This article originally appeared in the September/October print edition of Cannabis Business Times. To subscribe, click here.
Given the fact that greenhouses offer the lowest cost of production, it is inevitable that cannabis producers increasingly will utilize them in the future. Many factors, however, must be considered before purchasing a greenhouse or buying/leasing land for it. In most circumstances, the farther away you get from an urban area, the lower the land prices; but a location that is too remote can cause many problems as well. So deciding where to construct a greenhouse and how to mitigate potential problems is the first key to potential success — or failure. The cheapest land or greenhouse is not always best.
Consider the following:
Water: Does the property have an existing water supply? Water rights? Does it utilize a municipal water supply or have an established well?
Municipal water can be easily filtered and adjusted.
Well water needs to be closely monitored and tested. Well water content also can vary from time to time, so it must be analyzed multiple times a year. Is the well water clean? Does it contain anything detrimental? If so, it must be properly and efficiently filtered. If it can't be filtered, you can't use that well.
You must assess the water source of any prospective property before doing anything else. Without a proper water source, the property is useless.
Power: Availability and cost of power, be it electricity or natural gas, is crucial. Is there existing electricity to the property? Close to the property? If not, how much will it cost to get power and/or gas to the property, and at what rate will it be sold to you?
Some companies offer special rates for agriculture. Investigate all viable options before buying any property.
Issues around water and power can make or break a business. Bad or no water and expensive power are difficult to overcome inexpensively or efficiently.
To read the full article in Cannabis Business Times' September/October edition, click here.
Given the fact that greenhouses offer the lowest cost of production, it is inevitable that cannabis producers increasingly will utilize them in the future. Many factors, however, must be considered before purchasing a greenhouse or buying/leasing land for it. In most circumstances, the farther away you get from an urban area, the lower the land prices; but a location that is too remote can cause many problems as well. So deciding where to construct a greenhouse and how to mitigate potential problems is the first key to potential success — or failure. The cheapest land or greenhouse is not always best.
Consider the following:
Water: Does the property have an existing water supply? Water rights? Does it utilize a municipal water supply or have an established well?
Municipal water can be easily filtered and adjusted.
Well water needs to be closely monitored and tested. Well water content also can vary from time to time, so it must be analyzed multiple times a year. Is the well water clean? Does it contain anything detrimental? If so, it must be properly and efficiently filtered. If it can't be filtered, you can't use that well.
You must assess the water source of any prospective property before doing anything else. Without a proper water source, the property is useless.
Power: Availability and cost of power, be it electricity or natural gas, is crucial. Is there existing electricity to the property? Close to the property? If not, how much will it cost to get power and/or gas to the property, and at what rate will it be sold to you?
Some companies offer special rates for agriculture. Investigate all viable options before buying any property.
Issues around water and power can make or break a business. Bad or no water and expensive power are difficult to overcome inexpensively or efficiently.
To read the full article in Cannabis Business Times' September/October edition, click here.
