprecedented winter storm that recently impacted travel conditions across the region and U.S., combined with extreme cold temperatures and associated safety concerns, Forage Congress was postponed out of an abundance of caution. This decision was made with the safety of our participants, speakers, staff, and venue partners as the highest priority.
We are pleased to officially announce that Forage Congress has been rescheduled for Thursday, March 12, 2026, and will be held at The Nunda Ranch as originally planned.
Address: 2278-NY 436, Nunda, New York 14517
Sponsorship opportunities, vendor participation, and event registration are now open. We are excited to reconvene this important educational program and look forward to welcoming producers, industry partners, and speakers for a full day of applied, research-based forage systems programming.
From Dry to Fresh: Transition Cow Management Training
March 12, 2026
Albion, NY
This is a 1-day hands-on training in transition cow management offered in English and Spanish.
TENTATIVE- 2026 Dairy Feeder School - November 2026
November 11 - November 12, 2026
Dates are TENTATIVE for 2026! More Details to Come!
Join the Regional Dairy Specialists for a one day on-farm training for dairy farm feeders. The training will be offered in English and Spanish and will feature stations with hands-on activities and demonstrations.