The world’s agricultural landscape has changed dramatically since the turn of the century. From technological advancements to all-new crops, farmers have had to adapt quickly to an evolving industry. Among these changes is the widespread use of both recreational and medicinal cannabis across the United States. For savvy investors who are looking for opportunities in this budding sector, there are now more opportunities than ever before. Whether they’re looking to invest in an established operation or to get in on the ground level with a new farm, solar energy can play a major role in any cannabis operation for investors looking to boost profits. At Sun Farmer’s Group, we specialize specifically in agricultural solar projects that are tailored for the growers of America. In this article, we will discuss the basics of cannabis farming and why investors should make solar energy a part of their marijuana business plan.
Understanding Cannabis Farming
Cannabis farming involves cultivating cannabis plants, often referred to as “marijuana,” with the aim of selling the harvested crops to distributors and licensed retailers for recreational or medicinal purposes. This sector presents a compelling investment opportunity due to its expanding legal market and growing consumer demand. Cannabis can be cultivated indoors or outdoors, depending on geographic location and the farmer’s preference. This article focuses on commercial-scale operations, excluding personal-use growers. Commercial cannabis farms face unique challenges, such as significant utility demands, which makes them distinct from smaller, home-based setups and highlights the importance of efficient resource management and strategic investment. If you want to learn more about the different types of cannabis farming, you can read this article.
3 Key Advantages for Investing in Cannabis Farming
As an investor, you’re searching for the best opportunities to make a return on any business. Moreover, you want a business that has a solid plan for growth with an in-demand product that will keep customers coming back for decades into the future. Cannabis farming has opened the door for investors to get in at the ground level across the country by partnering with experienced farmers who know the industry inside and out. Below are three key advantages for cannabis farm investors.
- The market demand for cannabis is growing. To say the cannabis industry is booming would be an understatement. As of 2024, the US cannabis market in the US is a $42.98 billion a year industry. That value is projected to continue growing year over year well into 2028 and beyond as the demand for both medical and recreational cannabis continues to soar.
- Profit margins are higher than traditional row crops. Cannabis is a diverse crop with a multitude of applications once harvested. Derivatives from edible products to topical ointments can be made and sold at a high margin. Being able to use one crop for a plethora of marketable products makes it dynamic and easy to like for investors.
- Tax incentives and grants are available for sustainable operations. Like any other crop, growing marijuana can have an impact on the environment as its use of non-renewable resources can take its toll. Luckily, there are plenty of state incentives out there for cannabis farmers around the US to take advantage of if they incorporate sustainable practices into their operation.
How to Maximize Your Return on Investment for Your Cannabis Farm
Now that we’ve established that cannabis is a crop that is worth your investment, let’s talk about how to get more out of it. At the end of the day, there are some operations that are just skating by and others that are making millions. Below are a few things to consider if you want to make the most of your investment in the long term.
- Diversify your product offering. Don’t get pigeonholed into focusing on only one application for cannabis. The more you diversify your crop and product offering, the better. Stay at the cutting edge of the latest trends in cannabis to maximize the uses of your crop to push into new markets and boost your sales significantly.
- Focus on marketing and branding. While the cannabis industry is growing rapidly, there are more and more operations coming online every day. This means you’re entering a saturated market with plenty of motivated competition. Finding ways to differentiate your product with slick marketing and branding can be the difference maker on your bottom line.
- Implement solar early on. Farming any crop can take an enormous amount of energy. This leads to an increasingly daunting energy bill in the mail from the power companies every month. Implementing solar energy on your cannabis farm is the easiest and most effective way to cut one of the largest operating costs for your business.
Final Thoughts on How to Invest in Cannabis Farming
Cannabis is one of the fastest growing and most exciting industries right now in the United States. For investors who are interested, there is no shortage of opportunities to take advantage. If you plan on investing in cannabis farming, make sure you consider making solar energy part of your business plan to ensure better profits and sustainability.
How Sun Farmer’s Group Can Help
Sun Farmer’s Group is the first true turnkey solution for agricultural solar energy. Our proprietary program has brought all of the in-house expertise to the table in grant writing, financing, tax credit monetization, installation, and so much more. Unlike other companies, Sun Farmer’s Group empowers farmers with a no-money down solution that greatly reduces and eventually eliminates your power bill altogether. The future is as bright as the sun, and we’ll help you turn it into power!
Get in Touch
If you’re ready to learn more about how Sun Farmer’s Group can help you put more money in your pocket, call 877-417-3222 today!
Disclaimer: This article should not be used as legal advice. You are responsible for knowing the laws surrounding cannabis growing and distribution in your state. Sun Farmer’s Group assumes no responsibility for anyone attempting to engage in any illicit activity.
