Potential Economy

POTENTIAL INDUSTRIES

We have limited examples of what the market can truly produce.  The last records of hemp production at an industrial scale is when the government briefly decided to ignore its stated policies and encouraged hemp production for World War II.  That was not exactly an open market or potential of production.  We have the emerging markets of Washington and Colorado to study.  These are good starting points, but these states are extremely limited in their growing capacities compared to Florida, not to mention the fact that Florida has immediate available lands and much more in actual ag production.  Washington, and especially Colorado, are exceeding their expectations substantially.  Estimates that were considered at first unachievable by outside observers are being shattered by the new entrepreneurs.  There is even talk of such a large surplus of tax revenue in Colorado that all citizens will be receiving a tax refund.  To be fair that is just a rumor, but it illustrates the power of this crop.

What Florida Could Do

Agriculture

  • Research and Development = $100,000,000
  • Farming – 2 mil acres x $1000/acre = $2,000,000,000

 Total = $2,100,000,000

Processing

  • Harvesting  – 2 mil acres x $450/acre = $900,000,000
  • Seed Collection and Preparation  – 2 mil acres x $50/acre = $100,000,000
  • Stalk – 2 mil  acres x $50/acre = $100,000,000
  • Leaves – 2 mil acres  x $50/acre = $100,000,000
  • Flowers and Buds – 2 mil acres $100/acre = $200,000,000

Total = $1,400,000,000

Manufacturing – hemp grown for different uses have different yields.  The following uses a 500k acre assumption and what the potentials may be at conservative estimates.

  • Bio Mass –  good yields average 5 tons/acre x  $75/ton = $187,500,000
  • Bio Fuel – good yield is 16 gal/acre x 500k acres x $2.50/gal = $20,000,000
  • Industrial Oil – good yield 16 gal/acre x 500k acres x $7.00/gal = $56,000,000
  • Plastics Production – yields average 5 tons/acre x $75/ton = $187,500,000
  • Building Materials – yields average 2 tons/acre x $125/ton = $125,000,000
  • Industrial Products – good yields average 5 tons/acre x $75/ton = $187,500,000
  • Textiles – 2.5 x  the averages of cotton in GA = $1,500,000,000
  • Animal Food – average yield ½ ton/acre x 500k acres x $.50/lb = $250,000,000
  • Health Supplements – yields average 1 tons/acre x $125/ton = $62,500,000
  • Beauty Products –  yield 16 gal/acre x 500k acres x $12.00/gal = $96,000,000

2.3 million acres would be approximately ¼ our current farmed lands – taking the top 2 and bottom 2 industry projects that would produce –

Total = $1,832,500,000

Distribution

  • Physical Forms
  • Geographical and Hub
  • Transportation

Assumed to be truck transport at 22 tons per truck at $600 per short haul.  Average of 1 ton per acre x 2 million acres

  Total = $54,545,454

Sales

  • Traditional Market Integration
  • Retail
  • Direct
  • Multi-level Marketing

Assumed to be processing plus manufacturing plus 20%

Total = $4,200,000,000

Regulation

  • Monitoring and Tracking

4 x the estimated cost of Colorado

Total = $36,000,000

 Grand Totals = $9,623,045,454hemp4water

*All the above numbers are conservative estimates based on ranges found within research.  They are intended as a starting point and may be subject to change and review.  Whenever possible, the lower value was chosen from the ranges available so that if given a choice, the lesser revenue scenario was utilized.  They were the result of an idea I developed while working with One Florida Foundation and Bill Wohlsifer for Attorney General.

 

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